THE IMPACT OF SOCIAL MEDIA MARKETING ON PURCHASE DECISIONS IN THE

TYRE INDUSTRY

MONICA RAMSUNDER

Submitted in partial fulfillment of the requirements for the degree of

MASTERS IN BUSINESS ADMINISTRATION

In the Faculty of Business and Economic Sciences

At the Nelson Mandela Metropolitan University Business School

PROMOTER: Dr M CULLEN

NOVEMBER, 2011 
DECLARATION

I, Monica Ramsunder, in accordance with Rule G4.6.3 hereby declare that:

 The work in this paper is my own original work;

 All sources used or referred to have been documented and acknowledged
by complete referencing; and
 This dissertation has not been previously submitted in full or partial
fulfillment of the requirements for an equivalent or higher qualification at
any other recognised educational institution.

------------------------------
Monica Ramsunder

November 2011

i 
 
 ACKNOWLEDGEMENTS

There have been many individuals who have supported me during this MBA. I
would like thank each and every person who has encouraged me and assisted
me in completing this journey and in particular:

 My parents, Jogendra and Anitha Ramsunder and my sister Julie Ramsunder

for their unwavering support and understanding during this long journey.
Without your love and encouragement I could never have accomplished such
a task. This dissertation is dedicated to you.
 My dearest friend, Donna Whittaker. You were my inspiration and my
shoulder to lean on. Thank you for an incredible journey.
 Dr Margaret Cullen for the professional support and commitment which
guided me throughout this research project.
 To my extended family and friends who never let me give up.
 To the big guy who is always in my heart.

ii 
 
 ABSTRACT

Technology and the boom of the internet have encouraged people to connect
with each other, share information and build relationships (Stelzner, 2009; 2010)
and the social web has presented a new form of communication through social
media which allow people to interact and converse with each other (Evans,
2010). This presents marketers with the opportunity to affect consumers
purchase decisions through online marketing and social media. This social
engagement by consumers has significant impact on marketing activities as
marketers need to be aware of the factors affecting consumer’s purchase
decision (Evans, 2010). Continental Tyre South Africa (CTSA), a local tyre
manufacturer, is embarking on a social media marketing strategy. No other local
tyre manufacturer has a presence on social media platforms. As a result CTSA
would have first mover advantage. The main objective of the research that
follows is to establish if South African tyre purchasers are supportive of social
media as an online research tool to learn more about tyre brands. The
significance of this research study is that marketing communications has taken
on a different dimension with the growth of online market places and the natural
step for CTSA is to engage in social media marketing.

The literature review revealed that many modern consumers sought peer advice
over social networks thus social media has promoted consumer-to-consumer
communication and has made it possible for consumers and brands to interact
with each other (Mangold and Faulds, 2009). It was concluded that whilst social
media marketing presents marketers with a more cost effective form of
marketing, further research regarding South African’s online purchasing activities
would be required to assess if the time, money and resources required to
manage social media marketing for CTSA would be beneficial to the
organisation. As a result a qualitative empirical study was conducted by means of
a questionnaire. The research elements were broken down into three segments;
the internet and social media, consumer-brand engagement and online

iii 
 
recommendations. The research revealed that social media marketing is an
appropriate strategy for CTSA. The main findings further revealed that CTSA
would need to engage in an aggressive traditional marketing campaign in order
to drive consumers to engage in the social media campaigns. Strategies must
include dedicated social media fan pages, online banners, and online
advertisements. Based on the research analysis it is recommended that that
most appropriate social media platforms for CTSA to launch social media
marketing activities are Facebook and Twitter.

iv 
 
 CONTENTS

DECLARATION i

ACKNOWLEDGEMENTS ii

ABSTRACT iii

TABLE OF CONTENTS vi

LIST OF REFERENCES x

LIST OF APPENDICES x

LIST OF FIGURES x

LIST OF TABLES x

LIST OF COMMONLY USED ACRONYMS xi

v 
 
 TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION

1.1 Introduction 1

1.2 Main research problem 3

1.3 Research questions 3

1.4 The research objectives 4

1.5 Prior research 5

1.6 Definition of key concepts 6

1.7 Delimitations and limitations of the research 8

1.7.1 The industry 8

1.7.2 The organisation 9

1.7.3 Geographical area 10

1.7.4 Te unit of analysis for the study 10

1.7.5 Subjects to be studied 10

1.8 Significance of research 11

1.9 Research design and research methodology 12

1.10 Proposed chapters 13

1.11 Summary 14

vi 
 
CHAPTER 2: LITERATURE REVIEW – MARKETING STRATEGY

2.1 Introduction 15

2.2 Marketing and marketing management 16

2.2.1 The marketing mix 20

2.2.2 Marketing strategy 25

2.2.3 The role of marketing 29

2.3 The consumer’s purchase decision journey 29

2.4 Summary 35

CHAPTER 3: LITERATURE REVIEW - SOCIAL MEDIA MARKETING

3.1 Introduction 36

3.2 Electronic marketing (E-marketing) 37

3.3 The internet and word of mouth 40

3.4 Social media 42

3.4.1 Social media marketing 46

3.4.2 Social media marketing and the consumer’s

purchase decision journey 49

3.4.3 Social media marketing and brand awareness 55

3.4.4 Continental and social media marketing 56

3.5 Summary 62

vii 
 
CHAPTER 4: RESEARCH DESIGN AND METHODOLOGY

4.1 Introduction 63

4.2 Research and research design 64

4.3 Quantitative and qualitative research 65

4.4 Research problem 68

4.4.1 Main research problem 68

4.4.2 Research questions 69

4.4.3 Conceptual framework 70

4.5 Conducting the research study 73

4.5.1 Development of the questionnaire 73

4.5.2 Validity and reliability of measurement 74

4.5.3 Pilot study 75

4.5.4 Population and research sample 76

4.5.5 Administration of the questionnaire 76

4.5.6 Response rate 77

4.5.5 Research ethics 77

4.6 Summary 78

CHAPTER 5: RESEARCH ANALYSIS

5.1 Introduction 79

5.2 Results and analysis of the empirical 80

viii 
 
5.2.1 Analysis of demographic information 81

5.2.2 Analysis of the internet as a research tool for consumers 84

5.2.3 Analysis of social media as a research tool for consumers 86

5.2.4 Analysis of consumer-brand engagement via social media 90

5.2.5 Analysis of social media to facilitate word of mouth 93

5.3 Summary 94

CHAPTER SIX: SUMMARY, CONCLUSION AND RECOMMENDATIONS

6.1 Introduction 95

6.2 Summary and discussion of key findings relating to

social media marketing strategy 96

6.2.1 The internet and social media 97

6.2.2 Consumer-brand engagement 97

6.2.3 Online recommendations 98

6.3 Resolution of the main research problem and research

questions 98

6.4 Recommendations 101

6.5 The accomplishment of the research objectives 102

6.6 Recommendations for future research 103

6.7 Summary 103

ix 
 
LIST OF REFERENCES 105

LIST OF APPENDICES
Appendix A: Research questionnaire 117

LIST OF TABLES

Table 1.1: Overview of South African tyre manufacturers 8

Table 1.2: South African footprint for tyre retailers 9

Table 3.1: Generic social media marketing framework 50

Table 3.2: Summary of consumer’s attitudes toward online

Information 52

Table 4.1: Qualitative and quantitative research methodologies 66

Table 5.1: Summary of research sample 80

LIS T OF FIGURES
Figure 2.1: The traditional marketing mix 20
Figure 2.2: The 7P’s marketing mix 22

Figure 2.3: Elements of brand equity 25

Figure 2.4: The purchasing funnel 31

Figure 3.1 Social feedback loops 53

Figure 3.2: 2009-2010 comparison of online tyre research 57

Figure 3.3: 2010 tyre purchases in South Africa 59

Figure 3.4: Summary of online research prior to tyre purchase 60

Figure 3.5: Age factor comparison 2009-2010 61

x 
 
Figure 4.1: Conceptual framework for qualitative research study 71

Figure 5.1 Analysis of consumer demographic: age and race 82

Figure 5.2 Analysis of consumer demographics: gender 83

Figure 5.3: Number of hours consumers spend on the internet by

age 84

Figure 5.4: Number of hours consumers spent on the internet

by gender 85

Figure 5.5: Main reasons for consumers accessing the internet 86

Figure 5.6: South African consumer’s awareness of social media

Platforms 87

Figure 5.7: South African consumer’s participation on social media

platforms 88

Figure 5.8: Platforms used for online tyre research 90

Figure 5.9: Factors contributing to online brand awareness 91

Figure 5.10: Factors contributing to online brand knowledge 92

LIST OF COMMONLY USED ACRONYMS

CTSA Continental Tyre South Africa

WOM Word of mouth

eWOM Electronic word of mouth

xi 
 
 CHAPTER 1

INTRODUCTION

Marketing is not the art of finding clever ways to dispose of what you make.
It is the art of creating value
Philip Kotler (2011)

1.1 INTRODUCTION
Globalisation as described by Hill (2009) is the shift towards a more integrated
and interdependent world economy thereby merging historically distinct and
separate national markets into one huge global marketplace. The Economic
Intelligence Unit (2009) reported that during the recession which commenced in
2007, the global market place was affected by changes in exchange rates,
inflation and consumer purchasing behaviour. These changes in the economy
forced organisations to remodel business strategies in order communicate their
brands more effectively. Davis (2001) writes that one of an organisation’s most
valuable assets is its brand and the modern organisation needs to realise that
capitalising on its brand is important as it can help achieve growth, profitability
objectives and sustainability.

Brands can be built by means of advertising, meeting customer specific needs,

associating a specific type of image to a product, identifying and closing a gap
that competitors have not identified, aggressive communication and pricing
strategies (Burger, 2009). As recessions are times of high anxiety, it was
important for organisations to keep honest, open channels of communication and
maintain a good reputation in the most cost effective way (Economic Intelligence
Unit, 2009). One of the most popular means of communicating brands during the
recession was through social media marketing; online or electronic media which
facilitates participation, openness, conversation, community and connectivity
amongst online users (Mayfield, 2008).

1 
 
Social media such as Facebook, Twitter and YouTube are dynamic tools that
facilitate online relationships (Golden, 2011). It is a relatively low cost form of
marketing and allows organisations to engage in direct and end-user contact
(Kaplan and Haenlein, 2010). Given the choices made available to consumers
and the influential role of social media marketing, the brands and consumers
have a changing role to play in the organisation’s strategy in that they now have
an economic impact (Lindermann, 2004; Mayfield, 2008). Brands influence
customer choice. Customers influence other customers. These chains of events
affect repurchases, which further affect future earnings and long term
organisational sustainability (Oliveira and Sullivan, 2003).

A leading brand thus influences consumer’s buying behaviour and creates value
by generating demand (through repurchases) and securing future earnings for
the business (Oliveira and Sullivan, 2003). Therefore social media marketing
represents communication opportunities and requires new and unconventional
thinking (Kaplan and Haenlein, 2010; Kweskin, 2007) to ensure that consumers
experience brand orientation and product orientation (Xiaofen and Yiling, 2009).
This new era of social engagement and digital communication is paramount to
business strategy. As organisations become more globally competitive it is
important for marketing strategy to explore more innovative and compelling
avenues to attract larger pools of customers (Rockendorf, 2011). On assessing
the South Africa tyre industry from a social media marketing perspective, it is
evident that none of the four local tyre manufacturers (Continental, Goodyear,
Dunlop and Bridgestone) have a presence on social media platforms (Facebook,
2011; Twitter, 2011). This presents marketers in the tyre industry with the
opportunity to utilise new and innovative marketing tools to communicate tyre
brands in the local and global market place in order to activate consumer’s
purchasing decisions (Rockendorf, 2011). This leads to the research problems
as outlined below.

2 
 
1.2 MAIN RESEARCH PROBLEM
The social phenomena investigated in the research study that follows are the
elements of consumer’s purchasing behaviour in online environments and the
influence of social media marketing in the consumer’s purchase decision. The
main problem which this study aims to address is South African consumer’s
attitudes toward online tyre research; more specifically the impact of social media
marketing as a research tool during the consumer’s decision making process
when purchasing tyres.

1.3 RESEARCH QUESTIONS

The main problem as discussed in section 1.2 above is too large to be resolved
without breaking it down into research questions. By solving the main problem
through the research questions, the researcher obtains a better methodology of
approaching and investigating the problem. This means that the main problem is
resolved in component parts (Leedy and Ormrod, 2005).

The research questions have been identified as follows:

Research question 1
 What are the key elements contributing to effective marketing strategy?
 What are the traditional elements of marketing strategy?
 What is the new role of the 7P’s marketing mix in terms of
consumer engagement?
 How can marketers affect consumers during the consumer’s
purchase decision journey?

Research question 2
 What is an ideal social media marketing strategy?
 How can marketers utilise social media marketing tools effectively
to reach consumers during the consumer’s purchase decision
journey?

3 
 
Research question 3
 What are the perceptions of South African consumers regarding social
media as an interactive channel of communication between consumers
and brands?
 Are South African consumers willing to engage with brands on
social media platforms to increase their knowledge about the
brand’s performance, specification, capabilities and price?
 Are South African consumers willing to share their opinions,
perceptions and experiences regarding tyre brands and tyre
purchases with other consumers on social media platforms?

Research question 4
 Does social media marketing present an opportunity for CTSA to reach
consumers in online environments?
 Will electronic marketing and social media marketing be an
appropriate strategy for CTSA to communicate information about
tyre brands to the South African tyre market?
 Which social media marketing tools would be most effective for
CTSA to apply when implementing social media marketing strategy
in the South African tyre market?

1.4 THE RESEARCH OBJECTIVES

 Internet and social media: The research objective is to assess if
marketing activities to stimulate the need for the brand or product through
aggressive online marketing communication (brand awareness) will be
effective through company websites and/or social media platforms.
 Brand-consumer engagement: The research objective is to assess if
consumers are interested in engaging with brands (via marketers) on
social media platforms to increase their knowledge about the brands
performance, specification, capabilities and price.

4 
 
  Online recommendations: The research objective is to assess if
consumers are willing to engage in word of mouth (WOM) by sharing
opinions, perceptions and experiences regarding tyre brands and tyre
purchases with other consumers.

1.5 PRIOR RESEARCH

Virtual worlds are the medium for formal and informal collaboration between
consumers and organisations and the virtual business environment is a critical
determinant of competitiveness (Cohen, 2008). Today’s consumer is a proactive
buyer (Peppard and Butler, 1998) and online consumers can provide marketers
with valuable cultural and marketing information (Brown, Broderick and Lee,
2007). In order to understand consumers in the virtual world, it is important to
understand how consumers make purchase decisions (Peppard and Butler,
1998). The growth of social media has allowed for increased situational
awareness in terms of a changing environment (Mayfield, 2011) thus social
media marketing is playing an increasingly important role in marketing (Cuming,
2008).

Fauser, Weidenhofer and Lorenz (2011) conducted a research study regarding

the impact of social media during the consumer’s purchase decision journey. In
their analysis and conceptual model, Fauser et al. (2011) wrote that whilst
communication was the core of any social media platform, information sharing,
collaboration and relationship building was necessary to support ongoing
communication. The study (Fauser et al., 2011) concluded that social media
marketing is an essential tool for marketing brands and products due to the rapid
development in social media and changes in consumer behaviour. The results
proved that social media can be effective in influencing consumers during all
stages of the consumer’s purchase decision journey.

Cuming (2008) conducted a research study in the United States of America

(USA) to explore consumer’s relationships on social media platforms. The

5 
 
analysis revealed that overall online information played an influential role in the
consumer’s final purchase decision. The study concluded that consumers who
frequented social media platforms were more likely to be influenced in their final
purchase decision (Cuming, 2008).

A limitation of these two sets of previous research (Cuming, 2008; Fauser et al.,
2011) is that the research samples did not include the South African market. The
results from the prior research are addressed in detail in the literature review in
chapter three (3.4.2 social media marketing and the consumer’s purchase
decision). The literature review in chapter three concluded that whilst social
media marketing presents marketers with a more cost effective form of
marketing, further research regarding South African’s online purchasing activities
would be required to assess if the time, money and resources required to
manage social media marketing for CTSA would be beneficial to the
organisation.

1.6 DEFINITION OF KEY CONCEPTS

The following terms and phrases are repeated throughout the research study.
These terms and phrases are defined by the Business Dictionary (2011) as
follows:

 Brands are unique designs, signs, symbols, words, or a combination of

these, employed in creating images that identifies a product and
differentiates it from its competitors. Over time, these images become
associated with a level of credibility, quality, and satisfaction in the
consumer's mind.
 Connectivity refers to a consumer’s access and ability to participate in
online communications life.
 Consumers are purchasers of specific products and/or services.

6 
 
  Differentiation is the result of efforts which make a product or brand
stand out as a provider of unique value to customers in comparison with
its competitors.
 E-Marketing is the application of marketing principals through electronic
resources such as the internet.
 eWOM is electronic word of mouth; the sharing of thoughts and/or
perceptions by means of electronic or digital communication.
 Internet is a worldwide interconnection of computers and computer
networks that facilitate the sharing or exchange of information.
 Marketing is the management process through which goods and services
move from concept to the customer.
 Marketing mix is a planned mix of the controllable elements of a product's
marketing plan commonly termed as 4Ps: product, price, place, and
promotion. The new marketing mix is commonly termed as the 7P’s and
includes people, process and physical evidence.
 Marketing management is a process of identifying, anticipating and
satisfying consumer requirements. This involves tracking and reviewing
an organisation’s marketing resources and activities.
 Marketing strategy is the process whereby an organisation aligns itself to
the market it has decided to serve. It integrates an organisation’s
marketing goals and focuses on the ideal marketing mix to achieve
maximum profit potential.
 Online research is a means of research which allows the researcher to
investigate a phenomenon and collect data through the internet.
 Social media involves natural and general conversation between people
about a topic of mutual interest (e.g. Facebook, Twitter, Linkedin and
Blogs). Social media facilitates the exchange of information via email,
chat rooms, blogs, discussion forums, digital audio, images and movies.
 Social media marketing represents marketing communication
opportunities in virtual or online environments.

7 
 
  Target markets are groups of specific consumers at which marketing
strategies are focused.
 Word of Mouth (WOM) is a consumer dominated channel of marketing
and has significant influence on the consumer’s information search,
evaluation of alternatives and final decision to purchase a product and/or
service

1.7 DELIMITATION AND LIMITATION OF THE RESEARCH

In order to ensure that the main problem and research questions are addressed
appropriately it is important to establish the scope and boundaries of the
research. This is referred as the delimitation of the research (Leedy and Ormrod,
2005).

1.7.1 THE INDUSTRY

The research focuses specifically on the South African tyre industry. The South
African tyre manufacturing industry consists of four major manufacturers,
operating in six manufacturing locations nationwide. These manufacturers are
listed in table 1.1 below.

Table 1.1: Overview of South African tyre manufacturers

Company South African Manufacturing Site Source of Major Shareholders

Apollo Tyres South Africa (Pty) Ltd Durban and Ladysmith India

Bridgeston South Africa (Pty) Ltd Port Elizabeth and Brits Japan

Continental Tyre South Africa (Pty) Ltd Port Elizabeth Germany

Goodyear South Africa (Pty) Ltd Uitenhage United States of America (USA)

Source: Rubbersa (2011)

The industry manufactures tyres for passenger, commercial, agricultural, mining,

construction and industrial vehicles with an annual output of approximately
twelve million tyres per year. This level of output represents 1% of the total world
tyre manufacturing capacity (Rubbersa, 2011). Tyres are sold directly to

8 
 
consumers by means of tyre retailers; more commonly known as tyre fitment
centres (Continental, 2011). The South African foot print for tyre retailers is
represented by Continental (2011) in table 1.2 below:

Table 1.2: South African footprint for tyre retailers

Tyre retailers No. of dealerships

Autoquip 10
Conti Partner 146
Dunlop Accredited Dealers 39
HI-Q 175
Kwikfit 60
Maxiprest 65
Mintys 10
Speedy 71
Supaquick 254
Tiger Wheel & Tyre 62
Trentyre 80
Other Independants (Estimated) 200
TOTAL 1172

Source: Continental (2011)

1.7.2 THE ORGANISATION

Continental is an international tyre and rubber manufacturer founded in Hanover
Germany in 1871. Today, Continental ranks among the top four tyre
manufacturers (Bridgestone, Dunlop and Goodyear) worldwide with business
units in forty six countries including South Africa (Continental, 2011). CTSA is
located in Port Elizabeth and manufactures the Continental, General Tyre and
Barum brands in South Africa (Continental, 2011). The current business model
includes strategies for original equipment manufacturers (automotive vehicle
manufacturers) and for the replacement (after sales) market.

9 
 
1.7.3 GEOGRAPHICAL AREA
The research field study was limited to two tyre dealerships in Pretoria, namely:
 Autowiel Hi-Q Menlyn; and
 Autowiel ContiPartner Montana.

Hi-Q is a Goodyear Franchise and ContiPartner is based on a loyalty programme

with Continental. These two dealerships were specifically chosen to ensure that
the results of the survey were not biased toward the Continental brand.

1.7.4 THE UNIT OF ANALYSIS FOR THE STUDY

The unit of analysis is the major entity under study. The research problem is
based on this unit and data is collected and analysed around it (Trochim and
Donnelly, 2006). The unit of analysis in this study was the South African tyre
consumer who purchased two or more tyres in a single purchase at the Autowiel
tyre dealerships in Pretoria, South Africa. The rational for this sample selection
is that multiple tyre brands and a mix of tyre tread patterns on a single vehicle
are not recommended by the tyre industry due to safety considerations
(Continental, 2011). It is therefore more likely for a consumer to consider
alternate tyre brands and/or different tyre sizes when they purchase two or more
tyres for their vehicle(s).

1.7.5 SUBJECTS TO BE STUDIED

The research study which investigates impact of social media marketing on a
consumer’s purchase decision in the South African tyre industry addresses:
 Traditional marketing strategies;
 The consumer’s purchase decision journey; and
 Social media marketing strategy.

10 
 
1.8 SIGNIFICANCE OF RESEARCH
Social media as explained by Mayfield (2011) is changing the way information is
communicated to and from people around the world. The rapid use of social
media is changing the way organisations respond to consumer’s needs and
wants and changing the way they respond to their competitors (Mayfield, 2011).
Marketers now have the opportunity to engage in broader and more innovative
forms of online mass media communications by using social media marketing
tools (Stelzner, 2010). Social media marketing is about passion, emotion and
genuine expression towards a brand (Brandz, 2010). The growth of social media
and by association eWOM (electronic word of mouth) has enabled consumers to
interact with each other in the virtual world and to share their perceptions and
opinions of brand value (Gruen, Osmonbekov and Czaplweksi, 2005). Social
media marketing thus represents communication opportunities for marketers to
reach wider audiences (Kweskin, 2007) and allows for marketers to access
valuable information which affects building and maintaining consumer
relationships (Evans, 2010).

The growth of social media has allowed for increased situational awareness in
global online environments (Mayfield, 2011) thus social media marketing is
playing an increasingly important role in marketing strategy (Cuming, 2008).
Based on the literature reviews (detailed in chapters two and three), the author
identified a gap in the South African tyre market for CTSA to capitalise on.
Continental ranks among the top four tyre manufacturers; Bridgestone,
Continental, Dunlop and Goodyear. At present none of these local tyre
manufacturers have a presence on social media platforms (Facebook, 2011;
Twitter, 2011).

The significance of this research study is that marketing communications has

taken on a different dimension and the natural step for CTSA is to engage in
social media marketing. CTSA would be the first local tyre manufacturer to
launch Facebook and Twitter social media pages thereby giving CTSA first

11 
 
mover advantage. The benefits would include creating mass online brand
awareness, providing consumers with a means of researching tyre brands in
online environments and creating new platforms for consumers to interact with
the brand and other tyre consumers.

Therefore further insight is required to assess South African consumer’s attitudes

towards online research, more specifically the impact of social media as a
research tool during the consumer’s decision making process in the tyre industry.
The author proposed that the research study focused on the conceptual frame
work (as per chapter four, figure 4.2). The specific research objectives were
identified as follows:
 The internet and social media as a research tool;
 Consumer-brand engagement; and
 Online recommendations as electronic word of mouth (eWOM).

1.9 RESEARCH DESIGN AND METHODOLOGY

As the social phenomena under review are reliant on the participant’s views,
opinions and perceptions, qualitative research methodology was identified as the
appropriate research methodology for the research study that follows (Collis and
Hussey, 2009). The research instrument used in this study was a questionnaire
which was designed specifically for the purpose of this research study. The
questionnaire was based on the literature review and specifically addressed:

 Demographic information;
 Accessibility and hours spent on the internet;
 Uses of the internet;
 Awareness of social media;
 Social media as a form of engagement between the consumer and the
brand; and
 Social media as a form of eWOM.

12 
 
The questionnaire was initially tested by conducting a pilot study at a tyre
dealership in Port Elizabeth, South Africa. Following feedback and suggestions
from the pilot study, the questionnaire was revised. The official field study was
conducted in Pretoria, South Africa. The response rate was 80%. The data
collected from the research study will be reviewed in conjunction with the
literature study to authenticate the findings and recommendations in chapters five
and six respectively.

1.10 PROPOSED CHAPTERS

The research study consists of six chapters as follows:
 Chapter one introduced the research topic, the main problem and research
questions. It further outlined the significance of the research and the
appropriate research methodology required to achieve the research
objectives.
 Chapter two will discuss traditional marketing mix strategies (4P’s) and the
emerging role of the 7P’s. This chapter will also provide a literature review on
the elements of brand equity and the role of marketing in the consumer’s
purchase decision journey.
 Chapter three focuses on electronic marketing, social media and the role of
social media marketing in the consumer’s purchase decision journey. This
literature review includes results from two previous social media marketing
research studies and will highlight the opportunities available to social media
marketers.
 Chapter four outlines the research methodology and research instrument
which is deemed appropriate for the field study.
 Chapter five analyses and discusses the results based on the field study
(questionnaire). The analysis of results from the study will either support or
negate the main problem and research questions as outlined in chapter four.
 Chapter six will summarise and conclude the research study. The author will
provide recommendations and suggest elements for future research based on
the current research

13 
 
1.11 SUMMARY
This chapter introduced the research topic together with a brief overview of the
literature review. The main problem was defined and further broken down into
research questions to enable the researcher to investigate the phenomena more
accurately. The main problem and research questions are pertinent to the South
Africa tyre industry therefore the author provided a brief overview of the South
African tyre manufacturing industry and the significance of the research to CTSA.
The literature review which follows in chapter two will review traditional marketing
mix strategies and the emerging role of the 7P’s as well as elements of brand
equity and the role of marketing in consumer’s purchase decision journey.

14 
 
 CHAPTER 2

LITERATURE REVIEW – MARKETING STRATEGY

2.1 INTRODUCTION
Marketing is a goal orientated process and consists of interrelated activities that
involve both the planning and executing of activities which bring about mutually
satisfying exchanges between buyers and sellers (Loudon, Stevens and Wrenn,
2005). Marketing strategy is about creating value for customers (Kotler and
Armstrong, 2004) and marketing strategy should deliver value to its customers in
ways that build and improve relationships (Armstrong, Harker, Kotler and
Brennan, 2009). The 4P’s marketing mix is the traditional tool box used by
marketers to communicate value propositions to consumers (Constantinides,
2006). However some marketing guru’s argue that in the global arena, the
elements of people, process and physical evidence need to be included in
marketing strategy. Thus the marketing mix has expanded into the 7P’s (The
Chartered Institute of Marketing, 2009). Taking these elements of the marketing
mix into account, marketers need to focus marketing strategy on brand
awareness, brand associations, perceived quality of the brand and consumer
loyalty to the brand in order to appeal to consumers as they make their purchase
decisions (Aaker and Joachimsthaler, 2000).

Marketing’s role is to communicate the value proposition to consumers as they

move through a purchase decision making process (Court, Elzinga, Mulder and
Vetvik, 2009) and build relationships with them which ultimately results in
relationship marketing (Kiang, Raghu and Shang, 2000). This presents
marketers with the opportunity to affect consumer’s purchase decisions through
marketing strategy. The literature review that follows discusses the traditional
role of marketing, the evolution of the marketing mix and the role of marketing
strategy during the consumer’s purchase decision journey.

15 
 
2.2 MARKETING AND MARKETING MANAGEMENT
Kotler (2011) writes that “marketing is not the art of finding clever ways to
dispose of what you make. It is the art of creating value.” Marketing as
described by Silk (2006) is the process which a firm creates value and in turn
value is created by meeting customer needs. Value is the difference between
the total costs of making a purchase and the total benefits received from the
product and/or service (Kotler and Armstrong, 2004). It is the combination of
product quality, service support and timely delivery at a reasonable price (Rein,
Kotler, Hamlin and Stoller, 2005). Hoffman, Dickson, Griffin, Krishnan,
Ronkainen, Rosenbloom, Sheth, Shimp, Siguaw, Simpson, Speh and Urbany
(2005) describe marketing as “the planning and implementation of almost
everything an organisation does to facilitate an exchange between itself and its
customers.” Marketing as defined by Kotler and Armstrong (2004) is a social and
managerial process. It is an activity which facilitates exchanges between buyers
and sellers; a function within an organisation which communicates the
organisation’s value proposition as a philosophy which affects an entire
organisation’s dealing within the market place (Kotler and Armstrong, 2004).
Thus marketing management involves specific elements of product, pricing,
promotions and distribution (Rein et al., 2005).

Marketing management may be defined as the process of identifying, anticipating

and satisfying consumer requirements. Marketing takes into account the external
environment and the conditions that influence marketing plans (The Chartered
Institute of Marketing, 2009). This means that marketing efforts need to be
carefully strategised and implemented in order to facilitate an exchange under
new and changing environmental conditions in order to build consumer
relationships and influence consumer behaviour (Hoffman et al., 2005). As
organisations build and maintain consumer relationships, they need to provide
consumers with a competitively compelling value proposition to meet their
specific needs (Vargo and Lusch, 2004). Therefore organisations need to monitor
the external environment (Hoffman et al., 2005) and customer interaction (The

16 
 
Chartered Institute of Marketing, 2009) and learn how to improve the
organisation’s value proposition to the consumer (Vargo and Lusch, 2004).
Based on the above definitions, it can be concluded that marketing is a study of
the market place which results in an organisation’s ability to offer a value
proposition to a consumer at the right place, the right time and at a competitive
price to bring about a mutual exchange between the buyers and sellers (Kotler
and Armstrong, 2004; Vargo and Lusch, 2004; Hoffman et al., 2005; Silk, 2006
and Kotler, 2011).

Marketing activities are crucial to management decisions and creating value for
consumers (Kiang et al., 2000). Two strategies critical to creating value are (1)
segmenting and selecting target markets and (2) planning specific marketing
activities to attract and retain the selected market (Silk, 2006). Market
segmentation is the process of analysing the market and dividing the market into
specific groups of consumers. This allows marketers to tailor specific marketing
activities to reach the targeted consumers (Kumar, 2004). Segmentation
analysis helps marketers understand the demographic environment in terms of
population size, age, sex, gender, education, buying behaviour, market growth
and disposable income (Loudon et al., 2005). This analysis is critical to
relationship marketing as it builds the foundation for customer retention strategy
by allowing marketers to continuously monitor and respond to the markets
changing needs and wants (Gronroos, 1994).

According to Loudon et al. (2005) target markets must be:

 Sizeable: The market must be large enough to justify marketing spend
and generate sales revenue;
 Identifiable: Marketers must have a clear description of the target market
and identify if this market is appropriate for the product;
 Reachable: Marketers must be able to clearly identify segments but also
be able to reach them selectively (e.g. through specific promotional
campaigns);

17 
 
  Respond differently: Marketing activities must be tailored to meet the
specific needs of the target market;
 Coherent: Ideally the segmented market have similar attitudes,
behavioural attributes, and other characteristics which are key to
developing marketing campaigns and promotions; and
 Stable: Marketers must be able to reach target markets over a long
period of time in order to establish brand presence and build brand loyalty.

Society, including business and marketing is a network of relationships. This

means that human interaction is the core of any business (Silk, 2006). Marketers
will need to engage in market research to segment the markets in order to define
the target markets, identify and influence the changing needs and wants of their
consumers (Burger, 2009; Rockendorf, 2011). Marketers must further clearly
differentiate products and marketing mixes from competitors and engage in
continuous market research and market communications to ensure that there is
strategic fit and alignment between the organisation, the value proposition and
the target markets (Burger, 2009).

Market communications are important to building relationships as they influence

consumer behaviour by facilitating the exchange between buyers and sellers
thereby increasing interactivity, improving the perceptual experience and finally
improving personalisation (Kiang et al., 2000). Peppers and Rogers (2010) write
that customers are every organisation’s source of revenue, thus an
organisation’s most valuable financial asset is its customer base. In order to
attract and retain consumers through market communications and manage the
customer base marketers need to understand consumer’s purchasing behaviour
and develop specific marketing strategies to influence this behaviour thereby
facilitating relationship marketing (Silk, 2006).

Relationship marketing thus translates into consumer-in-focus (market

segmentation), consumer satisfaction, consumer-perceived quality and consumer
18 
 
retention marketing activities (Gummesson, 2002). The concept of relationship
marketing may be understood via customer relationship management (CRM); a
strategy that focuses on creating two-way exchanges with consumers and allows
marketers to obtain intimate knowledge about consumer’s needs, wants and
buying patterns (Jha, 2008).

Raab, Ajami, Gargeya and Goddard (2008) summarise the key elements of CRM
as follows:
 Customer orientation: Marketing’s complete focus should be on the
consumer’s potential needs, wants and problems. Marketers should therefore
have exact knowledge of market competition, products available to the
customer and the general course and trend of customer buying behaviour.
This knowledge will assist marketers in applying the marketing mix effectively
to marketing strategies;
 Quality of product and quality of service performance: The focus should
be on quality in relation to the competition. Strategic decisions must include
finding a product suitable for the customer instead of finding customers for the
product;
 Customer satisfaction: If customers are satisfied with their experience with
the product or service, they will be inclined to refer the product or service to
others;
 Customer retention: Organisations that succeed in meeting or exceeding
customers expectations generate customer satisfaction which in turn retains
customers and creates a basis for future business with them; and
 Customer value and company success: As long as customers recognise
value in a product or service they will be loyal to the product or service and
generate future sales and revenue. This represents long term sustainability
for the organisation.

19 
 
Takin
ng into account the ab
bove eleme
ents, CRM m
may be desscribed as tthe strategiic
proce
ess of shap
ping interac
ctions betwe
een consum
mers and th
he organisa
ation thereb
by
attracting and retaining
r co
onsumers by
b creating satisfactio
on and long
g term valu
ue
ab et al., 20
(Raa 008). It is concluded
c onships, networks, inte
that relatio eraction an
nd
able value propositions are the core of relationship m
suita marketing a
and may b
be
facilittated through the marrketing mix (Gummessson, 2002; S
Silk, 2006 a
and Raab e
et
al., 2008).
2

1 THE MAR
2.2.1 RKETING MIX
M
m has been the trad
The marketing mix ditional tool box and fo
oundation fo
or marketin
ng
agement (C
mana Constantinides, 2006)). The main
n aim of th
he marketin
ng mix is tto
inform
m, remind and persuade consumers to pu
urchase pro
oducts and
d/or service
es
(Williiams and Curtis,
C 2006
6).

Figure 2.1: The trraditional m

marketing mix

Source: Adapted from

f Hoffm
man et al. (2
2005)

20 
 
Based on figure 2.1 above, Hoffman et al. (2005) describes the traditional
marketing mix (4P’s) as follows:

 Product : The offering which provides value to the consumer;

 Price: Competitive pricing which offers consumers better value for
money;
 Place: The availability of a product at the right place, the right time and
right quantity; and
 Promotion: The way firms communicate its product offering (value
proposition) to consumers.

The traditional role of the marketing mix has been to promote brands, stimulate
market demand for the brand, increase brand awareness and remind and
reinforce perceptions about the brand (Williams and Curtis, 2006). New waves in
technology allow the modern consumer to be participative in the marketing
process (Kotler, Katajaya and Setiawan, 2010). Therefore today’s consumers
are well informed and are able to compare and contrast several product
offerings. Constantinides (2006) is critical in his assessment of the traditional
marketing mix stating that the 4P’s ignore the human factor and that it lacks
interactivity. The 4P’s lack personalisation and ignores the dynamic and social
marketing process in the virtual world (Constantinides, 2006).

Globalisation has further challenged the traditional marketing practices of the

4P’s by creating a broader customer interface through the internet. (Kotler et al.,
2010). Marketers now have the opportunity to provide its customers with
additional value associated to technology, information, knowledge and social
activities thereby creating more personalised marketing strategies (Evans, 2010).
This enables marketers to develop more personalised and social marketing
strategies aimed at specific consumers to initiate long lasting relationships
(Gummesson, 2002).

21 
 
The Chartered Institute of Marketing (2009)) writes th
hat in orde
er to reacch
sumers morre socially and
cons a in onlin
ne environm
ments an ad
dditional 3P
P’s had to b
be
included in the marketing mix:
m
 People: Employee
es, consum
mers and a ny other pe
erson who comes intto
contact with
w consum
mers;
 s: The proce
Process ess of serviice deliveryy to consum
mers; and
 e: Testimo
Physical Evidence onies of go
ood service
e, professio
onal facilitie
es
and an overall
o profe
essional atm
mosphere.

Therrefore the marketing

m mix
m has evolved into th
he 7P’s; pro
oduct, price
e, promotion
n,
place
e, people, process
p an
nd physical evidence (Chartered Institute o
of Marketing
g,
2009
9). The 7P
P’s are now
w representted in figurre 2.2 belo
ow (Cant, S
Strydom an
nd
Joos
ste, 2006).

Figure
F 2.2: The 7P’s m
marketing mix

Sou
urce: Adap
pted from C
Cant et al. (2006)

22 
 
Cant et al. (2006) support the argument presented by The Chartered Institute of
Marketing (2009) that the traditional 4P’s are inadequate to ensure full customer
satisfaction; processes and people are integral parts of the total marketing mix
and contribute to quality products and services being delivered to customers.
They (Cant et al., 2006) elaborate that only when synergy among all the
elements of the marketing mix is achieved can customer satisfaction can be
ensured. This synergy is represented in figure 2.2 above. Therefore all
elements of the marketing mix play an important role in communicating the
brand’s message to the consumer (Wood, 2000). Creating integrated marketing
communications by coordinating the elements of the marketing mix is an effective
means of achieving the objective of promoting the brand (Williams and Curtis,
2006).

Williams and Curtis (2006) explain that the role of the 7P’s marketing mix, with
emphasis on communications will be to:
 Differentiate the brand;
 Remind and reassure the targeted audience of the brands image and
benefits;
 Re-inform the target audience by providing them with new and current
information about the brand; and
 Persuade the target audience to take a specific set of actions (e.g. visit the
brand’s website).

This new role of the marketing mix allows marketers to build brand awareness
and support amongst influencers in society who are able to promote the brand in
social circles (Cant et al., 2006; Williams and Curtis, 2006). Taking the 7P’s
marketing mix into account, marketers need to always consider the external
environment, carefully segment the market and identify consumers, research
their needs and preferences and analyse their attitude towards the elements of
the marketing mix, particularly the element of promotion (The Chartered Institute
of Marketing, 2009). Communication and promotion of the brand identity and

23 
 
brand image are key components of the marketing mix strategy and must be
customised in order to meet the needs and wants of the consumer. This
facilitates relationship building between the brand and the consumer which in
turn facilitates relationship marketing (Wood, 2000; The Chartered Institute of
Marketing, 2009).

Gronroos (1994) explains that relationship building has now been labelled as
relationship marketing. The marketing mix as part of marketing management
must be considered as a business philosophy and marketers must consider
relationship marketing when setting marketing strategies (Hoffman et al., 2005).
It is therefore concluded that the objective of a marketing mix strategy is to
establish the successive and simultaneous actions of consumer’s purchasing
decisions (Belohlavek, 2008). Relationship marketing places its main focus on
building long term relationships between organisations and its customers and all
efforts in an organisation should be geared toward building these relationships
(Cant et al., 2006). In relationship marketing, interactive marketing becomes the
dominating part of the marketing function; the image and brand of the
organisation become the factors that the consumer is loyal and attached to
(Gronroos, 1994). Therefore market communication (through the marketing mix)
is a convenient channel to reach consumers and create dialogue and interaction
between the buyers and the sellers. This facilitates relationship marketing
(Gronroos, 1994; Vargo and Lusch, 2004 and Hoffman et al., 2005).

Vargo and Lusch (2004) write that due to the emphasis on relationship
marketing, promotions will need to become the communication process
characterised by dialogue of asking and answering questions. The benefit of
relationship marketing according to Gronroos (1994) is that organisations can
build powerful information systems which can increase the organisation’s
awareness of customer satisfaction or dissatisfaction. Thus relationship
marketing is a process which involves human interaction, mutual exchange and
fulfilment of promises and marketing’s role is to capitalise on relationship

24 
 
mark
keting throu
ugh effectiive marketting strateg
gy (Gronro
oos, 1994; Vargo an
nd
Lusc
ch, 2004 and Hoffman et al., 2005
5).

2 MARKETING STRATEGY
2.2.2
Mark
keting strate
egy is peop
ple driven; it is a strattegy created by people for peoplle
(Ferrrell and Ha
artline, 200
08). Mark
keting strattegy is the
e process w
whereby a
an
organisation aliigns itself to
t the marrket it has decided to
o serve (Fiffield, 2007).
Lamb
b, Hair and
d Daniel (20
009) write that
t marketting has tw
wo strategie
es; push an
nd
pull strategies. A push strategy is
s when m
marketers e
engage in aggressivve
mark
keting sellin
ng strategies to convince consum
mers to purcchase an orrganisation’’s
products or services. A pull strategy
y is when m
marketers cconcentrate their effortts
to ge
enerate pos
sitive consu
umer opinio
ons. This iin turn gen
nerates dem
mand for th
he
product (Lamb et al., 2009
9). Therefo
ore, marketting strateg
gy is consid
dered one o
of
the most impo
ortant mea
ans of cre
eating and
d commun
nicating a brand an
nd
ntaining bra
main and equity (Chattopad
dhyay, Shivvani and K
Krishna, 20
010). Woo
od
(2000) writes th
hat brand equity is th
he relationsship betwe
een the bra
and and th
he
cons
sumer’s valu
ues and ma
arketing strrategy has the most in
nfluence in establishin
ng
brand equity.

Figurre 2.3: Elem

ments of b
brand equitty

Source: Aaker an
nd Joachim
msthaler (2000)

25 
 
Brand equity as depicted in figure 2.3 above, is the combination of brand
awareness, brand associations, perceived quality of the brand, and brand loyalty
(Aaker and Joachimsthaler, 2000; Hoffman et al., 2005 and Chattopadhyay et al.,
2010). In summary, brand equity is the market place value of a brand based on
reputation and goodwill (Hoffman et al., 2005).

Based on figure 2.3, brand awareness, brand association, perceived quality of

the brand and brand loyalty are defined as follows:

 Brand awareness
Brand awareness is often the focus of brand strategy and refers to the strength of
the brand’s presence in the market place (Aaker, 1996; Aaker and
Joachimsthaler, 2000). Brand association is anything linked to the brand in the
consumer’s mind and brand awareness is the accessibility of the brand in the
consumer’s memory (Chattopadhyay et al., 2010). Brand awareness provides
consumers with a sense of familiarity and establishes the brand’s presence,
commitment and substance in the market place (Subhani and Osman, 2009). As
a primary dimension of brand equity, brand awareness remains fundamental to
the consumer’s purchase decision as it is the initial interaction point between the
brand and the consumer. Forming positive brand images maximises brand
loyalty and this builds the foundation for brand equity (Subhani and Osman,
2009).

Figure 2.1 further indicates that brand awareness is positively correlated to brand
equity and brand association (Chattopadhyay et al., 2010) as brand awareness
affects consumer’s perceptions and tastes (Aaker and Joachimsthaler, 2000).
Without brand awareness, no other marketing communication can be affected as
brand awareness is the first step that brands take to establish its presence in the
market place (MacDonald and Sharp, 2003). Brand awareness is thus an asset
that is durable and sustainable over time (Aaker, 1996). If marketed and
managed properly, the brand will be received positively by consumers and

26 
 
achieve dominance in the market place. This will lead to consumers associating
positively to the brand (Aaker, 1996; Aaker and Joachimsthaler, 2000).

 Brand associations
Brand image is the perception of the brand and the brand’s associations in the
consumer’s mind (Miladian and Babu, 2009). The brand image and the brand
perception (through brand association) in the eye of the consumer are thus
affected by the brand’s personality (Wood, 2000). Brands have personalities.
Therefore it is critical that marketers market the brand’s personality as a means
for consumers to interact with the brand and positively express themselves in
association to the brand (Gill and Dawra, 2010).

Marketers can personalise brand awareness and brand image communication

strategies to appeal to consumers by creatively linking different kinds of
information to the brand such as product awareness, product attributes and
benefits, socially appealing campaigns, positive images, thoughts, feelings,
attitudes and experiences (Ye and Raaij, 2004). If consumers have favourable
attitudes toward the brand and perceive the brand to be extraordinary then
marketers must use these factors to drive brand loyalty which results in repeat
purchases and customer retention (Rubinson and Pfeiffer, 2005).

 Perceived quality of the brand

Perceived quality of the brand is the consumer’s perspective of the brand as to

whether or not a brand will meet their expectations (Gill and Dawra, 2010).
Consumers view and evaluate the brand in terms of fit, form and functionality and
decide if the brand is best suited for their needs, personalities and lifestyles
(Subhani and Osman, 2009). Marketers need to understand how their customers
perceive and define quality as well as ensuring that the products are able to
generate short term and long term customer satisfaction (Rein et al., 2005). If
the quality of the brand is perceived to be positive, the consumer will be inclined
to make repeat purchases and build a long lasting relationship with the brand
27 
 
(Aaker and Joachimsthaler, 2000). Quality results in customer satisfaction which
ultimately results in customer retention and long term loyalty to the product or
brand. It is thus the responsibility of the marketer to determine the service
expectation of the target market and design a service delivery strategy that either
meets or exceeds the target markets expectations (Rein et al., 2005).

 Brand loyalty
Brand awareness comprises of brand recognition and recall performance; the
ability for consumers to easily remember previous experiences with the brand
(Subhani and Osman, 2009). Brand associations and perceived quality of the
brand contributes to brand trust which in turn promotes brand loyalty (Aaker and
Joachimsthaler, 2000). Aaker (1991) explains that brand loyalty is the measured
capacity of the consumer’s emotional involvement with the brand. If consumers
think of a brand when they think of a product, then their levels of brand
awareness for that particular brand has increased. The brand thus moves from a
general level of awareness to top of mind (Subhani and Osman, 2009). This
means that their consideration for the brand may be more favourable and may
ultimately lead to a repeat purchases. If consumers are loyal to a brand, they will
purchase the brand on a regular basis (Subhani and Osman, 2009; Aaker and
Joachimsthaler, 2000).

Based on the above discussion of the elements of brand equity, it is concluded

that brand awareness, brand associations, perceived quality of the brand and
brand loyalty are important elements of marketing strategy. These elements
must be built into the consumer’s purchase decision journey from the initiation
point of awareness about the brand in the market place until its trial, adoption
and re-purchase to the loyalty aspect (Subhani and Osman, 2009; Aaker, 1991;
Aaker, 1996 and Aaker and Joachimsthaler, 2000). In order to maximise brand
equity, marketers will need to understand which factors influence consumer’s
purchase decisions and how to influence these factors in terms of brand
awareness, brand associations, perceived quality of the brand and brand loyalty

28 
 
(Subhani and Osman, 2009; Aaker, 1991; Aaker, 1996 and Aaker and
Joachimsthaler, 2000).

2.2.3 THE ROLE OF MARKETING

Marketing opportunities to promote brand awareness, brand associations,
perceived quality of the brand and brand loyalty stem from the changing needs of
society (Aaker, 1996; Kotler and Armstrong, 2004). Marketers need to define
their target markets, understand consumer’s needs and wants and aim to
produce what consumers want to buy (Burger, 2009). Understanding consumers
needs and wants results in effective relationship marketing and this requires
research into the social marketing environment (Kotler and Armstrong, 2004).
Key considerations are the elements of the consumer’s buying behaviour and
their purchasing intentions. This requires analysis of the consumer’s purchase
decision journey (Kotler and Armstrong, 2004; Court et al., 2009). Consumers
are changing the way they research and buy products therefore marketers are
required to pay special attention and focus on the consumer’s purchase decision
journey (Sheenan, 2010). The role of marketers is to reach consumers at
moments (or touch points) when consumers are most open to influence (Court et
al., 2009) and maximise the brand awareness, brand associations, perceived
quality of the brand and brand loyalty to influence their decisions (Aaker, 1996;
Aaker and Joachimsthaler, 2000).

2.3 THE CONSUMER’S PURCHASE DECISION JOURNEY

Brands are the primary points of differentiation between product offerings
therefore it is important that brands be managed strategically (Wood, 2000).
Marketers have been aware of the change in the way consumer’s research
brands and purchase products. Therefore marketers need to adjust their
marketing strategies by providing consumers with sufficient information and
support during the consumer’s purchase decision journey to help them make the
right purchase decisions (Court et al., 2009). Traditionally consumer behaviour
in response to a marketing message could be described through the metaphor of

29 
 
a funnel as per figure 2.3 (Court et al., 2009; Evans, 2010). The consumer
funnel describes the emotional path the consumer takes from initial awareness to
final purchase (Powell, Groves and Dimos, 2011). As per figure 2.3 below, Court
et al. (2009) and Powell et al. (2011) explain that the consumers purchase
decision journey starts with initial awareness of a product, to familiarising
themselves with the product (information search), to considering purchasing a
product (evaluation of product), to actually purchasing the product (decision) and
finally developing and maintaining loyalty to the product. It is the cognitive
processes that consumers go through when making purchase decisions
(Sheehan, 2010).

The modern consumer no longer relies on the information which is provided to

them via traditional marketing (Court et al., 2010). The modern consumer
engages in market research and is able to gather information to help educate
themselves about the brands (Sheenan, 2010). This presents marketers with the
opportunity to influence the consumer’s purchase decision journey by means of
aggressive market communications via touch points (Court et al., 2009). Touch
points are media platforms which allow consumers to connect to brands (Vollmer
and Precourt, 2008). Touch points such as advertisements, press releases,
conversations and experiences with the product have a role to play in
contributing to a consumer’s total experience during their purchase decision
journey (Abbing, 2010).

Joseph (2010) defines a touch point as any opportunity to reach a consumer; it is

anything that puts the brand within arm’s reach of a consumer. The purpose of a
touch point is to communicate the brand (Court et al., 2009) and fulfil the brands
promise through the creation of meaningful and valuable interactions (Abbing,
2010). All touch points should be integrated and proactively coordinated to
influence appropriate customer perceptions (Lockwood, 2009). Thus touch
points are convenient marketing tools that marketers can utilise to reach out to

30 
 
cons
sumers duriing the con
nsumer’s pu
urchase deccision journ
ney (Court et al., 2009
9;
Abbing, 2010 an
nd Sheenan, 2010).

With the wealth

h of information availa
able to the
em, consum
mers now fo
ocus on th
he
perce
eived risk of
o the purch
hase, price, the experie
ence of pre
eviously purchasing th
he
product, the ne
ecessary in
nvolvement experiencced during and after a purchase
e,
and most imporrtantly the information content wh
hich was avvailable to them durin
ng
their decision making process
p (P
Peppard a
and Butlerr, 1998). Thereforre
municating the brand to consum
comm mers is cruccial in all sttages of th
he consume
er
purch
hase decision journey
y (Fauser et
e al., 2011)). Based o
on figure 2.2
2 below, th
he
stage
es of the consumer’’s purchase decision
n journey m
may be de
escribed a
as
follow
ws:

Figu
ure 2.4: Th
he purchas
sing funnell

Source: Court
C et al. (2009)

 ss: The firs

Stage1 - Awarenes st stage of the consum ase decisio
mer purcha on
is “aware
eness” or problem
p rec
cognition. T
This stage ttriggers all subsequen
nt
activities (Peppard and Butle
er, 1998). At this stage the consumerrs
realises that there is a gap be
etween the
eir current sstate and ttheir desire
ed
Reid and Bojanic,
state (R B 2009). Ma
arketing’s rrole is to raise bran
nd
awareness amongs
st consume
ers and info hat a specific brand o
orm them th or

31 
 
 product is available to satisfy their needs and wants (Windham and Orton,
2000). Marketers may accomplish this task by using the elements of the
marketing mix such as product, promotion and price to develop aggressive
communication strategies to attract and inform consumers about the brand
and build long term and long lasting relationships (Fauser et al., 2011).

 Stage 2 - Familiarity: Familiarity is tied to information search; the stage

where consumers take action to gain knowledge about products and
services (Peppard and Butler, 1998). The information search may be
internal or external. An internal search refers to when consumers recall a
previous experience with the brand (Pride and Ferrell, 2010). An external
search refers to when consumers collect information from various external
sources (e.g. television or print media) and learns about the brand to
make an informed purchasing decision (Windham and Orton, 2000).
Marketing’s role is to ensure that the consumer positively associates with
the brand. Marketers must ensure that there is sufficient information
(product and price elements of the marketing mix) available by means of
advertising, recommendations, media, print and online platforms (Fauser
et al., 2011). Consumers need information and marketing’s role is to
provide consumers with easily accessible, clear and credible information
via push strategies. This in turn will develop consumer brand loyalty and
by extension brand identity, reliability and trust in the brand (Peppard and
Butler, 1998; Fauser et al., 2011).

 Stage 3 - Consideration: A successful information search results in

consumers developing a short list of brands which they view as possible
alternatives to purchase. This group of brands is referred to as the
“consideration set” (Pride and Ferrell, 2010). Consumers consider the
relative importance of each of the brand’s attributes by making trade-offs
at each of the attribute levels (Reid et al., 2009). Traditional sources of
information for the evaluation include past experiences, consumer groups

32 
 
 and WOM (Peppard and Butler, 1998). In this stage positive WOM is
most critical and marketers should seek to develop positive references
from other consumers. These references should in turn create a positive
influence on new consumers (Windham and Orton, 2000). Marketing’s
role is to reach out to the consumers emotions and persuade them to
purchase the product (Fauser et al., 2011). This may be done by
“framing” the alternatives; describing the attributes in a certain manner
which is appealing to the consumer (Pride and Ferrell, 2010). Marketers
need to understand the consumers purchase criteria used (the factors that
persuade consumers to evaluate a product) to compare and evaluate
products (Fauser et al., 2011), and use brand awareness, positive brand
associations and quality attributes of the brand to appeal to the
consumer’s hearts, minds and pockets (Burger, 2009).

 Stage 4 - Purchase: In the purchase stage, the consumers make the

decision of which brands to purchase (Pride and Ferrell, 2010). All
internal and external variables come together to produce a decision (Reid
et al., 2009). Marketing’s contact with the brand is limited to point of sale
however marketers can ensure that consumers are aware of the
distribution channels (“place” element of marketing mix) and locations
where the brand is available (Peppard and Butler, 1998).

 Stage 5 – Loyalty and post purchase behaviour: This stage addresses

how consumers should take delivery of the product and how marketers
should respond to consumer suggestions, comments, queries and
questions from consumers based on their purchase experience (Peppard
and Butler, 1998). Consumers begin to evaluate the entire process from
the awareness stage to their current stage (Windham and Orton, 2000).
They further evaluate the product or brand to determine if it has met their
expectations. Based on their experience, consumers will engage in WOM

33 
 
 and share their thoughts and opinions on the entire purchasing experience
(Pride and Ferrell, 2010).

After sales service is critical in promoting a positive brand image post

purchase. Marketers need to ensure that consumers obtain professional
levels of service post purchase to negate any negative feelings about the
purchase (Reid et al., 2009). Marketing strategy must have continuous
focus on aggressively promoting the brand to ensure that it becomes top
of mind in terms of brand awareness and brand association (Reid et al.,
2009). The focus is on after sales service and support and on-going
communications through relationship marketing. This sets the foundation
for building a long term relationship between the brand and the consumer.
(Fauser et al., 2011).

Relationship building has taken on significance in online environments (Court et

al., 2009). With the boom of the internet and e-marketing, many modern
consumers seek peer advice over social networks and this presents marketing
with an opportunity to share product and service information at all stages of the
consumers purchase decision by engaging in online marketing (Vargo and
Lusch, 2004; Court et al., 2009 and Fauser et al., 2011). The modern
consumer’s purchase decision journey and the rapid use of the internet indicates
that marketers will have to move away from the traditional “push” and “pull”
strategies and focus on a combination of both strategies which can aggressively
influence consumer’s touch points (Court et al., 2009).

The social web therefore represents an increasingly important point of interaction

between marketers and consumers (Fauser et al., 2011). The consumer focus
thus moves away from the traditional 4P’s marketing mix towards e-marketing;
information sharing, brand research, knowledge management, interactivity and
connectivity (Vargo and Lusch, 2004).

34 
 
2.4 SUMMARY
The ultimate goal of marketing is to bring about mutually satisfying exchanges
between parties (Cant et al., 2006). The new role of marketers is to understand
that marketing is consumer driven and consumers are effective elements in
marketing strategy (Loudon et al., 2005) therefore the 7P’s of the marketing mix
need to be considered when planning marketing strategy (William and Curtis,
2006). Consumers are changing the way they research and buy products
therefore marketers are required to pay special attention to the consumer’s
purchase decision journey (Court et al., 2009). Marketers will need to engage in
ongoing market research, understand the market segments and determine and
deliver products which satisfy the needs and wants of the target markets (Loudon
et al., 2005). Once they have a clear understanding of the market requirements,
marketers will be able to influence the consumers purchase decision journey by
developing and implementing marketing strategies which are customer focused
and based on relationship building, knowledge management and information
sharing (Ferrell and Hartline, 2008).

Technology and the boom of the internet have encouraged people to connect
with each other, share information and build relationships (Stelzner, 2009; 2010).
The social web has presented a new form of communication through social
media which allow people to interact and converse with each other (Evans,
2010). This presents marketers with the opportunity to affect consumer’s
purchase decisions through online marketing and social media (Fauser et al.,
2011). The literature review which follows in chapter three discusses the
changing role of marketers and consumers in online environments, social media
and the role of social media marketing in the consumer’s purchase decision
journey.

35 
 
 CHAPTER 3

LITERATURE REVIEW - SOCIAL MEDIA MARKETING

3.1 INTRODUCTION
Technology and the internet connect people in different ways that allow them to
share knowledge and information with each other (Evans and McKee, 2010).
The most popular form of connectivity is through social media (Stelzner, 2010).
Social media is a new form of communication which is changing the behaviour
and expectations of people and the way organisations conduct business (Wollan,
Smith and Zhou, 2011). Social media platforms provide a user-friendly tool for
users to invite and converse with other. This type of interaction has given voice
to millions of consumers who now have the capacity to talk to each other and are
able to share their experiences and opinions with a global audience at little or no
cost (Trusov, Buckling, and Pauwles, 2009).

The social web revolves around conversations and interactions within groups
which act and react based on collective knowledge (Evans and Mckee, 2010).
Consumers have discovered the social web as a data source to learn about
products and services and share their own personal experiences with the brand.
This new source of information in conjunction with traditional media allows other
potential consumers to consider these experiences before they themselves make
an actual purchase (Trusov et al., 2009; Evans and McKee, 2010).

This social engagement by consumers has significant impact on marketing

activities as marketers need to be aware of the factors which affect the
consumer’s purchase decision (Court et al., 2009). Marketers need to engage in
online marketing strategies and influence consumer’s purchase decisions
through social media marketing (Evan, 2010). The literature review that follows
discusses e-marketing (electronic marketing), social media and the role of social
media marketing in the consumer’s purchase decision journey.

36 
 
3.2 ELECTRONIC MARKETING (E-MARKETING)
According to Gommans, Krishnan, and Scheffold (2001) sharper marketing focus
is required to build and maintain customer loyalty in electronic market places.
Brand image and brand identity must be built through mass media online
communications (Gommans et al., 2001) therefore marketers need to ensure that
there is effective dialogue from the brand to the consumers (Wood, 2000). This
means that brand equity plays an important role in how information is learned,
retrieved and communicated between consumers in online environments when
making final purchase decisions (Chattopadhyay et al., 2010).

Consumer markets are dynamic and as brand accessibility and brand

associations may change over time, so too could consumer’s purchasing
behaviour change over time (Wood, 2000). Therefore consumer focus is critical
when developing marketing strategies in the technology driven world where
technology has delivered the promise of anything, anywhere, anytime (McKenna,
1991). Due to the accessibility of the internet, buyers and sellers are able to
easily utilise communication channels by communicating, organising and
exchanging information (Kiang et al., 2000). Thus the goal of marketing is to
establish the brand and own the global and virtual market place, thereby giving
the brand competitive advantage (Court et al., 2006; Evans, 2010). The internet
boom (and by implication e-marketing) has allowed firms to take advantage of
promotional and advertising channels. The partnership of technology, the internet
and marketing should assist marketers in exploring new and innovative ideas,
test consumer’s real-time reactions and establish the brand in online market
places (Kiang et al., 2000).

Kalyanam and McIntyre (2002) define e-marketing as electronic marketing; the

application of marketing principals through electronic resources such as the
internet. E-marketing is defined by Brodie, Winklhofer, Coviekki and Johnston
(2007) as using the internet and interactive technology applications to facilitate
dialogue between buyers and sellers. Technology enables realistic

37 
 
representations of products and the ability to interact and associate with them
(Hemp, 2006). Therefore e-marketing is a continuous form of marketing which
occurs in real time in online environments. Brodie et al., (2007) goes on to
explain that in order to fully exploit the impact of e-marketing, e-marketing needs
to be supported by the traditional 4P’s of the marketing mix; product, promotion,
place and price whilst taking into account social and relationship marketing.
Constantinides (2002) argues that the roles of the traditional marketing mix are
very different in the physical marketing environment than that of the online
marketing environment.

E-marketing focuses on human behaviour (Constantinides, 2002) and the fact

that the consumers are part of a network and that these consumers are
constantly participating in network groups as they interact with each other over
real-time (Kalyanam and McIntyre, 2002). Thus the online shopping experience
has evolved into a social experience (Hemp, 2006). This supports the argument
presented by The Chartered Institute of Marketing (2009) in chapter two (2.2.1.)
that the traditional 4P’s should now include people, processes and physical
evidence (e.g. testimonies and referrals). E-marketing allows consumers to
access product information any time via the internet, facilitate real-time
conversation and feedback which ultimately facilitates customer relationship
management (Kalyanam and McIntyre, 2002). Therefore the emphasis of a
marketing plan needs to be on a highly interactive environment which pulls or
attracts consumers, builds relationships with them, retains consumers and allows
for ongoing personalised customer service (Constantinides, 2002).

Due to the boom of the digital age, marketers have a responsibility to provide
consumers with security and privacy whilst ensuring that they provide
personalisation and professional customer service (Kalyanam and McIntyre,
2002). Thus e-marketing enables the exchange of information in digital
environments where buyers and sellers are able to interact anywhere and at any
time (Kalyanam and McIntyre, 2000; Brodie et al., 2007).

38 
 
The virtual market place is the communication playground of mass markets
therefore market segmentation (as in the case of traditional marketing strategy) is
critical to successful online marketing strategies which satisfy the consumer’s
personal needs rather than the collective needs of all consumers
(Constantinides, 2002). Through their research, Kiang et al. (2000) identified
competitive advantages of internet marketing to be distribution, transactions and
communications channels. Due to mass online markets, Constantinides (2002)
identified that the challenge for marketers is to accurately segment their
customers by preferences and demographics, taking into account market size,
customer profiles, competitive situations and future trends. This will allow them to
respond quickly to market changes thereby giving the organisation direct contact
with the consumer (Kiang et al., 2000).

Hoffman (2000) writes that the revolution of the internet has altered the traditional
forms of advertising and communication media. Two-way communication is
growing rapidly in online environments (Mayfield, 2008). The total web based
experience is the attraction for online consumers due to the vast amount of
information available at any given time (Kalyanam and McIntyre, 2002). The
massive global network fuelled by the growth of the internet, has radically
transformed the way organisations conduct business and the way humans
behave in an online society (Hoffman, 2000; Stelzner, 2010). Given the vast
amount of information on the web, it is no surprise that consumers view search
engines as important online tools. The internet is a complex market place and
offers the potential for growth, development and a virtual revolution in the way
society approaches business and communicates with each other (Hoffman,
2000).

Social media as explained by Evans (2010) is changing the way information is

communicated to and from people around the world. The rapid use of social
media such as blogs and other social networking sites and media-sharing
technology is changing the way firms respond to consumer’s needs and wants

39 
 
and changing the way they respond to their competitors (Mayfield, 2011).
Marketers now have the opportunity to engage in broader and more innovative
forms of online mass media communications by using the social media marketing
tools (Evans and Mckee, 2010).

3.3 THE INTERNET AND WORD OF MOUTH

Virtual worlds are the medium for formal and informal collaboration between
consumers and organisations and the virtual business environment is a critical
determinant of competitiveness (Cohen, 2008). Today’s consumer is a proactive
buyer and online consumers can provide marketers with valuable cultural and
marketing information (Brown et al., 2007). In order to understand consumer
behaviour in the virtual world, it is important to understand how consumers make
purchase decisions (Peppard and Butler, 1998).

Critical to understanding consumer decisions is that fact the internet has evolved
into an information economy impacting on social, economic, business and
political life where consumers are engaged in ongoing interaction (Peppard and
Butler, 1998). Consumers are influenced in their online product choices by
online recommendations (Senecal and Nantel, 2004) by millions of other user’s
experiences and motivations (Brown et al., 2007). Messages are continuously
filtered, uploaded in electronic market places and spread amongst users who in
turn filter and forward these messages to peers and other personal user groups
thereby creating connectivity (Woerndl, Papagiannidis, Bourlakis and Li, 2008).

Connectivity refers to a consumer’s access and ability to participate in online

communications life through eWOM; electronic word of mouth (Woerndl et al.,
2008) which is more effective than previous conventional sources of
recommendations (Senecal and Nantel, 2004). eWOM is an online consumer
dominated channel of marketing and has significant influence on the consumer’s
information search, evaluation of alternatives and final decision to purchase a
product (Brown et al., 2007). The popularity of the internet has revolutionised

40 
 
eWOM into a network with the birth of social media (Xiaofen and Yiling, 2009).
The growth of social media (and by association eWOM) has enabled consumers
to interact with each other in the virtual world and to share their perceptions and
opinions of brand value (Gruen et al., 2005).

eWOM allows consumers to interact with each other and share their opinions,
experiences and research on consumer products and services in online
environments (Hennig-Thurau, Gwinner, Walsh and Gremler, 2004). Thus social
media is rapidly changing WOM marketing, broadening communication channels
and facilitating effective dialogue between marketers and consumers. This builds
and encourages consumer-brand engagement in an online consumer community
(Brown et al., 2007). eWOM (through social media) refers to informal
connectivity and interactivity amongst individuals regarding products and/or
services in online environments and is a faster means of communication
(Woerndl et al., 2008). Formal and informal collaboration is particular evident on
social media platforms. Thus the internet provides marketers with the
opportunity to provide consumers with richer and more tailored information over
the internet (Peppard and Butler, 1998) and it further helps marketers to improve
on personalisation strategies (Brown et al., 2007).

eWOM is increasingly manifesting itself through social media as a form of social

participation in online environments and has great impact on product judgement,
criticism and praise (Evans, 2010). This means that consumers now have the
ability to affect other consumer’s final purchase decisions (Brown et al., 2007).
The most popular form of marketing via the internet is social media marketing
(Stelzner 2010). Due to the growth of social media and consumer’s desire for
social interaction and concern for other consumers marketers need to focus on
the element of online interactivity as most business activities now centres on
human and technical interaction (Hennig-Thurau et al., 2004).

41 
 
3.4 SOCIAL MEDIA
Social media are dynamic tools that facilitate online relationships (Golden, 2011).
Social media involves natural and general conversation between people about a
topic of mutual interest. It is about sharing information and sometimes involves
decision making (Evans, 2010). Social media involves several social online
channels (or networking sites) and are subject to change over time; it is
participative and the audience (consumers) are part of the creative process
which generates real time content or real time conversations (Evans, 2010).
Mayfield (2008) explains that social media is online or electronic media which
facilitates participation, openness, conversation, community and connectedness
amongst online users. The core of social media as explained by Trusov et al.
(2009) lies in fact that users can have individual profiles and personal images,
users are able to communicate their thoughts, feelings, interests (music, hobbies,
preferences) and link to affiliated profiles (friends or professional fan pages).
Social media thus facilitates the exchange of information via email, chat rooms,
blogs, discussion forums, digital audio, images and movies (Mangold and Faulds,
2009).

Social media should be viewed as marketing tools and resources (Golden, 2011)
as it presents marketers with the opportunity to access valuable information
which affects relationship building and maintaining the feedback loop to
consumers (Evans, 2010). Social media marketing is a relatively low cost form of
marketing and allows firms to engage in direct and end-user contact (Kaplan and
Haenlein, 2010). Social media marketing is about passion, emotion and genuine
expression towards a brand. It builds the relationship between the consumer and
the brand and facilitates dialogue, slow revelations and finally respect for the
brand (Brandz, 2010). Trusov et al. (2009) found that eWOM had strong impact
on new customer acquisition. Thus consumers have now evolved from
traditional buyers to opinion leaders who are able to influence other consumers
through their expectations, opinions, knowledge and associations (Xiaofen and
Yiling, 2009).

42 
 
Social media marketing thus represents communication opportunities and
requires new and unconventional thinking (Kweskin, 2007) to ensure that
consumers experience brand orientation and product orientation (Xiaofen and
Yiling, 2009). Therefore marketers should use social media as marketing tools to
nurture brands in online environments and activate purchase intent (Cuming,
2008). Social networking focuses on the human aspect and provides a forum for
users to express themselves creatively (Mayfield, 2008). Therefore social
networks provide marketers with a means of understanding how people connect
and interact with each other, and in particular the value of building relationships
(The New Horizon Report, 2008). Thus social media has promoted consumer-to-
consumer communication and has made it possible for consumers and brands to
interact with each other thereby enabling connectivity (Mangold and Faulds,
2009). The significance of this growth in mass communication is that social
media has allowed for increased situational awareness in terms of a changing
environment thus social media marketing is playing an increasingly important role
in marketing (Mayfield, 2011).

The Internet and social media have created a new online society for consumers
(Cuming, 2008). The age of the technology is making the market place more
accessible to consumers therefore marketing is no longer a function of the
business, it is a way of doing business and reaching the end customer
(McKenna, 1991). Social media marketing thus presents the opportunity for
marketers to communicate the brand to consumers in untraditional and creative
ways in real time and companies who integrate elements of social media into
their marketing mix will have a greater opportunity to influence consumer's
buying choices (Cuming, 2008; Mayfield, 2008; Mangold and Faulds, 2009;
Kaplan and Haenlein, 2010 and Brandz, 2010).

Mayfield (2011) explains that the easily accessible virtual market place allows
marketers to influence consumers. Consumers in turn influence fellow
consumers. Within hours and minutes people are able to access information on

43 
 
social networking sites and communicate to connections all around the world on
breaking news, natural disasters and other topics of interest (Mayfield, 2011).
Therefore knowledge management and information sharing through social media
marketing has become crucial in how organisations conduct business activities
(The New Horizon Report, 2008). Internet communities, blogs and social
networks have become a part of consumer’s lifestyle (Cuming, 2008). These
characteristics facilitate connectivity, feedback and interaction between
consumers. These characteristics further encourage sharing and commenting on
information and allow consumers to make use of links, resources and other
people (Mayfield, 2008). Social media has therefore made consumers active
members of the brand communities by giving them the opportunity and freedom
to be heard in virtual worlds where perception and first impressions are critical
influences (Mangold and Faulds, 2009).

Stelzner (2011) writes that social media represents marketing opportunities

which can connect firms directly with their customers. In the Social Media
Marketing Report 2011, Stelzner (2011) found that 90% of marketers indicated
that social media was important to their business, 33% of marketers are forming
metrics to measure social media as part of their return on investment (ROI), 58%
use social media for up to six hours per week, 34% use social media for up to
eleven hours per week, 70% of marketers want to learn more about Facebook.
Stelzner (2011) further noted five popular social networking platforms; Facebook,
Linkedin, Blogs, Twitter and YouTube.
These social media platforms are defined by Mayfield (2008) as follows:
 Facebook: This is a social network site which allows people to build
personal web pages and connect to and communicate with friends;
 Linkedin: Linkedin in most popularly known as the “grown up” social
network. This social media platform allows users to build professional
relationships in online environments;

44 
 
  Blogs: These are online journals which allow participants to share their
thoughts via journal entries. Blogs often allow other users to comment on
journal entries;
 Twitter: This is a form of micro blogging where small amounts of content
or updates are uploaded online through mobile networks; and
 YouTube: This is a site that allows users to upload and share videos with
fellow community members.

The popularity of social media marketing is due to the fact that social media is
low cost and bias free and allows marketers to gain insight into markets. The
vast amount of available information allows marketers to mine social networking
data and engage in consumer profiling which ultimately results in better and more
effective market communication strategies (Kotler et al., 2010). Consumers have
become well aware of the power of social media and are therefore able to
positively or negatively reinforce a brand (Mangold and Faulds, 2009). Loyal
customers will act as a sales force, spreading a positive message about the
brand through viral marketing and in particular online marketing such as social
networking sites and blogs (Fauser et al., 2011). Social media thus presents
marketers with the opportunity to execute more emotional touch points in areas
where consumers are able to connect with each other and share their
experiences. These touch points are hugely emotional and offer marketers the
opportunity to connect and engage with consumers correctly and generate
exposure for the organisation’s brands (Joseph, 2010).

Stelzner (2011) reported that 88% of respondents agreed that social media
generated exposure for their businesses, 72% noted that social media increased
the flow of traffic onto their social networking sites and 43% correlated social
media with increased sales. It is worthy to note that 62% of respondents
reported that social media improved search rankings of their products (Stelzner,
2011). Social networking thus allows consumers to share ideas, collaborate,
debate and discourse in online environments. It is thus be concluded that

45 
 
consumers have influence and can facilitate the acceptance of a brand in virtual
market places through social media (Mangold and Faulds, 2009).

3.4.1 SOCIAL MEDIA MARKETING

Trusov et al. (2009) explain that social networking platforms allow users to
connect with each other and typically attract a small group of first time
consumers. The greatest appeal of social media marketing is for the brand to
make a strong impact on consumers and consumer groups (Brandz, 2010).

Golden (2011) lists the characteristics of social media marketing as follows:

 Tone: Social media is about honesty and being authentic. Marketers need to
ensure that the message to the audience is credible and reliable;
 Conversation: Social media marketing generates two ways conversation
where the customer is an integral part of the marketing department.
Customer opinions matter and impact on marketing strategy;
 Validation: Buyer and consumer reviews are as influential as the marketer’s
claims of the brands features and benefits. This sets the stage for the brand
to meet consumers expectations;
 Reach: Social media marketing allows marketers to reach a wider audience
with more dramatic results in far less time and at lower costs; and
 Control: Control is the single biggest challenge in social media marketing.
The internet allows the entire world to report what they see as they see it (in
real time). All testimonies, opinions, customer experiences (positive and
negative) and customer messages are able to go live at any time. These
messages are not always accurate nor are they in the control of the marketer
and the challenge to the marketer is to respond to these messages in a
professional manner.

Taking the above factors into account it is concluded that social media marketing
enables marketers to significantly accelerate their ability to launch brands in
virtual market places, strengthen customer relationships and communicate to a

46 
 
broad range of potential consumers in new ways (Wollan et al., 2011).
Consumers want to feel good about what they purchase and communicate their
feelings regarding the purchase. Beyond quality and reliability, consumers
expect to have a feel-good and interactive association with the brand (Brandz,
2010). These consumers in turn share their experience by inviting or “referring”
their “friends” which results in eWOM. The opportunity for marketers is to
effectively take advantage of eWOM marketing (Trusov et al., 2009). eWOM has
created a huge hype amongst marketers and social media marketing promotes
marketing opportunities via eWOM (Trusov et al., 2009). Multimedia campaigns
must include social media tools such as Facebook, Twitter, YouTube and Blogs
to ensure maximum consumer reach (Brandz, 2010).

Mangold and Faulds (2009) and Constantinides (2002) write that the following
factors must be considered in order to take advantage of social media marketing
strategy and influence the consumers purchase decisions:
 Provide information: Content, interactivity, service offered online;
 Provide exclusivity: Security;
 Be outrageous: Web presentation, social networking welcome;
 Support the consumers: Interactive process between sales representatives
and consumers;
 Design: Design products with talking points and consumer’s desired self
images in mind;
 Links and interlinks: From one way traffic to multiple avenues;
 Multimedia considerations: Ease of navigation, easy access to information
about products and services, information layers and calculation tools, easy
offering procedures and special incentive tools;
 Utilise the power of stories: testimonies, corporate social responsibility;
 Customer focused promotional messages;
 Interactive campaigns, testimonies and stories; and
 Facilitate recommendations and eWOM.

47 
 
According to Trusov et al. (2009) eWOM and social media marketing assists
marketers in attracting consumers to brands at lower costs and in real time
(faster service delivery) as the internet allows consumers to share their views,
preferences and experiences. One of the benefits of social media marketing is
that it allows marketers to correct comments, address queries and quickly and
efficiently modify their online marketing strategies (Evans, 2010).

Stelzner (2011) lists additional benefits of social media marketing as follows:

 Generates exposure for business;
 Increase in traffic and subscribers;
 Improved search rankings (e.g. more hits via Google search);
 Results in new business partnerships;
 Improved customer communication and feedback in real time;
 Improved customer relationships;
 Generated qualified leads;
 Reduced overall marketing expenses; and
 Improved sales.

According to Haque, Khatibi and Mahmud (2009) the key factors attracting
consumers to research brands online are:
 Internet marketing environments;
 Promotional offers which communicates the brand’s presence;
 Product characteristics (specifications and benefits);
 Brand familiarity; and
 Confidence in the brand.

If the above factors (Haque et al., 2009) are positively received by consumers,
this will create greater brand awareness through eWOM via social networking
platforms, facilitate brand association with consumers, position the brand in
terms of quality specifications and ultimately influence the consumer to purchase
the brand and make repeat purchases (Brandz, 2010). Based on the above

48 
 
discussion it is concluded that social media marketing enables consumers to talk
to and about the brands, thereby influencing consumer purchasing decisions
(Haque et al., 2009; Brandz, 2010 and Stelzner, 2010; 2011).

3.4.2 SOCIAL MEDIA MARKETING AND THE CONSUMER PURCHASE

DECISION
This section discusses two previous research studies by Fauser et al. (2011) and
Cuming (2008).

Fauser et al. (2011) conducted a research study regarding the impact of social
media on touch points during the consumer’s purchase decision journey. Key
points resulting from this research were:
 Consumers felt that information sharing, collaboration and relationship
building was necessary to support ongoing communication;
 Social media marketing allowed organisations the opportunity to be in the
position to offer additional sources of information regarding product benefits,
product features and provide real time feedback to consumers ;
 Social networks, particularly Facebook were found to be most suitable
information sharing platform at the beginning of the consumer purchase
decision as many consumers relied on social recommendations; and
 Many consumers used Facebook reviews and ratings (“likes”) as the means
to seek recommendations, peer advice and find product information.

In summary social networks were considered the most influential platforms in

terms of social media as it served as an “all-purpose” medium to engage with
consumers at all stages of the consumer decision journey (Fauser et al., 2011).

49 
 
 Tab
ble 3.1: Generic socia
al media m
marketing fframework
k

Source:
S Fa
auser et al.
l. (2011)

Figurre 3.1 abo

ove depictts the gen al media fframework which wa
neric socia as
deve
eloped by Fauser et al. (2011) and linkks the theo
oretical sta
ages of th
he
sumers purrchase decision journe
cons ey to socia
al media m
marketing sstrategies a
as
follow
ws:
 ess: Awarreness is th
Awarene he problem
m recognitio
on stage (P
Peppard an
nd
Butler, 1998). All mediums
m exc
cept for wikkis are suitable for cre
eating bran
nd
awareness. Whilstt blogs are useful for product re
eviews and
d Twitter arre
uited for sp
ideally su pecial offers
s and exclu
usive links, Facebookk is the mosst
appropria
ate social network
n to apply
a the m
marketing m
mix (7P’s) and distributte
brand ge
enerated co
ontent (Faus
ser et al., 2
2011);
 valuation: At this sta
Informattion and ev age consum
mers take acction to gaiin
knowledg
ge about products and
a service
es (Peppard and Bu
utler, 1998
8).
Social ne
etworks are
e able to pro
ovide links to company websites for more in
n-
depth prroduct evalluation and
d it provide
es opportun
nity to gen
nerate man
ny
options in search engines
e (F
Fauser et a
al., 2011). According to Stelzne
er
(2011) one of the many
m benefiits of sociall media ma
arketing is the ability fo
or
organisations to imp
prove their search ranking on the
e internet;
 eration an
Conside nd decisio
on: Con
nsumers cconsider tthe relativve
importan
nce of each
h of the bra
and’s attribu
utes by making trade--offs at eacch
of the atttribute leve
els (Reid et al., 2009). Marketerss influence is limited iin

50 
 
 the decision phase (Court et al., 2009) however Facebook fan pages are a
good way to engage undecided consumers in conversation to clarify
queries regarding the product (Fauser et al., 2011). Real time feedback
could influence the consumer’s final decision to purchase a product
(Evans, 2010);
 Purchase: Marketing is limited to point of sale. Consumers make the
decision of which brands to purchase (Pride and Ferrell, 2010); and
 Post Purchase (Loyalty): Consumers begin to evaluate the entire
process from the awareness stage to their current stage (Windham and
Orton, 2000). Social networks such as Facebook are important during the
post purchase stage as it offers “consumers a chance to turn into fans and
build customer loyalty” (Fauser et al., 2011).

Customer loyalty to the brand or product promotes positive WOM which in turn
attracts new consumers (Windham and Orton, 2000). By interacting with the
existing and new consumers, social networks can be used to manage CRM as
channel of communication between the consumer and the organisation (Evans,
2010). The study concluded that social media marketing is an essential tool in
marketing brands and products due to the rapid development in social media and
changes in consumer behaviour. The results indicate that social media marketing
may be influential on consumers during the various stages of the consumer’s
purchase decision journey (Fauser et al., 2011).

Cuming (2008) conducted a research study in America to explore consumer’s

relationship with social media websites. This study included the consumer’s
perception of online brand information. The intent of the study was to evaluate:

 Did consumers recognise opportunity or benefit in engaging with a brand

online?
 Did social media marketing play a role on the consumer’s purchase decision?
 Did social media marketing impact on WOM?

51 
 
Cuming’s (2008) study resulted in:
 60% of consumers indicating that they would use social media platforms
as a medium to recommend or comment on products through testimonies
and WOM;
 70% of consumers visited social media sites to conduct research and
collect general information on products or brands;
 49% of these consumers made a final purchase decision based on the
information they gathered from social media sites.

Cuming’s (2008) research revealed insight to consumer’s attitudes towards

online information as indicated in table 3.2 below:

Table 3.2: Summary of consumer’s attitudes toward online information

Consumers who viewed information as: Results (% )

Valuable 71%
Relevant 68%
Influential on final purchase decision 67%
Influential on final perception 62%
Credible 60%
Honest 52%

Source: Cuming (2008)

The results in table 3.2 above indicated that based on their experience of online
research, overall consumers were positive about being a part of and participating
in an online community. 71% of consumers viewed information as valuable
above all other criteria in their purchase decision, and this is linked closely to
67% of consumers who stated that online information about a brand was
influential in their final purchase decision (Cuming, 2008).

Based on the two previous research studies which have been discussed
(Cuming, 2008; Fauser et al., 2011), it can be concluded that social media

52 
 
netw
works can influence to
ouch points
s within the consume
er’s purcha
ase decisio
on
journ
ney in online environ
nments. Social media marketing has th
he ability tto
influe
ence custo
omers, by telling the
em about tthe producct, selling the producct
attrib
butes and benefits an
nd finally persuading
p g the consu
umer to pu
urchase th
he
product. Thus social
s media marketin
ng allows m
marketers a
and consum
mers to sta
ay
conn
nected with each otherr (Cuming, 2008;
2 Fausser et al., 20
011).

Evan
ns (2010) supports
s th
he argumen
nts presentted by Fau
user et al. (2011) an
nd
Cum
ming (2008)) by statin
ng that pos
st purchasse experien
nces from the overa
all
mark
keting process are most likely to be share
ed through social me
edia. Socia
al
mediia connects
s these ex
xperiences back to th
he social fe
eedback cyycle (Evanss,
2010
0). The social fee
edback cyc
cle is rep
presented in figure 3.1 below
w.
Traditionally du
uring the awareness
a and consiideration sstage markketers woulld
enga
age in aggrressive marketing cam
mpaigns to attract con
nsumers an
nd influencce
them
m to purchas
se a brand.. Marketers
s would the
en engage iin after sale
es service tto
main
ntain the loy
yalty of the consumers
s (Court et a
al., 2009).

Fig
gure 3.1 So
ocial feedb
back loops

Source: Evans (20

010)

53 
 
The social feedback cycle as represented in figure 3.1 above is consumer driven
and is set in motion by post-purchase consumer opinions (Evans, 2010).
Consumer opinions in online environments (eWOM) ultimately affect other
potential consumers who are in the “consideration” phase in the purchasing
funnel (Pride and Ferrell, 2010). Between awareness and point of purchase
comes customer driven social media. Therefore the social feedback cycle is
driven by eWOM (Evans, 2010). Thus CRM is adapted to make consumers an
integral part of the sales process by understanding who among the consumers
are influential. This allows marketers the opportunity to form better relationships
with consumers through social media and ultimately shapes conversations about
the brand (Evans and McKee, 2010).

According to Evans (2010) and Evans and McKee (2010) the social feedback
cycle allows marketers to listen to consumers as they share their purchasing
experiences on the social web and provides them with useful information in terms
of:
 Ideas for product or service innovation;
 Early warning signs for potential problems with the brand;
 Opportunities to market the brand within the purchasing funnel;
 Awareness aids (e.g. testimonials);
 Ideas for new product applications;
 Customer service tips that flow from user to user;
 Competitive threats from other products; and
 Exposed weaknesses of the brand.

Thus social media becomes a hub for market intelligence as marketers begin to
understand consumer’s purchasing behaviour and gain insight as to why
consumers feel the way that they do about certain brands (Rockendorf, 2011).
These opportunities allow the marketer to create dialogue with the consumer,
fine tune the marketing message and maintain the brand’s presence in online
market places (Evans and McKee, 2010).

54 
 
3.4.3 SOCIAL MEDIA MARKETING AND BRAND AWARENESS
The Charted Institute of Marketing (2009) emphasised that communication as
part of the promotion mix is essential in conveying the brand’s personality.
Stelzner (2011) reported that marketers were engaging in social media marketing
to improve on communicating the brand in online environments. This includes
search engine optimisation (e.g. more hits on Google.com), communicating
events and press releases and making traditional marketing tools (e.g. print
display adverts, radio adverts and television adverts) available for consumers to
download or review content (Rockendorf, 2010). Good promotion is a two way
street and paves the way for dialogue with consumers (Stelzner, 2010; 2011).
Good promotion encourages dialogue with consumers and communicates the
benefits and specifications of the product in an effort to persuade consumers to
purchase the brand. Good promotions must be outrageous, yet socially
acceptable and professional and must communicate value (The Charted Institute
of Marketing, 2009).

Stelzner (2011) questioned how social media marketers would change their
marketing strategies going forward and the results indicated that 64% of
marketers planned on increasing their use of search engine optimisation. The
channels for driving this social marketing strategy were online event marketing,
online advertising, press releases and seminars through social media platforms
(Stelzner, 2011). Social media marketing has therefore become part of
marketing strategy in global organisations in an effort to reach out to wider and
larger audiences (Evans, 2010). Dirk Rockendorf (2010), Head of Continental
AG eBusiness (headquarters based in Germany) has rolled out a social media
marketing strategy to the Continental business units around the world, including
South Africa. He (Rockendorf, 2010) explains that Continental Germany uses
social media marketing for communication purposes as part of the online
marketing mix to establish brand presence in the virtual market place.

55 
 
3.4.4 CONTINENTAL AND SOCIAL MEDIA MARKETING
Continental is an international tyre and rubber manufacturer founded in Hanover
Germany in 1871. Today, Continental ranks among the top four tyre
manufacturers (Bridgestone, Continental, Dunlop and Goodyear) worldwide with
business units in forty six countries including South Africa (Continental, 2011).
Continental Tyre South Africa (CTSA) is located in Port Elizabeth and
manufactures the Continental, General Tyre and Barum brands in South Africa
(Continental, 2011). Continental’s marketing strategy is set annually at the
headquarters in Germany and one of the key deliverables for 2011 is the roll out
and application of social media marketing (Rockendorf, 2010).

At present Bridgestone, Continental, Dunlop and Goodyear do not have a social

media presence in South Africa for the local business units (Facebook, 2011;
Twitter, 2011). Publicity has taken on a different dimension and the natural step
for CTSA is to engage in social media marketing. CTSA would be the first local
tyre manufacturer to launch a Facebook and Twitter page thereby giving CTSA
first mover advantage (Rockendorf, 2011). Continental AG Market Intelligence
(2010) conducted market research to investigate the relationship between online
tyre research and tyre purchases. The results from the study as indicated in
figure 3.2 below, showed that Poland, France and Germany respectively had the
highest number of consumers researching tyre information online prior to the
actual purchase of tyre (Continental AG Market Intelligence, 2010). The factors
affecting these results were not available for review however these results
supported Continental AG’s social media marketing strategy as there was
sufficient interest in online research regarding tyre purchases.

56 
 
 Figurre 3.2: 2009
9-2010 com
mparison o
of online ty
yre researc
ch

Source: Con
ntinental AG
A Market Intelligenc
ce (2010)

Due to the level of increa

ased online
e activity a
as indicated in figure
e 3.2 above
e,
Conttinental AG has launch
hed social media
m markketing as it offers new
w possibilitie
es
to co
ommunicate onsumers (Rockendo
e and interract with co orf, 2010). Informatio
on
relatiing to pro
oduct featu
ures, prom
motional ca
ampaigns, and the latest nexxt
gene
eration pro
oduct launches ma
ay be u ploaded o
onto Face
ebook an
nd
comm
municated to the “frien
nds” of Con
ntinental’s ssocial netwo
ork pages ((Continenta
al,
2011
1). This gives Contin
nental Gerrmany the opportunityy to comm
municate th
he
brand more ex
xplicitly online (Rocke
endorf, 2010). The p
purpose of Continenta
al
AG’s
s social med
dia strategy
y according ndorf (2010) is to:
g to Rocken
 Promote
P the
e brand by creating
c bra
and image a
and brand awarenesss;
 Promote
P the
e product (ty eating awarreness and purchase intent;
yres) by cre

57 
 
 Provide consumers with a means of researching tyre brands in online
environments;
 Run campaigns to reach and inform more or new target markets within a
given time frame to promote the brand and products;
 Generate more traffic between Continental’s social networking site and the
corporations website; and
 Create new platforms for consumer interaction and/or consumer binding.

Taking the above factors into account, CTSA is in the process of investing in
social media marketing as part of Continental’s social media marketing strategy,
however the results from the research study conducted by Continental AG
Market intelligence (2010) need to be taken into consideration. As per figure 3.3
below, the research study indicated that 37% of South African respondents
purchased tyres in 2010. Of the 37%, 44% were male and 24% were female.
43% of tyre purchasers were between the ages of 35- 49 years; this represented
17% of the total sample. 30% of tyre purchasers were 50 years and older,
representing 8% of the total sample (Continental AG Market Intelligence, 2010).

The results from figure 3.3 indicate that overall South African tyre purchasers
were not inclined to research tyres online prior to their purchase. Factors
influencing this result were not investigated as part of the study (Continental AG
Market Intelligence, 2010). The research however did conclude that in South
Africa only 3% of the sampled population engaged in online research prior to
purchasing tyres. The results also proved that in no other country were there
fewer consumers gathering information online than South Africa (Continental AG
Market Intelligence, 2010).

58 
 
 Figure
F 3.3:: 2010 tyre
e purchase
es in South
h Africa

Source: Con
ntinental AG
A Market Intelligenc
ce (2010)

At prresent the CTSA web

bsite (www..continental.co.za) pro
ovides conssumers witth
the opportunity
o y to search
h for an ap
ppropriate ttyre size fo
or their vehicle(s) an
nd
locatte the nea
arest dealers for the fitment of tyres. The
ese functio
onalities arre
referrred to as “tyre
“ finder”” and “dealler locator” respective
ely (Contine
ental, 2011).
The website als
so provides
s consumerrs with inforrmation on the produccts availablle
from Continen
ntal togeth
her with the prod uct’s attributes and
d technica
al
spec
cifications (Continental, 2011). Based
B on tthe results as indicate
ed by figurre
3.3 and
a figure 3.4,
3 it is evid
dent that off the 594 re
espondents, only 220 rrespondentts
(37%
%) purchase
ed tyres in 2010 and of the 220
0 responde
ents who d
did purchasse
tyres
s in 2010, only
o 7 resp
pondents (3
3%) researrched their tyre purch
hases onlin
ne
prior to the fina
al purchase
e decision (Continenta ence, 2010).
al AG Markket Intellige
The results (as per figures
s 3.3 and 3.4) did not rreveal the m
main factorss influencin
ng

59 
 
the lo
ow utilisatio
on of online
e research in
i South Affrica with re
egard to tyre
e purchase
es
(Con
ntinental AG
G Market Intelligence, 2010).

Figure 3.4:
3 Summ
mary of onliine researc
ch prior to
o tyre purch
hase

Source: Con A Market Intelligenc

ntinental AG ce (2010)

Addittional statis
stics regard
ding social media
m and online statiistics were published iin
the 2010
2 and 20
011 social media marketing repo
orts (Stelzne 011) and th
er 2010, 20 he
resullts showed that there was signifficant grow
wth in the u
use of social media b
by
age demograph
hics from 2010
2 to 20
011. The results ass reported by Stelzne
er
(2010, 2011) as
s per figure
e 3.5 reflectt that in 201
10 people a
age 20- 29 years spen
nt
the most
m time using socia
al media marketing
m (5
59% spend
ding 6+ hou
urs weeklyy),
follow
wed by 40--49 year olds (58% spending
s 6 + hours weekly) and then 30-3
39
year olds (58% spending 6+
6 hours we
eekly).

60 
 
The results in figure
f 3.5 further
f indic
cate that in
n 2011 peo
ople aged 2
20- 29 yearrs
nt more time than othe
spen er age grou
ups using ssocial media marketing (with 41%
%
spen
nding 11+ hours
h week
kly), followe
ed by 30- 3
39 year old
ds (37% sp
pending 11+
hours per week
k). This is an
n increase over the 20
010 study (S
Stelzner 20
010, 2011).

Figure 3.5
5: Age facttor compa
arison 2009
9-2010

Source:
S Ste
elzner (201
10, 2011)

The Continenta
al AG Mark
ket Intellige
ence Reporrt (2010) in
ndicated tha
at most tyrre
hases in South Africa
purch an are made by maless aged betw
ween 35-49 years an
nd
only 3% of the total population had any desire
e to researcch and inve
estigate tyrre
brands prior to tyre purcha
ase online. However Stelzner (2
2011) indica
ated (as pe
er
figure
e 3.5) thatt globally there
t has been
b a gro
owth in the
e use of ssocial mediia
mark
keting as a research
h tool from
m 2010 to
o 2011 and
d that 37%
% of socia
al
netw
working userrs in 2011 are
a aged be
etween 35--39 years off age.

ed on the growth
Base g of social
s netw
working from
m 2010 to 2011 (Ste
elzner 2010
0;
2011 o assess if social m
1), further insight is required to media markketing is a
an
appropriate marketing stra
ategy for CT
TSA. Whilst globally there has been a 37%
%
61 
 
increase in social network users between ages 35-39 years in 2011, further
research is required to assess if this growth is representative for South Africa. In
conclusion, although social media marketing presents marketers with a more
cost effective form of marketing (Kweskin, 2007), further research regarding
South African consumer’s online purchasing activities would be required to
assess if the time, money and resources required to manage social media
marketing for CTSA would be of benefit to the organisation.

3.5 SUMMARY
The internet has evolved into an information economy and social media
marketing is influential in the consumer’s final purchase decision in an online
environment (Evans, 2010). Electronic marketing and more specifically social
media marketing provides marketers with an online platform to promote brand
image and brand awareness, provide consumers with a means for researching
brands online and generate traffic between organisations websites and social
media platforms (Branz, 2010; Evans, 2010). The advantages of social media
marketing are that social media gives brands a voice, a global audience and
flexibility to reach the audience. Consumers are aware of the influence they
command over social media therefore marketing strategies need to be highly
interactive and they must facilitate real time feedback between consumers and
marketers (Evans and McKee, 2010).

The literature review concluded that whilst social media marketing presents
marketers with a more cost effective form of marketing further research regarding
South African’s online purchasing activities would be required to assess if the
time, money and resources required to manage social media marketing for CTSA
would be of benefit to the organisation. The empirical research that follows is
based on the consumer’s purchase decision process in conjunction with social
media marketing. The research measures South African consumer’s usage of
the internet and social media for researching information about tyre brands.

62 
 
 CHAPTER 4

RESEARCH DESIGN AND METHODOLOGY

4.1 INTRODUCTION
Research is a systematic process of enquiry and investigation and is conducted
by means of research methodology: namely quantitative and qualitative research
methodologies (Leedy and Ormrod, 2005). Once the researcher has decided on
an appropriate methodology, the researcher will then be able to decide on a
research tool; a specific mechanism or strategy used to collect, manipulate and
interpret data (Leedy and Ormrod, 2005).

The social phenomena investigated in the research study that follows are the
elements of consumer’s purchasing behaviour in online environments and the
influence of social media in the consumers’ purchase decision journey. The
research addresses the main problem which is to assess South African
consumer’s attitudes towards online research; more specifically the impact of
social media as a research tool during the consumer’s decision making process
in the tyre industry. Therefore the appropriate research tool is qualitative
research methodology.

The starting point to address the main problem in terms of a qualitative research
methodology is to determine the research paradigm or conceptual framework.
The conceptual framework addresses variables which could affect the South
African consumer’s final purchase decision in online environments. These
variables are:
 The internet and social media as a research tool;
 Consumer-brand engagement; and
 Online recommendations.

63 
 
4.2 RESEARCH AND RESEARCH DESIGN
Research is a systematic process of enquiry and investigation (Collis and
Hussey, 2009) by collecting, analysing and interpreting data (Leedy and Ormrod,
2005). Research as defined by Kothari (2008) refers to the search for facts and
knowledge; it is the objective, scientific and systematic approach to searching for
information. The goal of research is to obtain an understanding and better
insight into the phenomena which are being studied (Collis and Hussey, 2009).

Collis and Hussey (2009) summarised typical research objectives as follows:

 To review, analyse and synthesise existing knowledge;
 To analyse and investigate existing problems or phenomena;
 To provide solutions to problems;
 To generate new ideas;
 To create new systems and procedures;
 To generate new knowledge; and
 Any combination of the above.

Based on the above objectives it is concluded that research is a means of finding

answers to problems or drawing conclusions from observations to address the
gap in the knowledge base (Leedy and Ormrod, 2005; Collis and Hussey, 2009).
According to Leedy and Ormrod (2005) research should be objective; therefore
measuring instruments (e.g. questionnaires and surveys) should be used to
conduct research studies to ensure that observations are not influenced by the
researcher’s perceptions, impressions and biases. Most researchers strive for
objectivity and one way of remaining objective is to identify a systematic way of
measuring the phenomena being studied. Measurement limits the pool of data
used to study the phenomena, so that the data may be interpreted and compared
to an acceptable qualitative and quantitative standard (Leedy and Ormrod, 2005).

64 
 
4.3 QUANTITATIVE AND QUALITATIVE RESEARCH
Two types of research approaches exist; namely quantitative and qualitative
research methodologies (Collis and Hussey, 2009). Quantitative research as
depicted in table 4.1 is objective and statistical in nature and focuses on
measuring phenomena (Collis and Hussey, 2003). This type of research
methodology, also sometimes referred to as positivism, is used to study
relationships among measurable variables with the purpose of explaining,
predicting and controlling phenomena (Collis and Hussey, 2003; Leedy and
Ormrod, 2005) and generally produces results with a high degree of reliability
(Collis and Hussey, 2009). The intent of quantitative research is to study
complex situations and develop generalisations that contribute to the theory
(Leedy and Ormrod, 2005). Thus quantitative research is used to confirm or
validate a relationship amongst variables and logical conclusions are based on
scientific results (Collis and Hussey, 2004; Leedy and Ormrod, 2005).

As per table 4.1 below, qualitative research is exploratory in nature and is based
on descriptive data which has been collected from participants in a research
study (Leedy and Ormrod, 2005). According to Collis and Hussey (2003)
qualitative research, also sometimes referred to as interpretivism, is subjective in
nature and examines perceptions to gain insight and understanding on human
and social behaviour. This research methodology is used to help the researcher
understand how people feel and why they feel the way that they do (DJS
Research, 2011) and generally produces results with a high degree of validity
(Collis and Hussey, 2009). Qualitative research as explained by Leedy and
Ormrod (2005) is based on the researcher’s interpretation from observing social
behaviour of people or places and is limited to the researchers open
mindedness, creativity and rational when interpreting the result. Thus qualitative
research is useful in understanding and interpreting social behaviour (Collis and
Hussey, 2003; Leedy and Ormrod, 2005).

65 
 
 Table 4.1: Qualitative and quantitative research methodologies

Qualitative research  Quantitative  research 
Qualitative Research Methodology Quantitative Research Methodology methodology appropriate  methodology appropriate 
for research study for research study
Reality is subjective, as seen by 
Reality is objective X
participants
Focus is on understanding phenomena Focus is on measuring phenomena X

Research is exploratory interpretive Research is confirmatory predictive X
Literature available on the phenomenon is  Literature available on the phenomenon is 
X
limited large
Research focuses on an in‐depth study Research covers a large breath  X X
Researcher interacts with that being  Researcher is independent from the 
X X
researched research
Researcher acknowledges that biases are 
Research is unbiased X X
present
Research is written in an informal style Research is written in a formal style X

Research process is deductive in nature Research process is inductive in nature X
Analytical objective is to describe  Analytical objective is to quantitfy 
X
variation variation
Research is context bound Research is context free X
Study design is subject to statisitcal 
Study design is iterative X
conditions and assumptions
Patterns or theories are developed for  Generalisations lead to predictions, 
X
understanding explanations and understanding
Findings are accurate and reliable through  Results are accurate and reliable through 
X
verification validity and reliability

Source: Adapted from Collis and Hussey (2009)

Table 4.1 above summarises that quantitative research seeks to confirm

hypotheses about phenomena and instruments used to test the hypotheses are
rigid in style and in categorising responses to questions (Leedy and Ormrod,
2005; Collis and Hussey, 2003; 2009). The data format is numerical and the
analytical objectives of quantitative research are to quantity variation, predict
causal relationships and describe characteristics of a population. These factors
as indicated figure 4.1 characterise the quantitative research approach as
relatively inflexible in study design, as the study design is stable from beginning
to end (Leedy and Ormrod, 2005; Collis and Hussey, 2003; 2009).

66 
 
Qualitative research as outlined in table 4.1 seeks to explore and understand
phenomena. The research instruments are more flexible and iterative in style
and prompt participants to share their thoughts, opinions or perceptions. As
indicated in table 4.1, the analytical objectives of qualitative research are to
describe variation, explain relationships and describe group norms, values and
behaviour (Leedy and Ormrod, 2005; Collis and Hussey, 2003; 2009). Qualitative
research methodology as defined by DJS (2011) is therefore suitable for
research which requires the researcher to:
 Understand the decision making process for a product or service
(including the criteria used to make that decision);
 Understand the consumer’s views or image of a brand; and
 Gain in-depth reactions to communications.

As a result the data format for qualitative research is textual and data may be
obtained via questionnaires, videos, observations, interviews and focus groups.
These factors characterise qualitative research as relatively flexible in study
design as participants affect what type of questions the researcher will ask next
as the study progresses (Leedy and Ormrod, 2005; Collis and Hussey, 2003;
2009). Based on table 4.1, it is clear that the social phenomena being
investigated provides an indication to the researcher on which research
methodology (quantitative or qualitative) to follow for the purposes of the
research study. The social phenomena being investigated in this research study
are the elements of consumer’s purchase decision in online environments and
the influence of social media marketing in the consumer’s purchase decision
journey. Table 4.1 further indicates that as the social phenomena under review
are reliant on the participant’s views, opinions and perceptions. Therefore
qualitative research methodology is the appropriate research methodology for the
research study that follows. However, as the demographics and time spent on
the internet will also be researched, the study will contain a minor section based
on quantitative research methodology.

67 
 
The literature review as discussed in chapter three explored electronic marketing,
social media marketing and the impact of social media marketing on consumer’s
purchase decisions. This discussion centred on the consumer’s purchase
decision journey, consumer’s perceptions of brands and social media marketing
as a communication tool. The research study that follows assesses the South
African consumer’s readiness for social media marketing in the tyre industry.

4.4 RESEARCH PROBLEM

Continental AG has rolled out social media marketing strategy to its individual
business units as a global company imperative for 2011. Research conducted by
Continental Market Intelligence (2010) indicated that Germany’s tyre purchasers
had a high affinity to research tyre purchases online prior to actual purchase and
as a result social media marketing has been successful in Germany. The study
(Continental Market Intelligence, 2010) also indicated that in South Africa, only
3% of tyre purchasers researched online prior to final purchase. These results
were discussed in the literature review (chapter three) and begs the question if
social media marketing strategy is an appropriate marketing strategy for the
South African tyre market; both from the consumers and CTSA’s perspective.
This study that follows addresses this following problem:

4.4.1 MAIN RESEARCH PROBLEM

The social phenomena investigated in the research study that follows are the
elements of consumer’s purchasing behaviour in online environments and the
influence of social media marketing in the consumer’s purchase decision. The
main problem which this study aims to address is South African consumer’s
attitudes toward online tyre research; more specifically the impact of social media
marketing as a research tool during the consumer’s decision making process
when purchasing tyres.

In order to address the main problem the following research questions has to be
resolved:

68 
 
4.4.2 RESEARCH QUESTIONS
The main problem as defined in section 4.4.1 above is too large to be resolved
without breaking it down into research questions. By solving the main problem
through the research questions, the researcher obtains a better methodology of
approaching and investigating the problem. This means that the main problem is
resolved in component parts (Leedy and Ormrod, 2005).

The research questions have been identified as follows:

Research question 1
 What are the key elements contributing to effective marketing strategy?
 What are the traditional elements of marketing strategy?
 What is the new role of the 7P’s marketing mix in terms of
consumer engagement?
 How can marketers affect consumers during the consumer’s
purchase decision journey?

Research question 2
 What is an ideal social media marketing strategy?
 How can marketers utilise social media marketing tools effectively
to reach consumers during the consumer’s purchase decision
journey?

Research question 3
 What are the perceptions of South African consumers regarding social
media as an interactive channel of communication between consumers
and brands?
 Are South African consumers willing to engage with brands on
social media platforms to increase their knowledge about the
brand’s performance, specification, capabilities and price?

69 
 
  Are South African consumers willing to share their opinions,
perceptions and experiences regarding tyre brands and tyre
purchases with other consumers on social media platforms?

Research question 4
 Does social media marketing present an opportunity for CTSA to reach
consumers in online environments?
 Will electronic marketing and social media marketing be an
appropriate strategy for CTSA to communicate information about
tyre brands to the South African tyre market?
 Which social media marketing tools would be most effective for
CTSA to apply when implementing social media marketing strategy
in the South African tyre market?

Research questions one and two were addressed in the literature reviews in
chapter two and three respectively. In these literature reviews specific elements
such as traditional marketing strategy, the marketing mix, electronic marketing,
social media marketing strategy and the consumer’s purchase decision journey
were discussed in-depth. The findings revealed whilst traditional marketing
strategies remained the basis for marketing activities, there is opportunity for
marketers to affect consumer’s purchase decisions via social media marketing in
online environments. This would require constant vigilance by marketers in order
to meet and/or exceed consumer’s expectations in the market place. In order to
answer research questions three and four it was necessary to develop a
questionnaire for empirical field research. This involved developing a conceptual
framework based on the literature review and clearly designing a questionnaire to
test the conceptual framework (Leedy and Ormrod, 2005).

4.4.3 CONCEPTUAL FRAMEWORK

The starting point to address the main problem and research questions as
discussed above in terms of qualitative research methodology is to determine the
70 
 
resea
arch paradigm or conc
ceptual fram
mework. T
The concep
ptual framew
work define
es
the specific ele
ements wh
hich the re
esearcher needs to focus on when usin
ng
arch tools (e.g. surve
resea eys or questionnairess) to condu
uct the rese
earch. Th
he
conc
ceptual fram
mework as per figure 4.1 below
w was derivved from the literaturre
study
y (as discu
ussed in chapters
c tw
wo and thrree) and th
he researcch question
ns
abov
ve.

Figure 4..1: Concep

ptual frame
ework for q
qualitative research s
study

d on Court et al. (2009)

Source: Based

ed on the results from

Base m the rese
earch by Fa
auser et all. (2011) a
and Cuming
g,
(2008), it was
s conclude
ed that so
ocial media
a marketin
ng can influence th
he
sumer’s purrchase dec
cons cision journ
ney. Takking into acccount Sou
uth African’’s
reluc
ctance tow
wards online research
h for tyre purchasess (Contine
ental Marke
et

71 
 
Intelligence, 2010), the conceptual framework (figure 4.1) is designed to assess if
social media marketing strategy has the ability to influence South African
consumers by telling them about the product, selling the product attributes and
benefits and finally persuading the South African consumers to purchase the
product during the first three and last stages of the consumer’s decision journey.

As depicted in the conceptual framework in figure 4.1, the research elements

influencing the consumer’s final purchase decision are:
 Internet and social media: The research objective is to assess if
marketing activities to stimulate the need for the tyre brands through
aggressive online marketing communication and brand awareness will be
effective via company websites and/or social media platforms.
Consumer’s perceptions about online information available through
electronic media and print advertisements, recommendations (eWOM)
and blogs will be assessed. Two critical areas of investigation are (1)
South African consumer’s accessibility to the internet and (2) South
African consumer’s awareness of social media.
 Brand-consumer engagement: The research objective is to assess if
consumers would consider engaging with tyre brands (via marketers) on
social media platforms to learn more about the brands performance
specification, price and capabilities.
 Online recommendations: The research objective is to assess if
consumers are willing to engage in eWOM by sharing opinions,
perceptions and experiences regarding tyre brands with other consumers.

Once the conceptual framework is clear in the mind of the researcher, the next
step is to develop the research tool (Leedy and Ormrod, 2005). For the purpose
of this qualitative research, the research tool to assess the South African
consumer’s readiness for social media marketing is a questionnaire.

72 
 
4.5 CONDUCTING THE RESEARCH STUDY

4.5.1 DEVELOPMENT OF QUESTIONNAIRE

The research should be conducted at an appropriate time where most
participants would be available to complete the survey. A professional
questionnaire must be accompanied with a cover letter to inform participants
about the importance and relevance of the research (Leedy and Ormrod, 2005).
According to Leedy and Ormrod (2005) the cover letter should:
 Provide an explanation of the nature of the research;
 Stress the importance of the participants involvement in the research;
 Promise anonymity and confidentiality of the participants details,
 Offer results to the participant; and
 Thank the participant for their contribution to the research study.

The research for this study was conducted by means of a questionnaire as per
annexure A. The development of the questionnaire was based on the literature
review (chapters two and three); specifically the impact of social media on the
consumer’s final purchase decision.

The questionnaire was categorised as follows:

 Demographic information;
 Accessibility and hours spent on the internet;
 Uses of the internet;
 Awareness of social media;
 Social media as a form of engaging the consumer and the brand; and
 Social media as a form of word of mouth marketing.

The questionnaire commenced with a cover page and was followed by closed
ended questions which were divided into two sections:
 Section A: Demographics; and
 Section B: Social media and the internet

73 
 
Section A addressed the race, age and gender of participants which is necessary
for the correlation between age, the time spent and uses of the internet. Section
B addressed social media and the internet as form of engaging the consumer
with the brand. This section comprised of questions which were strongly focused
on the consumer’s purchase decisions in online environments. Questions were
short and clear and participants were asked for either “yes or no” answers or to
select “applicable” answers from a list provided to them. There was sufficient
space available for participants to make remarks if they desired. As this is a
qualitative study, the questions were designed to ensure that the results
represented a high degree of reliability.

4.5.2 VALIDITY AND RELIABILITY OF MEASUREMENT

Validity and reliability are associated with measurement (Leedy and Ormrod,
2005). The validity and reliability of a measuring instrument influences the degree
to which the researcher can learn valuable information based on the phenomena
being studied. Validity and reliability of measuring instruments influences the
degree to which the researcher can gain knowledge about the phenomena which
is being studied (Leedy and Ormrod, 2005).

Validity is the extent to which the instrument measures what it is supposed to

measure; it refers to the effectiveness of a measuring instrument (Leedy and
Ormrod, 2005). Collis and Hussey (2009) write that an effect or test is valid if the
results reflect what the researcher claimed it did and is most often associated
with quantitative research methodology. Therefore validity is concerned with the
extent to which research findings accurately represent what is happening in the
situation (Collis and Hussey, 2009).

Reliability is generally associated with qualitative research methodology (Collis

and Hussey, 2009). Reliability is the consistency with which a measuring
instrument yields a certain result when the entity being measured has not

74 
 
changed; it is concerned with accuracy and credibility (Leedy and Ormrod, 2005).
If the research had to be repeated through another sample and the results
obtained were the same as the initial research, then the findings from the
research are said to be reliable (Collis and Hussey, 2009).

Prior to the fieldwork, the questionnaire was submitted to two subject matter
experts for review (one in the tyre industry and one in marketing management) to
assess the reliability of the questionnaire. Both experts reviewed the
questionnaire and provided critical feedback to improve to the user friendliness of
the questionnaire. Once the questionnaire was corrected and approved by the
subject matter experts, a pilot study was conducted at a tyre dealership in Port
Elizabeth. The results from the pilot study are discussed in section 4.5.3.

4.5.3 PILOT STUDY

Pilot studies are important in assessing the quality and usability of the research
questions. Pilot studies give the researcher an indication of the quality of results
that the researcher will most likely receive (Leedy and Ormrod, 2005). For the
purpose of this research study, a pilot study was conducted at a local tyre
dealership in Port Elizabeth one week prior to the official field research in
Pretoria. The questionnaire was given to four customers who had purchased
tyres from the dealership and these customers were provided with a brief
explanation of the research study and the pilot study. Once the questionnaire
was completed by the participants, the participants offered feedback and
suggested improvement to the questionnaire. All feedback was taken into
account and the researcher made several improvements to the questionnaire.
The revised questionnaire was more user-friendly and proved to be successful
during the official field study. Based on the design of the post-pilot questionnaire,
it was determined that a sample consisting of between forty to fifty responses
would be an appropriate sample for the official research study.

75 
 
4.5.4 POPULATION AND RESEARCH SAMPLE
A population consists of all items of interest in an investigation. A sample is a
subset of a population and provides insight about populations (Evans, 2007).
The unit of analysis (the major entity under investigation) in this study was the
South African tyre consumer who purchased two or more tyres in a single
purchase. The rational for this sample selection is that multiple tyre brands and a
mix of tyre tread patterns on a single vehicle are not recommended by the tyre
industry due to safety considerations (Continental, 2011). It is therefore more
likely for a consumer to consider alternate tyre brands and/or different tyre sizes
when they purchase two or more tyres for their vehicle(s).

For the purpose of this research study, fifty participants were requested to
complete the questionnaire at two tyre dealerships in Pretoria, South Africa
during April 2011. All participants were waiting for their vehicles at the tyre
dealership therefore they were easily accessible as they has sufficient time to
complete the questionnaire and ask questions about the research whilst they
waited for their vehicles. The questionnaire was administered over two days and
no assistance was required by the participants to complete the questionnaire. All
questionnaires were returned by the participants.

4.5.5 ADMINISTRATION OF THE QUESTIONNAIRE

The research was conducted at two tyre dealerships in Pretoria, South Africa,
one week prior to the Easter weekend in April 2011. Experts in the tyre industry
recommended this period for the research as it is a generally busy period at tyre
dealerships with customers rushing to rotate, maintain or purchase new tyres
prior to travelling during the Easter holidays. The researcher personally handed
questionnaires to the participants who were asked to complete the questionnaire.
The questionnaire had a cover page introducing the researcher and the purpose
of the research study. The cover page also contained instructions for completion
of the questionnaire and the time required to complete the questionnaire. The
cover page concluded with a confidentiality clause and instructions to return the

76 
 
completed questionnaire to the researcher. Based on the consumer traffic at the
dealership, an 80% response rate of correctly completely questionnaires was
achieved.

4.5.6 RESPONSE RATE

The response rate indicates the number of people who have completed the
questionnaire. The response rate is critical to the research study as it indicates
whether the results are representative of a population (Leedy and Ormrod, 2005).
Factors affecting the response rate were identified to be the length of the
questionnaire, content of the questionnaire and anonymity of the questionnaire.
Feedback from the respondents indicated that the length of the questionnaire
was slightly overwhelming however they believed that the questions were clear
and concise. The respondents also provided positive comments regarding the
anonymity of questionnaire although many were reluctant to discuss their
purchasing behaviour and disposable income. For the purpose of this survey, an
80% response rate was achieved. These responses will be used in the analysis
of the data collected from the respondents in chapter five.

4.5.7 RESEARCH ETHICS

Leedy and Ormrod (2005) write that ethical implications must be considered
when conducting research. These ethical issues are broadly:

 Protection from harm: Researchers do not expose research participants

to physical or psychological harm;
 Informed consent: Research participants should be informed of the nature
and purpose of the study. Research participants should be given:
 The choice to participate or not;
 A brief description of the nature of the study;
 A description of what the participation will involve;
 A list of potential risks involved in the study;

77 
 
  A guarantee of confidentiality; and
 An offer to provide detailed information about the study.
 The right to privacy: The research should keep the nature and quality of
the research participant’s performance and/or feedback confidential; and
 Honesty: Research reports must be complete and honest. Findings must
be presented objectively and without misrepresentation.

The above considerations were applied to the questionnaire as per annexure A.

4.6 SUMMARY
The social phenomena being investigated in this research study are tyre
consumer’s purchasing behaviours in online environments and the influence of
social media in the consumer’s purchase decision journey. The objective of the
research is to determine South African tyre purchaser’s attitudes towards online
research, specifically the impact of social media as a research tool during the
consumer’s decision making process. As the social phenomena under review
are reliant on the participant’s views, opinions and perceptions, qualitative
research methodology was deemed as the appropriate research methodology for
the research study that follows. The questionnaire was administered during the
week before the 2011 Easter weekend. Based on the responses to the
questionnaire, the research analysis that follows in chapter five will be assessed
in terms of:
 Demographic information;
 Accessibility and hours spent on the internet;
 Uses of the internet;
 Awareness of social media;
 Social media as a form of engaging the consumer and the brand; and
 Social media as a form of eWOM marketing.

78 
 
 CHAPTER 5

RESEARCH ANALYSIS

5.1 INTRODUCTION
The conceptual framework in chapter four, figure 4.1 was based on the literature
review as discussed in chapters two and three. The literature review concluded
that social media marketing would be effective in influencing the consumer’s
purchase decision. Two previous research studies by Fauser et al. (2011) and
Cuming (2008) indicated that social media marketing was an effective tool in
communicating to consumers in online markets. The studies however did not
include the South African market and further research was necessary to test the
relevance of the results in the South African tyre market. The research analysis
which follows is based on the conceptual framework as per figure 4.1 and
analyses the South African consumer’s attitudes towards the internet and social
media as research tools.

The analysis is broken down into three components:

 Internet and social media: The research objective is to assess if
marketing activities to stimulate the need for the brand or product through
aggressive online marketing communication (brand awareness) will be
effective through company websites and/or social media platforms.
 Brand-consumer engagement: The research objective is to assess if
consumers are interested in engaging with brands (via marketers) on
social media platforms to increase their knowledge about the brands
performance, specification, capabilities and price.
 Online recommendations: The research objective is to assess if
consumers are willing to engage in word of mouth (WOM) by sharing
opinions, perceptions and experiences regarding tyre brands and tyre
purchases with other consumers.

79 
 
5.2 RESULTS AND ANALYSIS OF EMPIRICAL STUDY
As per table 5.1 below, the fieldwork for the research study was conducted on 18
and 20 April 2011. The targeted participants for the study were consumers who
purchased two or more tyres in a single purchase for their privately owned
vehicles. The research was conducted at two tyre dealerships in the city of
Pretoria, South Africa. Of the fifty questionnaires which were distributed to the
participants of the research study, only forty questionnaires were returned fully
and correctly completed. This resulted in an 80% response rate.

Table 5.1: Summary of research sample

a) Determine if consumers researched tyres online prior to final purchase.

Objective:
b) Determine if consumers consider social media as an online research tool.

Method: Questionnaire using paper and pencil, filled in by the particpant

Country: South Africa

City: Pretoria
Autowiel Hi-Q Menlyn, Menlyn Motorcity, Garsfontein Drive, Pretoria

Dealership: Autowiel ContiPartner Montana, Montana Corner Shopping Center, Cnr. Dr.
Swanepoel Road and Zambezi Drive, Montana

Private vehicle owners aged eighteen plus, who purchase their tyres from either
Universe:
one of the two Autowiel dealerships
Target group: Vehicle owners replacing two or more tyres in a single purchase

Sample size: n=40 respondents

Russel Stewart, Student number: 203087275

Fieldwork:
Monica Ramsunder, Student number: 209030087

Fieldwork conducted on Monday, 18 April 2011 and Wednesday, 20 April 2011

Field time:
respectively

80 
 
The questionnaire was categorised as follows:
 Demographic information;
 Accessibility and hours spent on the internet;
 Uses of the internet;
 Awareness of social media;
 Social media as a form of engaging the consumer and the brand; and
 Social media as a form of WOM.

The research analysis that follows will be discussed in the above segments.

5.2.1 ANALYSIS OF DEMOGRAPHIC INFORMATION

Section A of the questionnaire was based on demographic information; namely
age, gender and race. Following the results from the previous research studies
by Continental’s Market Intelligence (2010) and Stelzner (2010; 2011), it was
important to assess if the use of online research by South African tyre
purchasers had increased from 2010 to 2011. Recall from the literature review in
chapter three the key points from a previous online market research conducted
by Continental (Continental AG Market Intelligence, 2010). Based on the
research sample, only 37% of respondents purchased new tyres for their
vehicles in 2010. A secondary study revealed that only 3% of respondents
engaged in online research prior to the actual purchase if their tyres.

For the purpose of this study only consumers who purchased two or more tyres
in a single purchase were interviewed. Multiple tyre brands and a mix of tyre
tread patterns on a single vehicle are not recommended by the tyre industry due
to safety considerations (Continental, 2011). It is therefore more likely for a
consumer to consider alternate tyre brands and/or different tyre sizes should they
purchase two or more tyres for their vehicle(s). The purpose of interviewing this
specific sample was to test if consumers who were considering changing tyre
brands and/or tyre sizes engaged in online research prior to actual purchase.

81 
 
The aim of this
s study is to
o test the impact of o
online rese
earch and ssocial mediia
keting in the
mark e tyre indus
stry during the
t consum
mer’s purcha
ase decisio
on journey.

Figure 5.1
5 Analys
sis of consumer dem ographics
s: age and race

o the questionnaire addressed

The first part of a cconsumer d
demograph
hics. Figurre
5.1 above
a indicates that of the forrty respond
dents in th
he 2011 a
analysis, th
he
majo
ority of cons
sumers (33
3%) were be
etween 30--39 years o
of age follow
wed by 20%
%
cons
sumers who
o were betw
ween 20- 29
9 years of a
age. Of the
e total respo
ondents, th
he
mostt tyres purrchases we
ere made by white cconsumers (87% malle and 13%
%
fema
ale). This statistic represented 22% of the
e total sam
mple. Ba
ased on th
he
resullts in figure
e 5.1 above
e, it is evide
ent that the combinatio
on of tyre p
purchases iin
age groups 30-39 years and 40-49 years
y was 4
48%. Howe
ever, tyre p
purchases iin
2010
0 made by
y males aged
a betwe
een 35-49
9 years we
ere record
ded at 43%
%
(Con
ntinental AG ntelligence, 2010). Th
G Market In his reflects a 5% differrence in tyrre
purch
hasers age
ed around 35-49 yearrs from 201
10 to 2011. Based o
on the 2011
resullts, it is ded
duced that a possible
e core targe
et market fo
for tyres ma
anufacturerrs

82 
 
are consumers
c between th
he ages 30-49 years o
of age. On
nce the 2011 results fo
or
age groups were
w compared to th
he 2010 rresults (Co
ontinental AG Marke
et
Intellligence, 2010), the nex
xt step was
s to comparre the resullts in terms of gender.

Figu
ure 5.2 Ana
alysis of co emographics: gende
onsumer de er

The results in figure 5.2 above indicate that in terms o

of gender, 7
75% of tyrre
hases were
purch e made by
y males an
nd 25 % o
of tyre purcchases were made b
by
fema
ales. This reflects
r a marginal
m diffference of 1% when compared to the stud
dy
cond
ducted by Continenta
C l’s Market Intelligencce (2010) w
which reflected that iin
2010
0, 76% of tyre
t purcha
ases were made
m by m
males and 2
24% of tyre
e purchase
es
were
e made by females. The majority of consumer wass representted by 65%
%
white
e males. It was furrther noted
d that 100%
% of the respondentts who ha
ad
purch
hased tyres
s had acce
ess to the internet in tthe form off a persona
al compute
er,
work
k computer, internet cafe
c and mobile
m tele phone. Fo
ollowing an
nalysing th
he

83 
 
resullts of tyre purchases
s by age and
a genderr, the nextt step wass to analysse
numb
ber of hours consumers spent on
n the interne
et by age a
and gender..

2 ANALYS
5.2.2 SIS OF THE
T INTERNET AS
S A RESEARCH T
TOOL FOR
CON
NSUMERS
Figurre 5.3 belo
ow indicate
ed that 63%
% of total rrespondentts spent be
etween 1-10
hours on the internet per week.
w This
s result com
mprised of a
age group 30-39 yearrs
old which
w repre
esented 18
8% of this sample an
nd age gro
oup 20-29 yyears whicch
repre
esented 8%
% of the sam
mple.

Figure
F 5.3: Number off hours co
onsumers s
spend on tthe interne
et by age

The results indiicated that the majoritty of online users (26%

%) were ag
ged betwee
en
30-39 years fo
ollowed by age group
p 60-69 ye
ears which comprised
d of 16% o
of
ne users. The
onlin T results
s as per figure 5.4 be
elow furtherr indicated that 33% o
of
male
es spent be
etween 1-4
4 hours an
nd 5-10 ho
ours on the
e internet rrespectivelyy.
30% of female
es spent between
b 1-4 hours a nd 10-20 hours on the interne
et
ectively. 10
respe 00% of all respondent
r ess to the in
s had acce nternet.

84 
 
 gure 5.4: Number
Fig N of hours consumers sp
pent on the
e internet b
by gender

Base
ed on these
e results fro
om figures 5.2 and fig
gure 5.3 ab
bove it is d
deduced tha
at
poten
ntial online
e marketin
ng activities
s could be
e targeted
d to consu
umers age
ed
betw
ween 30-39
9 years of age with emphasis
e o
on male cconsumers. Critical tto
segm
menting the
e South African markett in terms o
of internet u
usage, is to
o understan
nd
the main
m reaso
ons behind
d South Afrricans acce
essing and
d utilising tthe interne
et.
Figurre 5.5 belo
ow, aims to
o provide CTSA
C with an indicattion of how
w many tyrre
cons
sumers use the interne
et for social networking
g and as a research to
ool.

85 
 
 Figure 5.5:
5 Main re
easons forr consumers accessiing the inte
ernet

Participants were asked to

o specify the
e main reassons as to why they a
accessed th
he
net. The key
intern k findings
s resulting from
f this q uestion are
e depicted in figure 5..5
abov
ve 88% of the
t respond
dents used the interne
et for generral research
h, 38% use
ed
the internet to connect
c to and particiipate in soccial networking platforrm and 23%
%
of re
espondents
s used the
e internet for generral entertainment. 95
5% of tota
al
respo
ondents we
ere aware of
o social media howevver only 38
8% used the internet tto
partic
cipate in so
ocial networking. As 88%
8 of the responden
nts used the
e internet fo
or
gene
eral researc
ch, the res
sults indica
ated that t here is an
n opportuniity in onlin
ne
mark
ket places for
f CTSA to
o engage in
n online acctivities to a
attract interrnet users tto
resea
arch tyre pu
urchases prior to actua
al purchase
e at tyre fitm
ment centre
es.

5.2.3
3 ANALYS
SIS OF SOCIAL
S MEDIA
M AS TOOL FOR
S A RESEARCH T
CON
NSUMERS
The participants
s who enga
aged in social networkking (38%) ffurther indiccated that o
of
the social
s netw
working site
es available
e, 90% we
ere aware of Facebo
ook followe
ed
close
ely by YouT
Tube and Twitter.
T The
ese results are depictted in figure
e 5.6 below
w.
A lim
mitation of these
t results is that 28%
2 of the
e respondents indicate
ed that the
ey
86 
 
were
e aware of other socia
al networkin
ng platform
ms; however the questtionnaire diid
not ask
a respond
dents to spe
ecify these platforms.

Figure
F 5.6: South Afriican tyre consumer’s
c s awarenes
ss of socia
al media
platforms

The implication of these re

esults is tha
at Facebookk, followed by YouTub
be and
Twittter could prresent CTSA
A with the opportunity
o y to create b
brand awarreness via
socia
al media ma
arketing activities. This
s opportuniity will be discussed in
n the
recom
mmendatio
on in chapte
er six.

87 
 
 Fig
gure 5.7: South
S Afric
can tyre co
onsumer’s participatiion on soc
cial media
platforms

Table 5.1:: Analysis of consum

mer social m
media partticipation b
by age

Partiicipation in so
ocial media / age 20‐29
9 30‐39 40‐49 50‐59
5 60‐69 ≥70 Average
Facebbook 100%
% 77% 83% 6
60% 57%% 100% 80%
YouTTube 100%
% 54% 17% 2
20% 0% 0% 32%
Twittter 0% 23% 17% 0% 14%% 0% 9%
Bloggger.com 0% 0% 0% 0% 0% 0% 0%
Otheer 0% 23% 17% 0% 14%% 0% 9%
None e of the abovve 0% 15% 0% 6
60% 29%% 0% 17%

Figurre 5.6 in conjunction

c n with figure 5.7 abo
ove; indica
ate that wh
hilst 90% o
of
respo
ondents in
ndicated th
hat they were
w awarre of Faccebook, on
nly 78% o
of
respo
ondents in
ndicated tha
at they pa
articipated on Facebo
ook. The majority o
of
Face
ebook users
s as per tab
ble 5.1 abo
ove were in aged betw
ween 20-49 years. Th
he
age group
g esents one responden
≥70 years repre nt. Table 5.1 further in
ndicates tha
at
partic
cipation on
n Facebook
k is followe
ed by Twittter with 32
2% participa
ation by th
he

88 
 
respondents. Whilst this is the second highest result for this segment,
participants on Twitter only represents 26% of total participants on Facebook.
As per the results in figure 5.5 and figure 5.7, although all respondents indicated
that they were aware of social media, 17% of respondents (mainly aged 50-59
years) did not participate in social media. Based on the number of participants
by age (as depicted in figure 5.1) and the popularity of social media networking
(as depicted in figure 5.7) age groups 30-39 years and 40-49 years stand out as
potential target markets for CTSA’s social media marketing strategies on social
networking platforms.

The objective of CTSA’s social media strategy is to appeal to South African tyre
consumers to use social media as a research tool during their purchase decision
journey. Recall that 100% of all respondents had access to the internet. A key
consideration was, did South African consumers use the internet for general
research? 95% of respondents stated “yes” and 5% stated “no”. Of the 95% of
respondents who used the internet for general research, only 50% used the
internet to research tyre brands prior to final tyre purchase. Figure 5.8 indicates
that of the 50% of respondents, who researched tyre brands, 40% visited tyre
manufacturer websites and 30% visited tyre retailer websites to gather
information. Only 8% of respondents considered social media as a research tool.

89 
 
 Fiigure 5.8: Platforms
P used
u for online tyre research

At prresent none
e of the loc anufacturerss have launched sociial media a
cal tyre ma as
part of their ma
arketing strrategy. Bas
sed on the
e 8% respo
onse rate to
oward socia
al
mediia in figure
e 5.7, the respondents
r s were askked to com
mment on ssocial mediia
mark
keting as a form of con
nsumer-bra
and engage ment.

4 ANALYS
5.2.4 SIS OF CONSUMER
C R-BRAND ENGAGE
EMENT VIIA SOCIA
AL
MED
DIA
Bran
nd awareness and kno
owledge ab
bout the bra
and was disscussed in chapter tw
wo
as crritical factorrs affecting brand equity. With th
he rapid gro
owth of the internet an
nd
incre
easingly ag
ggressive online
o mark
keting strattegies by m
marketers, participantts
were
e asked to indicate which
w factorrs they beliieved would increase their bran
nd
awarreness on a social me
edia platforrm. The re
esults are in depicted in table 5..9
below
w.

90 
 
 Figure
e 5.9: Facto
ors contrib
buting to o
online bran
nd awarene
ess

The research objective was to assess

a if S
South African consu
umers werre
intere
ested in engaging with
h brands on
n social me
edia platform
ms to learn more abou
ut
the brands
b perfformance specification
s n, price and
d capabilitie
es. The re
esearch alsso
ques
stioned the
e South Affrican cons
sumer’s w illingness to engage
e with othe
er
cons
sumers in online env
vironments to discusss and/or rrecommend
d the bran
nd
there
eby facilitatiing eWOM..

Figurre 5.9 abov

ve indicates
s that whils
st the majo
ority of resp
pondents in
ndicated tha
at
onlin
ne multimed
dia pages containing
c downloaded
d d television
n advertisem
ments woulld
incre
ease their brand
b aware
eness, 40%
% (majority of male an
nd female rrespondentts
in this category
y) indicated that testim
monies and press releases would
d encourag
ge
them
m to learn more
m aboutt the brand
d. These re
results supp
port eWOM
M which is a
critic
cal marketin
ng tool in e-marketin
ng and the
e consume
er’s purcha
ase decisio
on
journ
ney (Court et al., 2009
9; Fauser et
e al., 2011). Based o
on the resu
ults in figurre
5.9, it is conclu
uded that CTSA
C will have to en
nsure that ttheir sociall networkin
ng
orms conta
platfo ains testimo
onies from regular
r con sumers and
d press rele
eases whicch

91 
 
are valid,
v credib
ble and currrent. This builds bran
nd reputatio
on and ultim
mately bran
nd
prese
ence and brand
b equity
y in online market
m placces (Rockendorf, 2011
1).

ddition to fa
In ad actors affec
cting brand awarenesss, participants in the sstudy furthe
er
indic
cated which
h factors wo
ould contrib
bute to them
m learning more about the brand
ds
products (brand
d knowledge) via socia
al media. T
The resultss are refleccted in figurre
5.10 below.

Figure 5.10: Facttors contributing to o

online bran
nd knowled
dge

dents indic
18% of respond cated that the
t followin
ng five facttors as perr figure 5.10
ve were con
abov nsidered as
s importantt informatio
on when ressearching a
and learnin
ng
abou
ut brands an
nd its family
y of produc
cts:
 Tyre spe
ecification;
 Price of tyres;
t
 Reputatio
on of the ty
yre brand;
 Stock av
vailability of the tyre; an
nd
 Dealer in
nformation.

92 
 
The most important factors as per figure 5.10 were tyre specification, price of the
tyre and reputation of the brand. These factors which are directly correlated to
the brand itself were considered more important than the actual availability of the
brand. Taking these factors into consideration, CTSA will have to ensure that
their product fitment guides (which contains tyre specifications) and additional
information regarding product information, recommended price lists and dealer
information (dealer locators) are uploaded onto social media platforms and are
maintained with current and credible information.

By providing information which could affect consumer’s purchase decision

criteria, marketers will be providing consumers with what they want (Fauser et
al., 2011). Marketers will be able to facilitate conversations with consumers;
thereby allowing consumers to ask questions about the brand and received real-
time feedback (Court et al., 2009). This type of two-way communication builds a
strong foundation for consumer-brand engagement. Communication is an
important aspect in the post-purchase phase of the consumer’s purchase
decision journey and marketers need to encourage consumer-brand engagement
and facilitate eWOM to other consumers (Court et al., 2009; Fauser et al., 2011).

5.2.5 ANALYSIS OF SOCIAL MEDIA TO FACILITATE WORD OF MOUTH

Once the consumer has purchased the brand, marketers have the opportunity to
engage in after-sales service with the consumer via social media (Court et al.,
2009). It is important that the actual service the consumer receives throughout
the consumer’s purchase decision journey (both online and face-to-face) is of a
professional and reputable standard. Consumers have the power to either
positively or negatively reinforce a brand through online recommendations using
social media (Rockendorf, 2011). Therefore it is critical that consumers are
treated with respect and care to ensure that they have a positive purchase
experience. This positive experience will result in consumers sharing their
experiences, perception and opinions not only regarding the product but also

93 
 
regarding the tangible and intangible service they received throughout the
consumer’s purchase decision journey (Rockendorf, 2011).

The research concluded by testing the final element in the conceptual

framework; eWOM. Participants were asked if they would use social media as a
forum to engage in eWOM; 65% of the sample responded “yes”. This indicates
that the majority of the participants would be willing to share their experiences,
perception and opinions with other consumers in online environments. This final
element brings the analysis of results to a conclusion.

5.3 SUMMARY
The results from the research analysis as discussed in chapter five, supports the
literature by Court et al. (2009), Peppard and Butler, (2009) and Fauser et al.
(2011) in their arguments that social media is a useful tool for marketers to
engage with consumers during the consumer’s purchase decision journey. The
analysis further supports Continental’s social media marketing strategy
(Rockendorf, 2010) in that social media and the internet (i.e. company websites)
must be utilised effectively to supply consumers with sufficient information in
terms of the consumer’s decision criteria. This will enable consumers to use
social media and the internet as research tool to learn more about tyre brands
and evaluate and compare the brand and/or product information. Based on the
results from the field study, it is concluded that social media and the internet are
appropriate marketing tools to reach out to the South African tyre consumers and
encourage them to communicate and engage with the brand. The chapter that
follows summarises the key findings from the research analysis and provides
final recommendations regarding social media marketing strategy in the tyre
industry to CTSA.

94 
 
 CHAPTER SIX

SUMMARY, CONCLUSION AND RECOMMENDATIONS

6.1 INTRODUCTION
The literature reviews in chapters two and three revealed that many modern
consumers seeks peer advice over social networks thus social media has
promoted consumer-to-consumer communication and has made it possible for
consumers and brands to interact with each other (Mangold and Faulds, 2009).
The main objective of the research study was to assess South African
consumer’s attitudes towards online research, specifically the impact of social
media as a research tool during the consumer’s decision making process in the
tyre industry.

Social media has allowed for increased situational awareness in terms of a

changing environment (Mayfield, 2011) thus social media marketing is playing an
increasingly important role in marketing (Cuming, 2008). It was further
concluded that whilst social media marketing presents marketers with a more
cost effective form of marketing, further research regarding South African’s online
purchasing activities would be required to assess if the time, money and
resources required to manage social media marketing for CTSA would be
beneficial to the organisation.

Based on the literature review in chapters two and three, the author designed a
research instrument (a questionnaire) to research the main problem. Chapter
five presented the analysis of results from the field study. The chapter that
follows summarises the key points from the literature review and the main
findings from the analysis of results. The chapter concludes with
recommendations for CTSA’s social media marketing strategy.

95 
 
6.2 SUMMARY AND DISCUSSION OF KEY FINDINGS RELATING TO SOCIAL
MEDIA MARKETING STRATEGY
The literature review outlined the importance of the marketing mix in marketing
strategy; more specifically communications and customer relationships were
highlighted as core components to marketing strategy. In order to be successful
at communicating with consumers and building and maintaining long term
relationships with them, marketers must ensure that they communicate with
consumers during all stages of the consumer’s purchase decision journey (Court
et al., 2009). Recall from chapter two figure 2.4, consumers move through five
stages during their purchase decision journey:
 Awareness: The problem recognition stage (Peppard and Butler, 1998);
 Familiarity: The stage where consumers take action to gain knowledge
about products and services (Peppard and Butler, 1998);
 Consideration: Consumers consider the relative importance of each of
the brand’s attributes by making trade-offs at each of the attribute levels
(Reid et al., 2009);
 Purchase: Consumers make the decision of which brands to purchase
(Pride and Ferrell, 2010); and
 Loyalty: Consumers begin to evaluate the entire process from the
awareness stage to their current stage (Windham and Orton, 2000).

These stages served as the basis for identifying specific social media marketing
strategies that CTSA could engage in, in order to generate and maximise brand
awareness. The significance of this assessment was to test if brand exposure
through the internet and social media marketing would encourage South African
consumers to engage in online research for tyre purchases. The strategies
included consumer-brand engagement and eWOM over the internet and social
media. These strategies were identified in the literature review and elements of
these strategies were tested during the field study. As per the conceptual
framework in chapter four (figure 4.2), the study was segmented into three
elements:

96 
 
  The internet and social media;
 Consumer-brand engagement; and
 Online recommendations.

6.2.1 THE INTERNET AND SOCIAL MEDIA

In terms of the internet and social media, the findings revealed 88% of
respondents used the internet for research and 33% of respondents participated
on social media platforms. The majority of respondents were white males and
were aged between 30-49 years. These respondents showed positive attitudes
towards social media platforms such as Facebook and Twitter and spent around
5-10 hours on the internet per day. The majority of total respondents (78%)
participated on Facebook. This high rating indicates that the majority of
respondents have access to the internet and are knowledgeable about social
media networking and collaboration on the social media platforms.

The research revealed that whilst 88% of respondents used the internet for
general research, only 40% utilised tyre manufacturer websites and 30% used
tyre retailer websites for online tyre research. 8% used social media platforms to
find information on tyres in South Africa. 33% of respondents did not use the
internet for online research for tyre purchases. This indicates that CTSA will
need to engage in aggressive traditional marketing (example radio, print and
television) in order to drive consumers to engage in their social media platforms.

6.2.2 CONSUMER-BRAND ENGAGEMENT

Feedback from the respondents indicated that television advertisements,
testimonies, press releases, online competitions and interactive games would
increase their brand awareness for tyres on social media networks. By providing
consumers with this type of engagement, CTSA would be able to “pull”
consumers to its social media sites (online competitions), inform them about the
product specifications and capabilities (advertisements, press releases and
interactive games) and allow consumers to share their thoughts and opinions
97 
 
with each other (sharing of testimonials). This would promote knowledge and
information sharing between CTSA and its consumers, promote brand
awareness and consumer engagement.

6.2.3 ONLINE RECOMMENDATIONS

The results indicated that consumers considered the reputation of the brand and
availability of the tyre brand when purchasing tyres. The respondents indicated
that if they had to research a brand, the first aspect they would consider is the
brand reputation followed by stock availability of the brand at the nearest dealer.
Aftersales support and real time feedback were key factors affecting customers
repeat purchases of the tyre brand. The implications for CTSA is that the
marketing department would need to ensure that there is sufficient information
(brand awareness) available online for consumers to make informed decisions
based on quality, specification and price of the tyre. CTSA will need to ensure
that the tyre dealerships have sufficient stock to accommodate the requests of
consumers and that the dealerships are trained with sufficient knowledge to
provide expert advice to consumers during fitment. This will result in professional
service. If consumers are satisfied with the level of information they are able to
receive online and with the level of customer service at tyre dealerships, they will
be inclined to engage in social media and share positive experiences of the tyre
brand with fellow consumers. This will result in positive eWOM.

6.3 RESOLUTION OF THE MAIN RESEARCH PROBLEM AND RESEARCH

QUESTIONS
The main problem which this study aimed to address was South African
consumer’s attitudes toward online tyre research; specifically the impact of social
media marketing as a research tool during the consumer’s decision making
process when purchasing tyres. The main problem was addressed through the
research questions as follows:

98 
 
Research question 1
 What are the key elements contributing to effective marketing strategy?

This research question was addressed in the literature review in chapter two. An
effective marketing strategy must ensure that it communicates the value
proposition to consumers as they move through a purchase decision making
process. This strategy must include the 7P’s; product (value proposition), price,
promotion (communication), place (distribution channels), process, people
(consumers-brand engagement) and physical evidence. Effective marketing
strategy ensures that the brand “talks” to consumers.

Research question 2
 What is an ideal social media marketing strategy?

This research question was addressed in the literature review in chapter three.
An effective social media marketing strategy must ensure that it contains
promotional offers which communicates the brand’s presence in online market
places, encourages brand familiarity and establishes confidence in the brand in
the mind of the consumer. These social media marketing strategies must
provide consumers with product and brand information, provide consumers with
real time feedback, must ensure ease of online navigation to access information,
utilise the power of stories (testimonials), promote customer focused promotional
messages and facilitate collaboration amongst consumers and the brand. Real
time feedback is core to social media marketing as it creates, builds and
maintains relationships with consumers.

Research question 3
 What are the perceptions of South Africans consumers regarding social
media as an interactive channel of communication between consumers
and brands?

99 
 
Most of the respondents from the field study stated that they did not engage in
online research for tyre purchases. Whilst 18% of respondents did not
participate on social media, all participants responded positively that if there were
“pull” factors and hype to the social media pages, they would be willing to engage
with tyre brands online in order to learn more about the brand. The study
indicated that the following were considered as important “pull” factors:
 Ease of navigation through social media pages;
 Brand loyalty rewards system;
 Real time customer feedback;
 Quality of information available to consumers;
 Online advertising;
 Online newsletters;
 Online competitions; and
 Interactive games to test products in simulated online environments.

Research question 4
 Does social media marketing present an opportunity for CTSA to reach
consumers in online environments?

Based on the answers to the research question above as discussed in chapter

five, it is clear that there is opportunity for CTSA to reach consumers in online
environments. The internet and social media represents a communication
channel for CTSA and should be integrated as part of CTSA’s communication
activities. Key tasks would include creating online brand awareness by informing
consumers about the Continental brand and Continental group. These activities
must create a “pull” effect and increase the likeliness for positive buying
decisions (Rockendorf, 2011). The resolution to this research question is
addressed in the research recommendations below.

100 
 
6.4 RECOMMENDATIONS
Recommendation 1
Plan detailed steps for social media marketing strategy:
 Identify the target audience. Based on the research study, appropriate
target audiences are males and females aged between 30-49 years of
age. CTSA needs to be clear on what specifically motivates consumers
on social media. Based on the results of the research study, it is clear that
real-time customer feedback, online news letters, online competitions and
a loyalty rewards programme appeals to consumers. CTSA would need to
create a dedicated social media team to manage consumer-brand
engagement. CTSA would also need to ensure that there are current
newsletter, press releases and sufficient ad hoc competitions to “pull”
consumers;
 Develop a marketing campaign to launch social media and attract
consumers to CTSA’s social media pages. The campaigns must focus on
raising brand awareness, promote a favourable brand image and create a
“buzz” in the online market place. The campaign must appeal to
consumers; and
 The campaign must be interactive to promote consumer-brand
engagement and promote consumer conversations about the brand. This
in turn will provide CTSA with new insights on the targeted markets.

Recommendation 2
Identify appropriate social media platforms to launch of social media marketing:
 Based on the research analysis in chapter five, it is clear that the most
appropriate social media platforms for CTSA to launch social media
marketing activities are Facebook and Twitter.

Recommendation 3
The social media marketing strategy must have sufficient budget to create, run
and promote social media marketing activities:
101 
 
  CTSA must ensure that there is sufficient budget available to develop
creative artwork for the fan pages (production costs) and to develop
interactive games to attract and retain social media fans; and
 Social media requires constant monitoring and real time feedback to
ensure consumer brand engagement. Therefore CTSA will need to ensure
that they are resourced appropriately so that social media has sufficient
resources dedicated to “talking” to and engaging with consumers.

Recommendation 4
Determine metrics to evaluate the success of social media marking and assess
its effectiveness:
 Social media platforms provide users with analytics to assess the growth
and functionality of their social media pages. On platforms such as
Facebook and Twitter, this includes viewing the number of visitors per
day, the number of likes per comments and the number of comments per
day; and
 CTSA must select the most appropriate analytical tools in order to assess
key performance indicators and return on investment.

6.5 THE ACCOMPLISHMENT OF THE RESEARCH OBJECTIVES

The objectives of this study were:
 Internet and social media: The research objective is to assess if
marketing activities to stimulate the need for the brand or product through
aggressive online marketing communication (brand awareness) will be
effective through company websites and/or social media platforms.
 Brand-consumer engagement: The research objective is to assess if
consumers are interested in engaging with brands (via marketers) on
social media platforms to increase their knowledge about the brands
performance, specification, capabilities and price.
 Online recommendations: The research objective is to assess if
consumers are willing to engage in word of mouth (WOM) by sharing

102 
 
 opinions, perceptions and experiences regarding tyre brands and tyre
purchases with other consumers.

All three objectives were accomplished through the research field study.

6.6. RECOMMENDATIONS FOR FUTURE RESEARCH

The final question in the research study was:

Would you consider ordering and paying for your tyres online?

This question was out of scope for this study, however it was used as
determinate to assess if South African consumers were willing to order and
purchase tyres online. The response to this answer would enable the researcher
to assess if there was opportunity to further investigate the possible of
implementing an online order-to-delivery system at CTSA. 48% of respondents
responded positively. Continental AG is in the process of rolling out online order
to delivery systems however further research will be required to assess if this
system will be successful in the South African market. CTSA would need to
engage in business to business research in order to assess if social media
marketing could promote an order to delivery system for the South African tyre
market.

6.7 SUMMARY
The main purpose of social media is connectivity; the ability to meet new people,
create new contacts and develop networks and create new customers and
business associates (Mayfield, 2011). If managed and maintained appropriately,
organisations can utilise the power of social media marketing to promote its
brand, gain insight into the market and assess how consumers feel about its
brands (Court et al., 2009). As thousands of users visit social media platforms
daily, social media marketing allows marketers to reach and talk to a mass
audience at little or no cost (Fauser et al., 2011).

103 
 
Social media marketing presents CTSA with first mover advantage as no other
local tyre manufacturer has a presence on social media. CTSA will need to
engage in an aggressive traditional marketing campaign in order to drive
consumers to engage in the social media campaigns. Strategies must include
dedicated fan pages, online banners, and online advertisements. By engaging
with consumers on social media, CTSA will be able to assess how consumers
are viewing their brands, assess how consumers feel about the competition and
allow the marketers to understand what consumers are looking for. This presents
CTSA the opportunity to engage in real time with its consumers, improve on
service delivery and aligns its brand strategies to ensure that the future
generation products are in accordance with the markets needs and wants; this is
the core of marketing strategy.

104 
 
LIST OF REFERENCES
Aaker, D.A., 1991. Managing brand equity: capitalizing on the value of a brand
name. New York: Simon and Schuster Inc.

Aaker, D.A., 1996. Measuring Brand Equity across productions and markets.
California Management Review, 38(3), pp.102-20, 174.

Aaker, D.A. and Joachimsthaler, E., 2000. Brand Leadership. New York: Simon
and Schuster Inc.

Abbing, E.R., 2010. Brand-driven Innovation. Switzerland: AVA Publishing.

Armstrong, G. Harker, M. Kotler, P. and Brennan, R., 2009. Marketing: An

Introduction. Financial Times Prentice Hall.

Barker, R. Kirk, J. and Munday, R.J., 1988. Narrative analysis. 3rd ed.
Bloomington: Indiana University Press.

Belohlavek, P., 2008. Market Cybernetics. Unicist Marketing Mix. 2nd ed. Blue
Eagle Group.

Boughton, J.M., 2002. The Bretton Woods proposal: a brief look. Political
Science Quarterly, 42 (6), p.564.

Brandz., 2010. Top 100 most valuable global brands 2010. Brandz, [online]
Available at: < http://www.brandz.com/output/brandz-top-100.aspx> [Accessed
17 May 2011].

Brodie, R.J. Winklhofer, H. Coviello, N.E. and Johnston, W.J., 2007. Is e-

marketing coming of age? An examination of the penetration of e-marketing and
firm performance. Journal of Interactive Marketing, pp.1-21.

105 
 
Brown, J. Broderick, A.J. and Lee, N., 2007. Online Communities:
Conceptualizing the Online Social Network. Journal of Interactive Marketing,
21(3), pp.2-20.

Burger, J., 2009. Principals of Marketing. [lecture] (Personal communication,

June 2009).

Business Dictionary., 2011. [online] Available at:

<http://www.businessdictionary.com> [Accessed 23 August 2011]

Cant, M.C. Strydom, J.W. and Jooste, C.J., 2006. Marketing Management. 5th
ed. Cape Town: Juta and Company Ltd.

Chattopadhyay, T. Shraddha, S. and Krishnan, M., 2010. Marketing mix

elements influencing brand equity and brand choice. Vikalpa: The Journal for
Decision Makers, 35(3), pp.67-84.

Cohen, R.B., 2008. The Virtual Worlds and the Transformation of Business.
Cohen Communication Group, [online] Available at <
http://www.athenaalliance.org/pdf/VirtualWorldsandtheTransformationofBusiness.
pdf> [Accessed 17 May 2011].

Collis, J. and Hussey, R., 2003. Business Research: A practical guide for
undergraduate and postgraduate students. 2nd ed. New York: Palgrave
Macmillan.

Collis, J. and Hussey, R., 2009. Business Research: A practical guide for
undergraduate and postgraduate students. 3rd ed. New York: Palgrave
Macmillan.

106 
 
Continental., 2011. About Continental. [online] Available at: <
http://www.continental.co.za/default.asp> [Accessed 13 June 2011].

Continental AG Market Intelligence., 2010. Online Tyre Purchase. [online] May.

Available at: < https://connect1.continental-
corporation.com/LotusQuickr/00001464/PageLibraryC1256DA6002811A4.nsf/h_
Toc/43E01B9811BB852FC1257682003618A9/?OpenDocument> [Accessed 13
February 2011].

Constantinides, E., 2002. The 4S Web-Marketing Mix model. Electronic

Commerce Research and Applications, 1, pp.56-76.

Constantinides, E., 2006. The Marketing Mix Revisited: Toward the 21st Century
Marketing. Journal of Marketing Management, 22, pp.407-438.

Court, D. Elzinger, D. Mulder, S. and Vetvik, O.J., 2009. The consumer decision
journey. McKinsey Quarterly, [online] Available at: <
https://www.mckinseyquarterly.com/The_consumer_decision_journey_2373>
[Accessed 12 May 2011].

Cuming, L., 2008. Engaging Consumers Online: The Impact of Social Media on
Purchasing Behaviour. DEI Worldwide, [online] Available at <
http://www.deiworldwide.com/files/DEIStudy-Engaging%20ConsumersOnline-
Summary.pdf> [Accessed 17 May 2011].

Davis, S., 2001. Brand Asset Management. Concentrated Knowledge for the
Busy Executive, 23(3), pp.1-8.

DJS Research., 2011. Qualitative Market Research. [online] Available at: <
http://www.djsresearch.co.uk/services/service/Qualitative> [Accessed 10 July
2010]

107 
 
Evans, D. and McKee, J., 2010. Social Media Marketing: The Next Generation of
Business Engagement. Indiana: John Wiley and Sons.
Evans, J.R., 2007. Statistics, data analysis and decision modelling. 3rd ed. New
Jersey: Pearson Prentice Hall.

Evans, L., 2010. Social Media Marketing: Strategies for Engaging in Facebook,
Twitter & Other Social Media. Que.

Facebook., 2011. [online] Available at: <http://www.facebook.com> [Accessed 03

February 2011].

Fauser, S.G. Wiedenhofer, J. and Lorenz, M., 2011. “Touchpoint social web”: an
explorative study about using the social web for influencing high involvement
purchase decisions. Problems and Perspectives in Management, 9(1), pp.39-45.

Ferrell, O.C. and Hartline, M.D., 2008. Marketing Strategy. 4th ed. USA: Thomson
Higher Education.

Fifield, P., 2007. Marketing Strategy: The Difference Between Marketing and
Markets. 3rd ed. Butterworth-Heinemann.

Gill, M.S. and Dawra, J., 2010. Evaluating Aaker ’ s sources of brand equity and
the mediating role of brand image. Journal of Targeting, Measurement and
Analysis for Marketing, 13 September, 18, pp.189-198.

Golden, M., 2011. Social Media Strategies for Professionals and Their Firms:
The Guide to Establishing Credibility and Accelerating Relationships. New
Jersey: John Wiley and Sons.

108 
 
Gommans, M. Krishnan, K.S. and Scheffold, K.B., 2001. From Brand Loyalty to
E-Loyalty: A Conceptual Framework. Journal of Economic and Social Research,
3(1), pp.43-58.

Grönroos, C., 1994. Marketing Mix to Relationship Marketing: Towards a

Paradigm Shift in Marketing. Management Decision, 32(2), pp.4-20.

Gruen, T.W. Osmonbekov, T. and Czaplewski, A.J., 2005. eWOM: The impact of
customer-to-customer online know-how exchange on customer value and loyalty.
Journal of Business Research, 59, pp.449-456.

Gummesson, E., 2002. Practical value of adequate marketing management

theory. European Journal of Marketing, 36(3), pp.325-349.

Haque, A. Khatibi, A. and Mahmud, S.A., 2009. Factors Determinate Customer

Shopping Behaviour Through Internet: the Malaysian Case. Australian Journal of
Basic and Applied Sciences, 3(4), pp. 3452-3463.

Hemp, P., 2006. Are you ready for e-tailing 2.0? Harvard Business Review,
October, pp.1-3.

Hennig-Thuran, T. Gwinner, K.P. Walsh, G. and Gremler, D.D., 2004. Consumer-

opinion platforms: what motivated consumers to articulate themselves on the
internet. Journal of Interactive Marketing, Winter Issue, 8(1), pp.38-52.

Hill, C.W.L., 2009. International Business Competing in the Global Market Place.
New York: McGraw-Hill.

Hoffman, D.L., 2000. The Revolution Will Not Be Televised: Introduction to the
Special Issue on Marketing Science and the Internet. Marketing Science, 19(1),
pp.1-3.

109 
 
Hoffman, K.D. Czintkota, M.R. Dickson, P.R. Dunne, P. Griffin, A. Hutt, M.D.
Krishnan, B.C. Lusch, R.F. Ronkainen, I.A. Rosenbloom, B. Sheth, J.N. Shimph,
T.A, Siguaw, J.A. Simpson, P.M. Speh, T.W. and Urbany, J.E., 2005. Marketing
Principals and Best Practices. 3rd ed. Ohio: Stratford Publishing Services.

Jha, L., 2008. Customer Relationship Management. New Dehli: Global India
Publications Pvt Ltd.

Joseph, J., 2010. The Experience Effect: Engage Your Customers with a
Consistent and Memorable Brand Experience. New York: AMACOM.

Kalyanam, K. and McIntyre, S., 2002. The E-Marketing Mix: A Contribution of the
E-Tailing Wars. E-business Research Center, July, pp.1-5.

Kaplan, A.M. and Haenlein, M., 2010. Users of the world, unite! The challenges
and opportunities of social media. Business Horizons, 53, pp.59-68.

Kiang, M.Y. Raghu, T.S. and Shange, K.H.M., 2000. Marketing on the Internet –
who can benefit from an online marketing approach? Decision Support Systems,
27, pp.383-393.

Kothari, C.R., 2008. Research Methodology: methods and techniques. 2nd ed.
New Age International.

Kotler, P., 2003. Marketing Insights from A to Z: 80 concepts every manager

needs to know. New Jersey: John Wiley and Sons.

Kotler, P., and Armstrong, G., 2004. Principals of Marketing. 10th ed. Upper
Saddle river, NJ: Prentice Hall.

110 
 
Kotler, P., 2011. Kotler Marketing Group. [online] Available at: <
http://www.kotlermarketing.com/phil1.shtml> [Accessed 12 May 2011]

Kotler, P. Kartajaya, H. and Setiawan, I., 2010. Marketing 3.0: From Products to
Customers to the Human Spirit. New Jersey: John Wiley and Sons.

Kumar, N., 2004. Marketing as Strategy. Understanding the CEO’s Agenda for
Driving Innovation and Growth. Harvard Business School Press.

Kweskin, D., 2007. Measuring and maximising all your consumer touch points.
DTC Perspectives, December, pp.31-41.

Lamb, C.W. Hair, J.F. and McDaniel, C., 2009. The Essentials of Marketing. 6th
ed. USA: Cengage Learning.

Leedy, P.D. and Ormrod, J.E., 2005. Practical Research: Planning and Design.
9th ed. New Jersey: Pearson Prentice Hall.

Lindermann, J., 2004. Brands and Brand Valuation. An Economist Book. New
York: Interbrand.

Lockwood, T., 2009. Design Thinking. 3rd ed. New York: Allworth Press.

Loudon, D. Stevens, R. and Wrenn, B., 2005. Marketing Management.

Binghampton: The Haworth Press Inc.

Macdonald, M. and Sharp, B., 2003. Management perceptions of the importance

of brand awareness as an indication of advertising effectiveness. University of
South Australia Marketing Bulletin, 14(2), pp.1-11.

111 
 
Mangold, W.G. and Faulds, D.J., 2009. Social media: The new hybrid element of
the promotion mix. Business Horizons, 52, pp.357-365.

Mayfield, T.D., 2008. What is social media? [e-book] iCrossing. Available

through: website
<www.icrossing.co.uk/.../What_is_Social_Media_iCrossing_ebook.pdf>
[Accessed 21 May 2011].

Mayfield, T.D., 2011. A commander’s strategy for social media. JFQ, 60, pp.79-
128.

Miladian, H. and Babu, N.K., 2009. Automobile scene: brand awareness, image
and personality. SCMC Journal of Indian Management, July-September.

Mckenna, R., 1991. Marketing is everything. Harvard Business Review, January-

February 1991, pp.1-10.

Oliveira, P. and Sullivan, A., 2003. Creating and managing brand value.
Interbrand.

Peppard, J. and Butler, P. 1998. Consumer purchasing on the internet:

processes and prospects. Cranefield School of Management, [online] Available
at: < https://dspace.lib.cranfield.ac.uk/bitstream/1826/357/2/SWP1198.pdf>
[Accessed 05 April 2011].

Peppers, D. and Rogers, M., 2010. Managing Customer Relationships: A

Strategic Framework. Jersey: John Wiley and Sons.

Powell, G.R. Groves, S.W. and Dimos, J., 2011. ROI of Social Media: How to
improve the return on your social marketing investment. Singapore: John Wiley
and Sons.

112 
 
Pride, M.W. and Ferrell, O.C., 2010. Marketing. 15th ed. Cengage Learning.

Raab, G. Ajami, R.A. Gargeya, V.B. and Goddard, G.J., 2008. Customer
Relationship Management: A Global Perspective. Great Britain: Gower
Publishing Ltd.

Reid, R.D. and Bojanic, D.C., 2009. Hospitality Marketing Management. 5th ed.
John Wiley and Sons.

Rein, I. Kotler, P. Hamlin, M. and Stoller, M., 2005. High visibility: transforming
your personal and professional brand. 3rd ed. McGraw-Hill Professional.

Rockendorf, D., 2010. Continental 2011 Social Media Strategy. [presentation]

(Personal Communication, May 2011).

Rockendorf, D., 2011. Continental 2011 Social Media Strategy. [Interview]

(Personal Communication, 14 June 2011).

Rubbersa., 2011. [online] Available at: <http://www.rubbersa.com> [Accessed 03

February 2011].

Rubinson, J. and Pfeiffer, M., 2005. Brand Key Performance Indicators as a

Force for Brand Equity Management. Journal of Advertising Research, June,
pp.187-197.

Silk, A.J., 2006. What is Marketing? Massachusetts: Harvard Business Press.

Senecal, S. and Nantel, J., 2004. The influence of online product

recommendations on consumers’ online choices. Journal of Retailing, 80,
pp.159-169.

113 
 
Sheenan, B., 2010. Basics Marketing: Online Marketing. Switzerland: AVA
Publishing.

Stelzner, M.A., 2009. 2009 Social Media Marketing Report. [online] Available at:<
http://www.socialmediaexaminer.com/social-media-marketing-industry-report-
2009/> [Accessed 15 May 2011].

Stelzner, M.A., 2010. 2010 Social Media Marketing Report. [online] Available at:<
http://www.socialmediaexaminer.com/social-media-marketing-industry-report-
2010/> [Accessed 15 May 2011].

Stelzner, M.A., 2011. 2011 Social Media Marketing Report. [online] Available at:<
http://www.socialmediaexaminer.com/social-media-marketing-industry-report-
2011/> [Accessed 15 May 2011].

Subhani, M.I. and Osman, A.I., 2009. A Study On The Association Between
Brand Awareness And Consumer/Brand Loyalty For The Packaged Milk Industry
In Pakistan. [online]. Available at: <http://mpra.ub.uni-muenchen.de/21367/ >
[Accessed 15 May 2011].

The Economic Intelligence Unit., 2009. How to prosper in a recession. Economic

Intelligence unit, [online] Available at: <
http://graphics.eiu.com/marketing/pdf/Ineum_Taking%20advantage%20of%20pit
%20stop.pdf> [Accessed 12 August 2010].

The Charted Institute of Marketing., 2009. Marketing and the 7P’s, The Charted
Institute of Marketing, [online] Available at:
<http://www.cim.co.uk/filestore/resources/10minguides/7ps.pdf > [Accessed 15
May 2011].

114 
 
The New Horizon Report., 2008. The New Media Consortium. [online] Available
at: <http://www.nmc.org/pdf/2008-Horizon-Report.pdf > [Accessed 09 July 2011].

Trusov, M. Bucklin, R.E. and Pauwels, K., 2009. Effects of Word-of-Mouth

Versus Traditional Marketing: Findings from an Internet Social Networking Site.
American Marketing Association, September 2009, 73, pp.90-102.

Trochim, M.K. and Donnelly, J.P., 2006. Research methods knowledge base. 3rd
ed. Cenage Learning.

Twitter., 2011. [online] Available at: <http://www.twitter.com> [Accessed 03

February 2011].

Vargo, S.L. and Lusch, R.F., 2004. Evolving to a New Dominant Logic for
Marketing. Journal of Marketing, 68, pp.1-17.

Vollmer, C. and Precourt, G., 2008. Always on: advertising, marketing and media
in an era of consume control. United States of America: McGraw-Hill
Professional.

Williams, J. and Curtis, T., 2006. Marketing Management in Practice. Elsevier

Science & Technology.

Windham, L. and Orton, K., 2000. The soul of the new consumer. Skyhorse
Publishing

Woerndl, M. Papagiannidis, S. Bourlakis, M. and Li, F., 2008. Internet-induced

marketing techniques: Critical factors in viral marketing campaigns. International
Journal of Business Science and Applied Management, 3(1), pp.34-45.

115 
 
Wollen, R. Smith, N. and Zhou, C., 2011. The Social Media Management
Handbook: Everything You Need to Know to Get Social Media Working in Your
Business. New Jersey: John Wiley and Sons.

Wood, L., 2000. Brands and brand equity: definition and management.
Management Decision, 38(9), pp.662-669.

Xiaofen, J. and Yiling, Z., 2009. The Impacts of Online Word-of-mouth on

Consumer’s Buying Intention on Apparel: An Empirical Study. International
Symposium on Web Information Systems and Applications. China 22-24 May
2009.

Ye, G. and Raaij, W.F.V., 2004. Brand equity: extending brand awareness and
liking with Signal Detection Theory. Journal of Marketing Communications, 10,
pp. 95-114.

116 
 
Annexure A: Research Questionnaire
This questionnaire is for a student from the Nelson Mandela Metropole University's MBA research study that relates to tyre
purchases. Please assist us by spending some time answering a few questions while you wait for your vehicle?

All information is strictly confidential and will not be used for any other purpose other than the MBA research study.

Demographic Information

Age:

Gender: Male Female

Population group: a) Black

b) Coloured
c) Indian
d) White
e) Asian

Vehicle Make: (eg. VW Polo 1.4 or Opel Corsa 1.6)

(Year of manufacture eg. 2008)
Tyre brand purchased:

Tyre size purchased: (eg. 185/60 R14)

117 
 
 Social Media related questions
Q1) Do you have access to the internet? No Yes
Q2) How do you access the internet? a) Personal computer
Select all that apply: b) Computer at work
c) Internet cafe
d) Mobile telephone
e) Not at all
Q3) How many hours per week do you spend on the a) 1hr – 4hrs
internet? b) 5hrs – 10hrs
c) 10hrs- 20hrs
d) 20hrs – 40hrs
e) More than 40hrs
f) Not at all
Q4) From the list below, please select the top three a) Email
reasons why you use the internet. b) Research / general information
c) Internet banking
d) Online shopping
e) Entertainment
f) Social networking
Q5) Are you aware of social media? No Yes
Q6) Which of the following social media sites are you a) Facebook
aware of? b) YouTube
c) Twitter
d) Blogger.com
e) Other
Q7) Which of the social media sites listed below do a) Facebook
you use? b) YouTube
c) Twitter
d) Blogger.com
e) Other
f) None of the above
Q8) Have you previously used the internet to learn
No Yes
more about products?
Q9) Have you previously used the internet to learn
No Yes
more about tyres?
Q10) Which internet sites did you use to learn more a) Company websites (e.g. Goodyear, Continental, Pirelli, Michelin)
about tyre brands? b) Tyre retailer websites
c) Social media networking sites
Q11) Which of the factors listed below would help you a) Online competitions
to learn more about tyre brands by engaging in social b) Interactive games
media? c) Testimonies
Select all that apply: d) Celebrity endorsements
e) Press releases
f) Television ads
Q12) From the list below, which tyre brand would you a) Goodyear
most likely “like” on Facebook? b) Michelin
Please select one: c) Pirelli
d) Continental
e) Dunlop
Q13) What information would you consider most a) Tyre specification
useful when learning about tyres online? b) Price of the tyre
Select all that apply: c) Reputation of the brand
d) Availability of the tyre
e) Dealer information
Q14) Which of the factors listed, would encourage a) Ease of navigation through website
you to purchase a tyre online? b) Website security
Select all that apply: c) Prior experience with online shopping
d) Quality of online tyre information provided
e) Recommendation from another consumer (word of mouth)
f) None of the above
Q15) If you had to use social media, which of the a) Online competitions
factors listed would encourage you to revisit the tyre b) Real-time customer feedback
brand's social media page? c) Online advertising
Select all that apply: d) Online newsletters
e) Interactive games
f) Rewards system / loyalty programme
g) None of the above
Q16) Would you use social media networks as a
means to communicate you opinions of tyre purchase No Yes
experience to your friends and family?
Q17) Would you consider ordering and paying for 118 
No Yes
your tyres online?
 
Enter the Easter Survey Competition using the attached entry form and you could win a easter hamper.
Thank you for your time, we wish you a happy and safe easter!