Chapter 1

Introduction

Fashion industry is a multibillion-dollar global enterprise devoted to the business of

making and selling clothes. Some observers distinguish between the fashion industry

(which makes “high fashion”) and the apparel industry (which makes ordinary clothes

or “mass fashion”) Fashion is best defined simply as the style or styles of clothing

and accessories worn at any given time by groups of people. In 2018, It is

considered as a transformative time in the fashion retail industry. The shoppers

desire to shop, however, whenever they want no matter where they are, either in

stores, online by any devices, voice activation or click and collect. Within the retail

industry, disruption of traditional business models has given the way to

transformative change which required online and offline better satisfies more

demanding consumers and redefining customer experience.

In the past 10 years, the rapid growth of the internet has changed the present of

revolution in the fashion retail industry. Many companies have been seeking for

expandable, restructuring strategies, and the conventional impact from massive

production is gradually replaced through customer relationship. Due to the effect of

online shopping.The Filipino buying behavior is influenced by various factors such as

family, friends, relatives, and colleagues. Over the years, this buying behavior was

already affected by modern philosophy as influenced by Asians, Americans and

Europeans, and the like.

The development of social networking website such as Face book, Instagram has

created a new muse among the Factionists. From the fashion blogs to the live

streaming of catwalk shows, from the main fashion weeks to the social shopping we
get diversity of opinions on different places through face book, twitter and other

social networking websites. It has become a most important runway for the fashion

industry. The power and influence of Social Media on fashion industry is undeniable.

In the twenty first Century The presence of fashion designers on the social

networking websites are of extreme importance. The designer and brands who

realize the true worth of social media are the ones who have massive fan following

It is in this context the researcher wanted to determine the extent of social media

marketing and consumer behavior of fashion retail industry in Davao City. The

researcher believe that this study relevant particular to BSBA students for this will

enrich knowledge and provide valuable data .

 Research Objectives

This study aims to determine the social media marketing and consumer behavior of

fashion retail Industry in Davao city. Specifically it would find answers to the following

questions

1. How to understand and influence consumer behavior?

Personal factor

Psychological factor

Social factor

2. How beneficial is social media creating brand awareness among customers?

3 effect of social media marketing On the revolution Of retail fashion industry?

4 identify the tools of social media which influence consumer desires and intentions

to purchase?

Facebook

Twitter

Intragrams

Youtube

Website

5 is there significant relationship between social media marketing and consumer

behavior of fashion retail industry?

 Research Hypothesis

There is no significant relationship Between social media marketing and consumer

behavior Of fashion retail industry .

Review Related Literature

Social media Marketing

Literature reviews is a description of published information in connection with the

research. This chapter consists of review of literature related with impact of social

media marketing with respect to online consumers. It reviews the current issues in

online marketing and influential factors affecting the online marketing. Studied social

media marketing sites, factors influencing for using social networking sites. It

provides a critique review of miscellaneous studies related with social media

marketing and online marketing with respect to FMCG personal products.

Facebook

This paper is a literature review of research about Facebook published in the past

five years, and it focuses on the motivations with regards to Facebook use. Why and

how do individuals use Facebook? What made Facebook a worldwide phenomenon

in such a short time? Several studies have been carried out analysing how and why

people use this particular social network. The aim of this paper is to present them

and to outline their commonalities as well as the emerging patterns of thought about

social networks. When thinking about social networks a couple of decades ago, we

could easily imagine one person surrounded by people and more or less connected

to them: family, friends, co-workers, and friends of friends. Nowadays, when thinking
about a social network, it seems almost impossible not to think about online social

networks, which are websites that foster interactions between users online.

Individuals can communicate and share information instantly and independently from

their geographical location. In addition, people can now tell the world what they think

and do easily form online communities based on affinities, interests, political and

religious views, and common causes. Among these websites, Facebook indeed

stands as the most popular and influential social networking website with more than

845 million users reached in December 2011 (Facebook.com). The website was

created in 2004 by a small group of students, and was restricted to a few universities

to allow college students to be in touch with each other. Facebook was released

worldwide only in September 2006 (Facebook.com), and has quickly become the

most used social network on the planet. Due to its global spread, Facebook has

become more and more a subject of interest for researchers and since its creation

more than a hundred studies have been published. This review provides researchers

with an overview on the current state of research on Facebook, on the emerging

trends, as well as on the methodologies that have been commonly used until now.

After a process of selection of the studies, eight main themes have been identified.

This paper focuses on Facebook use, for which six categories have been defined:

initiating and maintaining relationships, learning about others, recognition,

personality and willingness to communicate, social influence, and experience. The

major studies for each category are presented, with an emphasis on the most

influential ones in the field. The focus of the review is on the methodologies

employed in the studies, as well as on the commonalities and differences that arise

from the results. Hypotheses are presented when possible and a few
theoretical explanations are provided. In conclusion, this research shows that

Facebook is mainly used to keep in touch with other people, but not in a

conventional way as users tend to ‘spy’ on other users’ profiles. This phenomenon

leads to a growing exhibitionism, which is in turn related to individuals’ personality

traits. Use of Facebook is also influenced by peers and experience with the website.

A few limitations are discussed, and gender is found to be a possible factor

influencing Facebook use. Suggestions for further study are provided.

Instagram

Instagram is a newer social media platform that blossomed more recently, having

been created in 2010, which is why very few studies exist with Instagram. One of the

very few studies done on this social network site, titled Instagram #Instasad?:

Exploring Associations AmongInstagram Use, Depressive Symptoms, Negative

Social Comparison, and Strangers Followed, explored the associations among

Instagram use and depressive symptoms through themechanisms of negative social

comparison, and moderation by amount of strangers one followed (Lup, 2015). This

study consisted of 117 participants between the ages of 18-29 years old. They

completed online questionnaires containing demographics, frequency of Instagram

use, amount of strangers followed on Instagram, the Center for Epidemiological

Resources Scale for Depression, and the Social Comparison Rating Scale. Results

showed that Instagram use was marginally positively associated with depressive

symptoms, and positive social comparison was significantly associated with

depressive symptoms. The amount of strangers followed moderatedthe association

of Instagram use with social comparison. These results determined that more

frequent Instagram use has negative associations for people who follow more

strangers, but apositive association with people who follow fewer strangers, in
relation with social comparison and depressive symptoms. As the above study

demonstrates, the amount of strangers an individual follows correlates with negative

social comparisons. What we don’t know is who the strangers are that these

individuals are following. It could be other people in their age group that they do not

necessarilyknow personally, or it could be celebrities or other famous people.

Following strangers changes their social comparison group, whether they are users

who are similar to them in demographics, social class, etc., or are famous people

that have a lot more money and much more social status than them. This could have

an effect on other factors such as their self-esteem or life satisfaction. Following

strangers such as celebrities and models may cause the individuals to have a lower

self-esteem and feel dissatisfied with their life by seeing the pictures celebrities post

day-to-day about their lavish lifestyles, “perfect” bodies, and pretty faces. Studies

done to test the exposure of images of models to girls have found that participants

who viewed pictures of models reported a significantly lower body satisfaction and

self-esteem report than those in the control group who were not exposed to any

models (Clay, 2005)When females are exposed to models for a short duration, it has

an effect on their body satisfaction and self-esteem. What if females are exposed to

other female celebrities and models on an every-day basis by following them on a

social media platform such as Instagram, for an even longer period of time? These

models and celebrities become their social comparison group by seeing their

pictures of their beauty and their lavish lifestyles every single day. Could this

repeated exposure effect their self-esteem or life satisfaction? The purpose of this

proposed study is to test the effects of Instagram on self-esteem and life satisfaction

by means of exposure to celebrities and famous people on the social media app.

The current study is an experiment to test the hypothesis that Instagram use has a
negative effect on self-esteem and life satisfaction

Youtube

YouTube is changing the landscape of the digital world. This video sharing site

receives billions of viewers daily, the latest reports show that more than half of

viewers are students. “Teens constitute the dominant demographic on YouTube in

terms of their viewership, comments, rating and other feedback mechanisms” (Chau,

2010,).

YouTube, created in 2005 is now the third most visited website in the world (Cayari,

2011). From how-to and music videos to daily vlogs and live concerts, all levels of

engagement are being activated. Being part of the YouTube community crosses all

forms of social media, as users are active contributors on Facebook, Twitter,

Instagram, Vine and blog sites, in addition to YouTube. These virtual communities

are shaping and affecting what could be the future of college campuses.

A good majority of the most widely viewed video content on YouTube is created

artists/personas called “YouTubers” or “YouTube Stars.” These individuals use their

videos as a main source of income. These artists now have access to an audience

which could never be reached before.

From my observation and experience, YouTube and Youtubers can teach educators

many things.

Tips and effective practices for those that want to use and/or create YouTube

content in their classrooms or programs.

Further understanding of student technology trends.

Insight into student interests (what’s popular).

Teens and young adults personal struggles, as shared with the YouTube artist.

Online community building behavior.

Social media communication and marketing methods.

A YouTube channel owner is placed in a unique perspective, as they interactive with

their fans, many of who are teens and young adults. The method that viewers

comment, message, share and in-person interact with a YouTuber tells a story of

future and current behavior as college students. Based upon the nature of YouTube,

these content creators must be significantly connected to their viewers. This was

found also by Cavri (2011).

Website

Internet usage has increased tremendously and rapidly in the past decade (“Internet

Use Over Time,” 2014). Websites have become the most important public

communication portal for most, if not all, businesses and organizations. As of 2014,

87% of American adults aged 18 or older are Internet users (“Internet User

Demographics,” 2013). Because business-to-consumer interactions mainly occur

online, website design is critical in engaging users (Flavián, Guinalíu, & Gurrea,

2006; Lee & Kozar, 2012; Petre, Minocha, & Roberts, 2006). Poorly designed

websites may frustrate users and result in a high “bounce rate”, or people visiting the

entrance page without exploring other pages within the site (Google.com, 2015). On

the other hand, a well-designed website with high usability has been found to

positively influence visitor retention (revisit rates) and purchasing behavior (Avouris,

Tselios, Fidas, & Papachristos, 2003; Flavián et al., 2006; Lee & Kozar, 2012).

Little research, however, has been conducted to define the specific elements that

constitute effective website design. One of the key design measures is usability
(International Standardization Organization, 1998). The International Standardized

Organization (ISO) defines usability as the extent to which users can achieve desired

tasks (e.g., access desired information or place a purchase) with effectiveness

(completeness and accuracy of the task), efficiency (time spent on the task), and

satisfaction (user experience) within a system. However, there is currently no

consensus on how to properly operationalize and assess website usability (Lee &

Kozar, 2012). For example, Nielson associates usability with learnability, efficiency,

memorability, errors, and satisfaction (Nielsen, 2012). Yet, Palmer (2002) postulates

that usability is determined by download time, navigation, content, interactivity, and

responsiveness. Similar to usability, many other key design elements, such as

scannability, readability, and visual aesthetics, have not yet been clearly defined

(Bevan, 1997; Brady & Phillips, 2003; Kim, Lee, Han, & Lee, 2002), and there are no

clear guidelines that individuals can follow when designing websites to increase

engagement.

This review sought to address that question by identifying and consolidating the key

website design elements that influence user engagement according to prior research

studies. This review aimed to determine the website design elements that are most

commonly shown or suggested to increase user engagement. Based on these

findings, we listed and defined a short list of website design elements that best

facilitate and predict user engagement. The work is thus an exploratory research

providing definitions for these elements of website design and a starting point for

future research to reference.

Consumer Behavior
Consumer behavior involves the psychological processes that consumers go through

in recognizing needs, finding ways to solve these needs, making purchase decisions

(e.g., whether or not to purchase a product and, if so, which brand and where),

interpret information, make plans, and implement these plans (e.g., by engaging in

comparison shopping or actually purchasing a product).

Personal Factor

A consumer’s occupation and purchasing power influence purchasing decisions and

buying behavior. The income level affects what consumers can afford and the

perspective towards money. People, who share similar occupations, tend to have

similar taste in music, clothing and leisure activities. They usually socialize with each

other, and share the same kind of values and ideas. Income level affects on what

consumer can afford and perspective towards money. (Solomon 2004, p. 12.)

Individuals from lower income groups are probably more interested in buying

products that are necessary for survival than spending on luxury brands or designer

clothes. Consumers’ life style tells how the person lives and spends money. It

iscombined from earlier experiences, current situation and congenital characteristics.

The product choices that consumers make are related to theirlifestyle. An individual’s

lifestyle consists of different life style dimensions. (Khan 2006, p. 18.) These

dimensions are:

1. Activities describe how consumers spends their time, e.g. work, hobbies or

vacations.

2. Interests are consumers’ preferences and priorities e.g. family, home or food.
3. Opinions tell how consumers feel about different issues, e.g. themselves, politics

or products. (Plummer 1974, p. 34.)

These life style dimensions express a person’s pattern of living. Lifestyle will

influence consumers’ buying behavior and decisions. (Kotler&Armstrong 2010,

Personality distinguishes one person from another by individual traits. These

personal traits can be self-confidence, adaptability, sociability and dominance.

(Kotler&Armstrong 2010, Personality determines how we see ourselves and the

world around us as well as how other people see us. Attitudes, valuesand people

around us shape our personality. Personality alters during life when

a person grows up and changes surroundings. (Wright 2006,.) Self-concept is a

multi-dimensional and complex term. Kardes et al. (2011)describes the self-concept

as follows “Self-concept is often described as thetotality of an individual’s thoughts

and feelings regarding him/herself as an object.” In another words, it is the image

that people hold about their selvesformed by attitudes and beliefs. Many brands

have developed an image and personality that correspond with consumers’ values

and traits. It allows consumers to express themselves through brand choices.

(Kardes et al. 2011, There are five dimensions of brand personality: sincerity,

excitement, competence, sophistication and ruggedness. Each of these dimensions

includes different factors that relate to human personality dimensions, as shown in

Figure 1. In the first dimension sincerity brings amiability of the brand by reflecting

honesty and down-to-earth values.Excitement offers consumers up-to-date

information and a spirited alternative like technology brand Apple. When using Mac

computers, consumers can feel theirselves young and laid back. While a brand that

stands for competenceoffers responsibility and security to consumers. Sophistication

affects upperclass consumers by charming with luxury, e.g. designer products such

as Gucci or Rolex. The fifth dimension is ruggedness that attracts consumers

opposite ofsophistication. Ruggedness represents brands that are seen as tough,

strongand outdoorsy. (Kotler&Armstrong 2010, ; Kardes at el. 2011,Arpan 2011.)

Psychology Factor

A buyer’s choices are also influenced by four psychological factors, i.e.motivation,

perception, learning, and beliefs and attitudes.A consumer is an individual who has

different kind of needs. These needs can be biological like thirst or psychological

arising from the need of recognition or belonging. A need can be aroused to a

sufficient level of intensity when it alters a motive. A motive is basically a need that

drives a person to seek satisfaction. Abraham Maslow is probably the most know

psychologist who has examinedthese human needs. He sought to explain why

humans are driven by different needs at different times. (Kotler&Armstrong 2010, p.

173.) Figure 2 shows Maslow’s hierarchy of needs from the most pressing at the

bottom and the least pressing at the top. The basic rule is to satisfy first the basic

need before proceeding up the ladder. When that need has been fulfilled

Social Factor

Social factors affect consumer behavior significantly. Every individual has someone

around influencing their buying decisions. The important social factors are: reference

groups, family, role and status. (Perreau, 2014.)Every consumer is an individual, but

still belong to a group. The group to which a consumer belongs is called a

membership group. This is a direct and simple classification. The second group type

is a reference group. The reference group influences the self-image of consumers

and consumers’ behavior. The reference group provides some points of comparison
to consumers about their behavior, lifestyle or habits. Usually there are many smaller

reference groups, which are formed by family, close friends, neighbors, work group

or other people that consumers associate with. The groups to which a consumer

does not belong yet can also influence. These aspirational groups are groups where

a consumer aspires to belong and wants to be part in the future.(Kotler&Armstrong

2010, p. 164; Khan 2006, p. 58.) Family members can influence individual

consumers’ buying behavior. A family forms the environment for an individual to

acquire values, develop and shape personality. This environment offers the

possibility to develop attitudes and opinions towards several subjects such as social

relations, society and politics. A family creates first perceptions about brands or

products and consumer habits. (Kotler&Armstrong 2010, p. 169; Khan 2006, p. 68.)

For example, the consumers who have created brand perceptions when they were

young, can carry out these same brand selections in the adult life without even

recognizing that their family influenced these selections .Individuals play many

different roles in their lives. Each role consists of activities and attitudes that are

expected from an individual to perform according to the persons around him.

(Kotler&Armstrong 2010, p. 170.) Social status reflects the position that individuals

have in social groups based on such things as money and wealth, education or

occupation. In many societies status is important and people want the admiration of

others. Social status can be acquired by being successful in life or being born into

money. Product and brand selection often reflects the social role and status. (Wright

200,)

Theoretical Framework

According to M2PressWIRE (2011) Social Media has become the hottest trend in the
 fashion Industry .The fame & uptake of the brands on the social networking sites is

growing at a fast pace. In the past year majority of the brands have doubled their

following on the social .networking sites. According to the latest research by digital

research, one of the prominent and leading provider of digital market research shows

that the presence of fashion retailers on the social networking website has

significantly grown in comparison to any other fashion retail sectors.

Conceptual Framework

Shown in figure 1 is the conceptual framework showing the variables of the study.

The Dependent variable is the consumer behavior with the following indicators.

Personal factor, psychological factor and Social factor. The independent variable is

the social media marketing with the following indicators facebook, instagram,

Youtube and website.

INDEPENDENT VARIABLE DEPENDENT VARIABLE

Social Media Marketing

Facebook Consumer Behavior

Instagram Personal Factor

YouTube Psychological factor

Website Social factor

Significant of the Study

This research can be significant of every Retail Fashion Industry who want to
improve their marketing strategies especially in social media. The results of this

study will provide valuable data and information that they can utilize as basis to

enhance their services. Moreover, Business and Marketing student may also benefit

from the output of this study for this will enrich their knowledge and provide them

information which they can use in the future practice of their choosen profession as

future business marketers or entrepreneurs.

This study can also be used as baseline data and references for future researchers.

Definition of terms

The following terms were defined operationally. This section helps the readers in

understanding the study throughly through the defined terms as they used in the

study.

Social Media Marketing refers to social media platforms, facebook, instagram,

YouTube and website

Consumer behaviour refers to Personal factor, Psychological factor and Social

factor

Retail fashion industry refers to Penshoppe, CM's Boutique, RL fashion and

Lifestyle, Lacoste Panapton fashion, and Uniqlo