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EFFECTIVENESS OF SOCIAL MEDIA AS NEW MARKET IN BUSINESS

A Research Paper
Presented to Saint Francis Academy
Senior High School Department
Mabini, Batangas

in Partial Fulfillment
of the Requirements for the Subject
Inquires, Investigation, and Immersion

By:

Abria, Angela N.
Ander, Annalyssa C.
Bunyi, Andrey John Allieh A.
Carillo, Jan Mikaella B.
De Guzman, Jaivee Lourd Lowell L.
Sacopon, Jhasmyn C.
Silang, Sophia Merylle R.

May 2022
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Telefax No.(043) 487-0096 / 425-3009
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Chapter II
REVIEW OF RELATED LITERATURE

This chapter deals with the review of related concepts and studies found in

previous literature. It also presents the synthesis of reviewed research

literature.

Conceptual Literature

Under the article of Upland (2021), social media is more prevalent in

marketing. The type of marketing that exists on such platforms, where it is

easy to advertise such products or services that are cost-effective and

convenient for buyers and sellers, such as Facebook and Twitter, which are

constantly evolving to meet people's needs, is one of the reasons why social

media continues to grow. The use of social media to promote one's business

is quite beneficial, it’s because it is more user-friendly and accessible than

traditional forms of advertising such as television commercials, billboards, and

newspaper advertisements. Furthermore, one thing is certain in social media:

marketing efforts will only improve, becoming more trackable, and efficient as

time goes on. In this study, the relationship between the presented

information explains why social media is popular in terms of ease, product

marketing, and other criteria. The study shows how social media benefits the

consumers and the seller which is connected to why social media is effective

as a new market in business. Its features like being cost-effective, accessible,

and convenient for buyers and sellers contribute to its effectiveness. The

involved terms can answer what makes the use of certain platforms as a way

to act as a tool that satisfies the customers’ needs through selling online.
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Furthermore, with the constant evolution of human needs and how its

environment changes through time, the said platform also matures which is

explained in the study.

According to Lee (2010), in the article about the growing popularity of social

media and business strategy, social media gives new prospects for

businesses. Diverse social media platforms, such as YouTube, Twitter, and

Facebook, have begun to emerge. These media platforms allow users to

create and share pictures, and Twitter leverages mobile devices, which is

partly why social media is gaining popularity by innovating methods that were

previously centered in mass media. Lee described social media as an "open

media for interactive communication led by ordinary people," noting that,

unlike one-way creation of information news, etc., anyone may become a

content producer on social media. Social media makes information about

relationships available to anybody through interactive media communication in

the style of a pyramid. The relationship of this given information in this study is

somehow related to the concept of how social media got popular as a market,

which includes information that may clarify specific questions in the

researcher's study. Its shows that social media platforms can be used as a

tool for purchasing products and acquiring services online. Furthermore,

social media can easily connect the marketer with the buyers using the said

platforms online which helps to gain the popularity of social media and provide

ways for it to be effective as a new market in business. How does the

effectivity of the said feature regarding such platform involve became a tool

that possesses a characteristic like accessible, interactive and a place for a

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business to develop methods to encourage the people to acquire their

products or service. Moreover, the concept stated explains that social media

is an interactive tool that is open to ordinary people somehow related to the

study of the researchers because it is also discussed in the study that due to

its accessibility many people use this as a way to communicate to others. In

business, it is a tool that is used as a way of transacting.

According to Maryville University's (2021) article regarding the growth of

social media, from its beginnings to its future. People are employing modern

advanced social media because of its evolution. As stated in the article, the

platform has transformed in less than a generation from direct electronic

information exchange to the virtual gathering place, shopping platform, and

vital 21st-century marketing tool. It is said that before any of the social media

platforms that people use today there was morse code; over time, the use of

morse code, which was invented by the actual social media inventor. The

platforms have evolved dramatically, and the advanced and modern

technology platforms that people use today, such as Twitter, Instagram,

Pinterest, Snapchat, Tik Tok, YouTube, Facebook, and other platforms used

are the evidence. In addition, as said platforms are liked by many, it was

continuously making progress and evolving to such technology that makes it

so popular globally and reaches billions of people. Having said this, it became

one of the tools where traditional marketing began to evolve. In this study, the

concept of the article is somehow related to how the platforms are employed

in the study, such as Facebook, YouTube, Twitter, and Instagram, became

renowned as a marketing tool for businesses. The research examines the

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Poblacion, Mabini, Batangas
Telefax No.(043) 487-0096 / 425-3009
Email: sfamb1967@yahoo.com.ph

evolution of online business transactions by using the platforms that enable

every buyer to be more accessible by utilizing social media to reach a new

market. In addition, the concept of this study shows how the social media

market evolves from traditional marketing to modern marketing. Also, the way

how social media was liked by many which were discussed in the paper is

somehow connected to the explanation of the researchers in which they have

discussed certain factors that contribute to the effectiveness of social media

as a market. Moreover, as stated in the article regarding the growth of social

media the idea about evolution is somehow connected to the study because it

is also stated that through time people’s way of living changes, and the things

that surround it also evolve.

Related Studies

Local Studies

In accord with the study of Davies and Cranston (2008), many people refer

to social networking sites as social media since they include communication

tools that will help young people connect with the services and people they

want to interact with. In terms of online contact or face-to-face interactions,

the mentioned communication technologies will serve as a bridge between

various groups. Social networking sites provide a platform for young people

and customers to express themselves through the presentation of enterprises,

ideas, and even products. It also provides an opportunity for young people

and others interested in starting their own online business. The relevance of

this study to the research is that it will assist the researchers in broadening

the meaning and application of communication tools that have benefits for
 Saint francis academy
Poblacion, Mabini, Batangas
Telefax No.(043) 487-0096 / 425-3009
Email: sfamb1967@yahoo.com.ph

buyers and consumers on social networking sites or social media. Moreover,

social media makes communication easy between buyers and sellers in terms

of transactions or exchanging opinions and ideas. Also, social media provides

the opportunity for all the individuals in business to market their products to a

wide range of the online population.

As stated in the study of Francisco (2021), the rise of social media in this

advanced generation has aided in the promotion of a variety of products. The

study in which social media marketing, product desire, and product

experience establish different successful directions for interaction results.

Other than the iPhone, social benefits were insignificant for cell phone brands;

however, because of the interplay of benefits, brand benefits were significant

for them, as social media has become a new medium for communication in

recent years of marketing. Increased targeting is facilitated by social

networking, which plays an important role in marketing activities. With this,

both the said study and the present study discusses the importance of social

media as a new medium for buyers and seller amidst a pandemic. The only

difference is that the said study focuses on selling food-related ones using

social media as a marketing platform while the present study focuses on the

popularity of social media as a new market.

The study of Lauther (2021), shows social media and social media

applications that form large groups of consumers are the new marketplaces

and or tools for marketers. Because of the rising popularity of social networks,

consumers' lifestyles are shifting from one to another, resulting in a massive

change in how people live and interact with different brands. The goal of the
 Saint francis academy
Poblacion, Mabini, Batangas
Telefax No.(043) 487-0096 / 425-3009
Email: sfamb1967@yahoo.com.ph

study was to find out what factors influenced people to use social media

marketing. The findings revealed that social media offers great marketing

opportunities for businesses of all sizes. In this study, the goal is to persuade

sellers to use social media platforms that will allow them to interact and

socialize with others. In relation to the study, it shows how it affects people’s

perspectives and ways on how they will show their opinions and demands.

Along with this, the said study somehow explains why social media opens

opportunities to all business owners.

Foreign Studies

Based on the study of Hensel and Deis (2010) recommended that

marketers should investigate all potential routes to constructively use social

media to promote advertising and improve marketing. Benefits, limitations,

and obstacles associated with a given social media strategy must be

considered before it is implemented. The plan should aid in the facilitation of

social media contributions and conversations. Furthermore, social media

techniques should be used to track a company's online presence and ensure

that customers are not eroding the brand's value. In this study, the influence

of consumer-to-consumer communications has increased dramatically. In

relation to this, both the said study and the present study have the same

thoughts in increasing consumer-to-consumer communications by using

social media and those certain factors that help to improve the market before

it is implemented.
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Telefax No.(043) 487-0096 / 425-3009
Email: sfamb1967@yahoo.com.ph

The study of Edelman (2010) addressed how the Internet and social

marketing have transformed not only how businesses operate, but also how

customers purchase items. It walks the reader through the funnel metaphor

that marketers used in the past to understand how customers choose items,

and how this has evolved into a more open-ended approach in which

consumers no longer select products in a methodical manner. It emphasizes

the importance of businesses connecting with customers, and it looked at

consumer decisions in five distinct industries, including automobiles,

cosmetics, insurance, mobile telephony, and electronics, spanning three

continents. It presented a four-stage model based on the study's findings,

which focuses on today's consumers using social media to advocate for items

and to purchase based on the reviews and support received. The study walks

the reader through the complete customer journey and advises organizations

on where they should not spend their time and money. Organizations can

determine the essential areas by focusing to develop a solid brand image

online by providing statistical information from various surveys. In relation to

the study, both the said study and the present study discusses the importance

of using social media not only on how business operate but also on how

customers purchase items online. Also, it highlights how the internet and

social marketing have a significant impact on business operations. Along with

it, the basis of its study is about people purchasing products based on

feedback or reviews of the product itself which is included in the present

study.
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Telefax No.(043) 487-0096 / 425-3009
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Ghania Bilal, Mirza Ashfaq Ahmed, and Mirza Naveed Shahzad, (2014)

demonstrated the impact of media and social media on customer decision-

making. In comparison to social networking sites like Facebook and Google

and with their decision-making, consumers in Pakistan use a restricted

number of social media platforms, such as YouTube. In addition to the

favorable population contact with the virtual community of social media, the

study found that social networks had a positive impact on consumer behavior.

As a result of these interactions, smart companies have a tremendous

incentive to become smarter about their online presence. The importance of

growing consumer awareness, loyalty, and trust was also underlined. The

impact of e-marketing and online apparel business tactics on consumer

decision-making were also investigated. To summarize, using these online

platforms is a way for small businesses to familiarize more people with their

unique products and services, as well as a tool for current firms to improve

brand awareness. This study explores the effects of social media platforms on

a consumer's behavior and decision-making when it comes to purchasing the

desired product. In this study, the relationship of the stated information is

somehow connected to why social media became a tool to successfully make

the consumers buy the seller's product. It is the influence of the other people

that also help them to decide which better product or services to purchase

which is stated in the study.

Synthesis
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Poblacion, Mabini, Batangas
Telefax No.(043) 487-0096 / 425-3009
Email: sfamb1967@yahoo.com.ph

The study of Upland (2021) stated that one of the reasons why social

media continues to grow is the type of marketing that exists on platforms like

Facebook and Twitter, where it is easy to advertise such products or services

that are cost-effective and convenient for buyers and sellers, and which are

constantly evolving to meet people's needs. Lee (2010) because it is more

user-friendly and accessible than traditional forms of advertising such as

television commercials, billboards, and newspaper advertisements, using

social media to promote one's business is very beneficial. The given

information in these studies is somehow related to the concept of how social

media became popular as a market, which includes information that can help

the researcher answer specific questions in the study. According to an article

published by Maryville University in (2021) about the evolution of social media

from its beginnings to its future. The article's concept is somehow related to

this study by utilizing the platforms that will be used in the present study. The

only difference is that the previous study's subject was general consumers

and sellers, whereas the current study's subject was Senior High School

students.

In accord to Davies and Cranston, (2008) buyers benefit from social media

because it allows them to communicate more easily with those from whom

they purchase products that linked to the study of Hensel, Deis, (2010) which

stated that social media helps one individual to communicate with hundreds, if

not thousands, of other people regarding items and companies that are

provided on the web. In addition, it is stated that the influence of consumer-to-

consumer communications has increased dramatically. The only difference is

 Saint francis academy
Poblacion, Mabini, Batangas
Telefax No.(043) 487-0096 / 425-3009
Email: sfamb1967@yahoo.com.ph

that the said study used a four-stage model based on the study's findings

while the present study will just be based on the information on the surveys.

According to Francisco (2021) research, product desire and product

experience establish different successful directions for interaction results in

social media marketing linked to the study of Edelman (2010) that discussed

the use of social media not only how businesses operate, but also how

customers purchase items. The only difference is that the said local study

focuses on selling food-related ones using social media as a marketing

platform while the present study focuses on the popularity of social media as

a new market. Moreover, the study conducted by Ahmed, Bilal, Shahzad,

(2014) demonstrated the impact of media and social media on customer

decision-making. And according to the study of Lauther (2021) the findings

revealed that social media offers great marketing opportunities for businesses

of all sizes. In relation to this, both the said study and the present study

discuss the impact and importance of social media in marketing and the

usage of social networking sites. The only difference is that the said study

used only a limited networking site such as YouTube, while the present study

will use different popular sites such as Facebook, YouTube, Twitter, and

Instagram.