Electronic word of mouth (eWOM) viaonline social communities: effects on businesses and consumers from a geo-social approach

Abstract

Social media has greatly impacted and reinvented marketing, as we know it today. The days when Hendry Ford was selling what he could produce, offering less choices and cheap product “any color he wants as long as it is black”, have way passed (Domegan & Hastings, 2017). Traditional marketing is simply a one-way broadcast. Though traditional media channels, companies are telling consumers how to perceive their products or services. Customers have one of two options, either to listen and accept this perception, or to move on to the next brand, disregarding this product altogether. The way these ads are delivered through conventional channels is what makes them interruptive. Social media marketing, on the other hand, allows targeted audience to determine for themselves how to perceive products. This marketing procedure is being implemented to specific customers, not by directing campaigns randomly to them. Social media marketing puts consumers in control. Instead of broadcasting messages, companies are participating in conversations directly with their target audience. Geo-social networking Geo-social networking is a type of social networking in which geographic services and capabilities like geocoding which is used to enable additional social dynamics. User-submitted location data or geolocation techniques can allow social networks to connect and coordinate users with local people or events that match their interests. Geolocation on web-based social network services can be IP-based or use. For mobile social networks, texted location information or mobile phone tracking can enable location-based services to enrich social networking. Geo-social networking allows users to interact in relation to their current location. Web mapping services with geocoding data for places can be used with geotagged information (meetups, cinema movies, bars or restaurants reviews) to match users with a place, event or local group to socialize in or enable a group of users to decide on a meeting activity. Geo-social media marketing A definition of geo-social marketing mentions it “provides a platform for users to carry out interactions based on their current locations” (Parsons, 2016, p311). These interactions are implemented through popular channels such as Facebook, Foursquare, Yelp, Swarm and Google Maps. Location Based Services (LBS) like FourSquare, and Yelp are increasing their number of users who use the services to "check in" to locations like retail stores, restaurants, bars etc. offering incentives like discounts and special offers. Users of geosocial networks currently have many ways to interact with each other. Research aims Against this background, the aim of this research study is to understand how firms use ideas and knowledge on social media and especially on geo-social media level and how they perceive this innovative process. On the other side of the coin, this research also expects to unveil the views and comments of present and prospective customers their intentions and the benefits extracted from using geo-social marketing services. Research Methodology The Internet occupies a limitless geographical range with numerous of people from around the globe gathering in cyberspace and supplies a straightforward and instantaneous mechanism for publishing questionnaires. Therefore, one qualitative research was carried out, this research included businesses operating in multiple business fields in Greece. Afterwards, two quantitative researches were carried out, one for businesses in EU and one for social media users in Greece. Conclusions The investigation into the utilization of social media in marketing practices underscores the transformative impact of these platforms on businesses. Social media has become an indispensable tool for engaging with target audiences, building brand awareness, and gaining valuable consumer insights. As a result, companies that have embraced social media marketing have experienced growth, increased customer loyalty, and a competitive edge in the digital landscape. The data shows that businesses recognize the power of social media in improving customer service, increasing sales, and creating a compelling online presence. The viral nature of social media also allows businesses to extend their reach globally. In today's competitive market, embracing social media as a marketing tool has become essential for business success. The investigation into geolocation marketing (geo-tagging) reveals its significant potential as an alternative to traditional marketing strategies. Businesses are increasingly adopting location-based marketing initiatives, allowing them to deliver personalized promotions and content to their target audience, fostering a sense of proximity and convenience. The data indicates that geolocation marketing can drive foot traffic to physical locations, creating a valuable opportunity for businesses to optimize their marketing efforts. However, it also emphasizes the temporary nature of individual advertising campaign effects, underlining the need for a continuous and well-rounded marketing approach. Businesses that integrate geo-tagging into their marketing mix can enhance customer experiences, foster brand loyalty, and achieve a competitive edge in the modern landscape. The survey data yields valuable insights into social media usage and user perceptions. Facebook emerges as the platform of choice for the majority of participants, followed by Instagram, YouTube, and Pinterest. Understanding these platform preferences is pivotal for businesses and marketers looking to target specific audiences effectively. Participants primarily engage with social media to stay informed, consume video content, and listen to music. While it serves diverse entertainment and information purposes, social media isn't the preferred avenue for making friends or playing games. Users make frequent visits to these platforms, with Facebook ranking highest for daily visits. This information is vital for businesses aiming to optimize their content sharing schedules and target users when they are most active. The data also underscores the significance of engagement, with photo uploads and location-tagged posts being prevalent activities. Businesses can capitalize on this by ensuring their social media profiles include comprehensive location and address information to enhance visibility and user interaction. Furthermore, the survey highlights the importance of location-based features for users in discovering local businesses, presenting an opportunity for businesses to leverage these tools to increase their local customer base. The influence of user-generated content, such as reviews and comments, on purchasing decisions is significant, reinforcing the importance of actively managing online reputations. Users' heightened privacy concerns emphasize the need for robust privacy settings and measures on social media platforms, emphasizing the importance of protecting users' personal information while offering a tailored and secure online experience.