Master'sOpen Access

How Social Media and Behavioral Intention Enhances Customer Loyalty

2017
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Advisor: Mustafa Tümer

Abstract (EN)

Social media is a powerful tool for globalization, commerce and organization profitability. Thus, with help of internet and Web 2.0, that induced the outburst of social media in this present business world, and amplified the understanding and necessity of having loyal customers for product and services, eventuated research interest towards finding if social media usage enhances customers’ loyalty. Therefore the purpose of this study is to research if organization involvement in Social media can enhance customers’ loyalty, also, to find out if social presence affects behavioral intention, and if behavioral intention having positive impact on customer loyalty. Both quantitative and measurable method to data gathering and assessment was adopted for the procedural basis of this study. Eastern Mediterranean University Students, who uses either iPhone, Samsung or other brand, and also, that understand social media usage were the sample for this study. Surveys were distributed to examine their opinion concerning respondents’ phone brand and the company social media activities. Total number of 222 questionnaires were retrieved, while SPSS statistical analysis was conducted for necessary reliability test for the scale, as well as confirmatory factor analysis, correlation and regression analysis. The research findings demonstrated a good understanding of social media, how it can be used to achieve organization goal, and how social media can be utilized to enhance customer loyalty. However, result reveals that social presence and behavioral intention does have positive effect on customers’ loyalty. Also, it was established that social presence has predictive positive effect on behavioral intention. The study shows social media presence, behavioral intention are two essential points in terms of forming customer loyalty for mobile phone industries. Due to interactive nature of social media, that promotes relationships, sharing information, as well as its immense popularity, that captures large number of customers across the globe, makes it undoubtedly important for an organization profitability and sustenance. The study however, provides further enthralling indication that social media is an active means to engage public and customer for purchase intention-related behavior. The study concludes by presenting various suggestions that mobile phones industry can use social media platform generate friendly environments, achieve and maintain customers’ loyalty for their product. The limitations associated with this study is the fact that Social Presence and Behavioral Intention explained little variation in Customers’ Loyalty means the model need to be empirically investigated more rigorously, including other factors that aids customers’ loyalty. More so, a larger sample, and data collected across locations, these will give a more explicit analysis and assessment of customer loyalty and social media and further strengthen the results.

Author

Dr. Olalekan Kayode Ayamolowo

How to Cite

Olalekan Kayode Ayamolowo (Master Thesis). How Social Media and Behavioral Intention Enhances Customer Loyalty, 2017, Eastern Mediterranean University.

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