Social media as marketing strategy: an explorative study on adoption and use by retailers

Purpose — This study examines a cross section of the Spanish retailing branch on the adoption and use of Social Media tools, identifying users and nonusers and their impact on management experiences. The use of 2.0 technologies has also been analyzed based on company size. Methodology — An online survey among 90 Spanish retailers provides a number of interesting insights in the adoption rates, the facilitating and disruptive factors in the adoption process, the types of applications used by retailers, and their experiences from them. Prior to filling in the online questionnaires, the recipients were contacted by phone and were informed about the study. A Chi-square analysis has been carried out to contrast the suggested research questions. Findings — Retailers using Social Media as part of their marketing strategy use most social applications for customer-related purposes and see clear benefits in improving customer relations, market communication, improving their after-sales services, and obtaining customer feedback and customer information. Although many differences do not exist between large, medium, and small companies, it is remarkable that large companies use social web tools as branding and small companies as customer service. Research limitations — The main problem of this study has been the low recruitment of answers by retailers. Practical and social implications — Customers are using such technologies in overwhelming numbers and a substantial part of the customer generated content in Social Media is about brands, businesses, and products. Having a good idea about the customer dialog online can provide businesses with very valuable information and help them understand market trends but also identify potential areas of danger and problems. Originality/value of chapter — The adoption of Social Media tools is a topic much studied from demand perspective. Nevertheless, the application to business and, specifically, retailing sector is less analyzed. With this study we pretend to improve this research line from offer perspective.