Impact of Social Media on Customer Service and Ways It Can Be Improved Further in Fashion Industry - Research Proposal Example

Impact of Social Media on customer service and ways it can be improved further in Fashion Industry

Abstract

The purpose of this paper is to investigate the impact of social media platforms for improving consumer services in fashion industry. Burberry has been chosen in the paper to undertake research activities to understand different ways to improve customer services through online social medium. Researcher is going to undertake this research by following deductive approach and mixed method. Qualitative analysis will be done through case analysis where past campaigns undertaken by Burberry to improve its customer services will be analysed. Nearly 250 questionnaires are going to be distributed to people living in China, US and India. In order to conduct secondary research 4-5 press releases, journals and reports are going to be assessed.

Table of Contents

1.0 Introduction4

1.1 Background4

1.2 Rationale5

1.3 Research questions6

1.4 Research Objectives6

2.0 Literature Review7

2.1 Burberry: Social media marketing7

2.2 Consumers feedback on getting services through Facebook8

2.3 Online Questionnaire to get information on consumer satisfaction by using Facebook9

2.4 Content analysis for Burberry10

3.0 Methodology10

3.1 Research Approach10

3.2 Research Method11

3.2.1 Qualitative Analysis11

3.2.2 Quantitative Approach13

3.2.3 Secondary Research13

3.3 Research Design14

4.0 Time Scale14

5.0 Reference list15

6.0 Appendices17

• 1.0 Introduction
  • 1.1 Background

With globalisation, immense expansion opportunities have been created for corporations (Atsmon, Dixit and Wu, 2011). Corporations in order to grow their profitability and market share are entering developed and emerging economies throughout the globe (Atsmon, Dixit and Wu, 2011). With increased competition, corporations are implementing advanced technological platforms to reach and create awareness for their products and services among consumers. Bruhn, Schoenmueller and Schafer (2012.), claims that countries like India and China, have seen an immense growth in the fashion market where the youths have developed a preference for stylish products.

Table 1: Apparel market size as per region from 2012 to 2025

Region

2012

2025

CAGR

China

150

540

10

EU-27

350

440

2

Unites States

225

285

2

India

45

200

12

Japan

110

150

2

Russia

40

105

8

Brazil

55

100

5

Canada

30

50

4

Australia

25

45

5

Rest of the World

75

195

8

(Source: The Statistical Portal, 2016)

Table 1 illustrates the market size of varied regions of the world in 2012 with CAGR rate. It has been estimated that the fashion industry till 2025, is going to experience more growth where it is expected that US, China and Indian fashion market is going to grow from 225, 150, 45 to 285, 540, 200 respectively in the year, 2025 (Business Insider, 2016). Numerous players like Louis Vuitton, H&M, Gucci and Tiffany and Company has been operating their businesses in varied regions of the globe. Leading players of fashion sector across the globe are Louis Vuitton, followed by H&M and Nike, Inc. with $22.55, $21.08 and $19.86 billion respectively (Business Insider, 2016). Burberry is also among the well known brand of fashion sector that promotes and endorse its collection by using social media platform efficiently (Business Insider, 2016).

• • 1.2 Rationale

Consumer today has become technologically smart and more logical while making purchases where they for any inconvenience in transactions want immediate feedback from the marketers (De Vries, Gensler and Leeflang, 2012). Social media platforms have enabled marketers to reach the consumers’ grievances’ more efficiently where they do not have wait long for email replies (Cheng and Huang, 2013). Gensler et al., (2013), argues that consumers instead of finding out marketers’ phone numbers and email address, wants to have a quick access to services. The rationale behind doing this paper is to investigate the influence of social media platform for enhancing sales and customer service in the fashion industry throughout globe. Numerous players of the fashion industry such as Burberry; use social media platform (Pinterest) to attract and increase the sale of their items online (Cheng and Huang, 2013). Therefore, through this paper, a research will be conducted to understand the impact of social media platforms on consumers’ purchase behaviour and ways through which these services can be enhanced.

• • 1.3 Research questions

1. How many fashion industry players use social media platforms?

2. What effects does social media platform have on consumers purchase intention?

3. Does consumer prefer getting consumer services through Facebook?

4. Does reaching consumers through social media platforms, increase their loyalty towards the brand?

5. How can consumer services be further improved by fashion industry players through social media platforms?

• • 1.4 Research Objectives

1. To contextualise contemporary situation of Burberry using social media.

2. To discuss whether consumers are willing to get services through Facebook.

3. To provide an online questionnaire to get information on customer satisfaction by using Facebook.

4. To provide content analysis about how Facebook can be used to improve customer services in Burberry.

• 2.0 Literature Review
  • 2.1 Burberry: Social media marketing

In 1956, Thomas Burberry founded Burberry in fashion industry (Link Humans, 2016). The operating revenue for the corporation in 2015 was recorded as £2,523.2 million (Link Humans, 2016). Since its establishment in the fashion industry, the corporation is known as a highly esteemed luxury fashion brand (Burberry.com, 2014). After having successful operations at Basingstoke, Thomas Burberry expanded the stores throughout the globe, where it was ranked among the list of companies issued by Inter brand’s Best Global Brand’s Report (Burberry.com, 2014).

Burberry is well known for coming out with products that offers stylish and a highly elegant look to its customers along with superior quality (Link Humans, 2016). Gainsbury et al., (2016), argues it being the first entity to incorporate technological platform in the fashion sector. Burberry, through social media platform offered its customers online streaming videos of fashion shows, social media purchase options (Link Humans, 2016). Additionally, consumers were provided an option to order their purchases directly from the catwalk (Link Humans, 2016). Burberry has created a separate online platform known as Art of Trench, where consumers can go through fashionable items like clothing and accessories and place orders directly (Link Humans, 2016).

As per survey, Burberry utilises the social media platforms efficiently to reach and offer services to its potential consumers and fans (Link Humans, 2016). Nearly, 60% of corporation’s marketing activities are done through digital medium by promoting their brand via Facebook, Twitter and Instagram (Burberry.com, 2014). Burberry creates separate themes for its advertising campaigns and is claimed to be excellent marketer who know to communicate its offers by using varied platforms (Link Humans, 2016). For instance, for live streaming, posting elegant visuals and to involve consumers in conversation, Facebook, Instagram and Twitter respectively are used (Link Humans, 2016).

Burberry utilised Pinterest for posting images of their recent designs under the hashtags of #Artofthetrench and #AOTT (Link Humans, 2016). In Facebook, it have following of 18 million likes and nearly 84,000 visits, where they share photographs of their latest collections, videos and events (Link Humans, 2016).

• • 2.2 Consumers feedback on getting services through Facebook

Cheng and Huang (2013), claims that though luxury brands are undertaking effective marketing campaigns on social media platforms there is no direct proof that these campaigns improves the customer service. Gainsbury et al. (2016) agree with this opinion and believes that there is no correlation that creates a link between fashion brands purchases and advertising campaigns. Burberry launched “Art of the Trench website” to improve the customer services (Link Humans, 2016). Many users across the globe participated in the event by uploading their pictures wearing Burberry item (Link Humans, 2016).

Yang et al., (2016), argues “Art of the Trench” as being the most successful campaign launched by the corporation in its history, where in 2009, thousands of fans were attracted towards a contest. Fans of the brand were asked to participate in an online contest, where they had to post a photograph of themselves wearing a trademark of Burberry trench coat (Burberry.com, 2014). Moreover, at the end of 2009 Burberry sales increased by 50% after the successful launch of “Art of the Trench” campaign (Burberry.com, 2014). Increase in ecommerce sales illustrates that users are effective by advertising campaigns through Facebook and it helps the corporation in increasing customer services.

Moreover, in September 2015, Burberry launched a new fragrance known as Burberry Body, through Facebook (Link Humans, 2016). As per research, this advertising campaign encouraged 7.7 million Facebook users to order the sample in advance (Link Humans, 2016). In opinion of Yang et al., (2016) Facebook has helped Burberry to improve the sales and customer services to a great extent and should be used for future.

• • 2.3 Online Questionnaire to get information on consumer satisfaction by using Facebook

Facebook has become a vast online platform to get suggestions and feedback from millions of users regarding customer services within a short duration (Link Humans, 2016). Survey Monkey is an entity that conducts online surveys to understand the opinions and insights from people belonging to varied areas of the globe (Business Insider, 2016). Burberry in order to understand the impact of advertising campaigns through Facebook can create a web link collector through which questionnaire can be distributed (Business Insider, 2016).

Yang et al., (2016) explains that these online questionnaires must be very quick, easy and fun based that can attract attention from fans regarding fashion products offered by Burberry. Through online questionnaire, the corporation could be able to know the elements that customers likes or dislikes and could improve their services accordingly. Apart from feedback, varied suggestions on ways to improve their services through social media platforms can be achieved (Business Insider, 2016). Gainsbury et al. (2016) claims that online questionnaire is better than conducting physical survey as through Facebook larger consumers can be reached.

• • 2.4 Content analysis for Burberry

Gainsbury et al. (2016) claim that Burberry efficiently uses social media platforms to improve customer services for its fashion products. For instance, Live Streamed Catwalk show is uploaded on Facebook that allows Burberry to connect and share their new collections to 8 million fan following (Business Insider, 2016). Gainsbury et al. (2016) argues that until now Burberry has successfully utilised content to attract online users by using videos and photos of fashion shows. However, for future customer services through social media the corporation requires new tactics and content (Business Insider, 2016).

As Burberry is among the initial companies that used technological platform to enhance services regarding the fashion items it must continuously come up with rich content to preserve its fans base (Business Insider, 2016). In opinion of De Vries, Gensler and Leeflang (2012) content regarding services must be creative, original and new that attracts and maintains interest of consumers. When content are not efficient in attracting the interest of consumers the possibility of growth, automatically reduces for the company (Link Humans, 2016). By using online questionnaires, Burberry must ask suggestions from its fans regarding the ways to improve its online advertising content (Link Humans, 2016).

• 3.0 Methodology
  • 3.1 Research Approach

A research is going to be conducted to know the effect of Burberry social media platform advertising on its potential and current users. Moreover, the researcher wants to understand the perception of consumers, regarding the use of Facebook as a platform to avail customer services. For this, deductive approach of methodology will be suitable. Deductive approach is a detailed analysis, where the researcher is able to undertake a thorough investigation regarding the topic to understand the research objective in an efficient technique (Atsmon, Dixit and Wu, 2011). In this research, deductive approach is going to be implemented by the researcher, where hypothesis will be developed before conducting the survey and after collection of data it will be tested by through descriptive analysis.

• • 3.2 Research Method

Amixed research method that includes both quantitative and qualitative approach is going to be followed. Collecting data by using both the methods, enables the researcher to test the significance of result obtained from the survey, with respect to opinions as well as in percentage terms (Atsmon, Dixit and Wu, 2011). In this research, different methods that are going to be implemented to know the impact of social media platform on consumer services are going to be discussed.

• • • 3.2.1 Qualitative Analysis

Case Analysis

Cheng and Huang (2013), claims that case analysis in methodologies are generally utilised by the researcher to understand the research questions in respect of “how” and “why”. In this research, case analysis regarding factors that improved the consumer services in fashion industry and the way to improve it further is going to be found out. In 2009, Burberry came up with an advertising campaign in social media platform (Pinterest), where people from different parts of the globe participated in the event. This incident is going to be chosen by the researcher to understand the influence it had on its consumers. Going through the case analysis, will help the researcher to understand the way customer services through social media platforms can be further improved.

• • • 3.2.2 Quantitative Approach

Online Questionnaire

In order to undertake this research, online questionnaire is going to be distributed to different customers prevailing in quite a few parts of the globe. Nearly, 250 online questionnaires are going to be circulated among the customers to know their reaction and experiences offered by Burberry through online social media platforms. Some of the questions will be as:

• Have you liked or followed the official Web pages of Burberry in social media platforms?
• Have you ever participated in contests held by Burberry on social media platforms?
• Can you register a complaint against poor services offered by the company online?
• Do you get immediate response for complaints and issues raised against Burberry’s services?
• Are you willing to get services through Facebook?
  • • 3.2.3 Secondary Research

In order to undertake secondary research, certain articles and journals published on fashion clothing consumer services are going to be gone through. Previous studies and findings will be collected while going through reports, press releases and past market research projects to derive the findings and conclusions.

• • 3.3 Research Design

Online questionnaire is going to be distributed in several parts of China, India, US and Japan that are experiencing high growth rate in fashion industry. A total of 250 online questionnaires is going to be distributed to the consumers (majority to youth) to find out different ways to improve the customer services further. For secondary research, 4-5 websites, journals and press releases related to customer services in fashion industry is going to be analysed. Moreover, 2-3 cases that Burberry undertook in the past to increase the customer services will be considered.

• 4.0 Time Scale

Time Table (weeks)

Activities to be undertaken

1

2

3

4

5

6

7

8

9

10

11

12

Selection of topic

Research Objectives and questions

Literature Review

Selecting Methodology

Preparation of online Questionnaire

Assessing Secondary reports

Case analysis

Collecting data through online questionnaire

Analysing the collected data

Conclusion and Recommendations

• 5.0 Reference list

Atsmon, Y., Dixit, V. and Wu, C., 2011. Tapping China’s luxury-goods market. McKinsey Quarterly, 7(1), pp.1-5.

Bruhn, M., Schoenmueller, V. and Schafer, D. B., 2012. Are Social Media replacing traditional media in terms of brand equity creation?. Management Research Review, 35(9), pp. 770-790.

Burberry.com, 2014. Annual Report. [pdf] Available at: <http://www.burberryplc.com/documents/annual_reports/annual-report-2014-15.pdf> [Accessed: 20 May 2016].

Business Insider., 2016. The World’s top 10 Fashion Brands are worth $ 122 billion. [Online] Available at: <http://www.businessinsider.in/The-worlds-top-10-fashion-brands-are-worth-122-billion/articleshow/48011721.cms> [Accessed: 20 May 2015].

Cheng, H. H. and Huang, S. W., 2013. Exploring antecedents and consequence of online group-buying intention: An extended perspective on theory of planned behavior. International Journal of Information Management, 33(1), pp. 185-198.

De Vries, L., Gensler, S. and Leeflang, P. S., 2012. Popularity of brand posts on brand fan pages: an investigation of the effects of social media marketing. Journal of Interactive Marketing, 26(2), pp. 83-91.

Gainsbury, S.M., King, D.L., Russell, A.M., Delfabbro, P., Derevensky, J. and Hing, N., 2016. Exposure to and engagement with gambling marketing in social media: Reported impacts on moderate-risk and problem gamblers.Psychology of Addictive Behaviors, 30(2), p.270.

Gensler, S., Volckner, F., Liu-Thompkins, Y. and Wiertz, C., 2013. Managing brands in the social media environment. Journal of Interactive Marketing, 27(4), pp. 242-256.

Link Humans, 2016. How Burberry uses Social media. [Online] Available at: < http://linkhumans.com/case-study/burberry> [accessed: 20 May 2016].

The Statistical Portal, 2016. Apparel Market Size projections from 2012 to 2015 by region. [Online] Available at: <http://www.statista.com/statistics/279757/apparel-market-size-projections-by-region/> [Accessed: 20 May 2016].

Yang, S., Lin, S., Carlson, J.R. and Ross Jr, W.T., 2016. Brand engagement on social media: will firms’ social media efforts influence search engine advertising effectiveness?. Journal of Marketing Management, 32(5-6), pp.526-557.

• 6.0 Appendices

Figure 1: Business Model of Burberry

(Source: Burberry.com, 2014)