3 Jun 2022

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Impact of Social Media Use: A Case Study of US Restaurants

Format: Harvard

Academic level: Master’s

Paper type: Essay (Any Type)

Words: 2498

Pages: 9

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Social media is a term that is used to mean online applications and media that enable people to interact, collaborate, and share knowledge (Razmerita, Kirchner, & Nabeth, 2014, pp. 75). These platforms have taken over the way we communicate and do business, as well as the way we form relationships. Businesses today have pages where they not only advertise but also sell their products and offer customer service to its customers (Ngai, Tao, & Moon, 2015, pp. 35). The difficulties created by the power of social media have led to academic, social and business concerns about the roles played by social media. Social media platforms allow the sharing of user-generated content and include, Google +, Facebook, Twitter, and Instagram. YouTube and blogs also form a part of social media as developed under Web2.0 (Bharati, Zhang, & Chaudhury 2015, pp. 457-8). 

Whereas companies used to have a lot of power in the past, it has shifted to what employees, customers, and suppliers say about the company and its operations. Companies cannot underestimate the power of social media and should ensure that it is used appropriately to benefit the company (Agnihotri, Dingus, Hu, and Krush 2016 pp.173). Restaurants rely on customers on a daily basis and with customer loyalty being the most targeted aspect of the business. The use of social media in the upcoming restaurants in the USA is an important topic that would benefit anyone who intends to invest in the business. However, investors can utilize the social media after they have understood its benefits and effects on businesses. 

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Research Objectives 

The main objective of this study is to outline the impacts that social media platforms have on corporate organizations especially in the USA using restaurants as the case study. The following are the specific objectives of the study. 

To determine the most widely used platforms that are used by restaurants in the USA (Ngai, Tao, & Moon, 2015, pp. 37). 

Outline some of the factors that influence the use of social media in the hotel industry 

To address the benefits that restaurants get from the use of social media 

To determine some of the challenges associated with the use of social media especially in the restaurant sector (Ngai, Tao, & Moon 2015, pp. 38). 

Research Question 

The research questions aim at expounding on the objectives outlined above. The primary question for this study is what impacts do social media platforms have on organizations operating in the restaurant sector? The following are the subsequent questions that will direct this study. 

How can fast food restaurants benefit from the use of social media? 

What factors determine the use of social media in company 

What is the role of the management in promoting the use of social media and regulating it to beneficial levels? 

What benefits can an organization have about social media usage? 

What are some of the challenges that emanate from the use of social media in the fast food sector? 

Literature Review 

This section reviews the literature that is related to the study the researcher will conduct. It is based on the research that other researchers have conducted on the topic, the methodology they used, and effectiveness of their research. It is also aimed at guiding the researcher on the theoretical framework used by other researchers. The other aim is to discuss what social media platforms are and how different organizations across the globe use them. The chapter also outlines some of the impacts that social media has on other organizations. 

Social media impact means the benefits that an organization receives from the actual use of social media. Studies that have been conducted in the past have indicated a positive impact of social media on organizations that operate in various areas that include both interactional and transactional impacts (Saxton & Wang, 2014, pp. 851). Evidently, social media helps in improving the marketing performance of a company, enhance cost reduction, ensure there is revenue generation, and also enhance managerial effectiveness (Agnihotri, Dingus, Hu, & Krush 2016, pp. 175). Other studies have found a positive correlation between the use of social media and improvement of innovation in an organization. They ensure a reduction of the marketing costs, and also the improvement of the relationships that a company has with its consumers (Van Iddekinge, Lanivich, Roth, & Junco 2016, pp. 1811). Similarly, the use of social media has also been found to assist in improving the image of the company and the competitive advantage that the company has. 

Companies are also able to perform integrated marketing activities with ease if they use social media platforms. There is also the benefit of doing the marketing activities with less effort and cost (Van Iddekinge, Lanivich, Roth, & Junco 2016, pp. 1813). The ease with which social media platforms can be used in reaching more consumers means that the companies are provided with a chance to enhance the brand reputation, brand equity, and relationship with consumers (Leftheriotis & Giannakos 2014, pp. 135). The use of digital advertising and promotion is ideal for companies operating in the fast foods industry and for small companies due to the reduction in costs that occur in such companies. Companies can also benefit from the ease of handling customer service issues (Leftheriotis & Giannakos 2014, pp. 136). Effective handling of the customer service issues enables the company to build on customer relations, which enhances the chances of retaining the customer. 

The use of social media has seen tremendous growth from the 2000s to date. It was after the invention of Twitter in 2006 that organizations started looking at ways through which they can develop their operations using social media (Razmerita, Kirchner, & Nabeth 2014, pp. 77). They are used as a communication tool by companies in advertising and marketing, building relationships, communicating with customers, and branding. According to research done by Saxton & Wang (2014), more organizations are more organizations that are looking at ways to improve their social media usage for better results (Saxton & Wang, 2014 pp. 854). The interactive nature of digital media has been found to change the marketing scene with the platforms empowering the consumers to connect, share, collaborate, and create the spheres of influences (Trainor, Andzulis, Rapp, & Agnihotri 2014, pp. 1201). These influencers have distorted the way that those in marketing conduct their activities. The traditional intermediaries in marketing are, therefore, removed as the businesses connect directly with the consumers. Most businesses are coming up with social media marketing activities aimed at reducing the gap that is there between sales and the activities done in advertising. 

The online communication platform enables companies to promote dialogue between them and the consumers, which helps in promoting relations (Leftheriotis & Giannakos 2014, pp. 140). According, the company’s website in regards to the ease of use, the allowable social interaction, interactivity, and the speed of interaction provide positive emotions among consumers towards the brand and the company. A considerable number of consumers have argued that the website helps in promoting a connection between them and the product. While companies are expected to be concerned of its effectiveness, there is need to also focus on the reputation (Trainor, Andzulis, Rapp, & Agnihotri 2014, pp. 1203). The issue of reputation is more important in an online environment as compared to the traditional ones. Most of the companies will always strive to develop and maintain a good reputation in the online platform because of damages to the reputation of the company can take ages to heal. Having a positive correlation is important as it reduces the concerns of the consumers. 

There are many positive impacts that companies can draw from the use of social media especially when the platforms are used as part of the communication efforts in the company (Dijkmans, Kerkhof, & Beukeboom, 2015, pp. 59). The companies can benefit from the fact that most of the employees and potential customers are using social media platforms in their personal lives, which means they know how to use them (Trainor, Andzulis, Rapp, & Agnihotri 2014, pp. 1205). Consequently, the coding is already done in these sites, which makes them easier to use. The sites are not expensive to use and manipulate to the advantage of the company, and the information that is provided by social media sites is always up to date. The ability of the company to create online forums for their user groups means is essential for companies as it helps in cutting costs (Dijkmans, Kerkhof, & Beukeboom, 2015, pp. 60). The companies can get feedback from their user groups without having to arrange for any forum or conference. 

Most of the previous researchers have outlined the ability of social media platforms such as Facebook, Twitter, YouTube and Instagram to enhance communication in the organizations. The use of the internet has made communication within and outside the organization easier as people do not have to wait for people to return their calls or wait until when there is an actual meeting (Moreno, Navarro, Tench, & Zerfass 2015, pp. 244). The costs incurred by companies when using traditional marketing methods are reduced drastically when a company starts to use social media sites (Dijkmans, Kerkhof, & Beukeboom 2015, pp. 61-2). The organization is also able to reach more consumers with the help of social media sites as millions of consumers are have signed up for Twitter, Facebook, Instagram, among others. The speed at which the interaction between the organization and the consumers occurs also enables the company to be effective in its operations. 

Methodology 

This section discusses the research methods that the researcher will use in conducting research. In particular, the chapter is about the research design, a population that will be used in the research, the size of the sample, and the sampling techniques ideal for this type of research (Saunders Lewis and Thornhill 2016, pp. 2). The chapter also outlines the data collection procedures as well as analysis. 

This research will provide a mixed method approach to take into effect the many diverging views. The method also allows the researcher to make stronger inferences based on the findings (Moreno, Navarro, Tench, & Zerfass 2015, pp. 245). The aim of the researcher in using the mixed method is to ensure that the methods complement each other and neutralize their weaknesses. This study on the impact of social media on the organizations operating in the restaurant sector was done using qualitative and quantitative methods. The researcher will also make use of the descriptive research design based on the specificity of the problem and the good definition of the same (O'Leary & Hunt 2016, pp. 35). While seeking to acquire quantitative data, the researcher will make use of questionnaires that will be distributed to all participants. To complement the use of questionnaires in research, the researcher will also make use of interviews to gather more information. The researcher will also make use of analysis of social media pages to determine the kind of interaction that most of the companies have with the consumers. 

The target population entails the group that the researcher will involve in the research and obtain data. Three main departments in various organizations will be the focus of this research. These departments include the customer care department, the marketing department, and the corporate affairs section (Moreno, Navarro, Tench, & Zerfass 2015, pp. 246). 

Concerning the sample size, the researcher will segregate the population into different strata with the use of stratified random sampling (Wan, Koh, Ong, & Pang 2015, pp. 381). This means that the researcher will take a stratified random sample from each of the created strata, which includes the sampling of the top management in various organizations. This method is ideal in that it increases the efficiency of a sample statistics, and ensures there is adequate data analysis. According to Van Iddekinge, Lanivich, Roth, & Junco (2016), this stratified random sampling is advantageous in that there is statistical efficiency and the researcher has control over the sample size. The researcher will select the top five restaurants that operate in the area as the focus of this research (Wan, Koh, Ong, & Pang 2015, pp. 382). The criteria for selection are that the social media sites of the company should have no less than 2000 likes or followers on one specific platform. The restaurant must also have been in operation for more than five years in the area and also operated their social media sites for a considerable amount of time. 

Data Collection 

Data will be collected using a questionnaire. To obtain more information, the researcher will make use of both an open-ended and a closed-ended questionnaire (Eriksson & Kovalainen 2015 pp. 22). The researcher will also seek to interview some of the respondents especially the leaders of those departments that are involved in the direct use of social media platforms in the organization. Some of the questions asked will relate to the opinion of the employees towards the restaurants and how they use social media and how they want the companies to interact with them as individual consumers and as employees. The researcher will also seek to understand the views of the employees concerning some of the improvements that their companies should make to leap more from social media usage. It will also be important for the researcher to ask the interviewee about the benefits that the companies face as they attempt to make use of social media in those aspects such as marketing. The researcher will also focus on some of the benefits that the companies are yet to realize despite having implemented the use of social media (Saunders Lewis and Thornhill 2016, pp. 319-21). Content analysis will involve the researcher seeking access to social media sites used by different companies to appreciate the different ways that companies interact with consumers. 

Methods of Data Analysis 

The researcher will make use of descriptive statistics to draw meaningful conclusions from the study. The researcher will use tables, graphs, and percentages to ensure that the data collected can easily be understood after analysis (Hoseinzadeh, Hasankhani, & Rahmani 2015, pp. 13-15). In particular, the researcher will edit and code the responses to ensure the ease of analysis. During data analysis, the researcher will group different data forms to create meanings that can be analyzed using simple quantitative means such as simple arithmetic Eriksson & Kovalainen 2015 pp. 35). The researcher will make use of inferences when analyzing the qualitative data to ensure that meaningful conclusions are made from the research. The researcher will also compare the results attained from this research to those attained by researchers in previous studies to determine they agree or disagree. 

Ethics 

Ethics forms an integral part of research in the business sector. Therefore, the researcher will have to conduct himself appropriately to prevent violating the ethical boundaries (Saunders Lewis and Thornhill 2016, pp. 183). For instance, the researcher will notify every company of the intention to research within its premises to get permission (Bryman and Bell 2015, pp.18-20). The management will be notified of every activity that the researcher will be doing while in the organization. The researcher will also provide the participants with a consent form at the start of the study. The role of the consent form is to inform the participant of all the ethical considerations that the researcher has put into perspective while designing the research (Campbell & Cowton 2015. pp.S4-5). The participant will have the choice of either participate by signing the form or decline the request if he or she feels that the research is unethical. 

One of the ethical considerations that the research will make is the issue of confidentiality. Many of the participants may fail to take part in the study due to the fear that the researcher will share the information with the management (Bryman & Bell 2015). The researcher will assure the participants in writing that all the collected data will be used for the research and there will be no intentions of sharing the same or using it in other ways. Consequently, the participants will be free to leave the study if they feel it violates their ethical concerns. 

References 

Agnihotri, R., Dingus, R., Hu, M. Y., & Krush, M. T. 2016. Social media: Influencing customer satisfaction in B2B sales.  Industrial Marketing Management, 53 , 172-180. 

Bharati, P., Zhang, W., & Chaudhury, A. 2015. Better knowledge of social media? Exploring the roles of social capital and organizational knowledge management. Journal of Knowledge Management, 19 (3), 456-475. 

Bryman, A., & Bell, E. 2015.  Business research methods . Oxford: Oxford University Press, USA. 

Campbell, D. & Cowton C. J. 2015. Method issues in business ethics research: finding credible answers to questions that matter. Business Ethics: A European Review, 24 (S1): S3–S10 

Dijkmans, C., Kerkhof, P., & Beukeboom, C. J. 2015. A stage to engage Social media use and corporate reputation. Tourism Management, 47, 58-67. 

Eriksson, P., & Kovalainen, A. 2015.  Qualitative methods in business research: A practical guide to social research . London: Sage. 

Hoseinzadeh, M., Hasankhani, H., & Rahmani, F. 2015. Ethics in qualitative researchers: a concept analysis using Rodgers' evolutionary method. Medical Ethics Journal, 9 (32), 11-43. 

Leftheriotis, I., & Giannakos, M. N. (2014). Using social media for work: Losing your time or improving your work?.  Computers in Human Behavior, 31 , 134-142. 

Moreno, A., Navarro, C., Tench, R., & Zerfass, A. 2015. Does social media usage matter? An analysis of online practices and digital media perceptions of communication practitioners in Europe.  Public Relations Review, 41 (2), 242-253. 

Ngai, E. W., Tao, S. S., & Moon, K. K. 2015. Social media research: Theories, constructs, and conceptual frameworks.  International Journal of Information Management, 35 (1), 33-44. 

O'Leary, Z., & Hunt, J. S. 2016.  Workplace Research: Conducting small-scale research in organizations . London: Sage. 

Razmerita, L., Kirchner, K., & Nabeth, T. 2014. Social media in organizations: leveraging personal and collective knowledge processes.  Journal of Organizational Computing and Electronic Commerce, 24 (1), 74-93. 

Saunders, M., Lewis, P., and Thornhill, A. (2016). Research Methods for Business Students . Harlow: Pearson. 

Saxton, G. D., & Wang, L. 2014. The social network effect: The determinants of giving through social media.  Nonprofit and Voluntary Sector Quarterly, 43 (5), 850-868. 

Trainor, K. J., Andzulis, J. M., Rapp, A., & Agnihotri, R. 2014. Social media technology usage and customer relationship performance: A capabilities-based examination of social CRM.  Journal of Business Research, 67 (6), 1201-1208. 

Van Iddekinge, C. H., Lanivich, S. E., Roth, P. L., & Junco, E. 2016. Social media for selection? Validity and adverse impact potential of a Facebook-based assessment.  Journal of Management, 42 (7), 1811-1835. 

Wan, S., Koh, R., Ong, A., & Pang, A. 2015. Parody social media accounts: Influence and impact on organizations during a crisis. Public Relations Review, 41 (3), 381-385. 

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