Academy of Entrepreneurship Journal (Print ISSN: 1087-9595; Online ISSN: 1528-2686)

Research Article: 2021 Vol: 27 Issue: 5S

The Effectiveness of Social Media by Brand Awareness, Information Platform Gaining Feedback, Customer Acquisition and Retention of Organic Food and Beverages

Mehrunishah Begum, Segi University & Colleges

Siti Nur Amira Othman, Universiti Tunku Abdul Rahman

Nabihah Aminaddin, Universiti Tunku Abdul Rahman

Wan Rozima Mior Ahmed Shahimi, Universiti Tunku Abdul Rahman

Ramesh Kumar Moona haji Mohamed, Universiti Tunku Abdul Rahman

Abstract

Recently, Social media became better than the traditional method of marketing. This research is to identify the effects of social media by brand awareness, information platform gaining feedback, customer acquisition and retention in the Organic F&B industry. The sampling frame was a large number of customers in Malaysia. It is impossible to get the full list of people, therefore the sampling location focused on social media such as Facebook Twitter, WhatsApp and etc. Hence, anon-probability is chosen in this research. The results show that promotions in social media are something that must be addressed quickly to enhance the organics & B industry. The use of social media contributes greater than consignment and exhibits to the organic F & B product sales level. Future studies and limitations have sorted out accordingly.

Keywords

Brand awareness, Customer Retention, Organic, Organic Food

Introduction

Marketing is a systematic activity to satisfy customers' needs while also stimulating and increasing the sales of a product or service (Baker, 2016). There are three elements in marketing namely creating a message, branding and positioning. All of this involves strategies in matters relating to products, prices, promotions and distribution channel selection. This strategy is used to compete with competitors so that companies or organizations, especially cooperatives, can survive and continue to be competitive (Andrews & Shimp, 2017).

Recently, Social media became better than the traditional method of marketing (Tuten & Solomon, 2017). According to Dahl (2018), social media in life is no longer a stranger because the platform is used not only to track contacts at school but it is also used as a medium to generate profits that are now increasingly popular by businesses throughout the world regardless of whether it is a well-known company or individual who is new in various industries. This has attracted them (traders) for the opportunity to expand the network which is very important to gain the influence of the public to gain trust by maintaining a loyal customer relationship as one of the strategies to make the customer a company asset (Strathdee, 2017). So, what is a media social page? It is defined as a website-based service that allows individuals to build a profile tied to a system, influence other users to share relationships and browse the list of connections that have been made within a network (Lamberton & Stephen, 2016). The trust given to Facebook is so huge that Donald trump the new US President has also won in the election due to information provided by Facebook.

Underpinning Theory

This study involved three important theories, namely the theory of a new communication paradigm, the theory of influence social and media enrichment theory. The continuation of these three theories supports the objective of the study, which emphasizes the development of visual elements towards the use of social media.

Theory of New Communication Paradigms

This theory states that social media uses hybrid components. The hybrid component explains how social media uses traditional communications coupled with the use of the internet platform as a new communications paradigm (Gu, 2015). The use of social media is more meaningful to organic F & B companies where they can form one-on-one with customers anywhere at any time through this social media platform. According to Gu (2015), the use of this theory allows social media to connect customers and organic F & B companies to interact with each other in two ways. This supports the increasing relationship between the two parties in a win-win situation. Indirectly, it can also provide an efficient impact on the effectiveness of social media as marketing and business medium. The hybrid approach highlighted by this theory empowers one-to-one relationships between entrepreneurs of organic products with customers. The continuity of this theory has a positive impact on the development of organic food marketing through good relationships that are shared customers.

The Social Influence Theory

This theory of social influence illustrates the changing attitudes and responses produced by social influences based on several stages. The stated ratings are based on individual acceptance of influence involving compliance), internationalization and identification (Pérez & Mugny, 2018). This theory explains how a new app use such as social media affects the environment today. This theory coincides with a study conducted where research focuses on how organic food entrepreneurs influence customers to buy products they use social media mediums. In this study, this theory helps how to do something new technologies can attract social communities to use it. From the perspective of organic food companies, this theory is the support of organic entrepreneurship to attract consumers to use social media platforms to engage in dealings.

Media Richness Theory

The media enrichment theory describes how an organization involved processes information to minimize the risk of uncertainty and the weakness of the information involved. The next research is based on how this theory reviews the use of appropriate media to ensure an organization can use appropriate media for operation organization. Based on this enrichment theory again, there is a medium level of information delivery that touches on the effectiveness of the information being communicated to the community (Liao & Teng, 2018). This can be attributed to an organization of organic food companies that need to select the appropriate social media that is appropriate and well used by the organic food company to increase visibility.

Incorrectly and unsuitable social media selection will make entrepreneurs of organic food companies less prominent among internet users (Tseng, 2017). This theory is based on four criteria namely feedback, multiple signals, diversity language and personal focus. This theory can be attributed to the use of social media as a tool media communications that can connect between organic and consumer food syndicate entrepreneurs.

Development of Conceptual Model and Hypothesis Development

Figure 1: Development of Conceptual Model and Hypothesis Development

The Relationship between Brand Awareness and Social Media

A survey that has discovered brand awareness is the main reason for business owners to engage in social media. By constantly engaging in conversations, creating content, and starting conversations with potential customers, marketers let people know, time and time again, that they exist and listening according to (Perumal, 2017). According to (Tajvidi, Richard, Wang & Hajli, 2018) long-term impact is important as customers begin to associate brands with certain products or services. However, F & B traders will be urged not to reduce the effectiveness of social media as a major generation tool simply because the major generation gets a percentage of 19 votes from business owners (Galati, 2017). Customer acquisition is a bigger focus for F & B traders, customer acquisition is an area where social media can give us a big boost.

Ultimately, the goals of the use of social media will be determined as well as tailored to fit into anything. If F & B dealers focus primarily on customer acquisitions, then more target audience will be reached in increasing brand awareness and website visibility (Liu, Cheung, & Lee, 2016). Social media is a powerful tool that helps business owners connect with their audience and make their brands more accessible. What a trader chooses to focus on the customer is the awareness of Brand in Social Media. Base on the discussion above below hypothesis has been developed.

H0 There is no significant relationship between brand awareness and social media in the Organic F&B industry.

H1 There is a significant relationship between brand awareness and social media in the Organic F&B industry.

The Relationship between Information Platform and Social Media

In recent years, social media is been merging into one type of platform, which is social networking. Previously, social networking pages were often referred to with the broader context of technology 4.0 (Jiménez-Zarco, Rospigliosi, Martínez-Ruiz & Izquierdo-Yusta, 2019). Sometimes, the definition of "social media," and "social networks" are often used synonymously. Therefore, Orenga-Roglá & Chalmeta (2016) defines the essential features of Web 2.0 as "software development that enables mass engagement in social and collective activities." This social network is derived from the ability of users to represent themselves and their interests in social platforms and intensify their activities with others on this social media channel. According to Liu, Cheung & Lee (2016) seen as a year of social media development especially social networks. Base on the discussion above below hypothesis has been developed.

H0 There is no significant relationship between information platforms and social media in the Organic F&B industry.

H1 There is a significant relationship between information platforms and social media in the Organic F&B industry.

The Relationship between Feedback and Social Media

The past study proves that social sites have a positive impact such as being a community of people expressing their feelings (Hudson, 2015). The creation of such sites makes it easier for people to write about their feedback and then cope with the customer's dissatisfaction. So society can gain customer retention and retention ultimately maintaining the Customer's loyalty (Kapoor, 2018). The formation of a community through the use of social media sites involves the internal and external communities of a company. The company's internal community involves interaction among employees within the company using social media platforms to interact with a new approach (West, 2016). The use of social media as a new communication tool provides one new phenomenon in an organization in terms of delivering effective and more effective information. Base on the discussion above below hypothesis has been developed.

H0 There is no significant relationship between gaining feedback from customers and social media in the Organic F&B industry.

H1 There is a significant relationship between gaining feedback from customers and social media in the Organic F&B industry.

The Relationship between Customer Acquisition and Retention and Social Media

Providing great service is a major component, of course, but retention of marketing is also important for the development of practice. This type of marketing focuses on maintaining customers of companies involved in the practice of a company after their initial visit (Srinivasan, 2016). Companies usually spend a lot of money to attract new customers to keep them on the top of your marketing strategy as a whole.

As a retention strategy, a company should discuss with such customers by responding to their responses and thanking them for sharing their information and their experiences. All the information they share is public. "Word of mouth" social media advertising on platforms like Instagram is an easy way to enhance the brand of a company (Ascarza, 2018). Base on the discussion above below hypothesis has been developed.

H0 There is no significant relationship between customer acquisition and retention and social media in the Organic F&B industry

H1 There is a significant relationship between customer acquisition and retention and social media in the Organic F&B industry

Methodology

The targeted population of this study was Malaysian citizens all over Malaysia. The citizens are the most important aspect of knowing if what the organic F&B companies do as their social media campaign reaches out to those target audiences. The survey is being conducted all over Malaysia by Google doc forms. There are many organic F&B companies online such as listed per below which lead to many citizens using social media to connect with those companies.

1. Alphametic Systems

2. Chia Seed Malaysia 4.0

3. CLEAN EATING GROCER (Wholesale Organic Food) 5.0

4. Organic For You Trading 1.0

5. Malaysia Organic Honey Producer - Melipoly Enterprise Sdn Bhd (Petaling Jaya)

6. Bms Organic Centre

7. Blue Oasis (M) Sdn Bhd | why not? Organic

8. Natural Health Farm @ Giant Bandar Puteri

9. NHF @ HQ Shah Alam

10. Rising Sun Health Food

11. LN Fortunate Coffee Malaysia @ Solaris

12. Organic Vegetarian Fresh Mart and Restaurant

13. Zenxin Organic Food @ Taman Tun Aminah, Johor Bahru

14. NHF

15. The Hive Bulk Foods

16. Zenxin Organic Food - Sri Petaling Outlet

17. Justlife The Gardens

18. The Natural Marketplace

19. Green Image Organic Food Enterprise

20. Zenxin Organic Food @ Tanjong Tokong, Penang

21. LN Fortunate Coffee Malaysia @ Sunway GEO Avenue

22. The Origin Foods Sdn Bhd

23. Zenxin Organic Food @ Damansara Uptown

24. Zenxin Organic Food @ Taman Sentosa, Johor Bahru

25. Melilea (M) Sdn Bhd

26. Malaysia Organic Honey Producer - Melipoly Honey (Port Dickson)

27. Zenxin Organic Food Malaysia @ Kluang, Taman Berlian

28. STELLA FOOD HALL DISTRIBUTION

29. Natural Health Farm Sdn. Bhd. @ East Coast Mall

30. Natural Health Farm Sdn. Bhd. @ Kluang

31. Orient Biotech Sdn. Bhd

32. Green Garden Organic Recipe

33. Organic Express

34. Zenxin Organic Food Singapore @ Pasir Panjang

35. Total Reach Marketing Sdn Bhd

36. Zenxin Organic Food @ Malacca Raya, Malacca

37. Zenxin Organic Food @ Kluang

38. Cameron Organic Produce Steamboat Restaurant (Non-Halal)

39. Herbalceutical (M) Sdn. Bhd.

40. BoxGreen Snack Foods Sdn Bhd

41. Desa Sri Hartamas, Federal Territory of Kuala Lumpur

42. Green Meadow

43. Dietmonsta

44. Alive Organic Sdn Bhd

45. Zenxin Organic Food @ Taman Daya, Johor Bahru

46. Clean bites Malaysia

47. Matahari Sdn Bhd

48. SKG WORLD SDN BHD

49. Asia Botanicals Sdn Bhd

50. ieCo Malaysia

51. Elken Head Office

52. Justlife Melaka

53. La Juiceria Superfoods Signature Atria Mall Healthy Salad & Bowls PJ

54. Wadi Doan

55. Heap Hong Fruit Factory

56. Simple Life Healthy Vegetarian Restaurant - Lot 10 Bukit Bintang

57. BMS Organics Taipan

58. BMS Organics Taman Lagenda 1 Melaka

59. Melaleuca Southeast Asia (M) Sdn. Bhd.

60. All Happy Organic Food Mart

61. USANA Malaysia (Seri Kembangan) Independent Associate

62. LJ Superfoods Signature @ Nadi Bangsar

63. BMS Organics Sri Petaling

64. Zenxin Organic Food

65. BMS Organics Gateway@KLIA2

66. Goodmorning Global Sdn. Bhd.

Other Recommendations

Therefore, the choices of those citizens as the respondents are qualified in answering the questionnaire (Sekaran, 2003). This research uses social media (1 independent variable) x 4 factors (brand awareness, information platform, feedback, and customer acquisition). The researcher defined convenience sampling as a type of sampling in which, tries to make the sample representative, depending on research purpose, thus being the representation subjective (Teddlie & Yu, 2007).

The researcher uses convenience sampling techniques in this research (Hair, Bush & Ortinau, 2006). Therefore, this study obtained 300 respondents, who were selected from organic F & B companies’ websites, Malaysia. The questionnaire was presented in the English language and Malay which been done by back to back translation. The questionnaire has two sections: the first was for demographics; the second covered five propositions which are brand awareness, information platform, feedback, and customer acquisition. The questionnaires chosen for this research used Likert scale questionnaires (Jackson, 2012).

The five anchors used in this interval scale are strongly disagreed (1) to agree (5) strongly. Data were analyzed using PLS-SEM structural equation modeling and SPSS for descriptive studies. Sekaran & Bougie (2016) stated that unit analysis is referring to the list which involving the entities population. In this research, there is no sampling frame since there were a large number of customers in Malaysia and it is impossible to get the full list of people. The sampling location of our research is focused on the organic F & B companies, which located in Malaysia. Hence, a non-probability is chosen in this research (Quinlan, 2019). The response rate was 31%.

Results & Discussion

General descriptive results from organic F & B organizations utilizing social media shows that Facebook is the most popular social media with regards to nearness. A higher dominant part of the respondents was available on this platform pursued by Instagram which had 45% of the respondents present. A photograph sharing social application has picked up popularity and has likewise begun promoting. 35% of the respondents were available on twitter which is on the third position as far as to use by advertisers and organizations pursued by Blogs 23%, Youtube and LinkedIn at 11%. With respect to media platforms by positions, Facebook got the most significant status pursued by Instagram and Twitter. The information pursues the use of a design that appeared by a past table. Least significant players ended up being google+ and snap chat. Pinterest got the least significant hits as awareness demonstrates an absence of awareness and acknowledgment. 42% of the respondents had to make brand awareness as the most significant goal to be occupied with social media advertising. Recruitment was the least favored goal for social media showcasing. Over half of organizations go through as long as 4 hours consistently on social media advertising. Facebook users refreshed and posted substance more often than the various platform users, Instagram pursues the lead of Facebook in content posting frequency. Youtube and Pinterest see a normal frequency of 1-2 posts two weeks that recommend the time and cost for content creation which prompts lesser frequency of updates. Pinterest is utilized to refresh one board once per week. The lion's share of the users on Facebook and Instagram have a normal reaction time of 5-24 hours after getting feedback in types of comments, replies, and likes.

The results from testing hypotheses were Social media interest impacts brand awareness and information platform gaining feedback towards customer acquisition and retention. Brand awareness impacts customer acquisition. Brand awareness affects customer retention. Social media promoting is emphatically identified with the acquisition of customers (Figure 2). The results show as per below:

Figure 2: Structural Model

SEM with PLS is an alternative technique in SEM analysis where the data used do not have to be multivariate in a normal distribution. In SEM with PLS the value of latent variables can be estimated following the linear combination of manifest variables associated with a latent variable and treated to replace the manifest variable.

According to Hair, et al., (2016), SEM with PLS consists of two components, namely the inner model and the outer model. Structural models or inner models describe the relationship model between latent variables that are formed based on the substance of the theory. When the measurement model or outer model describes the relationship between latent variables and their manifest variables (indicators). In the outer model there are two types of models namely the formative indicator model and the reflexive indicator model.

Evaluation of Measurement Models (Outer Model)

Evaluation of the measurement model consists of three stages namely convergent validity test, discriminant validity test and composite reliability test. - Convergent Validity Test Validity testing for reflective indicators can be done by using the correlation between indicator scores and construct scores. Measurement with reflective indicators shows there is a change in an indicator in a construct if other indicators in the same construct change.

Table 1
Evaluation Of Measurement Models
Items Loadings Cronbach's Alpha Composite Reliability Average Variance Extracted(AVE) VIF
BA1 0.953 0.973 0.979 0.904 3.223
BA2 0.979 3.715
BA3 0.968 3.552
BA4 0.881 3.377
BA5 0.968 2.974
CAR3 0.868 0.82 0.912 0.838 1.935
CAR4 0.96 4.117
GF1 0.883 0.955 0.965 0.848 3.726
GF2 0.938 3.147
GF3 0.953 4.86
3.818
GF4 0.892 3.645
GF5 0.936 3.818
IP1 0.934 0.959 0.968 0.858 3.411
IP2 0.949 2.321
IP3 0.956 2.424
IP4 0.839 2.862
IP5 0.949 3.127
SM1 0.836 0.928 0.945 0.776 3.23
SM2 0.865 8
SM3 0.872 3.02
SM4 0.919 4
SM5 0.91 4.014
Table 2
Convergent Validity Test
BA CAR GF IP SM
BA HTMT
CAR 0.187 HTMT
GF 0.152 0.332 HTMT
IP 0.052 0.3 0.652 HTMT
SM 0.685 0.209 0.197 0.047 HTMT

According to Chin (1998); Hair, et al., (2016) said that a correlation can be said to meet the convergent validity if it has a loading value greater than 0.5. The output shows that the loading factor gives a value above the recommended value that is equal to 0.5. So, that the indicators used in this study have met the convergent validity. - Discriminant Validity Test In reflective indicators, it is necessary to test discriminant validity by comparing the values in the HTMT loading in table 2. An indicator is declared valid if it has the highest loading factor value to the intended construct compared to the value of the loading factor to other constructs which is not more than 0.85 (Kline, 2015). Table 1 shows that all latent variables measured in this study have Cronbach's Alpha and Composite Reliability values greater than 0.7 so that it can be said that all latent variables are reliable.

Evaluation of the Structural Model (Inner Model)

Evaluation of structural models on SEM with PLS is done to perform the R-squared test (R2) and the significance test through the estimation of the path coefficient. - Testing the R2 Output for the R2 value using the SMART PLS 3.0 computer program obtained in table 3:

Table 3
Hypothesis Results
Hypothesis Beta Value Std Error T value P Values LL UL R2 F2 Q2 Decision
H1 BA->SM 0.626 0.044 14.243 0 0.551 0.696 0.476 0.714 0.394 Supported
H2 IP->SM 0.214 0.081 2.631 0.004 0.087 0.337 0.052 Supported
H3 GF->SM 0.199 0.069 2.883 0.002 0.095 0.317 0.044 Supported
H4 CAR->SM 0.087 0.054 1.615 0.053 0.004 0.17 0.012 Not Supported

Table 3 shows the entire hypothesis stated down from H1 to H4. It additionally contains the T-statistics value for every hypothesis. At the point when the hypothesis is significant, the t-value is more than 1.645 (p<0.05), t-value more than 2:33 (p <0.01) for 1-tail test, t-value more than 1.96 (p<0.05) or t-value more than 2:58 (p <0.01). Table 7 indicates that there are three hypotheses, which are H1, H2, and H3 are significant because the lower limit the maximum limit for the hypothesis is in a positive value, so the hypothesis had become significant which is zero. Simultaneously, the test of hypothesis 4 isn't supported.

The R2 square value and F2 additionally show sufficient as indicated by Chin (1998), where he stated that for a strong R square need 0.67, while for moderate need 0.33 and a weak R square need 0.19. Plus, as per Hair et al. (2016), the R square of 0.75 is strong, 0.5 is moderate, and 0.25 is weak. While Cohen's (1988) rule was utilized to determine the magnitudes of the effect size. The magnitudes effects are 0.02 (little), 0.15(medium), and 0.35(large). In the meantime, the effect size on Social media is large with f2=0.714 to small 0.012

Implications Of The Study

This research will be useful for Organics F & B Companies as they will have the option to target customers with proper social media advertising systems. The research will likewise reveal factors adding to increment in deals through social media showcasing. The Organics F & B Companies will have the option to pick social media channels, social strategies and make a successful social media advertising methodology to secure and hold customers dependent on the discoveries and finish of the research.

Research that has been done shows that the effectiveness of social media by brand awareness, information platform gaining feedback, customer acquisition and retention of health awareness to buy organic food that is still not famous in social media. Similar to Tariq, Wang, Akram, Tanveer & Sohaib (2019), research by Bernal Jurado, Fernández Uclés, Mozas Moral & Medina Viruel (2019) states that awareness of the health of organic food is a factor that influences attitudes to buy. It can be concluded that research also shows that health awareness influences attitudes to buy through social media is still not enough in Malaysia.

Limitations

The social media showcasing systems utilized by Organics F & B Companies for customer acquisition and retention have been considered in Malaysia and the end can't be utilized as speculation of customers all over the world. Significant research has not been attempted on social media promoting in Malaysia in organics F & B businesses. Unmistakable research on social media promoting procedures utilized by Organics F & B Companies isn't accessible in the Malaysian setting. The investigation has concentrated on organic F & B organizations as it were. The investigation additionally faces limitations of sample size, time and experience. An assortment of organizations exists and it will be unfeasible for the extent of this research to cover each industry. The limitations of the gathered information make it hard to make speculations crosswise over businesses, organizations, and areas.

Future Research

There is an extension for further research in the territory of social media showcasing techniques of huge organizations and MNC‟s. Research can likewise be directed on social media advertising systems in different divisions, for example, Hospitality, Tourism, Retail industry and so on.

Conclusion

Organic cultivating is generally new and is as yet thought to be a baby industry in Malaysia. In any case, much progress on organic cultivating in Malaysia has been seen throughout the previous 15 years. Expanding awareness by consumers has added to more appeal of organic items in Malaysia. Although policies have been set up for organic development to help the business, most of the activities towards the development are industry-driven. Motivations or sponsorships have not being offered to the two makers and consumers.

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