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Impact of Social Media Sites on Customer Satisfaction in Retail Sector – A Case Study of H&M

University: Regent College of London

  • Unit No: 4
  • Level: Undergraduate/College
  • Pages: 8 / Words 2097
  • Paper Type: Case Study
  • Course Code: R/508/8328
  • Downloads: 528
Question :

This investigation is based on the theme of how digital technology impacts business activity. This investigation attempts to identify how H&M can opt for digital technology to be more profitable and innovative.

  • A brief background of the research area undertaken.
  • Proving a brief literature review covering the previous research and literature.
  • Stating the main techniques and procedures chosen for this investigation.
  • Mentioning the timeline of research activities undertaken.
Answer :
Organization Selected : H&M


In present world business activities are operated on a huge scale and it is found that for every enterprise this is crucial that they promote their product and services using the most appropriate mode (Panneerselvam, 2014). With the increase in total demand of customers their quarries have also raised which needs to be resolved on time so that long term connections with them can be maintained. To do so it is required that such tools are used through which maximum clients can be interacted with less investments. Social media provide a great platform to retailers to present their products in market and to make the world familiar with same. Due to shortage of time and busy schedules of people they spend most of their time on mobile phones to remain updated with fashion. H&M is a major retailer company having its headquarters in Sweden. It deals in variety of products like selling of accessories, clothing items etc. It is operating globally and uses different modes of marketing. Use of social media sites is done on a wide basis in order to advertise the products and also to interact with customer at personal level. Since the referred brand is doing well in its field it shows that marketing through online sites has helped it much in achieving the competitive advantage. The following proposal will discuss social media as how it has helped in developing the total customer satisfaction level.


What is the research issue?

Competition at global level has raised much that it has become important for the organizations to be very careful with the selection of promotion tools. Success can be achieved with less efforts if it is found that an enterprise is successful in choosing the most appropriate tool to interact with the clients (Hvass, Kristian and Munar, 2012). The following research is done in order to identify the extent to which social media is successful in increasing the customer’s satisfaction level for the retailers. H&M is selected to evaluate the impact of same. This is a right choice as it is operation on a good scale and has customers who belong to different age groups. As it is using variety of tools to interact with its customers it is easy to identify that how it is benefited from the same. Due to excess of rivalry in this sector it has become crucial for the referred enterprise to adopt every new application launched to promote the products.

Why is it an issue?

Retail industry deals in a product line which faces immense fluctuations in demand. It is important for them to remain updated with the change in trend that take place so that accordingly modifications in own products can be made (Hudson, Simon and Thal, 2013). With the adoption of social sites an organization gets to know how people are responding to the innovation and development that is brought in the enterprise. This way it becomes important to identify the impact of digitization on retail sector so that decision regarding continuation of same can be promoted. Information received through social tools helps in identifying the expectations of the customers which helps organization to take its different decisions. Instagram, Facebook are the two most widely tool on which the fashion and domestic products are advertised. Same sites have users belonging to distinct age group and they respond to the company’s product in a way that helps in deciding on future plans. This way it is important to understand the advantages that are delivered by the social media to retail industry. it becomes an issue as if the positives of this concept are not highlighted than the importance of same will be avoided and overlooked. To ensure continuous improvements in this concept it is an issue (Neuman and Robson, 2012 ).

What could this research shed light on?

The following proposal will highlight the factors that helps in understanding the impact of social media marketing on H&M it will show that how change in sales is observed due to adoption of the different advanced applications. The results of this report will help the referred enterprise to evaluate the need of attention that has to be given on this department of marketing. It will help H&M to earn maximum benefits which can be availed from this concept.

Aim: To identify the impact of social media marketing on retail sector – A case study on H&M.

Research Objective

  • To understand the concept of customer satisfaction
  • To analyze the impact of social media marketing on contentment level of customers
  • To analyses the development of client satisfaction with the implementation of digital promotions

Research Question

  • What is customer satisfaction?
  • Why it is important to have good marketing strategy to raise the customer satisfaction level?
  • How social media promotions has brought change in the satisfaction level of clients?
  • What are the different tools used for raising customer satisfaction level?
  • What is the impact of social media promotion on the sales of H&M?

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Literature Review

Concept of social media marketing

According to Xiang, Zheng and Gretzel (2011) Market is a place where goods and services are exchanged and sales are made. In order to sell a product, it is important that the same is made in knowledge of other so that they can get to know about its features and advantages. Marketing is a tool through which an organization establish its product in front of its potential customers. It is an important activity as it assists in raising the total amount of revenues. Weinberg and Tamar (2011) says that there is a close rivalry in retail sector as there are field buyers but the competitors are raising day by day. Due to excessive chances present to grow, different individuals are participating in this business and making it difficult for other to raise their profit margins. It is required that product is introduced in a most appropriate manner through which maximum returns can be achieved. There are a number of ways through which product can be marketed like doing online or offline promotions. Depending upon the nature or demand of product, medium of marketing is selected (Kassim and Asiah Abdullah, 2011). Social media marketing is a well-known tool which is frequently used in the present business scenario to interact with customer. It is an easy way to advertise the products and helps in saving much cost of the firm as it is a cheap mode of advertisement. This cost can be further invested in business departments which needs to be developed.

Importance of effective marketing strategy

In the view of Jeff and et.al., (2014) marketing is one of the most important activity of a business. It is important that strategies are made for same with maximum care. The author says that once a company is successful in making an effective promotion plan than success of organizations becomes evident. There are many options which are available with the firm and therefore selecting the best mode will help in saving cost and raising the profit margins. Ryu, Lee and Gon Kim (2012) also added his views on why it is important to have good marketing strategy. They says that even if a particular organization is doing well and producing quality goods but is not successful in placing same before its users than the product is of no use and will not give organization desired results. Silverman (2016) gave emphasis on how by having an effective marketing team the desired goals can be achieved with the maximization of total sales.

Impact of social media promotion on retail sector

According to Fowler (2009) due to increase in population it has become difficult to ensure that every customer is provided with the same level of attention. Retail sector is dealing in variety of products and hence need to adopt different tools of promotion for distinct products. Author gave emphasis on how by social media marketing a business can receive different advantages. Thereafter Hajli and Nick (2015) added more views on how trough social media it has become easy for retails to market their product to customers. With it organization can raise its scope as it is easy to reach more customers through networking sites like Facebook Instagram twitter etc. Author says that people are active on these sites and can be reached with few clicks. It increases the chances of having more market share and digital presentation also has the capacity to influence the user to buy a particular commodity.


Collecting the information regarding the impact of social media marketing is a huge task and needs to be done with proper planning. In order to get relevant information different considerations will be used taken like as follows:

Research design – It is a blueprint assistance of which is taken in assembling of data and evaluating same. It can be done using various techniques such as descriptive and exploratory. Descriptive method is used in the provided report to assemble the required data.

Research techniques – There are two techniques with the researcher which are qualitative and quantitative. In the first one theoretical data is collected that include facts and about the research product and help user to get overall idea of the topic. Another it is the quantitative tool in which statistical representation is done of the assembled information. It is easy to reach a conclusion using this technique as data interpretation is when converted into graphs and tables.

Data collection method – Researcher have two mode of information gathering one is primary and other is secondary (Bravo, Montaner and Pina, 2012). When data is collected directly by the investigator for the first time it is called as primary information and on the other hand when already collected information is used for reaching at conclusions than the data is secondary one. In order to collect information in research use of survey will be done in which questionnaire will be distributed to potential respondents so that their response can be used to reach at conclusions. It is an effective way of gathering information as through this an overall idea of the topic can be achieved. Sample size of 30 will be taken so that more close results are presented. The sample will be chosen on random basis and their response will be taken as the basis for conclusion. The selected method is chosen as it is simple to conduct a survey and can be easily converted into graphical results which are convenient to be analyzed.

Accessibility issue – There are different problems which are faced while carrying out the investigation. The quality may get effected if the collected information is gathered from very old source (Mackey and Gass, 2015). Budget may again act as a constraint to reach at the desired quality as to collect authenticated data sometimes access to same needs to be purchased which may affect the total funds available. Non response of samples can be another major drawback to achieve the more authenticated data.

Ethical considerations – While carrying out the study it is important that the researcher is sure that all his acts are ethical. None of the activity involved in research should be unethical. Accountability should be there and all the information provided by him has to be free from any miss presentation of facts. It has to be ensured that all the data collected is gathered with the consent of information provided. No illegal act should be involved which can hamper the security of other person (Bowen and Ozuem, 2014). Apart from this it is of much importance that no misrepresentation of research objective should be done in front of others to collect data from them and hence should be used for the same purpose.

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