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Strategic Customer Engagement on Instagram

A Case of Global Business to Customer (B2C) Brands

Written by Anonymous

Paper category

Master Thesis

Subject

Business Administration>Communication & Media

Year

2014

Abstract

Master Thesis: Instagram marketing Instagram marketing refers to a series of customer-oriented activities aimed at maximizing brand revenue and achieving sustainable competitive advantage through Instagram as a communication channel. This section analyzes three key entities in Instagram marketing: Instagram, consumers on Instagram, and B2C brands. The characteristics and attributes of Instagram as a social media platform are determined, based on business functions that can be discussed. Customer segmentation on Instagram and their behavior on Instagram are also presented accordingly. Therefore, B2C brand prominent practical marketing strategies can be seen everywhere in the literature. 4.2.1. Instagram features The explosive global use of handheld electronic communication devices has continued, such as mp3 players, smartphones and portable Internet access devices (Venkatesh Shankar, 2010). The development of Instagram has benefited from the rapid spread of devices equipped with high-performance cameras (Danielle Salomon, 2013), because Instagram is dedicated to the mobile experience. Specifically, other SNSs such as Facebook or Pinterest were originally created for web pages and later adapted to mobile devices, while Instagram was originally built exclusively on mobile devices (Miles, 2013). As a mobile-based image-intensive application (McNely, 2012)) On mobile devices, Instagram provides users with photo capture and processing functions. Images are only uploaded via mobile devices, although there is a web version. The goal is to control spam and low-quality images from other sources (Instagram, 2014). This setting also makes the account very personal, and other people can view content that is highly relevant to one's daily life. 4.2.2. Instagram customers 4.2.2.1. Main Instagram consumer segment Instagram is still a user database with more than 200 million monthly active users and a high participation rate (Maeve Duggan, 2013), which makes marketing effects immediate. Instagram's demographic data has also attracted a large number of brands targeting the younger generation. The reason is that men and women between the ages of 18-24 represent Instagram users who are millions of B2C terminal buyers. The demographic range of customers may indicate their lifestyle and social status, such as living at home with their parents, low income but casual consumption. Research also proves that Instagram is particularly attractive to young urban women (see Cooper Smith, 2014; Maeve Duggan, 2014; Olle Findahl, 2013). For example, Olle Findahl (2013) found that in Sweden alone, 71% of the female population aged 12-15 used Instagram in 2013. In addition, due to the connection with specific values ​​or beliefs, women may be prone to impulse purchases (Hassan, 2014). 4.3. A strategic customer engagement strategy is usually defined as an "emergency action plan designed to achieve a specific goal" (Casadesus-Masanell & Ricart, 43). The key to strategy is to create a unique and valuable position involving a series of different activities (Poter, 1996). As the title emphasizes, strategic customer engagement is equivalent to strategically attracting customers on Instagram. Specifically, the purpose of this research is to propose customer engagement strategies by using different types of messages on Instagram. Customer engagement strategy can refer to a unique contingency plan to increase customer engagement. As part of online strategies and social media marketing strategies, customer engagement on Instagram only refers to customer-oriented activities within a specific channel through online channels (Muller-Lankenau) & Klein, 2006). It refers to the organization’s products /Market level, while supporting general marketing strategies (Jain, 2009). 4.3.1. Customer Engagement Self-declosure is one of the basic concepts of Web 2.0. It refers to the phenomenon that individuals consciously or unconsciously control their own impressions of others by disclosing themselves to varying degrees on the Internet (Goffman, 1959). Customer self-disclosure on SNS is relatively high (Kaplan & Haenlein, 2010), which makes it easier for brands to find and interact with them in a highly personalized way. As a relatively new concept, customer engagement usually refers to "behavior performance beyond buying behavior from customer to brand" (Jenny Van Doorn, 2010). It represents the way the brand connects with customers and measures the relationship between the brand and its customers (McEwen, 2004). Hollebeek (2011) believes that customer engagement depends on context, is brand-related, and motivates customers to make purchasing decisions. It is a mental state characterized by "different levels of cognitive, emotional and behavioral activities in direct brand interaction". Therefore, customer engagement consisting of customer direct brand interaction can be used as a measure of the performance of customer-oriented activities. Van Doorn (2010) believes that customer engagement includes five dimensions, indicating that customer engagement may be positive and negative. It affects the consequences other than the brand's direct purchase, such as word-of-mouth (WOM) recommendations, participation in activities and/or communities, service improvement suggestions, customer voices, and brand retaliation activities (Tammo HA Bijmolt, 2010). In the process of market transactions, customer participation enables customers to continue to buy and even co-create the brand value through the establishment of intimate bonds in the long-lasting relationship between the brand and the customer (Sashi, 2012) Read Less