Exploring the effect of Facebook as a relationship marketing tool: the case of Lithuanian telecommunications: Bir Ilişkisel Pazarlama Araci Olarak Facebook’un Etkileri: Litvanya Telekomünikasyon Endüstrisi Örneği

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Abstract

In today’s competitive business environment greater numbers of companies are searching for sustainable competitive advantage by building long-term relationships with their customers. This study focuses on relationship marketing, marketing tool Facebook and its subsequent impact on the business performance. The existing literature highlights the importance of customer retention and the long-term relationships between the company and the customers. Social media and social networking sites with vast marketing capabilities are being quickly identified and adopted by successful companies. However, there is a lack of research in this area, especially identifying the implications Facebook can have on relationships between company and its customers. Consequently, this research aims to identify the uses of Facebook as a marketing tool in building and enhancing relationships with loyal customers. The primary objective of the study is to identify to what extent Facebook affects the relationships between loyal customers and company. In order to achieve research objective a highly structured questionnaire has been selected for the descriptive quantitative study. The study was conducted and primary data was collected in March – June 2011. While existing literature emphasises the importance of relationship marketing and the need to utilise new technological advantages for building and enhancing relationships with loyal customers, the primary research reveals controversial results. The overall trend is the customers have quite low level of loyalty to the telecommunications companies and they are not interested in committing to one service provider and creating long-lasting relationship. This study contributes to existing literature on relationship marketing and social networking sites and gives a broader outlook into these concepts by looking into Facebook as a relationship marketing tool. The findings of the study add more debate on Facebook as a relationship marketing tool and its effectiveness since the research partly denies the need of long-term relationships between companies and their customers.
Original languageEnglish
Pages (from-to)57-81
Number of pages25
JournalIstanbul University Journal of Communication Sciences
Volume46
Publication statusPublished - Jun 2014

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Telecommunications
Marketing tools
Facebook
Long-term relationships
Social networking sites
Marketing capabilities
Social media
Business environment
Service provider
Loyalty
Customer retention
Questionnaire
Business performance
Sustainable competitive advantage

Bibliographical note

Connectist: Istanbul University Journal of Communication Sciences is an open access journal which means that all content is freely available without charge to the user or his/her institution. Except for commercial purposes, users are allowed to read, download, copy, print, search, or link to the full texts of the articles in this journal without asking prior permission from the publisher or the author.


The articles in Connectist: Istanbul University Journal of Communication Sciences are open access articles licensed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY-NC-ND 4.0) (https://creativecommons.org/licenses/by-nc-nd/4.0/deed.en/)

Keywords

  • Relationship Marketing
  • Customer Loyalty
  • Facebook

Cite this

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title = "Exploring the effect of Facebook as a relationship marketing tool: the case of Lithuanian telecommunications: Bir Ilişkisel Pazarlama Araci Olarak Facebook’un Etkileri: Litvanya Telekom{\"u}nikasyon End{\"u}strisi {\"O}rneği",
abstract = "In today’s competitive business environment greater numbers of companies are searching for sustainable competitive advantage by building long-term relationships with their customers. This study focuses on relationship marketing, marketing tool Facebook and its subsequent impact on the business performance. The existing literature highlights the importance of customer retention and the long-term relationships between the company and the customers. Social media and social networking sites with vast marketing capabilities are being quickly identified and adopted by successful companies. However, there is a lack of research in this area, especially identifying the implications Facebook can have on relationships between company and its customers. Consequently, this research aims to identify the uses of Facebook as a marketing tool in building and enhancing relationships with loyal customers. The primary objective of the study is to identify to what extent Facebook affects the relationships between loyal customers and company. In order to achieve research objective a highly structured questionnaire has been selected for the descriptive quantitative study. The study was conducted and primary data was collected in March – June 2011. While existing literature emphasises the importance of relationship marketing and the need to utilise new technological advantages for building and enhancing relationships with loyal customers, the primary research reveals controversial results. The overall trend is the customers have quite low level of loyalty to the telecommunications companies and they are not interested in committing to one service provider and creating long-lasting relationship. This study contributes to existing literature on relationship marketing and social networking sites and gives a broader outlook into these concepts by looking into Facebook as a relationship marketing tool. The findings of the study add more debate on Facebook as a relationship marketing tool and its effectiveness since the research partly denies the need of long-term relationships between companies and their customers.",
keywords = "Relationship Marketing, Customer Loyalty, Facebook",
author = "Justina Setkute",
note = "Connectist: Istanbul University Journal of Communication Sciences is an open access journal which means that all content is freely available without charge to the user or his/her institution. Except for commercial purposes, users are allowed to read, download, copy, print, search, or link to the full texts of the articles in this journal without asking prior permission from the publisher or the author. The articles in Connectist: Istanbul University Journal of Communication Sciences are open access articles licensed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY-NC-ND 4.0) (https://creativecommons.org/licenses/by-nc-nd/4.0/deed.en/)",
year = "2014",
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journal = "Istanbul University Journal of Communication Sciences",
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AU - Setkute, Justina

N1 - Connectist: Istanbul University Journal of Communication Sciences is an open access journal which means that all content is freely available without charge to the user or his/her institution. Except for commercial purposes, users are allowed to read, download, copy, print, search, or link to the full texts of the articles in this journal without asking prior permission from the publisher or the author. The articles in Connectist: Istanbul University Journal of Communication Sciences are open access articles licensed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY-NC-ND 4.0) (https://creativecommons.org/licenses/by-nc-nd/4.0/deed.en/)

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N2 - In today’s competitive business environment greater numbers of companies are searching for sustainable competitive advantage by building long-term relationships with their customers. This study focuses on relationship marketing, marketing tool Facebook and its subsequent impact on the business performance. The existing literature highlights the importance of customer retention and the long-term relationships between the company and the customers. Social media and social networking sites with vast marketing capabilities are being quickly identified and adopted by successful companies. However, there is a lack of research in this area, especially identifying the implications Facebook can have on relationships between company and its customers. Consequently, this research aims to identify the uses of Facebook as a marketing tool in building and enhancing relationships with loyal customers. The primary objective of the study is to identify to what extent Facebook affects the relationships between loyal customers and company. In order to achieve research objective a highly structured questionnaire has been selected for the descriptive quantitative study. The study was conducted and primary data was collected in March – June 2011. While existing literature emphasises the importance of relationship marketing and the need to utilise new technological advantages for building and enhancing relationships with loyal customers, the primary research reveals controversial results. The overall trend is the customers have quite low level of loyalty to the telecommunications companies and they are not interested in committing to one service provider and creating long-lasting relationship. This study contributes to existing literature on relationship marketing and social networking sites and gives a broader outlook into these concepts by looking into Facebook as a relationship marketing tool. The findings of the study add more debate on Facebook as a relationship marketing tool and its effectiveness since the research partly denies the need of long-term relationships between companies and their customers.

AB - In today’s competitive business environment greater numbers of companies are searching for sustainable competitive advantage by building long-term relationships with their customers. This study focuses on relationship marketing, marketing tool Facebook and its subsequent impact on the business performance. The existing literature highlights the importance of customer retention and the long-term relationships between the company and the customers. Social media and social networking sites with vast marketing capabilities are being quickly identified and adopted by successful companies. However, there is a lack of research in this area, especially identifying the implications Facebook can have on relationships between company and its customers. Consequently, this research aims to identify the uses of Facebook as a marketing tool in building and enhancing relationships with loyal customers. The primary objective of the study is to identify to what extent Facebook affects the relationships between loyal customers and company. In order to achieve research objective a highly structured questionnaire has been selected for the descriptive quantitative study. The study was conducted and primary data was collected in March – June 2011. While existing literature emphasises the importance of relationship marketing and the need to utilise new technological advantages for building and enhancing relationships with loyal customers, the primary research reveals controversial results. The overall trend is the customers have quite low level of loyalty to the telecommunications companies and they are not interested in committing to one service provider and creating long-lasting relationship. This study contributes to existing literature on relationship marketing and social networking sites and gives a broader outlook into these concepts by looking into Facebook as a relationship marketing tool. The findings of the study add more debate on Facebook as a relationship marketing tool and its effectiveness since the research partly denies the need of long-term relationships between companies and their customers.

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