TALLINN UNIVERSITY OF TECHNOLOGY

School of Business and Governance

Department of Business Administration

Mistura Yetunde Akinsanya

IMPACT OF SOCIAL MEDIA MARKETING ON

PROMOTION OF FOOD AND GROCERY SERVICES:
A CASE STUDY OF FOODCO NIGERIA IBADAN, NIGERIA
International Business Administration

Supervisor: Dr. Ahmad Jamal (Ph.D)

Tallinn 2021

1
I hereby declare that I have compiled the thesis independently and all works, important
standpoints and data by other authors have been properly referenced and the same paper has
not been previously presented for grading.
The document length is 14,596 words from the introduction to the end of conclusion.

Mistura Yetunde Akinsanya

(Signature, Date)
Student code: a156059
Student email address: [email protected]

Supervisor: Dr Ahmad Jamal

The paper conforms to requirements in force….

……………………………………………
(Signature, date)

The paper conforms to requirements in force …

……………………………………………
(Signature, date)

Chairman of the Defence Committee:

Permitted to the Defence

2
TABLE OF CONTENTS

ABSTRACT 6

INTRODUCTION 7

1. THEORETICAL, EMPIRICAL LITERATURE REVIEWS AND CONCEPTUAL

FRAMEWORK 13

1.1. An Overview of Retailer Industries in Nigeria 13

1.2. Marketing Mix and Promotion Element 14

1.3. A Brief History of Foodco Nigeria Limited 15

1.4. Social Media: Definition and User Details 15

1.5. Bourdieu’s Theory of Social Capital 17

1.6 Social Media Marketing 18

1.7. Benefits of Social Media Marketing 19

1.8. Customer Satisfaction and Customer Loyalty 21

1.9. Strategy used in Social Media Marketing. 22

1.10. Empirical and Literature Reviews 24

1.11. Conceptual Framework 26

2. Research Design 29

2.1. Target population 30

2.2. Sampling and Sample Size 30

2.3. Data Sources and Instructions 31

2.4. Validity and reliability of research instrument 31

2.5. Data Analysis and Presentation 32

2.6. Limitation of the Study 35

3. ANALYSIS AND PRESENTATION OF RESULTS 36

CONCLUSION AND RECOMMENDATIONS 51

LIST OF REFERENCES 54

3
Appendix 1: Demographic, Social-Economic and Enterprises 60

Appendix 2. Social Media Marketing tools used in the organization. 62

Appendix 3. The relationship between social media marketing and promotion 63

Appendix 4. Descriptive Statistics of the variables used in the E.F.A 64

Appendix 5. Mean Statistics 65

Appendix 6. Communalities 66

Appendix 7. Factor Loading 67

Table 8. Rotated Factor Matrixa 67

Appendix 9. Factor Transformation Matrix 68

APPENDICIX 10. Non-exclusive licence 69

4
LIST OF TABLES
Table 1. Major Social Media in the World 13
Table 2: Population of the Study 18
Table 3: Validity and Reliability Test 19
Table 3.10. Distribution of the Respondents by Gender 23
Table 3.1.1 Distribution of the Respondents by Age 23
Table 3.1.2 Distribution of the Respondents by Household Size 24
Table 3.1.3 Distribution of the Respondents by their Status 25
Table 3.1.4 Distribution of the Respondents by Marital Status 25
Table 3.1.5 Distribution of the Respondents by Education Level 26
Table 3.1.6 Distribution of the Respondents by Primary Occupation 27
Table 3.1.7 Distribution of the Respondents by Social media Usage 28
Table 3.1.8 Distribution of the Respondents by Social media Marketing Training 28
Table 3.1.9 Distribution of the Respondents by type of Social media used for promotion 29
Table 3.2.0 Awareness and Usage of Social Media Marketing and Promotion 30
Table 3.2.0: Descriptive Statistics of the variables used in the EFA 36

Table 3.2.1: Test Results (KMO and Bartlett's Test) 37

Table 3.2.2 Eigenvalues, Total Variances Explained 40

Table 3.2.2 Descriptive Statistics of the Explanatory Variables used in the Regression 40
Table 4.2.2 Regression analysis on the impact of Social Media marketing on Promotion 32

5
ABSTRACT

Marketing via social media entails strong contents that can promote the company outlook, but
mostly, some outfits lack these qualities, hence they are not meeting up to the standard accepted
in marketing of their companies. The aim of the study is to examine the Impact of Social Media
Marketing on Promotion of Food and Grocery Service; a case study of Foodco Plc. Ibadan,
Oyo State, Nigeria. Primary data was collected with the use of a semi-structured questionnaire
from respondents across five outlets of Foodco Nigeria Plc, Ibadan. Descriptive statistics,
Exploratory Factor Analysis and Multiple Regression Analysis was used to analyse the
information obtained.

The EFA showed that of all the nine constructs or items used in the EFA, “promotional offers
increase curiosity to experience the product in social media'' has the highest mean of and “social
media can be used for sales and marketing promotion has the lowest mean of respectively.
Also, the Kaiser-Meyer Olkin measure of sampling adequacy and Bartlett’s test of sphericity
were used to assess the suitability of the sample for principal component analysis. Eigenvalue
criterion of greater than one was used to determine an initial set of factors, indicating that the
relationships between variables are significantly different from zero.
Furthermore, the study indicates that the majority of the respondents were male, with the
majority of the respondent being youth within the active age of social media users. The study
also shows that the majority of the respondents had moderate household size members, with
the majority of them married. The social media tools used mostly by the respondents for
promotion in Foodco are Facebook, followed by Instagram and twitter respectively. The
multiple regression result indicates that education, type of social media used “you are satisfied
to use social media for promotion” are the variables influencing social media marketing in the
Foodco Nigeria Plc.
The study therefore recommends more training to all users of social media across age and
gender so as to give more skills that can help in promotion of the enterprises. Also, branding
of products of food should be encouraged, this will help in more publicity and create awareness
among customers.

Keywords: Social Media Marketing, Promotion, Food and Grocery Services

6
INTRODUCTION

This chapter introduces the thesis, the research context and background, the statement of
research problem, research questions and objectives, justifications of the study and the plan of
the thesis.

Social media is described as a new media channel for marketers to advertise their products and
services, and it has become a part of the marketing medium for organizations (Neti 2011).
Accompanied with the advancement in technology, many organizations rely on social media
to reach out directly to existing consumers or to attract new ones (Perumal, Abdul 2017). In
marketing, social media has become a major marketing medium rather than traditional
marketing, which has shifted how consumers appraise, indicate, and also share information
(Patino, Pitta, Quinones, 2012). Major social media such as Facebook, Twitter, Instagram, and
YouTube are often used by organizations in the promotion of their businesses (Krisnan et al,
2017). Thus, consumers are able to access information at a very quick pace and only within
their precincts since technology is having a huge impact on marketing of products and services
(Halji, 2014).

Marketing is considered one of the most important aspects of retail business as the marketing
has greatly improved through social media and the internet. Many companies all over the world
are using the internet to promote their products and social media is one of their biggest tools in
internet marketing (Chianasta and Wijaya, 2014). With a high number of social media users,
there is a great advantage for the company as a large number of potential and existing
consumers can recognize or see what the organization produces, and possibly establish contact
for delivery (Clarfloaty, 2012).

Promotion, also known as marketing communications, as defined by Kotler & Armstrong

(2010) is the process of communicating between organization and customers to influence
consumer buying decisions and it can significantly impact consumer perceptions and attitudes.
In this internet era, social media is one of the cost effective ways that can be used to promote
a company’s products and services as social media is used throughout the world.
Nigeria is one of the biggest social media users in the world. In 2019, statistics showed that
there were approximately 24.59 million social network users in Nigeria, and this figure is

7
projected to grow to 44.63 million users in 2025 (Statista, 2020). The Food and Grocery
Retailing industry includes restaurants, cafeterias, cafés, fast-food joints, pubs, delis, food
manufacturing operations, catering businesses, food transportation services, and more. The
industry plays a significant role as an employer of labour to the country’s economy. The sector
comprises 22.5% of the manufacturing industry, generating an estimated 1.5 million jobs and
4.6% of the country's GDP.

Foodco is an indigenous food and retail company in Nigeria, diversified with interests in fast
food restaurants, supermarket division, restaurant chain and bakery. The study is important
considering the massive effect of social media marketing on sales promotion and retail
marketing. Social media has attracted greater attention, especially among the youth, and it has
been used massively in sales promotion. In some cases, social media marketing has been able
to create market penetration of some commodities that are not available in a particular location.
Social media is the platform that assists the progress of getting information sharing and
participation from users of the media in order to create and distribute the content to the public
(Steenkamp & Hyde-Clarke, 2014). Food and Groceries companies should consider using
social media especially when it comes to giving out information about their business and also
any information regarding their products or services. The advantage of using social media
cannot be over-emphasized. The cost of marketing is relatively low and the marketers still need
to maximize the low cost and use it effectively for the success of their business. Companies
can make a connection with others and learn from the skills and professionalism used in one to
enhance the capacity of a new one. In this sense, it enables companies to connect their business
to end-consumers directly by facilitating various areas of marketing such as advertisements,
promotions, and marketing communications (Kaplan & Haenlein, 2010).

In recent times, access to information on the product and services supplied by retail stores and
other corporate stores are limited, and most commodities didn’t reach the final
consumers/customers because there are no direct or open channels to market for the commodity
in some retail stores. Also, some information on most of the products are not available to end-
users, in a situation where the information is available. Social media marketing has been a tool
for promotion and also enhances marketplace efficiencies, promotes competition and helps
consumer’s buying decisions (Wick, 2015). But in the time past, access to information
produced in most of the company was non-accessible. Information on the product is not
available to end users. In a situation when the information is available, product information
8
could have positive effects on the overall attitude of the consumer/customers toward food
marketing and promotion in social media (Millan and Mittal, 2010).

Regardless of the media channel for marketing and advertising, the information about the
product is very necessary to get to the final user, and it is an important factor in social media
marketing, which affects customers’ attitude toward patronizing the companies (Tan and Loo,
2014). Coupled with this is the problem of finance, management and lack of training for
individuals and members that are staff in some company. Marketing in social media entails
strong contents that can promote the company outlook, but mostly, some companies lack these
qualities. Hence, they are not meeting up to the standard accepted in marketing of their
companies. Food and Groceries industries need to be promoted frequently because of
competition in the society and an adequate use of it for promotion is very important.

The emergence of social media has changed the way in which companies communicate with
their customers, which has allowed them more direct and faster contact using advertising or
marketing strategies. In addition, the cost of using social media for advertising is much lower
than traditional methods of publicity. Aside from the lower cost of advertising, social media is
used to promote transparency, efficiency, and openness by many governments and
organizations. Through social media, companies promote new products and services, announce
offers, easily learn the tastes and preferences of their customers, and relate directly with them.

Previous studies such as Dean and Lang (2008) opined that simulation of sales is a major
strategy in social media marketing by retailers by signaling value in offline environments.
While Lovett and Staelin (2016) suggested that actively managing social media sites is an
important strategy in social media marketing and can help in building brands in three important
ways of reminding, informing, and entertaining consumers.

However, a reviewer of literature suggests that there are no empirical studies conducted in the
context of Nigeria. Therefore, a research problem is that we do not know the extent to which
social media marketing strategies used in Nigeria are effective from customers’ point of view.
Little is known about customer awareness of social media tools used and their effectiveness.
FoodCo Nigeria Plc has been promoting her services through other means that are limited to
the study area. Hence, this study will add to the body of knowledge on promotion by examining

9
the impact of social media on promotion on FoodCo in Nigeria, due to lack of appropriate
social marketing strategies in the study area.

Therefore, correct use of social media can help companies to attract new customers and turn
interested people into potential customers in a meaningful way. Because of the above, in
addition to many other reasons, there is no doubt about the beneficial role of social media in
business. There are few empirical studies on the impact of social media marketing on
promotion of the food and retailing service in Nigeria. Considering that the food and retailing
services in Nigeria presents a great force for reducing the unemployment rate and increasing
economic growth. The major research question is whether there is a meaningful impact of
social media on promotion of the food and beverage companies, from the point of view of their
customers. This study will fill the gaps created by poor and inadequate usage of social media
marketing in Nigeria especially in the retail and other stores. Social media has been identified
as a platform that assists the progress of getting information sharing and participation from
users of the media in order to create and distribute the content.

The aim of this study is to determine the impact of social media on the promotion of the food
and Retail Service using Foodco Nigeria Plc as a case study. In order to fulfil the aim of the
study the following research questions were developed:
(1) What are the various social media tools used for marketing and promotion of
organizations including Foodco Nigeria Plc?
(2) What is the level of awareness towards social media marketing strategies used by
Foodco Nigeria Plc?
(3) How effective is social media marketing for promotion of Foodco Nigeria Plc

The general objective of the study is to examine the impact of social media marketing on
promotion and marketing in Foodco Nigeria plc. The following are the specific research
objectives;
1. To identify various social media tools used in Foodco Nigeria plc
2. To determine the level of awareness in social media marketing and promotion in
Foodco Nigeria Plc.
3. To determine the effects/impact of social media marketing on promotion in Foodco
Nigeria plc.

10
The justification for this study emanates from the view when considering social media as a
platform that assists the progress of getting information sharing and participation from users of
the media in order to create and distribute the contents to the public (Steenkamp & Hyde-
Clarke, 2014). Food and Groceries companies should consider using social media especially
when it comes to giving out information about their business and also any information
regarding their products or services. The advantage of using social media cannot be over-
emphasized. Social media also allows consumers to engage, share and exchange information
with other consumers (Sashi, 2012; Hennig-Thurau et al., 2010), and share their experiences
about firms and brands through word of mouth or reviews (Chang and Fan, 2017; Chen et al.,
2011; Trusov et al., 2010). Also, brand social media pages can be created for a large number
of consumers/customers in order for them to interact, get more knowledge about purchase and
services, and other information needed (Tzu-Yi Kao et al., 2016, Hajli, 2013; Yadav et al.,
2013). Companies can make connections with others and learn from the skills and
professionalism used in one to enhance the capacity of the new one. In this sense, it enables
companies to connect their business to end-consumers directly by facilitating various areas of
marketing such as advertisements, promotions and marketing communications (Kaplan &
Haenlein, 2010).

Previous studies (Islam et al., 2017; Lu et al., 2016; Demangeot and Broderick, 2016; Gunawan
and Huarng, 2015) focused on consumers’ social media behavior and how consumers engage
and make purchases through internet channels such as company websites and others. Limited
research has assessed the impact of social media on promotion and marketing with a particular
focus on a certain industry like the Foodco Nigeria plc. This study focuses on a particular
industry in order to explicitly identify the social media that are largely used by management to
reach their audience i.e. customers in marketing and promotion. Social media sites are
interactive platforms that enable firms, organizations etc. and brands to connect with their
consumers on a daily basis (Tafesse, 2016; Lipsman et al., 2012).

Social media has been identified as a platform that assists the progress of getting information
sharing and participation from users of the media in order to create and distribute the content.
Hence, finding from this study will help inform policies on how social media tools can be
effectively adopted in marketing and promotional services.

11
This thesis is divided into five chapters. Chapter one focuses on the introductory part of the
study, the statement of research problems, research questions and objectives and the
justification of the study. Chapter two focuses on the empirical and literature reviews,
theoretical reviews of various literature related to social media marketing, and promotions.
Chapter three is on the methodology that was used to carry out the study, which include
description of study area, data used and methods of collection, sampling techniques adopted
for the study and the limitation of the study. Chapter four presents the analysis of data collected,
discussion and interpretation of results and findings, while chapter five gives the summary of
the findings, recommendation, and conclusion of the study.

12
1. THEORETICAL, EMPIRICAL LITERATURE REVIEWS AND
CONCEPTUAL FRAMEWORK

This chapter explains the theory used in this thesis, the literature reviews, empirical reviews
and conceptual framework that was used in explaining the concepts of the study.

1.1. An Overview of Retailer Industries in Nigeria

Nigeria had a history of developing the supermarket industry until social and economic changes
in the early 1980s diminished the country‘s middle class significantly. Since then most
Nigerians shop at traditional open-air markets or purchase their goods from traders and street
vendors. Currently, Nigeria‘s retail food sector consists of supermarkets, convenience
stores/small groceries, and traditional, open-air markets sharing 1.0 percent, 34 percent and 65
percent of total retail food sales, respectively (Rondon et al., 2011). Although the traditional
open-air markets remain the dominant channel for Nigeria‘s retail food sales, the country‘s
retail food sector has been undergoing change over the last decade with international
supermarket brands entering the country; new malls being constructed and the steady
transformation of informal markets into more formal and modern facilities are setting new bars
by providing a wide choice of shopping experiences in a modern, customer-oriented, building.

The modest flourishing in the development of shopping malls and formal outlets is mainly
resulting from Nigeria‘s high oil prices, relative political stability, population growth, the
expansion and the general upward trend of all the non-oil sectors of the Nigerian economy, the
growing middle-class income with the rising expectations and sophistications of the consumer
group. Also, traditional grocery retailers have also increased the stock and range of non-
grocery items they offer to include clothes and footwear, consumer electronics and appliances,
books, toys, personal and home care products, household furniture and furnishings, etc.

However, demand for the basics or must-haves are still far greater than items perceived to be
luxury goods. Growth has also remained strong and steady for the processed and packaged
food market in Nigeria. The increase in retailing business is resulting from improving product
quality, the growing sophistication of Nigerian consumers, increasing disposable incomes–
especially among the middle-class consumers, advertising and marketing activities of firms
have also increased (Rondon et al., 2011).

13
Also, the expatriate community has also continued to expand and dominate the retailing sector.
The foreign and multinational companies generally dominate in Nigeria‘s retail sector and they
include ShopRite, a multinational supermarket firm from South Africa, has operated in the
Lagos city of Nigeria for more than 5 years and has opened more than 16 additional stores in
Nigeria, SPAR partnered with a Nigerian supermarket firm to launch its first outlet also in
Lagos. Their presence is expected to set up competition within Nigeria‘s retail food sector and
further the changing shape of the country‘s retail food merchandising. Industry experts project
a quick recovery of Nigeria‘s supermarket/food retailing as about 200 million additional
customers are expected to enter the hypermarket within the next one year. Some large
multinationals also partner with Nigerian companies to repackage and/or market their products
in Nigeria in order to minimize market entry challenges and sustain on existing marketing and
distribution strengths of the local firms. The major players include: Nestlé Nigeria Plc.,
Cadbury Nigeria Plc., UAC Foods (Nigeria), De-United Foods Industries, Dangote Industries
Ltd (Nigeria), Promasidor, PZ/Cusson Nutricima, Coca Cola Company, HJ Heinz Co, CHI,
FrieslandCampina /WAMCO Nigeria etc.

1.2. Marketing Mix and Promotion Element

Promotion is one of the basic elements of the marketing mix, which includes the four Ps, i.e.,
product, price, place, and promotion (Išoraitė, 2016). It refers to any type of marketing
communication used to inform or persuade target audiences of the relative merits of a product,
service, brand or issue. It helps marketers to create a distinctive place in customers' mind
(Luenendonk, 2020). The aim of promotion is to increase awareness, create interest, generate
sales or create brand loyalty. Promotion is also one of the elements in the promotional mix or
promotional plan. These are personal selling, advertising, sales promotion, and direct
marketing publicity and may also include event marketing, exhibitions and trade shows
(Rajagopal, 2007). A promotional plan specifies how much attention to pay to each of the
elements in the promotional mix, and what proportion of the budget should be allocated to each
element.

14
1.3. A Brief History of Foodco Nigeria Limited

FoodCo Nigeria Limited was founded in 1982 as a stall for quality fresh foods, over the years,
it metamorphosed to become a one-stop shop for consumer goods including a supermarket
division, restaurant chain and bakery. It is the largest supermarket chain within the Ibadan
metropolis. It is a diversified consumer goods company with interests in retail, fast food
restaurants, entertainment and manufacturing. It is the second-largest supermarket chain in
South-West Nigeria, outside Lagos. For about 37 years, Foodco has dedicated her services to
offering high-quality products, affordable prices, superior customer service and a seamless
shopping experience to customers. The company started as a small fresh foods stall in Bodija,
Ibadan, Oyo State, and has grown to become a leading brand in South-West Nigeria. For over
three decades, it has built a strong reputation as an industry leader in both quality and
responsible citizenship. The company has broken new grounds, forged solid ties with partners,
customers and staff and continues to make impactful interventions within the host
communities. Through continuous innovation, technology and strategic planning, the company
has always charted new frontiers in every area of our operations (www.foodcoonline.com).
Presently, Foodco Nigeria plc uses social media, dynamically active on twitter, Facebook,
LinkedIn and Instagram in reaching their customers in marketing, brands and awareness
creation.

1.4. Social Media: Definition and User Details

Social media refers to websites and applications that are designed to allow people to share
content quickly, efficiently, and in real-time. It is any internet communication tool that allows
users to broadly share content and engage with the public. It is a digital profile or tool that
allows users to quickly create and share content with the public and it encompasses a wide
range of websites and applications (Borgatti, 2014).

The term social media is known by everyone in today’s world globally, both in urban and
remote areas. Generally, people have heard about Facebook. Instagram, Snapchat, Twitter etc.
depending on their locations and may be using them daily (Timilsina, 2017). Though, there are
changes in the trend of using social media due to rapid development in technology and
globalization. Across the world presently (Hendricks 2017 and 2013). The first social media

15
site was created by Andrew Weinreich in 1997. This permitted the registered users to upload
profiles, pictures and make friends with other users across the world, this makes blogging
popular. Invention of blogging and social media exploded in popularity.

In 2000, sites such as Myspace, LinkedIn came into existence (Barker, Barker, Bormann,
Roberts & Zahay 2016), followed by Facebook in 2004, YouTube in 2005 and Twitter in 2006
was created and available to users all around the world (Timilsina, 2017). Since then, these
sites are recognized to be the most popular social networks on the internet. It is very difficult
to decide what the future of social networking might look like in the coming years or even
decades from now but it seems that it will have its existence until humans exist on earth
(Hendricks 2013). It’s almost impossible to think about people's daily lives without the use of
social media.

Social media user numbers have surged in the past 12 months, with Kepios analysis showing
that more than 450 million people started using social media for the first time since October
2019. That equates to annual growth of more than 12 percent, or an average 14 new users every
second (Data report, 2020). However, recent figures suggest that social media growth may even
be accelerating. More than 180 million people started using social media between July and
September 2020, equating to an average of almost 2 million new users every day. It’s also
worth noting that the 53 percent penetration figure under-reports the real extent of social media
use, because most social media companies restrict use of their platforms to people aged 13 and
above. At present, more than half of all the people on Earth now use social media, with about
4.14 billion people actively using social media across the planet as at October 2020. This is
equivalent to 53 percent of the total global population (Data report, 2020).

16
Table 1. Major Social Media in the World
S/ Social Media Active user
N
1 Facebook 2.701billion
2 YouTube 2billion
3 WhatsApp 2billion
4 WeChat (China) 1.206billion
5 Instagram 1.16billion
6 Tiktok 689billion
7 Twitter 330million
Source: Data Report, 2020

1.5. Bourdieu’s Theory of Social Capital

This study will draw its references from Bourdieu's theory of social capital because customers
use social media to make connections with others. The social capital strength gained from the
relationship between customers and other users of social media. In this study, social capital is
defined as an aggregation of resources that is linked to the possession of a durable network of
relationships of mutual acquaintance and recognition or, in other words, to membership in a
group (Bourdieu 1986). This capital provides each of its members with the backing of the
collectively-owned capital, a ‘‘credential” that entitles them to credit. The profits that accrue
from membership in a group are the basis of the solidarity. This does not mean that these profits
are consciously pursued as such a world is clearly positioned in opposition to rationality (Qi,
Monod, Fang and Deng, 2018).

Many literatures have harnessed the nexus between social capital and social media. For
example, customers or consumers are able to connect, interact, market their goods, socialize
with others and also build and use social capital. There are many social media sites where the
formation of weak ties is required as this allows users to create and maintain larger, and widely
spread networks of relationships (Ellison et al. 2007) such as Instagram and Twitter. Also,
social media sites like Facebook, YouTube, can be sources of social influence. Social media
provides a cheap alternative to long distance communication, and increases the ease of online
communications, online interactions can increase communication when compared with face-

17
to-face meetings (Wellman et al., 2001). This enhances face-to-face and telephone
communication as members of a network become more aware of each other’s needs and
stimulate the relationship through more frequent contact. Moreover, Hampton et al., (2011)
submits that online public spaces are where existing social ties are maintained and there is a
chance to encounter new acquaintances or friends. Finkbeiner (2013) suggests that social
interaction on social media allows “existing ties to be maintained online and as well as the
growth of new ties for sharing similar interests.

1.6 Social Media Marketing

Social media marketing (SMM) is the use of social media websites and social networks to
market a company’s products and services. Social media marketing provides companies with
a way to reach new customers, engage with existing customers, and promote their desired
culture, mission, or tone (Kenton, 2018). Also known as "digital marketing" and "e-marketing,"
social media marketing has purpose-built data analytics tools that allow marketers to track how
successful their efforts are. Social media websites allow marketers to employ a broad range of
tactics and strategies to promote content and have people engage with it. Many social networks
allow users to provide detailed geographical, demographic, and personal information, which
will enable marketers to tailor their messages to what is most likely to resonate with users
(Sprout Social, 2020). Because Internet audiences can be better segmented than more
traditional marketing channels, companies can ensure that they are focusing their resources on
the audience that they want to target.

Social media marketing campaigns have the advantage of appealing to a broad audience at once
(de Villers, 2019). For example, a campaign could appeal to current and prospective customers,
employees, bloggers, the media, and the general public, and other stakeholders (such as third-
party reviewers or trade groups). Some of the metrics used to measure the success of a social
media marketing campaign include website reports (such as Google analytics), return-on-
investment (by connecting marketing to sales activity), customer response rates (how much
customers post about a company), and reach/virality (how much customers share content).

18
1.7. Benefits of Social Media Marketing

The use of social media in today’s twenty-first century has been increasing rapidly. Over the
last decades, the number of internet users have drastically increased. Often in the past, use of
social media in businesses was considered a failure but those pessimists vanished as the
increased trend of social media. Over 3 billion internet users exist today of which more than 2
billion users are active in social media. (Copp 2016) Distinct kinds of businesses whether it is
small sized, medium sized or large-sized businesses, social media and its marketing has been
a vital part to promote their business and increase brand awareness among their valuable
customers. Some of the advantages of using social media can be highlighted as below.

Social media is one of the most cost-efficient digital marketing methods used to group content
and increase business' visibility. Implementing a social media strategy will greatly increase
brand recognition since it will be engaging with a broad audience of consumers. By creating
social media profiles for business and interacting with others. Employees, business partners,
and sponsors to "like'' and "share" business pages. Simply having people to interact with
content will increase brand awareness and begin building reputation as a business. Each post
that is shared will be introduced to a new network of individuals, which can lead them to
becoming potential customers, and the more people who know about your business, the better
(Blue Fountain, 2019).

Although posting on social media might help in attracting traffic to a site, more effort than that
is required to see significant success. Search engine optimization is very important for
achieving higher page rankings and obtaining traffic to your business website. While social
media doesn't directly increase search engine rankings, Social Media Examiner states that more
than 58% of marketers who have been using social media for one year or longer still see
improved search engine rankings. Being able to rank in the top positions for your keywords
will revolutionize your traffic and continue to generate positive results for your business.

Also, with increased visibility, your business gains more opportunities for conversion. Every
blog post, image, video, or comment may lead viewers to your company's website and increase
traffic. Social media marketing allows business to give a positive impression through a
humanization factor. When brands are interactive by sharing content, commenting, and posting
statuses on social media, it personifies a brand. People prefer to do business with other people,

19
rather than companies. Over 51% of marketers claimed that taking the time to develop
relationships with consumers showed positive results in sales. The better impression the
business makes on a visitor, the more likely they are to think of your business when the need
for your product or services arises.

Social media is a networking and communication platform. Creating a voice for one company
through these platforms is important in humanizing your company. Customers appreciate
knowing that when they post comments on their pages, they will receive a personalized
response rather than an automated message. Being able to acknowledge each comment shows
that you are attentive of the visitors' needs and aim to provide the best experience. Every
customer interaction on your business's social media accounts is an opportunity to publicly
demonstrate your compassion for your customers. Whether an individual has a question or a
complaint, social media allows them to address the matter using interpersonal dialogue. Social
media is not just limited to introducing your brand's products and promotional campaigns.
Customers see these platforms as a service channel where they can communicate directly with
the business (Bluefountain, 2019).

Social media marketing is possibly the most cost-efficient part of an advertising strategy.
Signing up and creating a profile is free for almost all social networking platforms, and any
paid promotions you decide to invest in are relatively low cost compared to other marketing
tactics. Being cost-effective is such an advantage because you can see a greater return on
investment and retain a bigger budget for other marketing and business expenses. Taking
decisions using paid advertising on social media, always start small to see what you should
expect. As you become more comfortable, fine tune your strategy and try increasing your
budget. Just by spending a small amount of time and money can significantly increase your
conversion rates and eventually get a return on investment on the money you initially invested
(Calder, Isaac, and Malthouse 2016).

Another valuable advantage of social media is marketplace insight. What better way to know
the thoughts and needs of the customers than by directly talking to them? By monitoring the
activity on the social-media profiles, one can see customers' interests and opinions that you
might not otherwise be aware of if your business didn't have a social media presence. Using
social media as a complementary research tool can help gain information that will help you
understand your industry. Once you gain a large following, you can use additional tools to
20
analyze the demographics of your consumers. Another insightful aspect of social media
marketing is the ability to segment your content syndication lists based on topic and identify
which types of content generate the most impressions. These tools give you the ability to
measure conversions based on posts on various social media platforms to find the perfect
combination for generating revenue (Bluefountain, 2019)

1.8. Customer Satisfaction and Customer Loyalty

Customer satisfaction is the overall evaluation grounded on the total purchase and consumption
experience with the good or service over time (Fornell, et al., 1996). It is a measure of how
happy customers are with a company's products, services, and capabilities or how products and
services supplied by a company meet or surpass customer expectations. Also, Farris et al.,
(2010) opined that the number of customers, or percentage of total customers, whose reported
experience with a firm, its products, or its services (ratings) exceeds specified satisfaction
goals. Some example Customer satisfaction information, including surveys and ratings, can
help a company determine how to best improve or change its products and services.

Customer satisfaction is influenced by specific product or service structures and perceptions of

quality. Satisfaction is also influenced by customer’s emotional responses, their attributions
and their perception of equity. Increased customer satisfaction can provide company benefits
like customer loyalty, extending the life cycle of a customer, expanding the life of merchandise
the customer purchases and increasing customer’s positive word of mouth communication
(Trivsel & Trivsel, 2017). When a customer is satisfied with the product or service of the
company, it can make the customer purchase frequently and to recommend products or services
to potential customers. It is impossible for a business organization to grow up in case the
company ignores or disregards the needs of customers (Tao 2014)

Customer loyalty is viewed as the strong point or strength of the relationship between an
individual’s relative attitude and re-patronage. While customer satisfaction is a crucial part of
a business, satisfaction alone cannot take a business to a top level, but it produces a positive
financial result, especially in regular purchases (Trivsel & Trivsel, 2017). According to Oliver
(1999), customer loyalty is defined as a deeply held commitment to rebuild and re-patronize a
preferred product or service in the future despite situational influences and marketing efforts

21
having the potential to cause substituting behaviours. Loyalty is more profitable, the expenses
to gain a new customer is much more than retaining existing one. Customer loyalty is not
gained by an accident, they are constructed through the sourcing and design decisions.
Designing for customer loyalty requires customer-centred approaches that recognize the want
and interest of service receivers. Customer loyalty is built over time across multiple
transactions (Thomas and Tobe, 2013).

They both play a part in making business more authoritative, but it all comes down to
communication. When consumers see a company posting on social media, especially replying
to customers and posting original content, it makes it appear more credible. Regularly
interacting with customers demonstrates that business cares about customer satisfaction, and is
available to answer any questions that they might have. Satisfied customers are eager to spread
the word about a great product or service and they usually turn to social media to express their
opinion. Having customers mention your business on social media will advertise your business
and show new visitors your value and brand authority. Once you obtain a few satisfied
customers who are vocal about their positive purchase experience, you can let the advertising
be done for you by actual customers who enjoyed your product or service (Bronner and Neijens
2006).

1.9. Strategy used in Social Media Marketing.

One major strategy in social media marketing by retailers is the stimulation of sales by
signaling value in offline environments. Customers who take advantage of deals typically are
not aware of how many others have bought the item on the same deal. When they gain this
information, as is possible in social media settings, a larger group of buyers can stimulate
further sales as a high number of purchases signals greater value (Dean and Lang, 2008). This
idea is consistent with the principle of social proof which predicts that people determine correct
behavior by finding out what others think is correct (Cialdini, 2007), and it could be employed
easily on social media by reporting just-in-time sales information to prospective consumers.
Aggarwal and Vaidyanathan (2003), in a study of offline coupon promotions revealed that
time-limited promotions (i.e., those with an expiration date) increase purchase, whereas those
that are time independent (e.g., manufacturer coupons) do not. Similarly, Inman and McAllister
(1994) discovered that purchase intentions increase as the expiration time draws nearer. As the

22
coupon expiration date approaches, consumers may sense the impending regret concerning the
benefits they will lose if they do not redeem the coupon. The recognition that the savings will
no longer be available creates a perception of scarcity, and scarcity of any resource induces
action by playing on consumers’ fear of losing out (Cialdini, 2007). Thus, social media
environments can create purchase urgency by emphasizing the expiration dates of deals and
revealing the vast numbers of consumers who already have participated in the deal.
Also, by actively managing social media sites it is an important strategy in social media
marketing. Social media can build brands in three important ways: by reminding, informing,
and entertaining consumers (Lovett & Staelin, 2016). Information from social media affects
54% of consumers’ decision processes, so it has become critically important for companies to
manage their online brand discussions, whether those discussions feature third party experts or
user reviews (Lovett & Staelin, 2016). Companies should consistently generate strong content
that can be picked up and distributed by loyal consumers. Rather than using a shotgun
approach, companies should monitor social media and product review sites to see what content
works best for generating positive word of mouth. Once they identify these bright spots, they
can replicate the winning strategies. A winning message strategy consists of an appropriate
combination of rational arguments and emotional drivers to help motivate consumers to move
from evaluation to purchase. Some service providers actively manage other firms’ media
efforts by reporting on what is working well (Heath & Heath, 2010).
Similarly, (Hudson and Hudson, 2003) opined that communication can be encouraged amongst
friends to increase customers. According to Facebook, the average user has 130 friends on the
social network, and when people hear about a product or service from a friend, they become a
customer at a 15% higher rate than when they find out about it through other means. Firms
should provide incentives for customers to pass on product information to their friends and
acquaintances, which can be done easily and quickly through social media sites. Companies
also should promote their social presence in as many places as possible and enable all site
visitors to share accessed content with their personal networks easily. A zealous audience that
shares company content can reach a broader audience that extends beyond the company’s own
direct network of fans and followers. If they like the content that friends share with them,
potential customers also may be inclined to become direct followers of the companies, make
their own purchases, and then join in the brand advocacy, prompting the initiation of a virtuous
cycle (Lindsey-Mullikin and Borin, 2017).

23
1.10. Empirical and Literature Reviews

Chang, Peng, and Berger, (2018) considers the relationship between various social-media
activities of a company/brand and its sales. A quarterly revenue data of 13 retail-food brands,
over 4 quarters, as our dependent variable, 6 independent variables (Change in number of
Twitter followers, number of tweets, change in number of YouTube subscribers, YouTube
video-view rank, number of Instagram posts and change in number of Instagram followers)
involving the social-media activity of these companies on Twitter, YouTube, and Instagram.
Descriptive statistics, simple, multiple, and stepwise regression were performed on the data.
The study found out that certain social-media activities do positively relate to quarterly sales
revenue, such that using YouTube is higher in one certain quarter, and the sales revenue of this
brand will be higher.

Doa, Koa, and Woodside (2014) studied the effects of a brand’s sports sponsorship in social
media on the brand’s consumer’s congruence and brand-relationship quality. They conducted
a survey on this topic, gathered data from 322 respondents, and found that a brand’s sports
sponsorship in [social-media activities relating to sports brands had a significant effect on a
brand’s consumer’s congruence and that this congruity significantly influences the brand’s
relationship quality. However, they collected only subjective data from respondents and did
not collect objective data from social media.

Mohammadpour, A., et al. (2014) study aimed to evaluate the effect of social media marketing
on online shopping of customers based on the mediating role of value capital, relational capital
and brand capital by path analysis method. 169 students of Tehran University were included in
this study. The results of path analysis showed that social media marketing had a positive and
significant impact on value capital, relational capital and brand capital. The direct effect of
relational capital on value capital and brand capital was direct, positive and significant. Three
variables of value capital, relational capital and brand capital had a direct and positive and
significant effect on e-shopping of customers. Social media marketing had an indirect positive
and significant impact on e-shopping of customers via value capital, relational capital and
brand capital. Relational capital by value and brand capital had indirect, positive and significant
impact on e-shopping of customers.

24
Angella and Eunju (2012), examined do social media marketing activities enhance customer
equity? An empirical study of luxury fashion brands, the results of the study showed that five
constructs of perceived SMM activities as entertainment, interaction, trendiness,
customization, and word of mouth had significantly positive impact on value equity,
relationship equity, and brand equity. For the relationship between customer equity drivers and
customer equity, brand equity had a significant negative effect on customer equity

Kumar, Bezawada, Rishika, Janakiraman, and Kannan (2016) evaluated the effects of firm-
generated content (FGC) in social media on customer behaviour such as spending, cross-
buying, and customer profitability. Through surveys, they assembled a data set composed of
customers’ social-media participation data, transaction data, and attitudinal data. The study
found out that FGC has a positive and significant effect on customers’ behaviour, FGC works
synergistically with both television advertising and e-mail marketing and also finds that the
effect of FGC is greater for more experienced, tech-savvy, and social media–prone customers.

Using data from Facebook and Twitter, Istanbulluoglu (2017) studied the impact of multiple
response times on consumer satisfaction. The analysis of the result reveals that both a quicker
first response and a quicker conclusive response leads to higher satisfaction with complaint
handling. Furthermore, in contrast to previous research on response time in offline redress-
seeking situations, which has suggested that when consumers receive redress, response time
does not have an effect on satisfaction. The findings conclude that a speedy response increases
satisfaction regardless of the consumers’ objectives as the findings provide implications for
researchers and practitioners. Martin (2017) studied work related to social-media marketing
and concluded that companies’ activities such as sales promotion, advertising etc. on social-
media platforms can help to build brand image quickly and efficiently. Hou (2016) examined
the application of social media in enterprise marketing. The study analysed the characteristics,
advantages and practical values of enterprise social-media marketing and affirmed that social-
media platforms can help companies to get more attention from customers and potentially
improve sales performance.

Rodriguez, Ajjan and Peterson (2014) studied the impact of customer relationship management
(CRM)/Social-Media Technology on the customer-orientation process and organizational sales
performance. The study concluded that CRM and social-media technology positively influence
customer orientation activities, which in turn, positively impact sales performance.
25
Vries, Gensler, and Leeflang, (2012) examined Popularity of Brand Posts on Brand Fan Pages:
“An Investigation of the Effects of Social Media Marketing. The study showed that positioning
the brand post on top of the brand fan page enhances brand post popularity. The findings further
indicate that different drivers such as pictorial events, videos, linking websites, voting etc.
Influence the number of likes and the number of comments. Namely, vividness and interactive
brand post characteristics enhance the number of likes. In their study, do social media
marketing activities enhance consumer quality, Angella and Eunju (2012), an empirical study
of luxury fashion brand, the results of the study showed that five constructs of perceived SMM
activities as entertainment, interaction, trendiness, customization, and word of mouth had
significantly positive impact on value equity, relationship equity, and brand equity. For the
relationship between customer equity drivers and customer equity, brand equity had a
significant negative effect on customer equity.

Olfat, Khosravani, and Jalali, (2011) investigated the effective factors on e-shopping and their
prioritization. The results of the study showed that purchase risk index is the most important
factor in e-shopping and consumers consider e-shopping useful and they trust it. Sanayei, &
Rajabion, (2010) evaluated the effective factors on online buyers' trust and its effect on
shopping intention. This study was done by an attitude evaluation by a web-based questionnaire
of the customers of internet book stores of Isfahan province. The results of the study showed
that trust had a direct effect on customer purchase intention of internet stores and security,
internet offenses, web-space control, graphic appearance and website structure were effective
on trust. Sanayei et al., (2010) evaluated the effective factors influencing e-shopping. The
results of their study showed that the most important factors on e-shopping are attitude to e-
shopping, perception of usefulness of shopping at home, interaction speed and response time,
privacy and two variables of social benefits and website design had no significant effect on
trust in e-shopping.

1.11. Conceptual Framework

The conceptual framework below in Fig 1 shows the relationship between the independent and
dependent variables used in this study. The framework showed what happened when the nine
constructs or items (Social media can be used for sales and marketing promotion, awareness

26
level on social media marketing helps in promotion, satisfaction with the use of social media
for promotion, Social media marketing is better than other traditional marketing in today’s sale
promotion, social media can improve customer satisfaction and product promotion, negative
comments and review in social media can decrease or affects the beverage business promotion,
promotional offers creates interest in me about the brands through social media and
promotional offers increase curiosity to experience the product in social media) used in this
study interacted with other socio-economic variables that are basically social media user
characteristics (age of the social media user, gender, marital status, educational level of the
respondent, household size, social media marketing experience and primary occupation.

Figure 1: Conceptual Framework

Source: Author’s Concept

An effective combination of those variables in social media marketing will lead to achievement
of the organizational goals in social media marketing. An organization can make effective use
of social media tools such as twitter, Facebook, YouTube, Instagram etc. in the marketing of
their commodities to the customers. If there are good communication links between the social
media tools, it will give room for effective sales promotion among the customers, public

27
relationship between customers and the organization will be enhanced, advertisement and
public relation of the product through awareness and publicity.

28
2. Research Design

This chapter introduces the methodology used in collecting data and techniques used for
analyzing the data for this thesis. The research design, description of survey instrument and
data used for the study, and the methods of data analysis.

Research is defined as a systematic search for knowledge and can be considered as an academic
activity used in a technical sense (Kothari 2004). This academic activity is defining and
redefining problems, formulating hypotheses or suggested solutions; collecting, organizing and
evaluating data; making deductions and reaching conclusions; and at last, carefully testing the
conclusions to determine whether they fit the formulating hypothesis. In general, research can
be recognized as a tool that helps to determine and understand new knowledge by planning,
acquiring, analyzing, and disseminating data, information, and insights. Researches in the
business and technology fields are characterized by method philosophy, along with the range
of associate acceptable analysis methodology that could be a crucial topic that appeals
researchers’ attention (Phuong & Vu, 2020). Therefore, research related to Economics,
Business and Information, and Communication Technology (ICT) aspects researchers have got
to select among a spread of research methods, approaches, and techniques to conduct an
appropriate research framework (Nikolaos and Yan-nis, 2018).

For this study, survey research design was adopted in this study. The research design is a
process of carrying out a study by collecting and analysing data gathered from a sample
considered to be representative of the populations, and generalizing the findings to the
population. Survey design enables the researcher to describe an event, situation or phenomenon
as it is at the time of the study. It also helps the researcher to systematically document current
opinions and information on research work (Dillman, 2000). Research surveys are very
prodigious in conducting qualitative research because they are able to pull various information
together and obtaining diverse feedback from respondents. Also, respondents can make
the researchers aware of insights they had not previously considered as a possibility during the
study. The drawback in relation to this is that respondents may not feel encouraged to provide
accurate, honest answers, they might may not feel comfortable providing answers that present
themselves in a unfavourable manner and they might may not be fully aware of the reasons for

29
any given answer because of lack of memory on the subject, or even boredom, especially if the
questions are many.

2.1. Target population

The respondents or population for this study was drawn from Foodco Nigeria outlets. Out of
the seven outlets of the firm within Ibadan metropolis, five (5) outlets were purposely selected
for the study. The five outlets were selected basically because they were centrally located and
had the highest number of influx of customers or patronage compared to other outlets. A total
of one hundred questionnaires were later administered among the five outlets at 20 respondents
per outlet, the respondents comprise customers and few staff of the outlets. The staff were
included because they are very active social media users and they make use of it in getting
feedback from the customers about information on any items. The full detail of the population
is presented in Table 3.1

Table 3.1 Population of the Study

S/N Location Sample size
1 Jericho 20
2 Akobo 20
3 Ring road 20
4 Idi-ape 20
5 Bodija 20
Total 100
Source: This Study, 2021

2.2. Sampling and Sample Size

The study adopted a multi-stage sampling procedure. The first stage is the purposive selection
of Ibadan, due to its importance in commercial activities in the region. The town is otherwise
called the commercial headquarters of the South-West geo-political zone of the country. Also,
it has the largest number of internet users in the region after Lagos and fourth biggest economy
in Nigeria (Oyo-state report, 2016), with many sales and promotion activities. The second stage
was the selection of five (5) Foodco outlets in the town. The selected outlets are located in
Jericho, Akobo, Bodija, Idi-ape and Ring road. Twenty respondents comprising customers and
staff were sampled from each outlet, making a total of 100 respondents sampled for this study.

30
2.3. Data Sources and Instructions

The instrument used for collecting data was the questionnaire (paper questionnaire). The
questionnaire was in three sections, A, B and C. Section A was on socio-
economic/demographic characteristics of the respondents, section B covered questions to
identify various social media tools used by the respondents for promotion while section C
centered on awareness of social media and its uses for promotion. The questionnaire was
distributed to the respondents across the selected outlets through an enumerator, after which
they were collected back, coded and entered into the SPSS template for analysis.

2.4. Validity and reliability of research instrument

A pilot survey was done, and a review was conducted to identify various questions that might
not be necessary for the study. Reliability and validity are considering concepts used to identify
and evaluate the quality of research, which tests the chosen method, technique, or
measurement. To be clear, reliability reflects the consistency of a measure, and validity is about
the accuracy of a measure (Fiona, 2020). The thesis uses the theoretical findings to create a
fundamental structure to impact social media marketing on sales and promotion. To ensure the
reliability and validity of the research, an appropriate method of measurement was used and
the study ensured that the surveys were sent to the target population.

Reliability test was conducted for the nine items or constructs used in the Exploratory Factor
Analysis. The test was implemented to determine the extent of agreement between the
respondents in case of each dimension. According to (Nunnally and Bernstein, 1994), a
Cronbach’s Alpha of more than 0.60 is reliable. A general accepted rule is that α of 0.6-0.7
indicates an acceptable level of reliability, and 0.8 or greater a very good level. However,
values higher than 0.95 are not necessarily good, since they might be an indication of
redundancy (Hulin, Netemeyer, and Cudeck, (2001) and Nunnally and Bernstein, 1994).
Details and full analysis of the validity test result is provided inside the next chapter.

31
2.5. Data Analysis and Presentation

Objective one: Profile various social media marketing tools used in Foodco Nigeria Plc. For
marketing and promotion. This was analysed with descriptive statistics such as table and
frequency.
Objective two: The level of awareness in social media on marketing and promotion was
analyzed by using Explanatory Factors Analysis.
Explanatory Factors Analysis (EFA) is considered as one of the best tools to test the
relationship between the observed variables and their underlying constructs (latent variable)
(Byrne, 2010). Item loadings under only one factor will confirm unidimensionality and
discriminant validity (Ahire and Devaraj, 2001). In addition, all the items loading substantially
(factor loadings above 0.5) on their underlying constructs will confirm convergent validity
(Ahire and Devaraj, 2001, Tabachnick and Fidell, 2007, Du et al., 2012).

For this study, exploratory factory factor analysis was carried out in IBM SPSS 21 to determine
the level of awareness in social media in marketing and promotion in Food Co plc. The EFA
is a data reduction technique used to reduce a large number of variables to a small set of
underlying factors that summarize the essential information contained in the variables. The
nine variables are;
i. Social media can be used for sales and marketing promotion
ii. Level of awareness on social media marketing helps in promotion
iii. You are satisfied to use social media for promotion
iv. Social media marketing is better than other traditional marketing in today’s sale
promotion in business
v. Social media can improve customer satisfaction and product promotion
vi. Negative comments and review in social media can decrease or affects the business
promotion
vii. Promotional offers create interest in me about the brands through social media
viii. Promotional offers increase curiosity to experience the product in social media and
ix. I am more likely to patronize your outlet if the promotion comes with a free item to try
with the product.
A Kaiser-Meyer-Olkin (KMO) test and Bartlett’s Test of Sphericity were first conducted to
verify if the data set was suitable for factor analysis. The purpose of both tests is to measure
the sampling adequacy in order to determine the factorability of the matrix or data set as a

32
whole (Richard and Dean, 2007). If Bartlett’s Test of Sphericity is large and significant, and
the KMO measure is greater than 0.50, it can be assumed that the factorability in the data set

33
does exist.

The Principal Axis Factoring (PAF) extraction method with Direct Oblimin rotation method
was used to extract the underlying factors in this study. By combining these two methods, the
value of eigenvalues and Scree plot analysis were obtained and then, the number of factors that
exist in the data set can be obtained. The value of eigenvalues must exceed ‘1’ in order to
classify it as one factor. The Scree Plot technique was also used in order to confirm the results
obtained from the analysis of eigenvalues
Objective three: The impact/effect of social media marketing on promotion in Foodco was
analyzed by using multiple regression analysis.
Regression analysis is a set of statistical methods used for the estimation of relationships
between a dependent variable and one or more independent variables. An independent variable
is an input, assumption, or driver that is changed in order to assess its impact on a dependent
variable (the outcome) (Uyanik and Guler, 2013)
Following Wan, (2013), the multiple regression analysis is represented by the equation below;
𝑌 = 𝛽1 + 𝛽2 𝑋1 + 𝑋2 + 𝑋3 + 𝑋4 + 𝑋5 + 𝑋6 + 𝑋7 + 𝑋8 + 𝑋9 (2)
Where:
𝑋1=Age (Years)
𝑋2=Sex (Male=0, Female=1)
𝑋3=Marital (Married=0, and otherwise)
𝑋4=Education (0=Primary, 1=secondary, 2=Tertiary)
𝑋5=Household size
𝑋6=Social Media Marketing experience (Years)
𝑋7=Occupation (0=Business enterprise, Otherwise)
𝑋8=Social media Training (Yes=0, No=1)
𝑋9=Type of social media (0=Facebook, 1=Twitter, 3=Instagram)
𝑋10=Social media used for marketing
𝑋11 =Level of social promotion
𝑋12 =Satisfied with social promotion

34
2.6. Limitation of the Study

Reluctance on the part of the respondents to give accurate information about their socio-
economic status and other relevant information needed for this study was even a challenge.
Also, the data collection was a bit hampered by the Covid-19 pandemic that was at the peak
during the data collection process.

35
 3. ANALYSIS AND PRESENTATION OF RESULTS

This section presents the analysis, interpretation and discussion of the major findings of the
study.
Table 3.1. Distribution of the Respondents by Sex

Sex Frequency Percentage

Male 65 66.33
Female 33 33.67
Total 98 100.00
Source: Field Survey 2020

Table 3.1. above indicates that the majority of the respondents were male 65(66.33%), while
33(33.67%) were female, this indicates that there are more male respondents than their female
counterparts.

Figure 1: Pie Chart Showing the Distribution of the Respondents by Sex

Table 3.2. Distribution of the Respondents by Age

Age Frequency Percentage
20-30 19 19.39
31-40 49 50.00

36
 41-50 22 22.45
51-60 06 6.12
61-70 02 2.04
Total 98 100.00
Source: Field Survey 2020

Table 4.2. shows the distribution of the respondents by age distribution. The table shows that 50%
of the respondents are between 31-40 years, 22.45% were between 41-50 years, 19.39% were
between 20-30 years while 6.12% were between 51-60 years and lastly, 2.04% were between 61-
70 years. The findings indicate that the majority of the respondents are youth, within the active
age of social media users.

Figure 2: Bar Chart Showing Distribution of the Respondents by Age

Table 3.3. Distribution of the Respondents by Household Size

37
 Household size Frequency Percentage
1-2 24 24.49
3-4 65 66.33
5-6 9 9.18
Total 98 100.00
Source: Field Survey 2020

Table 3.3. shows the distribution of the respondents by household size distribution. The table
shows that 66.33% had a household size of 3-4 members, while 24.49% had a household
member of 1-2 with only 9.18 having household members of 5-6.

Figure 2: Bar Chart Showing the Distribution of the Household Size

Table 3.4. Distribution of the Respondents by their Status

Status Frequency Percentage

Staff 13 13.27
Customer 85 86.73
Total 98 100.00
Source: Field Survey 2020

Table 3.4. shows the status of the respondents interviewed for this study. The table shows that the
majority of the respondents 86.73% interviewed were customers of Foodco, while only 13.27%
were staff of the company at various branches where the survey was conducted.

38
 Table 3.5. Distribution of the Respondents by Marital Status

Marital Status Frequency Percentage

Married 66 67.35
Single 24 24.49
Divorced 1 1.02
Separated 5 5.10
Widowed 2 2.04
Total 98 100.00
Source: Field Survey 2020

The distribution of the respondents by marital status was shown on table 4.5. The table indicates
that 67.35% of the respondents are married, followed by 24.49% that are single, 5.10% are
separated while 2.04% and 1.02% are widowed and divorced respectively. The findings affirmed
that majority of the respondents were married 66 (67.35%)

Figure 4: Pie Chart Showing the Distribution of the Marital Status

Table 3.6. Distribution of the Respondents by Education Level

Education level Frequency Percentage
No education 14 14.29
Primary education 14 14.29
Secondary 34 34.69
Tertiary 36 36.73
Total 98 100.00
Source: Field Survey, 2020

39
Education distribution as shown in table 4.1.5 affirmed that the majority (36.73%) of the
respondents have tertiary education, 34.69% had secondary education, while 14.29% had primary
and no education respectively. This shows that the majority of the respondents were educated, and
the uses of social media might not be difficult for them. This is because education qualifications
have been found to be associated with social media usage.

Figure 5: Bar Chart Showing the Distribution of the Education Level

Table 3.7. Distribution of the Respondents by Primary Occupation

Primary Occupation Frequency Percentage
Business enterprise 35 35.71
Civil Servants 27 27.55
Artisans 20 20.41
Agric-business 9 9.18
Others(please specify) 7 7.14
Total 98 100.00
Source: Field Survey, 2020

40
Figure 6: Bar Chart Showing the Distribution of the Primary Occupation
Table 3.7. shows the distribution of the respondents by primary occupation. It shows that the
majority of the respondents are business entrepreneurs 35.71%, while 27.55% are civil servants,
20.41% are artisans while 9.18% of the respondents practiced agri-business with 7.14% opined
that they engaged in other forms of occupations.

Table 3.8 Distribution of the Respondents by Social media Usage

Do you used social media Frequency Percentage

Yes 91 92.86
No 07 7.14
Total 98 100.00
Source: Field Survey, 2020

Table 3.8. indicates that a larger percentage 92.86% of the respondents are using social media
either directly or indirectly for their personal usage while 7.14% opined that they don’t use social
media.

41
 Figure 7: Pie Chart Showing the Distribution of the Social Media Usage

Table 3.9. Distribution of the Respondents by Social media Marketing Training

Social SMM Training Frequency Percentage

Yes 18 18.37
No 80 81.63
Total 98 100.00
Source: Field Survey, 2020

Figure 8: Pie Chart Showing the Distribution of the Respondent by (SMM) Training

42
Table 3.9. presents the distribution of the respondents by social media marketing training. The
table affirmed that the majority of the respondents 80 (81.63%) did not have social media
marketing training, while only 18 (18.37%) have either undergone social media marketing
training. This confirms that the majority of the respondents just developed interest in using social
media personally without undergoing any specialized training.

Objective One: Various Social Media tools used in Foodco Plc for promotion
Table 3.10 below shows the various social media used in FoodCo Plc in social media marketing
and promotion.

Table 3.11. Distribution of the Respondents by type of Social media used for promotion.

Social media type used Frequency Percentage

Facebook 48 52.75
Instagram 41 45.05
Twitter 02 2.20
Total 91 100.00
Source: Field Survey, 2020

Table 3.11. shows the distribution of the respondents by types of social media used for promotion
in Foodco among the respondents, 48(52.75%) of the respondents used Facebook, 41(45.05%) of
the respondents used Instagram while only 2(2.20%) of the respondents used twitter. This confirm
that Facebook and Instagram are used majorly for promotion in Foodco industry

43
Fig 9: Pie Chart Distribution of the Respondent by Social Media type used.

Objective two: The level of awareness in social media usage among the customers and staff of
Foodco Nigeria Plc. Exploratory Factor Analysis is a procedure used to identify, reduce, and
organize a large number of questionnaire items into a specific construct. EFA was conducted
on the nine (9) items with varimax rotation using IBM SPPS version 20. In this study, nine
criteria namely (i) social media can be used for sales and marketing promotion (ii) level of
awareness on social media marketing helps in promotion (iii) you are satisfied to use social
media for promotion (iv) social media marketing is better than other traditional marketing in
today’s sale promotion in restaurant business (v) Social media can improve customer
satisfaction and product promotion (vi) Negative comments and review in social media can
decrease or affects the beverage business promotion (vii) Promotional offers creates interest in
me about the brands through social media (viii) Promotional offers increase curiosity to
experience the product in social media and (xi) I am more likely to patronize your outlet if the
promotion comes with a free item to try with the product. These items were used to establish
the pattern of structure for and create a scree plot using Factor analysis.

Table 3.2 below shows the descriptive statistics of all the variables used in the EFA. The table
shows the mean, standard deviation, minimum, and maximum of the nine constructs or items
used in the EFA. The result shows that of all the nine (9) items used in the EFA, promotional
offers increase curiosity to experience the product in social media has the highest mean of
0.939 and Social media can be used for sales and marketing promotion has the lowest mean of
0.796 respectively. Furthermore, the minimum and maximum values were not the same for all
nine criteria ranging from 0 to 4 respectively. Next, the results revealed that the variable is
approximately normally distributed based on the degree of skewness and kurtosis as both were
less than one and the value of standard errors of Skewness and Kurtosis coefficients in the
range of 0.43 and 0.483 respectively

44
Table 3.2.0: Descriptive Statistics of the variables used in the EFA

Source: Author’s Computation from IBM SPSS Output, 2021

45
46
9

47
Table 4.2.1 indicates the result of KMO and Bartlett’s Test of sphericity. The Kaiser-Meyer
Olkin measure of sampling adequacy (KMO) (> 0.60) and Bartlett’s test of sphericity
(significant at p < 0.000) were used to assess the suitability of the sample for principal
component analysis. Eigenvalue (>1) criterion was used to determine an initial set of factors.
This means that the correlations between variables are significantly different from zero (Field,
2013)

Table 3.2.1: Test Result

KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 0.601
Approx. Chi-Square 81.319
Bartlett's Test of Sphericity df 36
Sig. 0.000
Source: Computation from SPSS output

Of all the nine factors, only four factors ((i) social media can be used for sales and marketing
promotion (ii) level of awareness on social media marketing helps in promotion (iii) you are
satisfied to use social media for promotion (iv) social media marketing is better than other
traditional marketing in today’s sale promotion in restaurant business) had eigenvalues more
than one as shown in the table (3.2.2) with their variance percentage and cumulative

48
percentage. The first criteria accounted for 22.607 percent of the total variance and cumulative
percentage with an Eigenvalues of 2.035, indicating that social media can be used for sales and
marketing promotion. While the second criteria accounted for 48.065 percent of the total
variance with an eigenvalue of 1.407 with cumulative percentage of 38.241 percent implying
that the level of awareness on social media marketing helps in promotion. The third criteria
accounted for 13.109 percent of the total variance with an eigenvalue of 1.180 which reflected
that customers are satisfied with the use of social media for promotion. Lastly, the fourth
criteria accounted for 12.150 percent of the total variance with an Eigenvalue of 1.093 and
cumulative percentage of 63.500, which reflected that social media marketing is better than
other traditional marketing in today’s sale promotion in business promotion.

Table 3.2.2 Eigenvalues, Total Variances Explained

Compon Initial Eigenvalues Extraction Sums of Squared
ent Loadings
Total % of Cumulati Total % of Cumulati
Variance ve % Variance ve %
1 2.035 22.607 22.607 2.035 22.607 22.607
2 1.407 15.634 38.241 1.407 15.634 38.241
3 1.180 13.109 51.350 1.180 13.109 51.350
4 1.093 12.150 63.500 1.093 12.150 63.500
5 0.837 9.304 72.804
6 0.704 7.823 80.626
7 0.649 7.207 87.833
8 0.610 6.781 94.615
9 0.485 5.385 100.000

Source: Author’s Computation from IBM/SPSS Output

Objective three: The impact of Social Media marketing on Promotion in Foodco Nigeria plc.
Multiple regression analysis was used in achieving this objective.

Table 4.2.3 shows the regression analysis for impact of social media marketing on promotion
in Foodco Plc. The result shows that a Prob>F of 0.002 indicates that the model is significant

49
at 1% and well fit, this implies that the regression can be used to make economic inference.
The Prob chi2 of 0.224 indicates that 22.4% of the independent variables are explained in the
model. The result indicated that the coefficient of education was statistically significant at 5%
with a negative coefficient, types of social media used was statistically significant at 1% with
positive coefficient which only one construct from the 3 factor loading of the EFA “you are
satisfied to use social media for promotion” was significant at 10% with a negative coefficient.
This implies that a decrease in education level of the respondents leads to a decrease in the use
of social media for promotions while an increase in types of social media used lead to an
increase in the use of social media for promotions and while an increase in customer’s
satisfaction will lead to decrease in social media for promotion. This finding is in contrast to
Bowden, (2014), where they found a positive relationship of education level with social media
marketing and promotion. Also, Samuel and Shamli, (2017) highlighted the positive and
negative effects of education on social media marketing and promotion in their study.

Table 3.23 Regression table result

Variables Estimated Coefficient
Age 0.001
(0.005)
Sex -0.035
(0.06)
Marital 0.005
(0.036)
Education -0.061
(0.027**)
Household size -0.039
(0.035)
SMM experience 0.000
(0.016)
Occupation 0.007
(0.022)
Social media Training 0.062
(0.079)
Type of social media 0.176
(0.050***)
Social media used for marketing -0.022
(0.69)
Level of social promotion -0.66
(0.56)
Satisfied with social promotion -0.75

50
 (0.44*)
Constant 0.275
(0.244)
R-squared 0.224
F-test 2.04
Number of observation 98
Prob > F 0.002
Source: Author’s Computation (Note that numbers in parenthesis are standard errors)

CONCLUSION AND RECOMMENDATIONS

This chapter describes the conclusion and the recommendations of the major findings of this
thesis. The study examined the Impact of Social Media Marketing on Promotion of Food and
Grocery Service; a case study of Foodco Plc. Ibadan, Oyo State, Nigeria. Out of the One
Hundred (100) questionnaire randomly given out to respondents for the study, only Ninety-
Eight (98) were returned and confirmed for use for this study. Descriptive statistics such as
frequencies tables and percentage, Exploratory Factor Analysis EFA and Multiple Regression
analysis were employed as data analytical tools.

Findings from the study indicate that the majority of the respondents were male 65(66.33%),
majority of the respondents are youth (42.84%), within the active age of social media usage.
The study also shows that 66.33% of the respondents had a household size of 3-4 members, the
majority of the respondents 86.73% interviewed were customers patronizing Foodco. The
distribution of the respondents by marital status shows 67.35% of the respondents are married
while education distribution shows that the majority (85.71%) of the respondents have tertiary
education, secondary and primary education respectively. Majority of the respondents are
business entrepreneurs 35.71%, while 92.86% of the respondents are using social media either
directly or indirectly, while 81.63% of the respondents have marketing training experience.
The social media used mostly by the respondents for promotion in Foodco among the
respondents, 48(52.75%) used Facebook, 41(45.05%) used Instagram while only 2(2.20%) of
the respondents used twitter.

51
The EFA showed that of all the nine (9) constructs or items used in the EFA, “promotional
offers increase curiosity to experience the product in social media'' has the highest mean of
1.02 and “social media can be used for sales and marketing promotion has the lowest mean of
0.796 respectively. Also, the Kaiser-Meyer Olkin measure of sampling adequacy (KMO) (>
0.60) and Bartlett’s test of sphericity (significant at p < 0.000) were used to assess the suitability
of the sample for principal component analysis. Eigenvalue (>1) criterion was used to
determine an initial set of factors. This means that the correlations between variables are
significantly different from zero. Of all the nine factors, only four factors had eigenvalues more
than one, the first criteria accounted for 22.607 percent of the total variance and cumulative
percentage with an Eigenvalues of 2.035, indicating that social media can be used for sales and
marketing promotion. While the second criteria accounted for 48.065 percent of the total
variance with an eigenvalue of 1.407 with cumulative percentage of 38.241 percent implying
that the level of awareness on social media marketing helps in promotion. The third criteria
accounted for 13.109 percent of the total variance with an eigenvalue of 1.180 which reflected
that customers are satisfied with the use of social media for promotion. Lastly, the fourth
criteria accounted for 12.150 percent of the total variance with an Eigenvalue of 1.093 and
cumulative percentage of 63.500, which reflected that social media marketing is better than
other traditional marketing in today’s sale promotion in business promotion. The multiple
regression analysis result indicates that variables such as education, occupation, social media
training and type of social media used are the variables influencing social media marketing in
the Foodco Nigeria Plc.

The study revealed that Facebook is the most commonly social media tool used for promotion
in Foodco Nigeria Plc. This is because Facebook is the most common social media tool among
the respondents and staff that were the major respondents for this study. This is in agreement
with the study of (Istanbulluoglu, 2017), where the author justified the use of Facebook in
social media promotion and brand marketing (Martin, 2017). The study also found a positive
and perfect relationship between social media marketing and promotion, among others. Social
media marketing and promotion of the beverage and food industry are positively related.
Lastly, education level, social media training and “you are satisfied to use social media for
promotion” are the variables influencing social-media marketing on promotion of the Food and
Grocery industry, this implies that the choosing of social media for marketing and promotion
are influenced by those variables. Education provides social media users with the ability to get

52
more useful information that can help the user and organisation in marketing and promotion of
the food and beverage industry.

The study recommended more training to all users of social media across age and gender so as
to give more skills that can help in promotion and marketing of their brands, since social media
affords her users to assess various materials needed for marketing and promotion.
Intensification of social media training on effective usage of various social media tools such as
Facebook, Twitter, Instagram, Snapchat etc. should be advocated in all organizations that use
social media. This can bring more publicity to their organizations and increase the number of
customers that assessed it online. Also, branding of the products of food and beverage
organizations like Foodco should be encouraged, this will help in more publicity and create
awareness in the mind of the customers and other users of social media. Finally, grocery and
beverage industries like Foodco should create a position of social media manager that can help
the organization in promotional activities of their brands and other products of their
organization image. In addition to the image of the organization, such an idea will provide
employment opportunities to whoever they employ to the position.

Firstly, barriers to effective usage of Social Media Marketing in business promotion.

Secondly, the Influence of Marketing Mix Efforts and Corporate Image on Social Media
Marketing and Promotion
Lastly, consumers’ Perceived Risk and Its Effect on Adoption of Social Media Marketing

53
LIST OF REFERENCES

Aggarwal, P., & Vaidyanathan, R. (2003). Use it or lose it: Purchase acceleration effects of
time-limited promotions. Journal of Consumer Behavior, 2(4), 393—403.

Ahire, S. L. & Devaraj, S., (2001), “An empirical comparison of statistical construct validation
approaches”, IEEE Transactions on Engineering Management, 48 (3). 319-329.

Angella Jiyoung Kim & Eunju Ko (2010) Impacts of Luxury Fashion Brand’s Social Media
Marketing on Customer Relationship and Purchase Intention, Journal of Global
Fashion Marketing, 1:3, 164-17

Armstrong, Robert (1987). "The midpoint on a Five-Point Likert-Type Scale". Perceptual and
Motor Skills. 64 (2): 359–362

Asuero, A. G. Sagayo A, and Gonzalez A. G, (2006) The Correlation Coefficient; An overview.

Critical Reviews in Analytical Chemistry, 36:41–59, DOI:
10.1080/10408340500526766

Barker, M., Barker, D., Bormann, N., Roberts, M. & Zahay, D. 2016. Social media marketing:
a strategic approach. Second edition. Boston, MA: Cengage Learning,
https://oamk.finna.fi/Record/kajakki.51069

Bluefountain, (2019) available at https://www.bluefountainmedia.com/blog/advantages-of-

social-media-marketing

Bowden J. (2014) The impact of social Media Marketing Trends in Digital Marketing
https://www.socialmediatoday.com/content/impact-social-media-marketing-trends-
digital-marketing

Bronner, Fred (1999), “The Dutch Media Experience and Values Study,” paper presented at
ESOMAR/FIPP Publishing Conference, Milan, Italy

Byrne, B. M., (2010), Structural Equation Modeling with AMOS: Basic Concepts,
Applications, and Programming, New York, Routledge.

Bourdieu, P. 1986. ‘The Forms of Capital.’ Pp. 241-58 in Handbook of theory and research for
the sociology of education, edited by John G Richardson. New York: Greenwood
Press.

Calder, Bobby J., Mathew S. Isaac, and Edward C. Malthouse (2016), “How to Capture
Consumer Experiences: A Context-Specific Approach to Measuring Engagement
Predicting Consumer Behavior across Qualitatively Different Experiences,” Journal
of Advertising Research, 56 (1), 39–52.

Chang, Q., Peng, Y., & Berger, P. D. (2018). The Impact of Social-Media Performance on
Sales of Retail-Food Brands, 6, 1–12. https://doi.org/10.5281/zenodo.1185601

54
Chianasta, F. P., & Wijaya, S. (2014). The Impact of Marketing Promotion through Social
Media on People’s Buying Decision of Lenovo in Internet Era: A Survey of Social
Media Users in Indonesia, 4(1), 1–6.

Cialdini, R. B. (2007). Influence: The psychology of persuasion. New York: Harper Collins.

Clarfloaty (2012, November). StudyMode. Retrieved October 10, 2013, from The Impact of
Social Media on Human Resources: http://www.studymode.com/essays/The-Impact-
Of-Social-Media-On-1229381.html

Copp, E. 2016. Hootsuite.10 benefits of Social Media for Business.

https://blog.hootsuite.com/social-media-for-business/

Data Report, (2020) Global Statistics on Social Media usage. Available at

https://datareportal.com/social-media-users

Dean, D. H., & Lang, J. J. (2008). Comparing three signals of service quality. Journal of
Services Marketing, 22(1), 48—58.

De Vries, L., Gensler, S. and Leeflang, P.S.H. (2012) Popularity of Brand Posts on Brand Fan
Pages: An Investigation of the Effects of Social Media Marketing. Journal of
Interactive Marketing, 26, 83-91. http://dx.doi.org/10.1016/j.intmar.2012.01.003

Dillman, D. (2000). Mail and Internet Surveys: The Tailored Design Method. New York: Wiley
& Sons

Doga, Istanbulluoglu (2017), “Complaint Handling on Social Media: The Impact of Multiple
Response Times on Consumer Satisfaction,” Computers in Human Behavior, 74,
(1)72-82.

Du, T. C., Lai, V. S., Cheung, W. & Cui, X., (2012), “Willingness to share information in a
supply chain: A partnership-data-process perspective”, Information & Management,
49 (2) 89-98.

Field, A., (2013), Discovering Statistics Using IBM SPSS Statistics, London, Sage Publications
Ltd.

Finkbeiner, P. (2013). Social Media and Social Capital: A Literature Review in the field of
knowledge management. International Journal of Management Cases, 6-19

Fiona M. (2020) Understanding reliability and validity

https://www.scribbr.com/methodology/reliability-vs-validity/
Foodcoonline welcome to Foodco available at Foodcoonline.com/about-us/
Government of Canada. (2012, June 14). NAICS 2012 – 722 – Food services and drinking
places. Retrieved
from: www23.statcan.gc.ca/imdb/p3VD.pl?Function=getVD&TVD=118464&CVD
=118466&CPV=722&CST=01012012&CLV=2&MLV=5

Hajli, M. N. (2014). A study of the impact of social media on consumers. International Journal
of Market Research, 56(3) 387-404. https://dx.doi.org/10.2501/IJMR-2014-025

55
Hampton, K., Lee, C., & Her, E. (2011). How new media affords network diversity: Direct and
mediated access to social capital through participation in local social settings. new
media & society, 1031-1033.

Heath, C., & Heath, D. (2010). Switch: How to change things when change is hard. New York:
Random House.

Hendricks, M. 2013. Small Business Trends. Complete History of social media: Then and Now.
https://smallbiztrends.com/2013/05/the-complete-history-of-social-media-
infographic.html

Hou, Jia (2016), “Application of Social Media in Enterprise Marketing.” Jilin University
Working Paper.

Hudson, S., & Hudson, R. (2003). Engaging with consumers using social media: A case study
of music festivals. International Journal of Event and Festival Management, 4(3),
206—223

Inman, J. J., & McAllister, L. (1994). Do coupon expiration dates affect consumer behavior?
Journal of Marketing Research, 31(3), 423—428.

Kaplan, A. M., & Haenlein, M. (2010). Users of the World, Unite! The challenges and
opportunities of Social Media. Business Horizons, 53(1), 59-68

Kenton, W. (2018) A contributory note to investopedia. Available at

https://www.investopedia.com/terms/s/social-media-marketing-smm.asp

Kothari, C. 2004. Research Methodology: Methods & Techniques. 2nd ed. New Delhi: New
Age International.

Kotler, P., Armstrong, G., Harris, L., & Piercy, N. (2013). Principles of Marketing - European
edition. London:Pearson.

Kotler, P., & Armstrong, G. (2010). Principles of Marketing 13th edition. New Jersey: Pearson
Education, Inc.

Kumar, Ashish, Bezawada, Ram, Rishika, Rishika, Janakiraman, Ramkumar and Kannan, P.K
(2016), “From Social to Sale: The Effects of Firm-Generated Content in Social Media
on Customer Behavior,” Journal of Marketing, 80(1), 7–25.

Labovitz, S. (1967). "Some observations on measurement and statistics". Social Forces. 46 (2):
151–160

Lindsey-Mullikin J. and Borin, N. (2017) Why strategy is key for successful social media sales.
Business Horizons (2017) 60, 473—482 Available online at www.sciencedirect.com

Lovett, M. J., & Staelin, R. (2016). The role of paid, earned, and owned media in building
entertainment brands: Reminding, informing, and enhancing enjoyment. Marketing
Science, 35(1), 142—157.

56
Lua A., (2018) How to Create a Social Media Marketing Strategy. Available at
https://buffer.com/library/social-media-marketing-strategy/

Luenendonk M, (2020) Understanding-marketing-mix-concept-4ps. Available at

https://www.cleverism.com/

Martin, Gail (2017), “The Essential Social Media Marketing Handbook: A New Roadmap for
Maximizing Your Brand, Influence, and Credibility,” Career Press, Wayne, New
Jersey.

McCarthy, Jerome E. (1964). Basic Marketing. A Managerial Approach. Homewood, Illinois:

Irwin. pp. 769. ISBN 0256025339.

Millan, Elena S., and Mittal, Banwari, (2010) Advertising’s new audiences. Journal of
Advertising, 39:(81-89).

Mohammadpour, A., et al. (2014) A Survey of the Effect of Social Media Marketing on Online
Shopping of Customers by Mediating Variables. Journal of Service Science and
Management, 7, 368-376. http://dx.doi.org/10.4236/jssm.2014.75034

Neti, S. (2011). Social Media and Its Role in Marketing. International Journal of Enterprise
Computing and Business Systems, Vol. 1(2) 1- 16 (ISSN Online: 2230-8849).
Retrieved from http://www.ijecbs.com/July2011/13.pdf

Nikolaos, B., Yannis, P., Quantitative and Qualitative Research in Business & Technology:
Justifying a Suitable Research Methodology, Review of Integrative Business and
Economics Research, Vol. 7, Supplementary Issue 1, 91

Nunnally, J. & Bernstein, I., 1994. The assessment of reliability. Psychometric theory, 3(1),
pp. 248-292.

Olfat, L., Khosravani, F. and Jalali, R. (2011) The Identification of Effective Factors on E-
Shopping and Their Prioritization by Fuzzy ANP. Business Management Journal, 3,
19-54.

Oyo - Services Portal". Archived from the original on 11 June 2016. Retrieved 11 November
2020

Patino, A., Pitta, D. A., & Quinones, R. (2012). Social Media's Emerging Importance in Market
Research. Journal of Consumer Marketing, 29(3), 233-237.

Perumal, I., Krisnan, U. D., Syahirah, N., & Abdul, B. (2017). Social Media in Food and
Groceries Industry: Case of Klang Valley 12(6), 121–127.
https://doi.org/10.5539/ijbm.v12n6p121

Phuong, N., & Vu, H. (2020). The effect of organic marketing on customer engagement in
Social media Channel : Facebook.

Qi, J., Monod, E., Fang, B., & Deng, S. (2018). Theories of Social Media : Philosophical
Foundations. Engineering, 4(1), 94–102. https://doi.org/10.1016/j.eng.2018.02.009

57
Rajagopal (2007). Marketing dynamics theory and practice. New Delhi: New Age
International. ISBN 978-81-224-2712-7.
https://www.bluefountainmedia.com/blog/advantages-of-social-media-marketing

Restaurants Canada (2014b). Market review and forecast 2014. Retrieved

from https://restaurantscanada.org

Richard A. Johnson & Dean W. Wichern (2007). Applied Multivariate Statistical Analysis (6th
Edition). USA: Pearson Education Publications
.
Rodriguez, M., Ajjan, H., Petersdon, R. (2014), “CRM/Social Media Technology: Impact on
Consumer Orientation Process and Organizational Sales Performance,” Journal of
Marketing Development and Competitiveness, 8(1). 85-97

Samuel C. J and Shamli S. (2017) A study on Impact of Social Media on Education, Business
and Society International Journal of Research in Management & Business Studies
4(3)

Sanayei, A., & Rajabion, L. (2010). Critical successful factors contributing to e-commerce
adoption among Iranian SMEs. International Journal of Information Science and
Management, 7(2), 57–65.

Singaravelavan R (2011) food and beverage service, oxford University press, New Delhi pp 3-
13

Southern New Hampshire University. "Social Media Marketing Degree Concentration

Overview." Available at https://www.snhu.edu/online-degrees/bachelors/bs-in-
marketing/social-media-marketing Accessed March 3, 2021

Sprout Social, (2020). The most important social media metrics to track. Available at
https://sproutsocial.com/insights/social-media-metrics/ Accessed March 3, 2021

Statista 2017. Most famous social network sites worldwide as of January 2017, ranked by
number of active users (in millions).
https://www.statista.com/statistics/272014/global-social-networks-ranked-by-
number-of-users/

Statista 2020. Number of monthly active Facebook users worldwide as of 4th quarter 2020(in
millions).https://www.statista.com/statistics/264810/number-of-monthly-active-
facebook-users-worldwide

Steenkamp, M., & Hyde-Clarke, N. (2014). The Use of Facebook for Political Commentary in
South Africa. Telematics Information, 31(1), 91-97
https://dx.doi.org/10.1016/j.tele.2012.10.002

Tabachnick, B. G. & Fidell, L. S., (2007), Using Multivariate Statistics, New York, Harper
Collins

58
Uyanik G. K and Guler N, (2013) A study on linear regression analysis. 4th international
conference on new horizons in Education, Procedia –social and Behavioral Sciences
106(2013) 234-240

Vijay Dhawan (2000), Food & beverage service, Frank Bros. & Com. (Publishes):Ltd. pp 3-10

Wan, A. (2013). Basic Concepts of Regression Analysis. Retrieved from

http://personal.cb.cityu.edu.hk/msawan/teaching/FB8916/FB8916Ch1.pdf

Wellman, B., Haase, A., Witte, J., & Hampton, K. (2001). Does the Internet Increase, Decrease,
or Supplement Social Capital. American Behavioral Scientist, 436-455.

Wick D., (2015) Social Media today. Roles of Social Media in Business marketing available
at https://www.socialmediatoday.com/social-business/role-social-media-marketing-
business

59
APPENDICES
QUESTIONNAIRE ON IMPACT OF SOCIAL MEDIA MARKETING ON
PROMOTION OF FOOD AND BEVERAGE SERVICES: A CASE STUDY OF
FOODCO NIGERIA PLC. IBADAN, NIGERIA
Ethical consent
Thank you for the opportunity to speak with you. You have been selected to participate in this
interview that includes information on questions such as the socio-economic and demographic
information, role of social media marketing in promotion. The questions in total will take
approximately 30 minutes to complete and your participation is voluntary. If you agree to
participate, you can choose to stop at any time or to skip any questions you do not want to
answer. Your answers will be completely confidential; and I will not share information that
identifies you with anyone. Kindly provide the necessary information as truthfully as you can.
All information will be held with the strictest confidence.
Thank you.

Appendix 1: Demographic, Social-Economic and Enterprises

Item Options Response

1 Status of the respondent

[1] = Manager
[2] = Staff
[3] =
Customer
[4] = Others
2 Age of the respondents

3 Gender of the respondent [1] = Male

[0] = Female

4 Marital status [0]= Not married

[1] = Married
[2] = Single
[3] =
Widowed
[4] =
Divorced

60
 [5] =
Separated
5 Educational level of the respondent [0] = No Formal
Education

[1] = Adult Literacy

[2] = Primary School

[3] = Secondary School

[4] = Tertiary

6 Total years education

7 Household size

8 Social media marketing experience

9 If yes to Q. 8, where did you obta [1] = University

[2] = Technical school

[3] = HND

[4] =College/College

[5]= Apprentice

[5]= Others (please

specify)

10 Primary occupation [1] = Business

enterprise

[2] = Civil Servants

[3] = Artisans

[4]=Agric-business

[5]=Others(please
specify)

61
11 Do you have access to on the job [1] = Yes
training in your organization?
[0] = No

Appendix 2. Social Media Marketing tools used in the organization.

1 Do you use social media in your [1] = Yes

2 organization?
[0] = No

1 Identify the social marketing tool [1] = Facebook

3 used in your organization?
[2] = Twitter

[3] = Instagram

[4]= Snapchat

[5] = LinkedIn

[6] = Others

1 Would you like to change the use [1] = Yes

4 of social media in future?
[0] = No

1 Why do you choose that social

5 media?

62
Appendix 3. The relationship between social media marketing and
promotion

Please put (√) mark in the boxes that best match you.
SA=Strongly Agreed, A= Agreed, N=Neutral, SD=Strongly Disagreed, D=Disagreed
QUESTIONS SA A N SD D

16 Social media can be used for sales and marketing

promotion?

18 Level of awareness on social media marketing helps in

promotion?

19 Are you satisfied to use social media for promotion?

20 Social media marketing is better than other traditional

marketing in today’s sales promotion in restaurant
business.

21 Social media improves customer satisfaction and

product promotion?

22 Negative comments and reviews in social media can

decrease or affect the beverage business promotion.

23 Promotional offers create interest in me about the

brands through social media?

24 Promotional offers increase curiosity to experience the

product in social media?

25 I am more likely to patronize your outlet if the

promotion comes with a free item to try with the
product?

63
Appendix 4. Descriptive Statistics of the variables used in the E.F.A

Item-Total Statistics
Items Scale Mean Scale Corrected Squared Cronbach's
Variance Item-Total Multiple Alpha
Correlation Correlation
Social media can be used
for sales and marketing 58.8061 95.374 0.133 0.242 0.79
promotion?
Level of awareness on
social media marketing 58.7347 96.156 0.018 0.192 0.88
helps in promotion?
Are you satisfied to use
social media for 58.6939 98.627 -0.186 0.282 0.93
promotion?
Social media marketing
is better than other
traditional marketing in
58.6633 96.329 -0.019 0.244 0.114
today’s sale promotion
in the restaurant
business.
Social media improves
customer satisfaction 58.7041 96.128 0.002 0.276 0.90
and product promotion?
Negative comments and
reviews in social media
can decrease or affect 58.7653 96.718 -0.042 0.286 0.95
the beverage business
promotion.
Promotional creates
interest in me about the
58.7245 94.119 0.190 0.348 0.68
brands through social
media?
Promotional increase
curiosity to experience
58.6837 94.569 0.141 0.133 0.73
the product in social
media?
I am more likely to
patronize your outlet if
the promotion comes 58.7245 96.676 -0.039 0.389 0.95
with a free item to try
with the product?

64
Appendix 5. Mean Statistics

Items Mean Standard Squared

Score Deviation Multiple
Correlation
s

1 Social media can be used for sales and marketing promotion? 0.80 0.41 0.189

2 What is your level of awareness on social media marketing? 0.87 0.51 0.086

3 Are you satisfied to use that social media? 0.91 0.67 0.164

4 Social media marketing is better than other traditional 0.94 0.73 0.163
marketing in today’s sale promotion in the restaurant business.

5 Social media improves customer satisfaction and product 0.89 0.67 0.135
promotion?

6 Negative comments and reviews in social media can decrease or 0.84 0.64 0.225
affect the beverage business promotion.

7 Promotional creates interest in me about the brands through 0.88 0.58 0.277
social media?
8 Promotions increase curiosity to experience the product in 1.02 1.18 0.102
social media?

9 I am more likely to patronize your outlet if the promotion 0.88 0.63 0.210
comes with a free item to try with the product?

65
Fig 1. Scree plot of the Variable used for EFA

Scree Plot

2.0

1.5

1.0

0.5

1 2 3 4 5 6 7 8 9

Appendix 6. Communalities

Items/Construct Initial Extraction

Social media can be used for sales and marketing
0.189 0.306
promotion?
Level of awareness on social media marketing helps in
0.099 0.473
promotion?
You are satisfied to use social media for promotion? 0.182 0.321
Social media marketing is better than other traditional
0.182 0.274
marketing in today’s sale promotion in restaurant business.
Social media can improve customer satisfaction and
0.140 0.351
product promotion?
Negative comments and review in social media can
0.231 0.786
decrease or affects the beverage business promotion.
Promotional offers create interest in me about the brands
0.283 0.456
through social media?
Promotional offers increase curiosity to experience the
0.104 0.126
product in social media?
I am more likely to patronize your outlet if the promotion
0.218 0.437
comes with a free item to try with the product?

66
Appendix 7. Factor Loading

Factor
1 2 3 4
Social media can be used for sales and
0.478 0.010 0.218 -0.172
marketing promotion?
Level of awareness on social media
0.133 0.284 0.251 0.558
marketing helps in promotion?
You are satisfied to use social media for
0.300 0.453 0.132 0.093
promotion?
Social media marketing is better than
other traditional marketing in today’s sale 0.382 0.298 -0.002 -0.197
promotion in restaurant business.
Social media can improve customer
0.319 0.094 0.372 -0.320
satisfaction and product promotion?
Negative comments and review in social
media can decrease or affects the 0.659 0.168 -0.568 0.015
beverage business promotion.
Promotional offers creates interest in me
0.568 -0.310 0.057 0.185
about the brands through social media?
Promotional offers increase curiosity to
0.216 -0.238 0.148 -0.017
experience the product in social media?
I am more likely to patronize your outlet
if the promotion comes with a free item 0.400 -0.512 0.037 0.115
to try with the product?
Extraction Method: Principal Axis Factoring.
a. Attempted to extract 4 factors. More than 25 iterations required. (Convergence=.008). Extraction was
terminated.

Appendix 8. Rotated Factor Matrixa

Factor
1 2 3 4
Social media can be used for sales and
0.275 0.128 0.460 0.045
marketing promotion?
Level of awareness on social media
0.041 -0.026 -0.030 0.685
marketing helps in promotion?
You are satisfied to use social media for
-0.116 0.216 0.319 0.399
promotion?

67
Social media marketing is better than
other traditional marketing in today’s sale -0.044 0.320 0.406 0.069
promotion in restaurant business.
Social media can improve customer
0.110 -0.056 0.580 -0.007
satisfaction and product promotion?
Negative comments and review in social
media can decrease or affects the 0.170 0.867 0.069 0.027
beverage business promotion.
Promotional offers creates interest in me
0.623 0.204 0.100 0.128
about the brands through social media?
Promotional offers increase curiosity to
0.329 -0.052 0.117 -0.033
experience the product in social media?
I am more likely to patronize your outlet
if the promotion comes with a free item 0.655 0.059 -0.021 -0.065
to try with the product?
Extraction Method: Principal Axis Factoring.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 6 iterations.

Appendix 9. Factor Transformation Matrix

Factor 1 2 3 4
1 0.594 0.598 0.499 0.202
2 -0.749 0.298 0.338 0.485
3 0.176 -0.744 0.541 0.352
4 0.235 -0.005 -0.588 0.774
Extraction Method: Principal Axis Factoring.
Rotation Method: Varimax with Kaiser Normalization.

68
APPENDICIX 10. Non-exclusive licence

A non-exclusive licence for granting public access to and reproducing the graduation
thesis 1

I, Mistura Yestunde Akinsanya

1. Give Tallinn University of Technology a free of charge permission (non-exclusive licence)

to use my creation
IMPACT OF SOCIAL MEDIA MARKETING ON PROMOTION OF FOOD AND
BEVERAGE SERVICES: A CASE STUDY OF FOODCO NIGERIA IBADAN, NIGERIA.

Supervised by Ahmad Jamal (Ph.D),

1.1. to reproduce with the purpose of keeping and publishing electronically, including for the
purpose of supplementing the digital collection of TUT library until the copyright expires.

1.2. to make available to the public through the web environment of Tallinn University of
Technology, including through the digital collection of TUT library until the copyright expires.

2. I am aware that the author will also retain the rights provided in Section 1.

3. I confirm that by granting the non-exclusive licence no infringement is committed of the

third persons’ intellectual property rights or the rights arising from the personal data protection
act and other legislation.

1 The non-exclusive licence is not valid during the access restriction period except for the right
of the university to reproduce the graduation thesis only for the purposes of
preservation.

69