Unit 2 Foundation Business and Management Higher National Diploma in Hospitality Management

Introduction

The social media networking has become the most significant part of a business now a days as it provides a platform to them for having a direct interaction with its customers and ways to influence them for enhancing the product sales. This report is based over determining the influence of social networking website over product sale from the customer perspective. By performing secondary investigation over this it has been identified that the Cafe Nero mainly maintain its social networking site in order to grab the attention of people. But the major risk that social networking site have is that any negative comment over these sites have a direct influence over the customer base as well as sales of Caffe Nero.

Data Collection

Data collection is basically referring to the process of gathering and arranging the data in effective manner so that appropriate outcome can be extracted in order to accomplish the main objective behind the investigation. There are 20 respondents for this study. The primary data will be gathered with the help of questionnaire which is mentioned below:

 

Q1. According to you does the use of social media sites help in increasing the sales of Cafe Nero?

a) Agree

b) Disagree

Q2. What benefit does Cafe Nero get by making use of social sites that help in enhancing sales?

a) Direct customer interaction

b) Increase in brand awareness

c) Easy to access customer responses

Q3. What are the several actions that Cafe Nero can take using social media sites for improving its sales in marketplace?

a) Create valuable content

b) Discuss over consumer issues

c) Regularly upgrade information

Q4 As per your viewpoint what are the basic challenges that Cafe Nero may face while entering to social media platform?

a) Negative publicity

b) More competition

c) Unauthorized information may mislead

Q5 What strategies Cafe Nero can adopt for reducing the negative customer responses?

a) Listen to customer

b) Provide quick respond

c) Share positive experiences

 

Frequency table

Theme 1: The use of social media sites helps in increasing the sales of Cafe Nero

Q1. According to you does the use of social media sites help in increasing the sales of Cafe Nero?

Frequency

a) Agree

18

b) Disagree

2

 

Theme 2: Benefit Cafe Nero get by making use of social sites that help in enhancing sales

Q2. What benefit does Cafe Nero get by making use of social sites that help in enhancing sales?

Frequency

a) Direct customer interaction

10

b) Increase in brand awareness

5

c) Easy to access customer responses

5

 

Theme 3: The several actions that Cafe Nero can take using social media sites for improving its sales in marketplace

Q3. What are the several actions that Cafe Nero can take using social media sites for improving its sales in marketplace?

Frequency

a) Create valuable content

8

b) Discuss over consumer issues

8

c) Regularly upgrade information

4

 

 


Theme 4: The basic challenges that Cafe Nero may face while entering to social media platform

Q4 As per your viewpoint what are the basic challenges that Cafe Nero may face while entering to social media platform?

Frequency

a) Negative publicity

8

b) More competition

4

c) Unauthorized information may mislead

8

 

Theme 5: Strategies Cafe Nero can adopt for reducing the negative customer responses

Q5 What strategies Cafe Nero can adopt for reducing the negative customer responses?

Frequency

a) Listen to customer

8

b) Provide quick response

8

c) Share positive experiences

4

 

Research Findings

The data gathered through the questionnaire is required to be interpreted in order to determine the actual assignment help outcome of study and its ability to accomplish the main goal of investigation. The interpretation of above gathered investigation is mentioned below:

Theme 1: The use of social media sites helps in increasing the sales of Cafe Nero

As per the information presented above it has been determined that 18 people are agree with fact that social media site help in increasing the sales of Caffe Nero but 2 are disagree. Hence it has been identified that majority of people are in favour of social media sites as it provides a most effective medium to approach customers.

Theme 2: Benefit Cafe Nero get by making use of social sites that help in enhancing sales

According to the data presented it has been determined that 10 out of 20 respondents said that direct customer interaction will be the major benefit, while 5 said it help in increasing brand awareness, but 5 said easy access customer responses. Hence, majority of people are in favour of direct customer interaction as social media provides a medium where people can access information and interact much quickly.

Theme 3: The several actions that Caffe Nero can take using social media sites for improving its sales in marketplace

As per information presented about 8 out of 20 respondents said that using social media site Caffe Nero must create valuable content, while 8 said discuss over consumer issues and 4 said regular information upgrade. From this it has been identified that using social media sites Caffe Nero can create valuable content to present information and get the view of customers to determine their issues and resolve them quickly.

Theme 4: The basic challenges that Caffe Nero may face while entering to social media platform

From the information presented, it has been identified that 8 out of 20 respondents said that cafe Nero will get an issue of negative publicity, while 4 said more competition will be major challenges but 8 said that unauthorized information may mislead customers. Hence it has been identified that the majority of people said that the unauthorized information from employees and other may mislead the customers and may result into negative publicity

Theme 5: Strategies Cafe Nero can adopt for reducing the negative customer responses

As per the information presented 20 out of 8 respondents said that Caffe Nero must listen to customers, while 8 said that it should provide quick response but 4 said that it shares positive experiences. From this it has been identified that Caffe Nero must listen to customer in term of their issues and expectations they have and try to respond over it for keeping them negative publicity away from affecting its brand image.

Hence from the above discussion it has been determine that the information gathered through questionnaire contains the data that can prove the information gathered while literature review. This is so because from primary information it has been identified social media is beneficial for increasing sale of Caffe Nero whose evidence can be taken from literature review where it has been identified that social media provide a platform where business and customers can interact or resolve the issues by getting regular customer engagement.

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Summary:

From the above performed studies it has been determined that Caffe Nero become able to determine that the social media platform provides several benefits to it in term of attracting larger number of customers, enhancing level of satisfaction through developing better brand image and making use of several benefits such as direct customer interaction, increase in brand awareness and easy to access customer responses.

Discussion AND Conclusion

By performing this investigation, it has been identified that social media platform plays a crucial role within the growth and success of a business. This is because it helps a business in enhancing its brand awareness by approaching the larger number of customers and by involving them with the help of two-way communication where customer can respond over their issues and can get feedback. In addition to this it also get identified that there are number of approaches that an organisation can adopt in order to enhance its sales such as offering larger amount of information which support in converting the loyal customers into a brand advocate by making use of several strategies such as listening carefully, distancing the emotional self-etc. Over this the majority of people state that an organisation must try to listen and understand the actual issues so that appropriate planning can be determined to overcome them. In addition to this an organisation must also focuses toward providing quick respond to the issues that are being faced by the customer so the negative responses can be reduced.

But despite of this there are number of challenges that an organisation has to face while maintaining its operation at social networking sites which includes negative publicity that mainly experienced due to negative comments from dissatisfied customers which also influence decision of others. On the other side, social media platform brings up more competition to the businesses by providing larger amount of information to the customers which support them to form up a comparison among the available options. Despite of all this the majority of people believe that the social media platform provide a medium of interaction to the business with its customers which make it possible for them to enhance their level of performance and image in front of marketplace by having a direct interaction.

References

  • Bai, Y., Yao, Z. and Dou, Y. F., 2015. Effect of social commerce factors on user purchase behaviour: An empirical investigation from reran. com.International Journal of Information Management,35(5), pp.538-550.

  • Cheng, Y. H. and Ho, H. Y., 2015. Social influence's impact on reader perceptions of online reviews.Journal of Business Research,68(4), pp.883-887.
  • Hajli, M. N., 2014. A study of the impact of social media on consumers.International Journal of Market Research,56(3), pp.387-404.
  • Hajli, N., 2015. Social commerce constructs and consumer's intention to buy.International Journal of Information Management,35(2), pp.183-191.
  • Ioanăs, E. and Stoica, I., 2014. Social media and its impact on consumers behaviour.International Journal of Economic Practices and Theories,4(2), pp.295-303.
  • Kumar, A. and et. al., 2016. From social to sale: The effects of firm-generated content in social media on customer behaviour.Journal of Marketing,80(1), pp.7-25.
  • Xu, Z., Frankwick, G. L. and Ramirez, E., 2016. Effects of big data analytics and traditional marketing analytics on new product success: A knowledge fusion perspective.Journal of Business Research,69(5), pp.1562-1566.
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