Marketing and Smart Technologies: Proceedings of ICMarkTech 2021, Volume 2 (Smart Innovation, Systems and Technologies, 280) 9811692718, 9789811692710
150 106 12MB
English Pages [715]
Preface
Contents
About the Editors
Blockchain Applied to Marketing
Marketing SeeLigg, a Private Electric Chargers Sharing Network
1 Introduction
2 The Road to Electric Vehicles
3 The SeeLigg Project
4 Achieving and Maintaining the Network Effect
5 Discussion
6 Conclusion
References
Application of Smart Contracts in Online Product Procurement
1 Introduction
2 Background
3 Application Modules
4 Database Model
5 General System Requirements
6 Functional Model Based on Use Cases
7 Architecture
8 Component Diagram
9 Deployment Diagram
10 Results
11 Conclusions
References
Investing with Cryptocurrencies Between Risk and Profit
1 Introduction
2 From Blockchain Technology to Cryptography: Ethical Aspects
3 Methodology
4 The Handling of Cryptocurrencies in Colombia
5 Results
6 Conclusions
References
Drivers of e-Relational Capital in the Retail Industry
1 Introduction
2 Literature Review
2.1 Customer e-WOM
2.2 Supplier e-WOM
2.3 Study Hypotheses
3 Methods
3.1 Research Instruments, Variables, and Measures
3.2 Sampling Procedure and Data Collection
4 Results
4.1 Study One: A Customer Perspective
4.2 Study Two: A Supplier Perspective
5 Discussion and Conclusion
5.1 Key Findings, Contributions, and Implications
5.2 Limitations and Further Recommendations
5.3 Concluding Remarks
References
Innovative Business Models and Applications for Smart Cities
Cultural Micro-nodes for Smart Cities
1 Smart City and Cultural Attractiveness
2 From Creative Style to Digital Asset
3 Community Value Assembly
4 Summary: Cultural Immersion
References
Sociocultural Trend Reports as an Intelligence Tool of Strategic Cultural Management
1 Introduction
2 Trends Management
3 The Nature(s) and Categories of Trend Reports
4 How to Build a Report for Strategic Insights
5 Conclusion
References
Employing Trait Emotional Intelligence in an Adaptive E-learning Environment
1 Introduction
2 Literature Review
2.1 Trait Emotional Intelligence Theory
2.2 Achievement Emotions Questionnaire (AEQ)
2.3 Hierarchical Cluster Analysis
3 Method and Design
3.1 Study Design
3.2 Participants
3.3 Instruments
3.4 Procedure
4 Results and Discussion
5 Conclusion
References
Cyber-Physical Systems and Digital Twins as a Concept of Building the World of Intellectual Technologies and Management of Production Processes
1 Introduction
2 History and Development of Cyber-Physical Systems and Digital Twins
3 The Concept of Building a World of Intelligent Technologies: Comparison and Interrelation
4 Manufacturing Process Control Concept Using Digital Twins and Cyber-Physical Systems
5 Conclusion
References
Towards an Impartial Evaluation of Cities’ Smartness: A Multivariate Statistical Approach
1 Introduction
2 Literature Review
3 Method and Data
4 Results
5 Conclusion
References
Customer Data Management and CRM
HJ-BIPLOT as a Basis for the Search of Clusters Based on Pension Indicators for Latin American Countries
1 Introduction
2 Background
3 Technical Analysis
4 Methodology
4.1 HJ-Biplot Method
5 Results
6 Conclusions
7 Discussion, Input, and Future Research
References
Macroeconomic Relations Between Chile and Africa Observed Through Big Data Analysis. Realities and Perspectives
1 Introduction
2 Importance of International Trade
3 Chilean Macroeconomics and Its Trade Relations
4 Africa and Its Commercial Opening
5 Trade Relations Between Africa and Latin America
6 Methodology
7 Polynomial Regression Models
8 Analysis of the Model of HJ-Biplot Multivariate Cube
9 Conclusions
References
The Role of Values and Attitudes in Consumer Intention to Buy Green Technology Products
1 Introduction
2 Theory and Hypotheses
2.1 Green Consumption Values
2.2 Consumer Attitude
3 Data and Methods
3.1 Questionnaire and Data Collection
3.2 Measurement Validity
4 Results
4.1 Wood-Based Bioplastic
4.2 Wood-Based Biotextile
4.3 Wood-Based Biofuel
5 Discussion and Conclusions
References
The Influence of Post-purchase Experience on Customer Loyalty in the Telecommunications Sector in Portugal
1 Introduction
2 Literature Review
2.1 Customer Experience in the Telecommunications Sector
2.2 Customer’s Perception of Service Quality
2.3 The Link Between Customer Experience and Loyalty
2.4 Net Promoter Score
3 Methodological Decisions
3.1 Quantitative Methodological Approach
3.2 Data Collection
3.3 Data Analysis
4 Results
4.1 Characterization of Respondents
4.2 Instrument Validation
4.3 Hypothesis Validation
4.4 Analysis of the Results Obtained Through the Net Promoter Score (NPS)
5 Discussion and Conclusions
5.1 Main Findings
5.2 Contributions of the Study
5.3 Limitations and Suggestions for Future Research
References
Non-quality Costs in Clinical Laboratories and Their Implications in Brand Development: Case Study
1 Introduction
2 Methodology
3 Results
3.1 Results According to Causes of Reprocessing
3.2 Reprocessing Costs
4 Conclusion
References
Gamification Technologies to Marketing
The Moderating Effect of Knowledge on the Virtual Market in FIFA Ultimate Team
1 Introduction
2 Methodology
3 Results
4 Discussion
References
Can Gamification Define Consumers’ Response Toward Brands? Examining the Impact of Gamified Health and Fitness Applications on Purchase Intention
1 Introduction
2 Theoretical Foundation
2.1 Gamification
2.2 Gamification in Health and Wellness
3 Hypotheses Development
3.1 Gamification-Purchase Intention
3.2 Gamification-Positive Emotions
3.3 Positive Emotions-Engagement
3.4 Engagement-Purchase Intention
4 Methodology
4.1 Data Collection and Sample Size
4.2 Measurement Development
5 Results
5.1 Structural Model
6 Conclusion
Appendix 1
References
Fostering Business Education Using Playful and STEAM Pedagogy
1 Introduction
2 Background
3 Method
3.1 Participants
3.2 Materials and Instruments
3.3 Procedure
4 Results
5 Instructables Design for Home Labs
5.1 Curriculum Contents
5.2 Instructable 1. Understanding Fractions and Their Real Representation
5.3 Instructable 2. Decimal Numbers and Their Usefulness in Daily Life
6 Conclusions
References
Machine Learning Applied to Marketing
Technological Development in Preventing Cognitive Frailty, Promoting Active Aging, and the Economics of Aging
1 Demographics and Active Aging
2 The Potential of Aging Economy
3 Active Aging and Old Entrepreneurship
4 Limitations to Silver Economy and Inequality
5 Prevention of Cognitive Frailty in the Context of Active Aging
6 Technology, Gerontechnology, and Health
7 Cognitive Frailty and Gerontechnology
8 Conclusions
References
Mobile Marketing and Wearable Technologies
Does E-Servicescape and Perceived Value Matter for Generation Z in Online Apps?
1 Introduction
2 Literature Review
2.1 E-Servicescape
2.2 Perceived Value
2.3 Customer Satisfaction
2.4 Research Model
3 Method
4 Results
4.1 Data Quality Testing
4.2 Hypothesis Testing
5 General Discussion
References
Omnichannel and Marketing Communication
How Are the Vision, Mission, and Values Disclosed on the Websites of Large Companies?
1 Introduction
2 Literature Review
3 Methods
4 Results and Discussion
5 Conclusion
References
Marketing of Loneliness in the Omnichannel Communication Space of the City
1 Economic Loneliness in a Megacity
1.1 Economic Loneliness as a Modern Trend
1.2 Reasons for the Economic Loneliness of a City Dweller
1.3 The Specifics of the Loneliness of a City Dweller and Modern Practices of Loneliness
2 Marketing of Loneliness in Urban Space
2.1 Omnichannel and Marketing Segmentation of Loneliness in an Urban Space
2.2 Portrait of a Lonely Urban Dweller as a Consumer
2.3 Tools for the Loneliness Marketing Development in an Urban Environment Based on Omnichannel
References
Financial Marketing at the Border: A View from Customers
1 Introduction
2 Theoretical Background
2.1 The Consumer and Marketing Strategy
2.2 E-Commerce Adoption
2.3 Expanded e-Commerce Model
3 Methodology
4 Results
5 Conclusions
References
Digital Transformation in the Distribution and Exhibition Channels of Auteur Cinema
1 Introduction
2 Theoretical Framework
2.1 Digital Transformation in Cinema
2.2 New Emerging Platforms
2.3 Peruvian Auteur Cinema
3 Methodology
3.1 Ethical Considerations
4 Results
4.1 Emerging Platforms as Opportunities in the Distribution and Exhibition of Auteur Cinema
4.2 Opportunities for Improvement in the Distribution of Peruvian Auteur Films
5 Discussion and Conclusions
References
The Narrative Within the Interactive Documentary for the Reconstruction of Memory: Enforced Disappearances in Latin America
1 Introduction
2 Theoretical Framework
2.1 User Experience in the Webdoc
2.2 Another Look at Reality: Interactive Narrative
2.3 Memory Reconstruction
3 Methodology
3.1 Technique and Instruments
4 Results
5 Discussion
6 Conclusion
References
Consumer Research Shopping and Buying Behaviors in Sports Footwear Omni-Channel Retailing: A Conceptual Model
1 Introduction
2 Literature Review
2.1 Consumer Research Shopping and Buying Behavior
2.2 Profile of Sports Footwear Consumers
2.3 Involvement with the Product Category
2.4 Risk Aversion and Impulse Buying
2.5 Consumer Buying Behavior Models and Message Strategies
2.6 Comparison Shopping, Private Labels and Retailer Loyalty
3 Research Model and Methodology
3.1 Proposed Conceptual Model and Research Hypothesis
3.2 Measurement of Model Variables
3.3 Sample and Statistical Techniques
4 Final Considerations
References
Smart Retailing Technologies Impact in Brand Leadership and Market Performance: A Conceptual Model
1 Introduction
2 Smart Retailing Technologies
2.1 Augmented, Virtual, and Mixed Reality
2.2 Self-checkouts, Scan and Go Technologies, Automated Checkouts, and Self-scanning
2.3 Smart Shelves
2.4 Digital Signage and Pervasive Displays
2.5 Smart Shopping Carts and Shopping Assistants
2.6 Mobile or Biometric Payment Methods and Contactless Technologies
2.7 Targeted and Personalized Advertising Using Facial Recognition and Other Consumer’s Data
2.8 Mobile Loyalty Cards and Mobile Couponing
3 Impact of Retail Technology Adoption on Brand Leadership and Market Performance
4 Research Model and Methodology
4.1 Proposed Conceptual Model and Research Hypothesis
4.2 Measurement of Model Variables and Test Marketing Type
5 Final Considerations
References
The Impact of Quality Perception on Consumer Loyalty in the Post-confinement Period: The Case of Restaurants in Portugal
1 Introduction
2 Literature Review
2.1 The Impact of COVID-19 on Restaurants
2.2 Perception of Quality in Restaurants
2.3 Perception of Safety When Visiting Restaurants
2.4 Perception of Satisfaction and Loyalty in Restaurant Consumption
3 Research Model and Methodology
3.1 Proposed Research Model and Research Hypothesis
3.2 Sample and Statistical Techniques
4 Final Considerations
References
Associative and Non-associative Business Structures: A Literature Review for the Identification of Business Development Opportunities for SME in the Digital Age
1 Introduction
2 Business Development and Digital Transformation
3 Research Question and Methodology
4 Findings
5 Discussion and Future Research
6 Conclusion
References
The Impact of an In-store Self-service Technology on Customer Experience and Post-purchase Variables
1 Introduction
2 Omnichannel and Phygital
3 The Customer Experience
4 The Effect of Self-service Technology on Customer Experience
5 The Effect of the Customer Experience on Post-purchase Variables
6 Methodology
6.1 Research Design
6.2 Self-service Technology—Interactive Wall
6.3 Sampling
6.4 Experiment Design and Procedures
6.5 Measures
7 Results
7.1 Demographic Profile
7.2 Descriptive Statistics
7.3 Validity and Reliability of Measurement Scales
7.4 Results of Hypothesis Tests: Self-service Technology (SST) and Customer Experience
7.5 Customer Experience and Post-purchase Variables
8 Discussion
8.1 Limits and Future Research Work
References
News Frames in the Media and Social Networks: Prejudices and Stereotypes Towards Immigrants in Spain
1 Introduction
2 Methodology and Sample
3 Results
4 Discussion and Conclusions
References
Social Media and Networking
Social Media Choice of Generations Y and Z in the Portuguese Market
1 Introduction and Theoretical Framework
2 Methods
3 Results and Discussion
4 Conclusion
References
Impact of Social Media Influencers on the Portuguese Tourism and Travel Industry in a Covid-19 Era
1 Introduction
2 Literature Review
2.1 Social Media and Social Media Influencers
2.2 Travel and Tourism Industry
2.3 Travel and Tourism in Portugal
3 Methodology
4 Analysis and Discussion of Results
4.1 Sociodemographic Profile
4.2 Travel Journey
4.3 Travel Planning Process
4.4 Social Media and Social Media Influencers
5 Conclusion
References
The Impact of Social Media Communication on Personal Brand Management
1 Personal Brand
1.1 Personal Branding and Its Adaptation to the New Paradigms of Social Media Communication
1.2 Communicational Dynamics Used in the Communication of the Personal Brand in Social Media
1.3 The Competitive Advantage of Personal Branding in Today’s Job Market
2 Conclusions
2.1 Clues for Future Research
References
Social Media Co-creation Strategy for SMEs: Key Stakeholders Perspectives in Egypt Fashion Industry
1 Introduction
2 Literature Review
2.1 Co-creation
2.2 Designer Fashion Enterprises in Egypt
2.3 Social Media Influencers
3 Research Methodology
3.1 Interviews
3.2 Focus Group
4 Findings
5 Discussion
6 Implications
7 Limitations and Future Work
References
How Digital Media Influence Hotel’s Image? Effective Communication Strategies for Its Promotion
1 Introduction
2 Literature Review
2.1 Influence of the Media in Image Creation in Tourism and Hospitality
2.2 Impact of Media Promotion on the Construction of a Hotel’s Image
3 Methodology
4 Results
5 Conclusion
References
Digital Presence of Companies: Consumer Social Interaction and the Purchase Decision
1 Introduction
2 Methods
2.1 Sample
2.2 Instrument of Data Collection
2.3 Data and Statistical Treatment
2.4 Ethics
3 Results and Discussion
4 Conclusions, Limitations and Future Researches
References
Chicha Music as an Advertising Resource to Arouse Emotions in the Consumer
1 Introduction
1.1 Chicha Music in Advertising
2 Methodology
3 Results and Discussion
3.1 Emotional Effects of Advertising Music
3.2 The Use of Chicha Music as an Advertising Resource
3.3 Chicha Music, from Pejorative Term to Advertising Resource
4 Conclusions
References
Employer Branding on Social Media to Engage Generation Z
1 Introduction
2 Methodology
3 Results and Discussion
4 Conclusions
References
Generation Y: Social Norm, eWoM and Use of Social Networks
1 Introduction
2 Literature Review
2.1 The Social Norm
2.2 eWoM
2.3 Acceptance of the Use of the Internet and Social Networks
3 Methodology
4 Results
4.1 Descriptive Analysis
4.2 Identification of Latent Variables
4.3 Identification of Latent Variables
4.4 Structural Model Analysis
5 Discussion and Conclusion
5.1 Discussion
5.2 Conclusion
References
A Virtual Community Model Proposal: The Gentleman’s Club
1 Introduction
2 The Model
2.1 Concept
2.2 Profitability
2.3 System Architecture
3 The “Gentleman’s Club” Example
4 Conclusion
References
Use of the Social Network Analysis Methodology to Study the Image of Tourist Destinations
1 Introduction
2 Literature Review
2.1 Purchase Process
2.2 Image
2.3 Free Elicitation
3 Methodology
3.1 Data
3.2 Network Analysis
4 Results
5 Discussion and Conclusions
References
Corporate Reputation of Companies on Twitter Seen from a Sustainability Perspective
1 Introduction
2 Literature Review
3 Methodology
3.1 Sustainable Industry Classification System
3.2 Data Collection and Processing
4 Analysis and Results
4.1 Sustainability
4.2 Citizenship
5 Discussion and Future Work
References
Challenges and Perceptions of Ecuadorian Journalists in the Transition to Cybermedia
1 Introduction
2 Methodology
3 Results
4 Conclusions
References
Are Social Media Users “Online” with Public Libraries?
1 Introduction
2 Background
3 Method
4 Findings
5 Conclusions and Implications
References
Social Media Marketing of Football Clubs: A Study with Portuguese Football Clubs—SL Benfica, FC Porto, and Sporting CP
1 Introduction
2 Literature Review and Hypothesis Development
2.1 Sport Fanship
2.2 Social Media Engagement
2.3 Online Communities
2.4 Social Media Posts
3 Methods
4 Findings
5 Discussion
6 Conclusion
References
Tele-Law as Educational Informatics in the Management of Legal Communications in Medellín—Colombia. Case study
1 Introduction
2 Methodology
3 Tele-Law as Educational Informatics in the Management of Legal Communications
4 “Virtual Observatory” for Legal Offices
5 Study Case
6 Discussion
7 Conclusion
References
Online Brand Community Characterization with Engagement and Social Network Analysis (SNA) for Marketing Communication: The Subreddit r/intel
1 Introduction
1.1 Online Brand Communities
1.2 Engagement in Brand Communities
1.3 Reddit and the r/intel Subreddit
1.4 Research Questions
2 Method
3 Results
3.1 Type of Engagement Existing in the Subreddit r/intel
3.2 Type of Structure Existing in the Community
4 Discussion
4.1 Type of Engagement Within the Community
4.2 Type of Affiliation Within This Community
5 Final Conclusions
References
Web Marketing, e-Commerce and v-Commerce
Factors Influencing Consumers to Shop Online for Computer/Telecommunications Equipment
1 Introduction
2 Literature Review
2.1 E-Commerce
2.2 Virtual Stores
2.3 Online Consumer Behavior
3 Methodology
4 Analysis and Discussion of Results
5 Conclusion
References
Multilingual Dissemination of Corporate Websites from the Healthcare Sector
1 Introduction
2 Background
3 Methodology
3.1 Sample Description
3.2 Analysis Criteria and Instruments
4 Results
4.1 Availability of Corporate Website
4.2 Language Diversity
4.3 Data Triangulation
5 Conclusions
References
Communication and Marketing in Ecuadorian Universities
1 University Marketing
2 University Marketing Environments
3 Some Characteristics of the Ecuadorian Market
4 Final Reflection
5 Special Thanks
References
A Digital Business Model for the Wood Industry
1 Introduction
2 Establishing the State of the Art and Literature Review
2.1 The Internet
2.2 Digital Transformation
2.3 Business Model
3 Methodological Approach
3.1 Design Science Research
3.2 Business Model Canvas (BMC)
4 Analysis and Presentation of Results
4.1 Relevance Cycle
4.2 Cycle of Rigour
4.3 Design Cycle
5 Conclusion
References
Starting an E-commerce in Pandemic Times to Ecuador: A Review of the Current State of Affairs
1 Introduction
2 Contextualization
2.1 Conceptualization
2.2 Tools and Strategies
3 Case Study
4 Discussion
5 Results
6 Conclusions
References
The Future of Digital Advertising in the Post-cookie Era: A Review of the Current State
1 Introduction
2 Contextualization
3 Methodology and Development
3.1 Cookies
3.2 Firefox and Cookies
3.3 Safari and Cookies
3.4 Google and Cookies
3.5 Programmatic Advertising
4 Discussion
5 Conclusions
1. References
Identity on the Web—Liquid Identity
1 Introduction
2 Critical Analysis
2.1 The New Networked and Digital Society
2.2 Risk and Contingency
2.3 Multicultural Identities
2.4 The Formation of Liquid Identities
2.5 The Relationship – The Cause and the Consequence
3 Methodology
4 Discussion
5 Conclusion
References
The Influence of Digital Assistants on Search Engine Strategies: Recommendations for Voice Search Optimization
1 Introduction
2 Literature Review
3 Research Methodology
4 Results
5 Conclusion
6 Limitations
References
Malaysian Government Digital Transformation Stimulus Accelerate the Growth of SMEs in E-commerce Ecosystems: The Recovery Phase of the Post Covid-19 Pandemic in 2020
1 Introduction
1.1 SMEs and E-commerce in Malaysia
2 Government Stimulus to Accelerate SMEs Towards E-commerce Ecosystem
3 Effectiveness of the Covid-19 Economic Stimulus Packages
4 Conclusion
References
Corporate Exhibitions and Marketing as a Result of the Integration Project at the University of Cundinamarca
1 Introduction
1.1 Objective
1.2 Specific Objective
1.3 Integrative Project
1.4 Educational Marketing
1.5 Corporate Exhibitions at the Universidad of Cundinamarca
1.6 Soft Skills
2 Public Display
3 Learning Achievements
3.1 Experience
4 Results
4.1 Student Cognitive Domain
4.2 Cognitive Dominance in Participation
4.3 Conclusions and Discussion
References
Measuring the Impact of Risk Perception, Trust and Satisfaction on Loyalty in E-Marketplaces
1 Introduction
2 Literature Review
2.1 Perceived Risk in E-Marketplaces
2.2 Consumer Trust Perception
2.3 Consumer Satisfaction Perception
2.4 Consumer Loyalty Perception
3 Research Model and Methodology
3.1 Proposed Conceptual Model and Research Hypothesis
3.2 Measurement of Model, Sample, and Statistical Techniques
4 Final Considerations
References
Endorser Altruism Effects on Narrative Transportation in Video Ads
1 Introduction
2 Literature Review and Research Model
2.1 Endorser Altruism
2.2 Advertising Design
2.3 Youtube Narrative Transportation
3 Method
3.1 Measures
3.2 Sample
4 Results
4.1 Reliability and Validity
4.2 Discriminant Validity
4.3 Hypothesis Testing
5 Discussion
6 Conclusion
References
The Impact of the Post-purchase Experience on Online Cosmetic Consumer Satisfaction: Case Study Pluricosmética
1 Introduction
2 Literature Review
2.1 Consumer Journey: Post-purchase
2.2 Online Consumer Satisfaction
3 Conceptual Model
4 Methodological Decisions
4.1 Methodological Approach Case Study
4.2 Data Collection
4.3 Data Analysis
5 Results
5.1 Characterization of Respondents
5.2 Instrument Validation
5.3 Hypothesis Validation
6 Discussion and Conclusions
6.1 Discussion of Results
6.2 Contributions of the Study
6.3 Limitations and Suggestions for Future Research
References
Author Index
520271_1_En_61_Chapter_OnlinePDF.pdf
Correction to: The Impact of an In-store Self-service Technology on Customer Experience and Post-purchase Variables
Correction to: Chapter “The Impact of an In-store Self-service Technology on Customer Experience and Post-purchase Variables” in: J. L. Reis et al. (eds.), Marketing and Smart Technologies, Smart Innovation, Systems and Technologies 280, https://doi.org/10.1007/978-981-16-9272-7_29
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Smart Innovation, Systems and Technologies 280
José Luís Reis Marc K. Peter Ricardo Cayolla Zorica Bogdanović Editors
Marketing and Smart Technologies Proceedings of ICMarkTech 2021, Volume 2
Smart Innovation, Systems and Technologies Volume 280
Series Editors Robert J. Howlett, Bournemouth University and KES International, Shoreham-by-Sea, UK Lakhmi C. Jain, KES International, Shoreham-by-Sea, UK
The Smart Innovation, Systems and Technologies book series encompasses the topics of knowledge, intelligence, innovation and sustainability. The aim of the series is to make available a platform for the publication of books on all aspects of single and multi-disciplinary research on these themes in order to make the latest results available in a readily-accessible form. Volumes on interdisciplinary research combining two or more of these areas is particularly sought. The series covers systems and paradigms that employ knowledge and intelligence in a broad sense. Its scope is systems having embedded knowledge and intelligence, which may be applied to the solution of world problems in industry, the environment and the community. It also focusses on the knowledge-transfer methodologies and innovation strategies employed to make this happen effectively. The combination of intelligent systems tools and a broad range of applications introduces a need for a synergy of disciplines from science, technology, business and the humanities. The series will include conference proceedings, edited collections, monographs, handbooks, reference books, and other relevant types of book in areas of science and technology where smart systems and technologies can offer innovative solutions. High quality content is an essential feature for all book proposals accepted for the series. It is expected that editors of all accepted volumes will ensure that contributions are subjected to an appropriate level of reviewing process and adhere to KES quality principles. Indexed by SCOPUS, EI Compendex, INSPEC, WTI Frankfurt eG, zbMATH, Japanese Science and Technology Agency (JST), SCImago, DBLP. All books published in the series are submitted for consideration in Web of Science.
More information about this series at https://link.springer.com/bookseries/8767
José Luís Reis · Marc K. Peter · Ricardo Cayolla · Zorica Bogdanovi´c Editors
Marketing and Smart Technologies Proceedings of ICMarkTech 2021, Volume 2
Editors José Luís Reis University Institute of Maia—ISMAI Maia, Portugal Ricardo Cayolla Universidade Portucalense Porto, Portugal
Marc K. Peter FHNW School of Business University of Applied Sciences and Arts Olten, Switzerland Zorica Bogdanovi´c Faculty of Organizational Sciences University of Belgrade Belgrade, Serbia
ISSN 2190-3018 ISSN 2190-3026 (electronic) Smart Innovation, Systems and Technologies ISBN 978-981-16-9271-0 ISBN 978-981-16-9272-7 (eBook) https://doi.org/10.1007/978-981-16-9272-7 © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022, corrected publication 2023 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Springer imprint is published by the registered company Springer Nature Singapore Pte Ltd. The registered company address is: 152 Beach Road, #21-01/04 Gateway East, Singapore 189721, Singapore
Preface
This book is composed of the papers written and accepted for presentation and discussion at the 2021 International Conference on Marketing and Technologies (ICMarkTech’21). This conference had the support of the University of La Laguna. It took place at Tenerife, Spain, during 2–4, 2021. The 2021 International Conference on Marketing and Technologies (ICMarkTech’21) is an international forum for researchers and professionals to present and discuss the latest innovations, trends, results, experiences and concerns in the various fields of marketing and technologies related to it. The program committee of ICMarkTech’21 was composed of a multidisciplinary group of 285 experts and those who are intimately concerned with marketing and technologies. They have had the responsibility for evaluating, in a ‘double-blind review’ process, the papers received for each of the main themes proposed for the conference: (A) Artificial Intelligence Applied in Marketing; (B) Virtual and Augmented Reality in Marketing; (C) Business Intelligence Databases and Marketing; (D) Data Mining and Big Data-Marketing Data Science; (E) Web Marketing, e-Commerce and v-Commerce; (F) Social Media and Networking; (G) Omnichannel and Marketing Communication; (H) Marketing, Geomarketing and IoT; (I) Marketing Automation and Marketing Inbound; (J) Machine Learning Applied to Marketing; (K) Customer Data Management and CRM; (L) Neuromarketing Technologies; (M) Mobile Marketing and Wearable Technologies; (N) Gamification Technologies to Marketing; (O) Blockchain Applied to Marketing; (P) Technologies Applied to Tourism Marketing; (Q) Digital Marketing and Branding; (R) Innovative Business Models and Applications for Smart Cities. ICMarkTech’21 received about 200 contributions from 30 countries around the world. The papers accepted for presentation and discussion at the conference are published by Springer (this book, volume 1 and volume 2) and will be submitted for indexing by ISI, EI-Compendex, SCOPUS, DBLP and/or Google Scholar, among others.
v
vi
Preface
We acknowledge all of those that contributed to the staging of ICMarkTech’21 (authors, committees, workshop organizers and sponsors). We deeply appreciate their involvement and support that was crucial for the success of ICMarkTech’21. Tenerife, Spain December 2021
José Luís Reis Marc K. Peter Ricardo Cayolla Zorica Bogdanovi´c
Contents
Blockchain Applied to Marketing Marketing SeeLigg, a Private Electric Chargers Sharing Network . . . . . Alexandre Sousa, Renata Barbosa, Pedro Alexandre, and Bruno Nini
3
Application of Smart Contracts in Online Product Procurement . . . . . . . Julián David González Vásquez, Carlos Enrique Montenegro Marín, Paulo Alonso Gaona García, and Javier Parra Fuente
13
Investing with Cryptocurrencies Between Risk and Profit . . . . . . . . . . . . . José Antonio García Pereáñez
25
Drivers of e-Relational Capital in the Retail Industry . . . . . . . . . . . . . . . . . Valentina Vukmirovi´c, Milenko Radoni´c, and Miloš Milosavljevi´c
35
Innovative Business Models and Applications for Smart Cities Cultural Micro-nodes for Smart Cities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Carole Edrich and Drago Indjic Sociocultural Trend Reports as an Intelligence Tool of Strategic Cultural Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nelson Pinheiro Gomes and William Afonso Cantú Employing Trait Emotional Intelligence in an Adaptive E-learning Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Teklehaimanot Embaye, Zorica Bogdanovi´c, Dušan Bara´c, Tamara Naumovi´c, and Božidar Radenkovi´c Cyber-Physical Systems and Digital Twins as a Concept of Building the World of Intellectual Technologies and Management of Production Processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tatyana Astakhova, Mikhail Kolbanev, and Anna Krasnova
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Towards an Impartial Evaluation of Cities’ Smartness: A Multivariate Statistical Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Veljko Uskokovi´c, Milica Mariˇci´c, and Veljko Jeremi´c
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Customer Data Management and CRM HJ-BIPLOT as a Basis for the Search of Clusters Based on Pension Indicators for Latin American Countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 Cristian Cornejo, Claudio Ruff, Luis Benítes, Joe Alexis González, and Purificación Galindo Macroeconomic Relations Between Chile and Africa Observed Through Big Data Analysis. Realities and Perspectives . . . . . . . . . . . . . . . . 125 Claudio Ruff, Marcelo Ruiz, Alexis Matheu, Virginie Delalande, and Luis Benites The Role of Values and Attitudes in Consumer Intention to Buy Green Technology Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139 Marianna Halinen, Pradipta Halder, and Tommi Laukkanen The Influence of Post-purchase Experience on Customer Loyalty in the Telecommunications Sector in Portugal . . . . . . . . . . . . . . . . . . . . . . . . 149 Mafalda Morais, José Luís Reis, Mafalda Nogueira, and Mafalda Ferreira Non-quality Costs in Clinical Laboratories and Their Implications in Brand Development: Case Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163 Gladys Irene Arboleda Posada, David Alberto García Arango, and Aura María Vasco Ospina Gamification Technologies to Marketing The Moderating Effect of Knowledge on the Virtual Market in FIFA Ultimate Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179 Sebastian Pomikło and Artur Strzelecki Can Gamification Define Consumers’ Response Toward Brands? Examining the Impact of Gamified Health and Fitness Applications on Purchase Intention . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189 Abhishek Yadav Fostering Business Education Using Playful and STEAM Pedagogy . . . . 201 Nathaly Sigcho and Janio Jadán-Guerrero Machine Learning Applied to Marketing Technological Development in Preventing Cognitive Frailty, Promoting Active Aging, and the Economics of Aging . . . . . . . . . . . . . . . . . 213 Ana Nieto-Vieites, Pedro Gaspar, José Victor, Lucía Pérez-Blanco, Alba Felpete-López, and David Facal
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Mobile Marketing and Wearable Technologies Does E-Servicescape and Perceived Value Matter for Generation Z in Online Apps? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227 Anisa Larasati, Darjat Sudrajat, Aditya Patriazka, Leo Andri Yulius Caesar, and Agung Sudjatmoko Omnichannel and Marketing Communication How Are the Vision, Mission, and Values Disclosed on the Websites of Large Companies? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239 João M. S. Carvalho Marketing of Loneliness in the Omnichannel Communication Space of the City . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251 Alexandra Ponomareva and Maxim Ponomarev Financial Marketing at the Border: A View from Customers . . . . . . . . . . 263 Hugo Arias-Flores, Freddy Quinde-Sari, Janio Jadan-Guerrero, and Carlos Ramos-Galarza Digital Transformation in the Distribution and Exhibition Channels of Auteur Cinema . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273 Jimmy Trevejo Curi and Yasmin Sayán Casquino The Narrative Within the Interactive Documentary for the Reconstruction of Memory: Enforced Disappearances in Latin America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285 Lupe Martinez Borja and Yasmín Sayán Casquino Consumer Research Shopping and Buying Behaviors in Sports Footwear Omni-Channel Retailing: A Conceptual Model . . . . . . . . . . . . . . 297 Joaquim Pratas and Carla Amorim Smart Retailing Technologies Impact in Brand Leadership and Market Performance: A Conceptual Model . . . . . . . . . . . . . . . . . . . . . . 311 Joaquim Pratas, Carla Amorim, and José Luís Reis The Impact of Quality Perception on Consumer Loyalty in the Post-confinement Period: The Case of Restaurants in Portugal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 325 Carla Amorim and Joaquim Pratas Associative and Non-associative Business Structures: A Literature Review for the Identification of Business Development Opportunities for SME in the Digital Age . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337 Amalia Georgescu, Marc K. Peter, and Silvia Avasilcai
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The Impact of an In-store Self-service Technology on Customer Experience and Post-purchase Variables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 349 Virginie Gagné, Sandrine Prom Tep, Manon Arcand, and Anik St-Onge News Frames in the Media and Social Networks: Prejudices and Stereotypes Towards Immigrants in Spain . . . . . . . . . . . . . . . . . . . . . . . 363 Andrés Tirado-Espín, Ubaldo Cuesta, Luz Martínez-Martínez, Yalitza Ramos-Gil, and Diego Almeida-Galárraga Social Media and Networking Social Media Choice of Generations Y and Z in the Portuguese Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 377 João M. S. Carvalho and Sílvia Faria Impact of Social Media Influencers on the Portuguese Tourism and Travel Industry in a Covid-19 Era . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 391 Lara Madureira and Bráulio Alturas The Impact of Social Media Communication on Personal Brand Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 405 Evelin Machado and Sandra Miranda Social Media Co-creation Strategy for SMEs: Key Stakeholders Perspectives in Egypt Fashion Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 415 Kesmat AbdelAziz and Nor Hasliza Md Saad How Digital Media Influence Hotel’s Image? Effective Communication Strategies for Its Promotion . . . . . . . . . . . . . . . . . . . . . . . . . 431 Ana Campante, Rui Costa, and Márcio Martins Digital Presence of Companies: Consumer Social Interaction and the Purchase Decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 445 Maria I. B. Ribeiro, António J. G. Fernandes, Isabel M. Lopes, and José A. M. Victor Chicha Music as an Advertising Resource to Arouse Emotions in the Consumer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 459 Ana-Kelly Duran-Palomino, Francisco Arbaiza, and Eliana Gallardo-Echenique Employer Branding on Social Media to Engage Generation Z . . . . . . . . . 469 Meredhit Carbajal-Cribillero, Gabriela Javier-Niño, Mathias Mäckelmann, and Eliana Gallardo-Echenique Generation Y: Social Norm, eWoM and Use of Social Networks . . . . . . . . 479 Cesáreo Reyes Moreno, Eduardo Parra López, and Zamira del Rosario Acosta Rubio
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A Virtual Community Model Proposal: The Gentleman’s Club . . . . . . . . 495 Pedro Malta, Henrique Mamede, Carolina Santos, and Vitor Santos Use of the Social Network Analysis Methodology to Study the Image of Tourist Destinations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 507 Tatiana David-Negre, Juan M. Hernández, Sergio Moreno-Gil, and Antonia Correia Corporate Reputation of Companies on Twitter Seen from a Sustainability Perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 515 R. E. Loke and I. Zerouk Challenges and Perceptions of Ecuadorian Journalists in the Transition to Cybermedia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 535 Abel Suing Are Social Media Users “Online” with Public Libraries? . . . . . . . . . . . . . . 543 Talita Astori, Paulo Duarte, Ricardo Gouveia Rodrigues, and Vera Carlos Social Media Marketing of Football Clubs: A Study with Portuguese Football Clubs—SL Benfica, FC Porto, and Sporting CP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 555 João Pereira, Ricardo Gouveia Rodrigues, Paulo Duarte, and Ana Gouveia Tele-Law as Educational Informatics in the Management of Legal Communications in Medellín—Colombia. Case study . . . . . . . . . . . . . . . . . 569 José Antonio García Pereáñez Online Brand Community Characterization with Engagement and Social Network Analysis (SNA) for Marketing Communication: The Subreddit r/intel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 577 Natiele Oliveira and Jose Paulo Marques dos Santos Web Marketing, e-Commerce and v-Commerce Factors Influencing Consumers to Shop Online for Computer/Telecommunications Equipment . . . . . . . . . . . . . . . . . . . . . . . 595 Ricardo Santos and Bráulio Alturas Multilingual Dissemination of Corporate Websites from the Healthcare Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 607 Irene Rivera-Trigueros, Mar Díaz-Millón, and María-Dolores Olvera-Lobo Communication and Marketing in Ecuadorian Universities . . . . . . . . . . . . 617 Arturo Clery, Francisco-Enrique Morán, Lilian Molina, Francisco-Lenín Morán, Milton González, and Francisco-Jorge Morán
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A Digital Business Model for the Wood Industry . . . . . . . . . . . . . . . . . . . . . . 623 Agostinho Sousa Pinto, Eusébio Costa, Laurentino Guimarães, and Ricardo Passos Starting an E-commerce in Pandemic Times to Ecuador: A Review of the Current State of Affairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 635 Alejandro Moreno, David Martinez, E. Fabián Rivera, and G. Renato Mauricio Toasa The Future of Digital Advertising in the Post-cookie Era: A Review of the Current State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 645 Oscar David Muñoz Rosero, Iskra Viviana Saltos Ortiz, Paulina Salazar Murillo, and Renato Mauricio Toasa Identity on the Web—Liquid Identity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 655 António Brandão The Influence of Digital Assistants on Search Engine Strategies: Recommendations for Voice Search Optimization . . . . . . . . . . . . . . . . . . . . 665 Priska Lambrecht and Marc K. Peter Malaysian Government Digital Transformation Stimulus Accelerate the Growth of SMEs in E-commerce Ecosystems: The Recovery Phase of the Post Covid-19 Pandemic in 2020 . . . . . . . . . . . 673 Nor Hasliza Md Saad and Zulnaidi Yaacob Corporate Exhibitions and Marketing as a Result of the Integration Project at the University of Cundinamarca . . . . . . . . . . . . . . . . . . . . . . . . . . . 685 Elber Nicolás Ramírez Castillo, Franklin Guillermo Montenegro-Marin, Luis Ignacio López Farfán, Érica Fausiya Lancheros Rubiano, Carlos Enrique Montenegro-Marin, and Rubén Arístides González Crespo Measuring the Impact of Risk Perception, Trust and Satisfaction on Loyalty in E-Marketplaces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 697 Carla Amorim and Joaquim Pratas Endorser Altruism Effects on Narrative Transportation in Video Ads . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 711 Luísa Augusto, Sara Santos, and Pedro Manuel do Espírito Santo The Impact of the Post-purchase Experience on Online Cosmetic Consumer Satisfaction: Case Study Pluricosmética . . . . . . . . . . . . . . . . . . . 723 Inês Lopes and Mafalda Nogueira Correction to: The Impact of an In-store Self-service Technology on Customer Experience and Post-purchase Variables . . . . . . . . . . . . . . . . Virginie Gagné, Sandrine Prom Tep, Manon Arcand, and Anik St-Onge
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Author Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 737
About the Editors
José Luís Reis done Ph.D. in Technologies and Information Systems from the University of Minho and is professor with the title of specialist in Management and Administration by IPAM—Porto. He is a professor at ISMAI and IPAM and an integrated researcher in LIACC—Laboratory of Artificial Intelligence and Informatics of the University of Porto. It carries out activities in the area of training and information systems and technologies in various organizations, coordinating various national and international projects in the area of information management, applied marketing, and strategic regional planning. He is the author of scientific papers and articles in the fields of information systems modeling, multimedia, gamification, and data mining. He is the author and co-author of several books, namely Personalization in Marketing—Technologies and Information Systems, Marketing in Agri-food— Fundamentals and Case Studies, Gamification Model for SMEs, and Marketing and Smart Technologies. Marc K. Peter received his Doctorate from CSU Sydney; he is an executive MBA from UAS Bern/Babson College/PKU Beijing and a master of Marketing from the University of Basel. He is a fellow of both the British Computer Society and the Chartered Institute of Marketing. He is a professor of Digital Business and the head of the Competence Center Digital Transformation at the FHNW School of Business in Olten, Switzerland. His research and teaching areas are digital transformation, digital marketing, new work, and cybersecurity. Ricardo Cayolla done Ph.D. in “Marketing and Strategy” and is an associate professor at University Portucalense and the director of REMIT research unit. He is an author of seven books and a visiting professor in Marketing in Eastern Central University of Science and Technology (ECUST), Shanghai, China; since March 2017, he is the neuroscience co-creator of the projects “Super-Humans” and “How Humans Learn.” He is also post-graduated in Design Thinking for Business Innovation by ESADE (Spain). Ricardo Cayolla conducts original research and integrates investigation done in neurosciences, applying it in several areas of the business world. Consumer neurosciences, consumer-brand relationships, and sport marketing are his xiii
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main research interest areas. Ricardo Cayolla is a former professional tennis player and keeps its activity in this field as tennis coach. As sports specialist, he has developed an innovative training system and applied for over twenty years. He has also a significant activity as writer, with a number of published books, and speaker in the media. Zorica Bogdanovi´c, Ph.D. is an associate professor at Faculty of Organizational Sciences, University of Belgrade, Serbia. She teaches subjects in the areas of ebusiness and e-business technologies on B.Sc., M.Sc., and Ph.D. studies. Her professional and scientific interests include e-business, Internet marketing, Internet technologies, and Internet of things. Results of her research have been published in many well-known international journals and conference proceedings. She is member of IEEE and secretary of IEEE Computer chapter CO 16. She is in chair of seminar of IEEE Computer chapter CO 16. She is in chair of the summer school “E-business technologies” at Faculty of Organizational Sciences since 2014. Since 2016, she is in chair of Center for Internet of things. She was the head of Department of e-business at Faculty of Organizational Sciences 2017–2021.
Blockchain Applied to Marketing
Marketing SeeLigg, a Private Electric Chargers Sharing Network Alexandre Sousa, Renata Barbosa, Pedro Alexandre, and Bruno Nini
Abstract Two factors that slow down the switch to electric vehicles are the fear of losing autonomy due to limited coverage of the public electric charger network, and cross border compatibility of the cards used for payment of the electric charges. Many private entities deployed in-premises electric chargers to charge their vehicle fleet of one or more vehicles, these chargers are sometimes in places with public access and are part-time idle, thus could be used by others if there was a way to know when the charger was available for use and a straightforward way of making payments that ideally should work across country borders. Potential solutions to these problems have been implemented that take care of payment and availability information but they are limited in scope and usually do not work across borders. We propose SeeLigg, a blockchain-based solution that is marketed to the potential user’s community as open and transparent, trying in this way to achieve critical mass for the network effect to kick-in and to become worthwhile being part of the SeeLigg community. Keywords Blockchain applied to marketing · Blockchain applied to the energy market · Governance of blockchain networks · Network effect
A. Sousa (B) · R. Barbosa University of Maia—ISMAI, Research unit CITEI, Maia, Portugal e-mail: [email protected] R. Barbosa e-mail: [email protected] A. Sousa LIACC—Artificial Intelligence and Computer Science Laboratory, Porto, Portugal P. Alexandre Guiatel—Serviços de Telecomunicações, Vilar de Pinheiro, Portugal e-mail: [email protected] B. Nini GoTVee, Moscavide, Portugal e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 J. L. Reis et al. (eds.), Marketing and Smart Technologies, Smart Innovation, Systems and Technologies 280, https://doi.org/10.1007/978-981-16-9272-7_1
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1 Introduction We have a network effect when increasing the number of participants in a network improves the value of the good or service for all the participants in the network. When there are few users, being in the network is of little value for the current participants. Only when the number of participants reaches a critical level does it start to become more and more attractive to be a part of that network. The SeeLigg project has as its goal to create a community (network) of electric vehicle users that can charge their vehicles using geographically distributed private vehicle chargers belonging to other participants in the community. This means that when its owner is not using the charger, that is the charger is idle, other participants in the network could use it to charge their vehicle assuming that the charger is located in a place that is accessible to the general public. Developing such a project requires solving both technical issues (locate the nearest charger, see if it is available, pay for the energy spent charging the battery) and issues related with credibility and marketing the project to a set of users large enough to make it worthwhile belonging to the community. The remaining of this paper is organized as follows. Section 2 discusses the slow but progressive path that is underway to a world full of Electric Vehicles. Section 3 describes the SeeLigg project. Section 4 presents the reasoning for choosing a peer-to-peer blockchain solution as the basis for the system of incentives and marketing of the project. Section 5 discusses issues related with the selection of Blockchain technology. Section 6 draws conclusions about the current results and proposes directions for further research.
2 The Road to Electric Vehicles The Internal Combustion Engine (ICE) powered by liquid petrol or gas has the advantage that the vehicle is always available, as long as the fuel supply and the finances to purchase it are available. Assuming average consumption the fuel tank must be refilled after one to two weeks, and filling times are five to ten minutes. This must be compared with the much higher frequency and length of charging Electric Vehicles (EVs). Long charging times are particularly inconvenient when travelling long distances as they force drivers to stop frequently, after travelling around 300–500 km. Further, the drivers must wait while their vehicle charges [1]. A study made in 2013 for the French-German market showed that early EV adopters were likely to have a higher level of income, to have a household equipped with two or more cars and to travel more than 50 km a day, not necessarily by car [2]. At that time electric charging a vehicle outside of home was a significant endeavor. Another study of BMW i3 customers showed that, as expected, they had a preoccupation with autonomy range, short charging time, hassle-free handling for charging, affordable prices, and cost effectiveness under a total cost of ownership’s view. They
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were looking for a charging infrastructure that left no doubts in terms of the next available charging station including enough fast-charging stations along the routes. The majority was living in an own house, as parking and charging at home at that time was almost mandatory [3]. The slow adoption of EVs is considered an instance of the social dilemma problem, where individuals in interdependent situations face choices in which the maximization of short-term self-interest yields outcomes leaving all participants worse off than feasible alternatives. The value of EV can be split into common value and private value. EV cars provide less negative common value than ICE cars (less noise and emissions) but have difficulties in providing the same amount of private value as the ICE car in terms of price, driving range, charging/refueling time, although they often manage to show a lower energy cost [4]. In the meantime, the situation has changed, now there is a significantly larger network of publicly available chargers although that network is still much smaller than the conventional fuel supply network, thus the problem is smaller but has not altogether disappeared. The idea of sharing resources for improving this situation is not new. There are several peer-to-peer carsharing services [5], and other services that try to combine commercially available and privately owned electric chargers [6]. This is combined with other complementary concepts, such as Vehicle-to-Grid where the EV batteries are seen as a temporary energy storage device that could be fed back to the power grid when the vehicle is stationary [7, 8]; and OLEV (On Line Electric Vehicle), where the electric motor is powered by an underground power supply system, embedded in the road that generates a magnetic field above the ground for pickup by a unit mounted on the bottom of the vehicle, thus there is only the need for a small battery or capacitor for use in non-powered roads [9]. Several other possibilities and dimensions are currently being discussed [10]. There has been some controversy on whether the switch from fossil-fuel-based to electricity is actually reducing carbon emissions after we take into account the source of the electric energy. Still, this was shown to happen around the world even while electricity generation itself is not fully decarbonized, that is, in some instances the production of electricity itself is still using a significant amount of fossil-fuel [11].
3 The SeeLigg Project To create a community for sharing private chargers and for that community to reach a size where the network effect kicks-in, the following issues must be solved: 1.
2.
Present an easy way to know the location (GPS coordinates), characteristics (fast or slow charger), and status of each charger in the network for a given date and time (idle, out of order, being used, reserved) Present an easy way to pay for the energy used to charge the vehicle’s battery
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Provide guarantees that a given charger can be reserved for a given time period and will be available at that time Provide the ability to adapt to changing circumstances, e.g., to be notified that in the meantime the charger that was reserved broke down and an alternative should be chosen Provide one or more incentives to choose this community over other competing communities or other competing solutions that are not compatible with this one, and as such to walk towards achieving the network effect.
The first issue is solved by creating a device (a SeeLigg gateway) to be placed between the charger and the mains power supply, that can be activated by an App in the user’s smartphone. The goal of the promoters of this project is to create a sharing platform, not to sell SeeLigg gateways. As such a sample gateway was created, and the goal is to publish the specification of that gateway so that anyone can buy such a gateway from one of the project partners or build their own. The gateway must be cheap enough (e.g., around 50 euros) to be an interesting buy for people that want to participate in the network and that have a charger that they want to add to the network. Using public-key cryptography each gateway must be certified and authorized in a way similar to the Public Key Infrastructure used to validate digital signatures. Notice that it is possible for electric vehicle owners to use the chargers in the network without owning a charger, or without making their charger(s) available to the network. In some countries there is a regulated process, that can vary depending on the country, to become a registered owner of public chargers and as such a reseller of energy. The goal of this project is to stay away from that situation. The participants that add a charger to the network are doing that in a private manner, they are only sharing their charger and expect to be adequately compensated, according to the rules of the network. The rules are simple, the energy price should be the real energy price (that usually varies with the time of the day), plus an overhead to be paid to the charger owner to amortize the cost of the gateway (it disappears as soon as it is assumed that cost was fully amortized), plus a small availability fee to be permanently paid to the charger owner, plus a small fee to amortize and adequately compensate the project promoters and initial participants in the network, plus a small fee to cover the maintenance costs of the sharing platform. For the project’s success it is important that the final energy price after considering all these overheads is not too different from the real energy price. When the owner of a gateway uses the charger connected to that gateway the associated cost is zero, that is there are no overheads to be paid (he/she will only have to pay their normal energy bill). To reduce transaction costs all payments are monthly settled through an offsetting procedure of the amounts due (for using chargers from other participants in the network) with the amounts owed (by the other users that used this user’s charger). The user account balance must always be positive, that is, a charger can only be used if the account balance is enough for that usage. As the goal of this project is to give peace of mind (and better energy prices) to the community participants, and not making a business of selling energy, it is only when, and if, a given user wants to settle
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a part or the total of their account that any positive balance is effectively paid to that user. Notice that the difference between the amount received and the corresponding real energy cost assumed to have been paid by that user can be a taxable revenue. There are competing solutions, in Portugal there is, e.g. [12]. As such, for this project to work, and expand until it reaches critical mass for the network effect from then on to push it forward, it is necessary to have incentives to attract enough early adopters. Thus, the system of incentives and marketing of this project must be such that allows it to be distinguishable from the competition.
4 Achieving and Maintaining the Network Effect The main difficulty of creating a sharing platform is not technical, it is the need to attract enough users. The SeeLigg platform does not own a single charger, it only facilitates the sharing of chargers between the platform users. As such, if there are too few users, or if they are all near the same location, then there is no advantage in using the platform. It would be possible to try to keep away the competition by just offering an App with a better user experience or by offering better energy prices. The problem with this approach is that the competition will react, improving their App and reducing their prices. And at the same time some solutions are already in the market, thus for the time being they have the advantage of already having a community of users. What the competing solutions usually do not have, is a fully transparent price policy and do not provide guarantees about the future prices charged for using their platform. For that reason, SeeLigg is adopting a blockchain-based solution, hoping to use that as a marketing advantage that could propel SeeLigg to increase its number of users. Blockchain solutions are already being adopted at several levels of the energy market [13], using it in a charging network is just one of its possible uses [6]. A blockchain is an immutable distributed ledger, each node in the blockchain network contains a full copy of the blockchain. The blockchain consists of a linked list of blocks where each block contains a validation code that depends on the contents of the previous block in the chain. In this way changing any block in the chain would be easily detected and refused by the majority of the participants in the network. A blockchain needs a security mechanism that makes the validation codes difficult to evaluate, and being a distributed ledger some form of consensus mechanism must be used. In general a public blockchain has three ingredients: (1) a public distributed (multiple copies) ledger which contents are agreed upon by a majority of the participants in the network; (2) a consensus algorithm used to ensure that a majority of the copies of the ledger are the same; (3) a currency, that is a digital token that has value and is publicly traded, that is used to align the incentives of everyone involved. The cryptocurrency Bitcoin [14], although it did not invent the concept of a blockchain (nor called it by that name), represents the first time that such a set
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of ingredients were assembled in such an innovative way that brought us the cryptocurrency and blockchain revolution [15]. Still a missing ingredient was needed, the ability to run Smart Contracts. The concept of a Smart Contract had been invented in 1997 [16], the first cryptocurrency to integrate a scripting language that allows the creation of smart contracts supported by the blockchain was Ethereum [17]. The platform allows anyone to deploy permanent and immutable decentralized applications (Smart Contracts) onto it. The importance of using smart contracts in SeeLigg is that once established and deployed in the network they take a life of their own. It is important to test them beforehand against errors and security issues, because once deployed even if they are found to be faulty there is no easy way to change them, except through the governance and evolution process implemented in the network. But if this makes the initial creation and testing of the smart contracts harder than in a normal online platform, at the same time it also brings assurances that other platforms cannot bring to the table. In a way, the main incentive that users have to participate in the SeeLigg sharing platform is that not only the platform fees are fully documented but they are also automatically applied by the smart contracts that are executed without human intervention and without the possibility of human interference.
5 Discussion The blockchain is used to run smart contracts that perform the operations of the platform, e.g., to add a new node (gateway) to the network; to pay for a charging operation; or to run the offsetting procedure that settles electric charges spent with electric charges owed. The fact that these operations are done within the context of smart contracts has the advantage that the operations become fully transparent. For privacy reasons the participants in the smart contract are represented by only a part of their public key. Taking into consideration the environmental impact (in terms of energy spent) for running a proof-of-work consensus algorithm (e.g., bitcoin mining), we decided that SeeLigg needed to use a blockchain that used a proof-of-stake algorithm which is about two orders of magnitude cheaper in terms of energy spent. Ethereum is now in the process of moving from proof-of-work to proof-of-stake and as such was selected as the best candidate for supporting the SeeLigg network. A proof-of-work algorithm such as the one used in Bitcoin is more robust than a proof-of-stake algorithm, but the later has the enormous advantage of being much more energy efficient. As of 2021 bitcoin mining is estimated to represent around 91 terawatts-hours per year. That amount represents more electricity than is used by several small countries, it almost reaches half per cent of all the energy consumed in the world and is seven times larger than the energy consumption of Google global operations [18]. A proof-of-stake algorithm has also the advantage that it is much
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more democratic: a lower barrier to entry as there is no need to have high performance hardware in order to stand a chance of creating new blocks; more immune to centralization because it is likely that the blockchain network will have more nodes. The SeeLigg gateway is already on its third iteration. The first version could be used to charge a small appliance. The second version was able to charge an electric vehicle, but the electric charger had to be opened and modified, thus invalidating its warranty. The third version does not need the charger to be modified. We are now working in the fourth version that includes public-key cryptography so that the gateway can be validated by the blockchain network. Once this is finished, we will publish its specification so that anyone can produce compatible gateways. Marketing changes the sale of a product from a mere sale into something with value, concept, and purpose. Through marketing sales are transformed into acquisition of values and services that represent a statement about life choices and quality of life. We believe that some users can be brought to SeeLigg because they see the platform’s approach in a positive light when compared to the solutions chosen by others. But for that to work the governance of the evolution of the SeeLigg network must be such that its users consider it a fair and democratic process. Kotler describes marketing as a social process, where individuals acquire what they need and want through the offerings, creations, and negotiations of valuable products and services [19]. In this case it is paramount convincing the network users of the fairness of the SeeLigg Smart Contracts, and convincing them that their voice will be heard when later on changes need to be brought into the network. It is important to realize that the use of a blockchain is not just a marketing gimmick to try to ride the blockchain hype. It is a conscient option of releasing to the network some of the control on how the platform will be created and managed, that release of control makes the platform more complex and harder to implement, but at the same time increases its transparency and robustness. Once implemented and represented as a set of smart contracts, the platform becomes blind to the interests of any of its users (including its creators). The only way to change the smart contracts is by using the provisions set for their evolution, and that evolution is controlled by the democratic vote of the participants in the network, that is, it is controlled by the network governance. It is that increase in transparency and robustness that we hope will attract more users, not the use of the term blockchain. Thus, when we say that for us the use of a blockchain contributes to the marketing of SeeLigg we mean that we hope to attract users that want to participate in a community that is both transparent and robust and that like us believe that a blockchain and the use of smart contracts can help on that regard, because it reduces the need to trust the creators of the network. The use of a blockchain and smart contracts allows us to eliminate some intermediaries, but it is not true that the use of a blockchain allows us to eliminate the need for trust. As Schneier [20] aptly identified, what a blockchain does is shift some of the trust in people and institutions into trust in technology. We still need to trust that the cryptography, the protocols, and the software are correctly implemented. As such, the use of a blockchain and smart contracts, although bringing transparency to an otherwise opaque digital platform, is not a silver bullet for the issue of security and
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trust. Most of the network participants will not be able to analyze the open-source code of the smart contracts and decide whether it is correct, what they will do is trust that the few of them that are technically savvy to be able to do that, will do that verification for them.
6 Conclusion The idea of creating an electric chargers sharing platform is not new. There are similar projects in different states of implementation. Still those projects had enough issues that convinced us to start implementing the SeeLigg platform as a way to benefit those of us that already use electric vehicles, and those of us that intend to start using them. It was the need to differentiate the SeeLigg platform from other competing platforms, and to market it as a more transparent and trustworthy solution, and thus to attract more users to this platform, that led us to include smart contracts (and by extension a blockchain) in the SeeLigg platform. We are currently discussing how the governance of the SeeLigg network could be assigned to a DSAO (Decentralised Semi-Autonomous Organisation) [21]. At the same time, we are also evaluating contexts where other networks (e.g., a chain of hotels or a chain of fast food) could profit from installing SeeLigg compatible chargers in their premises so that people would choose to be there while waiting for their vehicles to finish charging. Acknowledgements SeeLigg represents a concept jointly developed by Pedro Alexandre and Bruno Nini. The SeeLigg project participated in the European Innovation Academy 2021, we gratefully acknowledge their support and feedback.
References 1. Bennett, C.J., Katsanevakis, M., Stewart, R.A.: Economic, social and environmental dimensions of PHEV in the smart grid. In: Lu, J., Hossain, J. (eds.) Vehicle-to-Grid: Linking Electric Vehicles to the Smart Grid. The Institution of Engineering and Technology (2015) 2. Ensslen, A., Paetz, A.-G., Babrowski, S., Jochem, P., Fichtner, W.: On the road to an electric mobility mass market - how can early adopters be characterized? In: Fornahl, D., Hülsmann, M. (eds.) Markets and Policy Measures in the Evolution of Electric Mobility. Springer (2016) 3. Pfab, X., Haese, V.: Grid integration of electric vehicles. In: Liebl, J. (ed.) Grid Integration of Electric Mobility, Proceedings 1st International ATZ Conference 2016. Springer (2017) 4. Williander, M., Stålstad, C.: Four business models for a fast commercialization of plug-in cars. In: Beeton, D., Meyer, G. (eds.) Electric Vehicle Business Models: Global Perspectives. Springer (2015) 5. Beria, P., Laurino, A., Maltese, I., Mariotti, I., Boscacci, F.: Analysis of peer-to-peer car sharing potentialities. In Bignami, D.F., Vitale, A.C., Lu, A., Nocerino, R., Rossi, M., Savaresi, S.M. (eds.) Electric Vehicle Sharing Services for Smarter Cities. Springer (2017)
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6. Andoni, M., Robu, V., Flynn, D., Abram, S., Geach, D., Jenkins, D., McCallum, P., Peacock, A.: Blockchain technology in the energy sector: a systematic review of challenges and opportunities. In: Renewable and Sustainable Energy Reviews, vol. 100, pp. 143–174. Elsevier (2018). https://doi.org/10.1016/j.rser.2018.10.014 7. Li, C., Cao, Y., Kuang, Y., Zhou, B.: Influences of Electric Vehicles on Power System and Key Technologies of Vehicle-to-Grid. Springer (2016) 8. Noel, L., de Rubens, G.Z., Kester, J., Sovacool, B.K.: Vehicle-to-Grid: A Sociotechnical Transition Beyond Electric Mobility. Palgrave (2019) 9. Suh, N.P., Cho, D.H. (eds.): The On-line Electric Vehicle: Wireless Electric Ground Transportation Systems. Springer (2017) 10. Schwedes, O., Keichel, M.: The Electric Car: Mobility in Upheaval. Springer (2021) 11. Knobloch, F., Hanssen, S., Lam, A., et al.: Net emission reductions from electric cars and heat pumps in 59 world regions over time. Nat. Sustain. 3, 437–447 (2020). https://doi.org/10.1038/ s41893-020-0488-7 12. Miio: Miio electric charging network (13 Oct, 2021). https://web.archive.org/web/202110132 13648/https://www.miio.pt/en 13. Shafie-khah, M. (ed.): Blockchain-Based Smart Grids. Academic Press (2020) 14. Nakamoto, S.: Bitcoin: a peer-to-peer electronic cash system (2008). https://bitcoin.org/bitcoin. pdf 15. Tapscott, D., Tapscott, A.: Blockchain revolution: how the technology behind bitcoin is changing money, business, and the world. Portfolio/Penguin (2016) 16. Szabo, N.: Formalizing and securing relationships on public networks. First Monday 2(9) (1997). https://doi.org/10.5210/fm.v2i9.548 17. Buterin, V.: Ethereum Whitepaper—a next-generation smart contract and decentralized application platform (2013). https://ethereum.org/en/whitepaper/ 18. Huang, J., O’Neil, C., Tabuchi, H.: Bitcoin uses more electricity than many countries, how is that possible? The New York Times, 3 Sept (2021). https://www.nytimes.com/interactive/ 2021/09/03/climate/bitcoin-carbon-footprint-electricity.html 19. Kotler, P.: Marketing Management, 15th ed. Pearson (2016) 20. Schneier, B.: There’s no good reason to trust blockchain technology. WIRED (2019). https:// www.wired.com/story/theres-no-good-reason-to-trust-blockchain-technology/ 21. European Blockchain Association: European blockchain association governance (2021). https://github.com/European-Blockchain-Association/DSAO
Application of Smart Contracts in Online Product Procurement Julián David González Vásquez, Carlos Enrique Montenegro Marín, Paulo Alonso Gaona García, and Javier Parra Fuente
Abstract In this work, a platform for the acquisition of online products is presented, where companies finally offer merchandise, so that users can buy from the comfort of their homes, taking into account that each of the parties will ensure compliance with the service. For this, the concept of smart contract is applied, which guarantees the correct execution of the agreement during the process, this based on blockchain technology, which provides confidence in the assurance of information. Keywords Purchase · Products · Contract · Blockchain · Security · Technology
1 Introduction Online shopping has become an excellent alternative for the growth of small, medium and large companies, emerging as a benefit of the expansion of the internet, allowing suppliers to be not only in the local or national market, but also in the international [1]. That is why, taking into account the advances in technology, a tool can be provided that supports both bidders and buyers in the acquisition of products that meet the requirements of each of the parties, thus giving a system that provides confidence and security in each of the transactions carried out for this purpose. Blockchain as a distributed system in a network, allows to decentralize information and keep it in different nodes, where each of these is responsible for the
J. D. G. Vásquez · C. E. M. Marín (B) · P. A. G. García Universidad Distrital Francisco Jose de Caldas, Bogota, Colombia e-mail: [email protected] J. D. G. Vásquez e-mail: [email protected] P. A. G. García e-mail: [email protected] J. P. Fuente Universidad Internacional de La Rioja, Logroño, Spain e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 J. L. Reis et al. (eds.), Marketing and Smart Technologies, Smart Innovation, Systems and Technologies 280, https://doi.org/10.1007/978-981-16-9272-7_2
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data that they contain and those that will enter the chain, therefore, its main characteristics are security, integrity and transparency in the transactions executed within this technology [2]. The application of this tool has been seen in different areas such as finance, the judiciary and commerce [3], where it has also begun to venture into online sales, as solutions to concurrent problems are found that compromise the good commercial experience of all those involved, an aspect that is taken into account during the configuration of this project. Smart contracts as computer protocols, aim to facilitate, verify and automatically ensure the negotiation between two untrustworthy parties [4], although smart contracts have made a space in several sectors, in trade they have provided a great help for example in high value transactions, where they must be very rigorous since they can have attacks on your security, and it is at this point where Ethereum makes its smart contracts with high levels of protection available for your transactions [5]. The vast majority of online sales have required a mediator between the customer and the seller, where many times the person, website or intermediary company, makes the effect of a broken phone and ends up giving erroneous information that causes prevention in those involved and lack of transparency in the process [6]. As a great effect of this problem, is that customers avoid buying online, since many times the product they asked for was not the one that arrived or perhaps they never received it, generating economic losses and distrust, making them prefer physical purchases. In this project, a system is proposed that allows bidders to publish their merchandise, giving customers a series of descriptions and prices, so that they can choose and buy their desired products, this within the “regulatory-instrumentalist” idea that must have with the management of smart contracts, to ensure that the transaction is fulfilled by both the seller and the customer [7]. Although smart contracts are not easy to handle, [8] designs a platform that makes it easier for the vulnerable population to handle contracts with a high level of difficulty, making understanding and signing no more than a few clicks, this system provides a guide for our platform to simplify the management of smart contracts in the acquisition of goods. The development of the system is based on the life cycle of smart contracts, which consists of four phases: Creation, freezing, execution and completion, which guarantee the integrity and adequate execution of the platform structure [9], where each of the phases allows the construction of an operational module.
2 Background Blockchain technology is an innovative technology that in the midst of a competitive environment can be applied in different sectors of the economy, with the aim of creating a new generation of decentralized and disintermediated applications, in which the trust of those involved is placed in algorithms and not in a centralized organization [10]. Blockchain technology has been gaining great importance in different areas, including tourism, where through smart contracts, decentralized applications (DAPP) and cryptocurrencies, it has been slightly implemented. But despite the
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importance of this tool, very few researchers have conducted usability studies within the tourism and travel industry [11]. Blockchain has had a big boost in shopping applications that have security in personal information, payments and income management [12]. Taking as an example, one of the implementations of this technology in the online shopping industry has been the sale of medical tourism plans, which occur when patients travel in search of better treatments than those provided in their place of origin. However, to acquire the services they need from intermediaries, they run the risk of being scammed and losing their investment, therefore, it is at this point where blockchain helps to increase disintermediation, transparency and trust, optimizing time and expenses, guaranteeing disbursement of payments and enforcing mutually accepted agreements [13]. Smart contracts are immutable documents once executed, so when there is a vulnerability or an error, they can cause great damage, therefore, to avoid inconveniences, developers are recommended to use fragments of algorithms already used for their new implementation [14]. It should be noted that not all “blockchains” allow the management of smart contracts since their use entails a high monetary cost [6]. The implementation of these is observed in many fields, but one in particular is patent management, where to guarantee the rights of a property, special lawyers have been used that were made obsolete by the use of smart contracts for the protection of intellectual property [15].
3 Application Modules Taking into account the problem of intermediaries in the purchase of online products, in which the information runs the risk of being misrepresented, both for the offeror and for the client, a prototype is proposed for the implementation of smart contracts in the acquisition of merchandise, whose objective is to eliminate intermediation, as it is a direct channel between the main stakeholders. This platform consists of six modules: user registration and access, product loading, cart, cart verification, cart confirmation, shipment progress and audit. The user registration and access module consist of a registration form where the user enters their personal data, their role within the platform, username and password, this will allow a more personalized navigation within the platform and store the data of their purchases, in turn, it also consists of an access form that will ask the client for their username and password. Product loading is a module available only for the roles of the bidding entities or persons, as they can load the product with its description and prices, culminating with the publication of this. The cart is for the exclusive use of customers, there they can choose different products and mount their purchase, once completed it can be confirmed so that the execution of the contract begins on the stipulated dates. The verification of the cart is carried out by the service providers, in this module they will see all the carts assembled by the clients and will be able to verify the existence of stock, if the users
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meet the requirements, among other parameters, once this review is completed, it will be given the go-ahead to start the execution of the contract. The confirmation of the cart is made by the customer once the entity has verified the existence of the products. The shipment tracking can be viewed by both the bidder and the customer, there they will be able to see that the shipment has been made and that it is necessary, also if the stipulated times are being met. Finally, in the audit, a person with the role of auditor, will be able to review each of the transactions that are carried out within the platform, it should be noted that this module is the implementation of the “chain of blocks” through a P2P network. Once the auditor must sign the transactions to record them within the network in a block and thus maintain control of everything that is done in the system.
4 Database Model The database is implemented in the PostgreSQL engine, thus being a relational type, which stores the data of the users, the activities of the plan, the contracts (transaction) and the participants of each of these contracts (Fig. 1).
Fig. 1 Database model. Source Own elaboration
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5 General System Requirements The system must meet the following requirements for optimal functionality (Table 1).
6 Functional Model Based on Use Cases Access to the Platform See Fig. 2. Offerer Actions See Fig. 3. Customer Actions See Fig. 4.
7 Architecture The architecture of the platform consists of a back-end made in the microframework of the Python flask, this offers the possibility of integrating a large number of libraries and consists of its own server, the front-end is the combination of HTML 5, CSS and JS, with helper components like Bootstrap and alertify js, the communication between these two parts is done via AJAX. Finally, the database is controlled by the PostgreSQL engine, connected to the back-end with the psycopg2 library (Fig. 5).
8 Component Diagram The component architecture is centralized, where the central point is the application of smart contracts, there is the database administrator who is in charge of the connection with the database and the management of the information. Through the user administrator, all the functionalities with which users interact with the system are managed, and finally, the GUI provides views that facilitate interaction with the platform (Fig. 6).
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Table 1 General system requirements Application
Description
Guy
User register
Using a form to register the data of the users who are going to interact with the platform, a username and password are created
Functional
User login
Through the login page with the username Functional and password, it allows users to access the platform
Role delimitation
It allows to show the functions according to each user, according to their permissions in the realization and interaction with the contracts
Functional
Product loading
Offering entities or persons can load the products that they are going to offer to customers
Functional
Shopping cart
Help in the acquisition of one or more products showing the description and the price of this
Functional
Cart confirmation
Once all the cart details are in order, the Functional person or persons in charge will be able to sign it for the execution to begin
Shipment tracking
View the progress of the shipment against the time to complete
Functional
Cart verification
You can see the cars that have been built and proceed to check if it is feasible
Functional
Transaction history
Each of the activities carried out within the Functional platform will be registered in the blockchain system
Investigation of transactions
You can review transaction history to track Functional a contract, budget constraint, or user
Access to the platform
Access to the smart contracts platform is done through a web interface available for different devices
Not functional
Graphical user interface
The GUI through the navigation menu, windows, forms and buttons will help users to facilitate the processes
Not functional
Database
A relational database will be used through a conventional administrator
Not functional
Security for users and contracts
The security of users and contracts must be Not functional managed from the database, making use of encryption algorithms and role determination
Source Own elaboration
Application of Smart Contracts in Online Product Procurement Fig. 2 Platform access use case. Source Own elaboration
Fig. 3 Offerer actions use case. Source Own elaboration
Fig. 4 Customer actions use case. Source Own elaboration
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Fig. 5 System architecture. Source Own elaboration
Fig. 6 Component diagram. Source Own elaboration
9 Deployment Diagram The platform is deployed in the web browser, thanks to the HTTP server provided by the Python microframework, Flask, the GUI is displayed there, the user manager and the database manager run inside the server, the latter communicates with the PostgreSQL database system (Fig. 7).
10 Results In developing the application, we worked on the ease and security of online purchasing processes, giving full control to smart contracts, allowing an algorithm
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Fig. 7 Deployment diagram. Source Own elaboration
to fulfill the functions of an intermediary and thus avoid inconveniences with the provision of services. Users when entering the platform must register, completing their personal data and create a username and password to later be able to access all services (Fig. 8). Once the bidders enter, they can enter the module to load the products, here they can add one or more products at the same time, they must enter an identifier, name, description and price of the object to offer (Fig. 9). Each of these products can be chosen by customers to build their own shopping cart, then the bidders can verify the newly built cart, to know if there is the availability of all the products and thus be able to give the best customer service. The user will be able to confirm the purchase of their shopping cart as shown in Fig. 10, they will view
Fig. 8 User access. Source Own elaboration
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Fig. 9 Product loading. Source Own elaboration
Fig. 10 Cart confirmation and verification. Source Own elaboration
the added products, they will be able to edit it (blue button), delete it (red button) or confirm it (green button). During the execution of the transaction, the offeror and the client can see the progress of the shipment, each action that is being carried out, the estimated arrival date, the cost of the products, the destination, this in order to make a fully transparent process for the parties involved (Fig. 11). During all the processes that are carried out within the platform, a record of these is kept in the blockchain, each time an audit enters the transaction history, a new process block is created which contains the description, timestamp and a unique hash that identifies you on the blockchain network. It should be clarified that all the processes within the “chain of blocks” are incorruptible, thus allowing the platform’s security to be of a high level, creating trust in all its users (Fig. 12).
11 Conclusions 1.
Not having the need for an intermediary in the acquisition of products, allows clients to have the certainty that the desired products can be acquired in the times provided by them, likewise for the bidders, that the clients will comply with their payment.
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Fig. 11 Shipment tracking. Source Own elaboration
Fig. 12 Transaction history. Source Own elaboration
2.
3.
The use of smart contracts helps to ensure the reliability of those involved, avoiding economic losses in the online shopping industry due to the lack of customers. The implementation of blockchain technology allows the orderly, safe and reliable management of the information, in addition to the control of the transactions of each of the activities carried out within the platform.
References 1. Giraldo.: Online shopping in Pereira: a look from millennial consumption trends. Catholic University of Pereira (2019). http://hdl.handle.net/10785/7079 2. Bedin, A.R.C. et al.: Blockchain for collaborative businesses. Mob. Netw. Appl. 26(1), 277–284 (2020). https://doi.org/10.1007/s11036-020-01649-6 3. Chen, G., Xu, B., Lu, M., Chen, N.-S.: Exploring blockchain technology and its potential applications for education. Smart Learn. Environ. 5(1), 1–10 (2018). https://doi.org/10.1186/ s40561-017-0050-x
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4. Khan, S.N., Loukil, F., Ghedira-Guegan, C., Benkhelifa, E., Bani-Hani, A.: Blockchain smart contracts: applications, challenges, and future trends. Peer-to-Peer Netw. Appl. (2021). https:// doi.org/10.1007/s12083-021-01127-0 5. Wang, Z., Jin, H., Dai, W., Choo, K.K.R., Zou, D.: Ethereum smart contract security research: survey and future research opportunities. Front. Comp. Sci. 15(2) (2021). https://doi.org/10. 1007/s11704-020-9284-9 6. Neiheiser, R., Inácio, G., Rech, L., Fraga, J.: HRM smart contracts on the blockchain: emulated vs native. Clust. Comput. 23(3), 2105–2122 (2020). https://doi.org/10.1007/s10586-020-030 63-9 7. Brownsword, R.: Regulatory fitness: fintech, funny money, and smart contracts. Euro. Bus. Org. Law Rev. 20(1), 5–27 (2019). https://doi.org/10.1007/s40804-019-00134-2 8. Jeong, S.H., Ahn, B.: A study of application platform for smart contract visualization based blockchain. J. Supercomput. 0123456789 (2021) 9. Sillaber, C., Waltl, B.: Life cycle of smart contracts in blockchain ecosystems. Datenschutz und Datensicherheit—DuD 41(8), 497–500 (2017). https://doi.org/10.1007/s11623-017-0819-7 10. Valeri, M., Baggio, R.: A critical reflection on the adoption of blockchain in tourism. Inf. Technol. Tourism 23(2), 121–132 (2021). https://doi.org/10.1007/s40558-020-00183-1 11. Ozdemir, A.I., Ar, I.M., Erol, I.: Assessment of blockchain applications in travel and tourism industry. Qual. Quant. 54(5–6), 1549–1563 (2020). https://doi.org/10.1007/s11135-019-009 01-w 12. Vinod, B.: Blockchain in travel. J. Revenue Pricing Manag. 19(1), 2–6 (2020). https://doi.org/ 10.1057/s41272-019-00213-6 13. Parekh, J., Jaffer, A., Bhanushali, U., Shukla, S.: Disintermediation in medical tourism through blockchain technology: an analysis using value-focused thinking approach. Inf. Technol. Tourism 23(1), 69–96 (2021). https://doi.org/10.1007/s40558-020-00180-4 14. Kondo, M., Oliva, G.A., Jiang, Z.M., Hassan, A.E., Mizuno, O.: Code cloning in smart contracts: a case study on verified contracts from the Ethereum blockchain platform. Empir. Softw. Eng. 25(6), 4617–4675 (2020). https://doi.org/10.1007/s10664-020-09852-5 15. Meitinger, T.H.: Smart contracts. Informatik-Spektrum 40(4), 371–375 (2017). https://doi.org/ 10.1007/s00287-017-1045-2
Investing with Cryptocurrencies Between Risk and Profit José Antonio García Pereáñez
Abstract In the international stock market, the possibility of investment with “cryptocurrencies” has its appearance, which has been gaining strength in the Colombian credit and operating scenario, especially with young financiers who adhere to this language with the so-called Blockchain technology. From this comes the risk and the benefit in the absence of a possible regulation. On these situations, in this text, an analysis is made on the identification and characterization of a problem of financial and public ethics in the scene of cryptocurrencies, in addition to the relationship and comparison of their behavior with other currencies and the position of entities International such as NYSE (New York Stock Exchange, in Spanish, New York Stock Exchange), CFTC (Commodity Futures Trading Commission, in Spanish, Commodity Futures Trading Commission in the USA) and Banco de la República in Colombia. The fundamental purpose of this text is the clear and theoretical rationalization around cryptocurrencies as an “investment alternative” and their ethical costs in correspondence to their operation in the Colombian financial state and their risk status in exchange rate normalization. The characterization of how Bitcoin managed to become a desired asset and belonging in the market and accredited in the North American economy was deployed and its characteristics were leveled, events which have led to the spread of the cryptocurrency. In the same way, how the practice of crypto-currencies in Colombia is not legislated and can offer an economic risk. Keywords Cryptocurrencies · Bitcoin · Virtual money · Ethical analysis · Risk · Profit
1 Introduction The irruption of the so-called cryptocurrencies in the world economy and the freedoms that the Colombian market offers to this financial option, suggests interest among young people, in order to participate in this financial scenario. It is a new J. A. G. Pereáñez (B) Corporación Universitaria Americana, 00504 Medellín, Colombia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 J. L. Reis et al. (eds.), Marketing and Smart Technologies, Smart Innovation, Systems and Technologies 280, https://doi.org/10.1007/978-981-16-9272-7_3
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topic circumscribed in the possibility of investment—profit, which merits the knowledge of this phenomenon in other parts of the world where it has had an epicenter of action and to offer, through this writing, an ethical deliberation on this new financial behavior. Still, a question appears among all the concerns that this financial environment for cryptocurrencies may raise: Is Bitcoin a means of tax evasion? Some financial theorists assure that in these financial practices there is the risk of loss and shock, as in all. The truth is that this state of novelty hovers between two perspectives somewhat unknown to laypeople in financial matters; it is about the limits imposed between Blockchain technology and Cryptography. This article aims to study asymmetries in knowledge between Blockchain and Cryptography. As well as offering knowledge about cryptocurrencies, equidistant from the dialectic between cost–benefit for the purposes of its foray into the Colombian financial market. The essential characteristics of Bitcoin argue the foundations of banking decentralization—as happened with the neoliberal model in the eighties—which was recurrent with the anonymity, of whoever was the guarantor between supply and demand. Likewise, transactional agility, only comparable to what happened with the attraction of foreign capital and the deregulation of the economy under the Reagan administration in the USA. Similarly, automated portfolio registration, global collaborative work, among others, are added value factors, which enhance a way of monetizing that allows us to think that the cryptocurrency business will be positioned globally in the coming decades. This is how they name it: Asmundson [1], Auer [2] and Becker et al. [3].
2 From Blockchain Technology to Cryptography: Ethical Aspects The “Blockchains” respond to a design in cyberspace, proposed as a database, which does not respond to a centralism of operations. The main characteristic for its operation lies in its appearance and conformation, like the columns of a book for accounting and accounts, this one, with a digital distribution as a whole. Thus, and in succession, they are shown as “chains of registration and storage” of information by management blocks, which respond to synchronous data, in turn, chronological, linked in virtual subjection to cryptography. Some theorists claim that this technological development thus exposed, has brought special favors to cyber industries, and has sought the effectiveness and validity of their data. Despite this, due to its highly “decentralized” nature, it has had inappropriate consequences in a responsible ethical setting, as proposed by: Bitcoin Project [4]. The above is very different—keeping the proportions—from what is exposed in centralized base platforms, as well as traditionally they made their appearance on the web. This is with a very limited accumulation of efficiency for the action, which demanded an excessive virtual space for its storage [5].
Investing with Cryptocurrencies Between Risk and Profit
27
According to the ethical approach of this writing, the situation now appears between the possible successes and mistakes, between Blockchain technology and Cryptography. For theorists like Zohar [6], and Vásquez [7], Blockchain data are distributed across a large number of online devices. Therefore, it is data resistant to being subjected to harmful attacks in cyberspace and to possible technical failures. The nodes obtained are replicated and collected copy after copy in the database, which makes predicting the absence of failures. Unless, in an unusual way and with ill will, another undifferentiated actor intends to enter in a bad way. In a different way, conventional data appear in the midst of an uncertain virtual environment with a tendency to vulnerability, which makes them more likely to be called “cyberattacks.” The nerve and breaking point, between what has been mentioned so far, is manifested in the fact that Blockchains misuse “public keys” or what is understood as “asymmetric cryptography,” which is already highly problematic and does not offer any guarantee and much less in Colombia, where there are no known regulations in this regard. This situation becomes more acute in relation to another aspect: a “private key” is also provided for the user, in order to keep it secret, which permeates serious damage to the entire Blockchain, since in Colombia there is no secrecy for these aspects, much less has a regulation to serve as a back-up. Thus, users with their private key have their own access to their accounts, as if they had a “Personal Bank”. The risk is such that losing the password or having it arbitrarily accessed is literally: losing money. On the other hand, the coverage of payments through cyberspace on a web platform has featured two actors involved and a medium that is the bank, or the credit card agency or the payment consignees, which have multiplied in their expertise. This changes drastically with the incursion of Blockchain technology, since the above is not necessary to carry out the transaction. This has an “expert network” with nodes that operate as “tentacles” to verify operations, which those who manage it called “mining.” This makes these transactions are accused of evasive, little diaphanous and loopholes for taxes. This is stated by: Arango Arango et al. [8]. The greatest risk that operations with Blockchain technology offer is the loss of trust in a stable financial organization with virtual application links. In exchange for this, there is a very large reduction in the total costs of transactions and the systemic displacement of intermediaries, which until recently were considered legal and legitimate. This is also the concern of Auer [2]. Likewise, from another sector of virtual finance they assure that operations with Blockchain technology become inefficient and biased. The cybernetic action called “mining” in this epicenter is highly competitive, focused on agility and the underpinning of a single winner in time spans encrypted in minutes. Thus, if one is the winner, many are the losers, and this repeats itself infinitesimally. It presents inoperation, ineffective work and the waste of opportunities on opportunities. The intervals are of calculation and of calculation power in the middle of probabilities, which become possibilities for the encounter of a valid block has. This competition challenges synchronicity to positively impact and obtain the expected profit. For all this, the Bitcoin network has seen its resources increase in a disproportionate way and
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without any control. A clear example is what happens in countries like Nigeria, Ireland and Denmark. This is reported by Buscaglia [9]. Another pressing and quite dissolute situation in relation to what has already been raised, is the indefinite and indeterminate permanence of all the information that is about to be disseminated and objected to on the Bitcoin network. Its asynchronous nature means that the information remains in time without any variable that can erase it, even if the subject of the action and whoever is credited with the data wants to do so. In the long term, this could be considered a projection and profit since financial data are unfailingly stored by Blockchain technology in cyberspace. This permanence oscillates between the tracking and the registration of information, permanent and public, with free access [10]. With all of the above, a multinational company with cybernetic services could be “shielded” using Blockchain technology to prevent at all costs that its employees commit crimes with money and access that does not belong to them, or it could also be traced with urgency and security, the faults of a company’s trusted employees. All in all, Blockchain technology in financial operations offers the security and stability record to avoid complicity and dubious handling of the transaction.
3 Methodology It is proposed to explore a set of 12,933 cryptocurrency transaction data from January 2013 to April 2019. A principal component analysis was applied with oblimin rotation and Kaiser normalization taking into consideration the following variables: day, year, value of opening, closing value, maximum value during the day, minimum value during the day, percentage increase in the value of the cryptocurrency, volume, capitalization and month. From the regression values obtained, a scatter plot was made that relates each of the factors with the percentage increase values. Research, when considering data and analyzing it from its context, is understood with a mixed approach. The methodology proposed in this study will be that of the qualitative approach. Experts are consulted, as well as of monetary authorities, in the stock market and legislative order. This in order to know positions at the global level and in the local environment on the business of cryptocurrencies. All this helps characterize and describe the process of the current behavior of cryptocurrencies. The capture of the information is provided in recognized works on the same topic, and investigations that have this same object of study. In addition, articles and essays published and retrieved in search engines are reviewed. In the same way, what is pronounced by local and international authorities that denote the impact of cryptocurrencies in the financial markets. This is also referenced by: Caro and Obando [11], and Champagne [12].
Investing with Cryptocurrencies Between Risk and Profit
29
4 The Handling of Cryptocurrencies in Colombia The management of cryptocurrencies has its appearance in Colombia in the midst of the effort to maintain technological advances and as a response to a requirement of the globalization of communications in the economy and virtual language, which gives a figure in cyberspace, to “money digital.” The systematization of codes in the expression of cryptography, generates a compact, decentralized unit, without regulation, but with a dominant consensus among the participants, especially young financiers and with proven expertise in computing and telematics. This virtual scene of offer and profit becomes fascinating and attractive. Also shown by: Arango et al. [13]. The immediacy of these financial operations, their low costs and the founding expectation of “profit,” has allowed that, to date, 17 countries, including: Russia, the United Kingdom, Spain and Argentina, among others, suggest some fiscal restrictions for the handling of cryptocurrencies. In contrast to this, the governments of Bolivia, Morocco, Egypt and Algeria, have de facto prohibited this type of transaction, with the obligation of the founding and distrustful refusal of “digital money.” In Colombia there is a draft Law 268 of 2019, which aims to invoke the regulation of the use of cryptocurrencies. Therefore, in the absence of regulation, the appearance and handling of digital money seems to have no risk at the moment. Entities such as: The Bank of the Republic, The Financial Superintendency, The Directorate of National Taxes and Customs DIAN. They recognize this activity in the crypto-asset market as subject to payment of taxes. This is why the handling of cryptocurrencies is not identified as a risk event and because of its novelty, little known and widespread [14]. According to the report of the Bank of the Republic, the law project 268 of 2019, filed for discussion and approval in the Congress of the Republic of Colombia, has as fundamental purposes: The recognition of the use of cryptocurrencies as a form payment for any financial transaction in the Colombian territory. In the same way, the definition of how banking entities, services with digital money, should intervene. Likewise, the form of operationalization of commercial entities and links with foreign entities, whose financial favor is defined with digital money. However, the project seeks the regularization of interactive platforms for negotiations with Cryptoactive exchanges (PIC) through a registry of exchanges (exchanges) also called the Single Registry of Cryptoactive Exchange Platforms (RUPIC) [15]. Likewise, the named law project aims to strengthen and empower the Chambers of Commerce in Colombia and impact the Commercial Law Code with these new emerging figures of cryptocurrencies, defining their virtual exchange and registration scenarios, attending to the configuration of the Supersociedades, and with action followed by control and surveillance of the Superfinancial. The named project configures the Ministry of Finance as the guarantor of the processes and as the recipient of the reports. Finally, the bill proposes the reproduction of a recordable parameterization for cryptocurrency operators and have a mandatory security program called the Operations Manual to control and set limits to “digital money.”
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The truth is, that with all the problems that the Congress of the Republic has to legislate, the named bill to normalize the use of cryptocurrencies in Colombia tends to be delayed. Meanwhile, its use is carried out indiscriminately in the country, with a tendency to evade fiscal responsibilities. The propensity of Congress to avoid its position to legislate on “serious” matters has also been made explicit in the absence of laws to normalize euthanasia and consensual suicide, for example. So too, surrogacy and the personal dose. All this suggests that the legislation on digital money in Colombia will appear, when a conflict such as that of the famous “money pyramids” is configured, which, on this, Congress deliberated in entire days to define, if that money was legal or no, in the absence of law. In her master’s work, Doctor Canales [15] proposes that: Constitutionally, Banco de la República is the only institution authorized in the country to give cryptocurrencies in Colombia a legal and legitimate course. Thus, the regulation of exchange policies only belongs to the aforementioned bank. The above is part of the exclusive actions in that order. Thus, Banco de la República is the only one that can establish exchange policies in relation to possible businesses mediated by cryptocurrencies. Furthermore, Doctor Canales [15] proposes that the time will come, sooner rather than later, for the Legal System in Colombia to apply a regulation for cryptocurrencies. This is why Law 527 of 1999 [16] in force tacitly expresses the principle of “functional equivalence,” which unfailingly allows a classification of Bitcoins. Thus, and bearing in mind the above, it is necessary to clarify that there is a motion of risk in investing with cryptocurrencies. On this, no judicial ruling has been presented in this regard. Cryptocurrencies in Colombia have not been the subject of any reasoning and legal pronouncement. Cryptocurrencies do not respond, nor are they subject to Colombian monetary regulation; therefore, their commercialization is not illegal or legal.
5 Results Performing Principal Component Analysis gives a KMO and Bartlett test result as obtained in Table 1. A KMO value greater than 0.7 is observed, which implies an adequate value. Then the following pattern matrix is obtained, in Table 2. It is then identified that factor 1 contains the variables of maximum value, closing value, opening value, low value, capitalization and volume, factor 2 contains the variables month and year and factor 3 contains the variables percentage increase and Table 1 KMO test
KMO Bartlett
0.774 Approx. Chi-cuadrado
299,122.537
Gl
45
Sig
0.000
Investing with Cryptocurrencies Between Risk and Profit Table 2 Pattern matrix
31 Component 1
Maximum value
0.999
Close
0.999
2
3
Open
0.999
Minimum value
0.998
Capitalization
0.956
Volume
0.727
−0.281
Month
0.102
0.760
Year
0.127
−0.755
Percentual increment Day
0.124
0.859 −0.509
day. In factor 2 it is identified that the year is inversely proportional to the month and factor 1, likewise the day is inversely proportional to the percentage increase and factor 1. It is in this way that a decreasing trend of the financial factor is identified (factor 1) as there is an increase in the year and as the end of each month is reached. The graph that relates the percentage increase with respect to factor 1 is seen in Fig. 1. Groups are identified in which it is identified that the points with the highest capitalization and the best financial performance have a lower percentage increase,
Fig. 1 Scatter diagram of percentual increment versus factor 1
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J. A. G. Pereáñez
Fig. 2 Scatter diagram of percentual increment versus factor 3
which implies a lower volatility. The graph that relates the percentage increase with respect to factor 3 is seen in Fig. 2. A direct relationship is identified between the percentage increase and the factor related to the day of the transaction.
6 Conclusions The digital world created the need for virtual cash, with beneficial attractions for users due to its versatility in cyberspace scenarios and due to the express beneficial gain and impact on the minds of young netizens, which in a short time gave rise to the so-called cryptocurrencies. Likewise, the use of cryptocurrencies in the absence of regulation is an easy virtual scenario for “money laundering” and to finance actions of Terrorism and tax evasion. All this, due to its decentralized characteristics and without laws for its normalization. Colombia is increasingly far away to regulate the practice of cryptocurrencies for the reasons that this writing proposed. Law project 268 will only be effective, when the disadvantages of virtual money and abuse are demonstrated with a practice that tends to be harmful and evasive, creating serious asymmetries among citizens. It is necessary to address the DIAN rationalizations on this matter: “… If the legislature’s interest is also to control evasion, it recognizes that “mining” is an activity taxed by Income Tax, its profits must be declared there, as well as the assets
Investing with Cryptocurrencies Between Risk and Profit
33
obtained with the product of the investment in transformation portfolios…” Darcio Bitcoin. The cryptocurrency business in Colombia presents a challenge and a business alternative. It is necessary to regulate this practice to avoid serious problems later. Thus, as bitcoins are currently presented, they offer a legal vacuum. Although Banco de la República does not express legality or illegality, it does not make any statement about the imminent risk that this practice may entail. Still, there is an unusual speed in conceptualizing cryptocurrencies, especially among young investors. Perhaps this will stir up the debate in the Congress of the Republic, as well as its imminent legislation. Regarding cryptocurrencies, new lines of research can be proposed in the near future, on investment benefits, capital expansion and currency capture.
References 1. Asmundson, I.O.: What is money? Finance and Development 49(3) (2012). Retrieved from: http://www.imf.org/external/pubs/ft/fandd/2012/09/basics.htm 2. Auer, R.: Regulación de las criptomonedas: evaluación de reacciones del mercado. Informe Trimestral del BPI (2018). https://www.bis.org/publ/qtrpdf/r_qt1809f_es.pdf 3. Becker, J., Breuker, D., Heide, T., Holler, J., Rauer H.P., Böhme R.: Can we afford integrity by proof-of-work? Scenarios inspired by the Bitcoin currency. In: The Economics of Information Security and Privacy, pp. 135–156 (2013). Springer, Berlin, Heidelberg 4. Bitcoin Project.: Bitcoin. Innovacion en sistemas de pago (2009). Retrieved from https://bit coin.org/es/innovacion 5. Cárdenas, O.A.: Contratación electrónica en las transacciones con Bitcoins en Colombia. Revista Academia Derecho 7(13), 265–308 (2016) 6. Zohar, A.: Bitcoin: under the hood. Commun. ACM 58(9) (2015) 7. Vásquez, L.: Bitcoin. ¿Moneda o burbuja? Revista Chilena de economía y sociedad, Chile. Artículo 8(1) (2014). https://rches.utem.cl/articulos/bitcoin-moneda-oburbuja/ 8. Arango Arango, C. Barrera Rego, M. M., Bernal Ramírez, J.F., Boada Ortiz, A.: Criptoactivos. In: Congreso de Derecho Financiero de la Asociación Bancaria de Colombia (2017). www.ban rep.gov.co/docum/Lectura_finanzas/pdf/documentotecnicocriptomonedas.pdf 9. Buscaglia, E.: Lavado de dinero y corrupción pol´ıtica, el arte de la delincuencia organizada internacional (2015). Debate, Ciudad de México 10. Garcia, E.A.: Monedas virtuales se suman al comercio electrónico. Bogotá, Colombia (2016). Retrieved on 4 Sept 2019, from https://repository.unimilitar.edu.co/bitstream/handle/10654/ 14892/MoraGarciaEdwinAlberto2016.pdf;jsessionid=934230E8DFB986704A9DE92A4AD 49CE1?sequence=3 11. Caro, S., Obando, L.: Monedas virtuales como una nueva alternativa de inversión, y su tendencia a través del. Medellín, Antioquia, Colombia (2017). Retrieved on 4 Sept 2019, from http://dspace.tdea.edu.co/bitstream/tda/190/1/Monedas%20virtuales%20como%20una%20n ueva%20alternativa%20de%20inversion%20y%20su%20tendencia%20a%20traves%20del% 20tiempo.pdf 12. Champagne, P.: El Libro de Satoshi (2014). BlockchainEspana.com. Retrieved from https:// libroblockchain.com/wp-content/uploads/2018/07/Libro-de-Satoshi-BlockchainEspana-v1junio-2018.pdf 13. Arango, C., Barreto, M., Bernal, J., Boada, A.: Criptoactivos. Banco de la Republica (2018)
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14. Banrepública, B. d. (01 de 04 de 2014). Página Web Banco de la República de Colombia. Retrieved from http://www.banrep.gov.co/es/comunicado-01-04-2014 15. Canales, S.: Bitcoin, la moneda descentralizada de curso voluntario, como equivalente funcional del peso colombiano (2018). Retrieved from http://bdigital.unal.edu.co/64206/1/10207350392018.pdf 16. República de Colombia. Ley 527 de 1999. On: http://www.secretariasenado.gov.co/senado/bas edoc/ley_0527_1999.html
Drivers of e-Relational Capital in the Retail Industry Valentina Vukmirovi´c , Milenko Radoni´c , and Miloš Milosavljevi´c
Abstract Relational capital in the retail industry is a paramount driver of growth and financial success. Although relational capital might not be a novel topic, measuring e-relational capital and tracing down its antecedents attracts immense scholarly attention worldwide. The aim of this paper is to measure the e-relational capital of the fast-moving consumer goods retailers (FMCG retailers) in Serbia and to explore and examine the predicting power of a number of drivers of e-relational capital. To fulfill this aim, we narrowed the components of the relational capital to the relationship with customers, on one side, and suppliers, on the other, and accordingly conducted two separate, but interrelated studies. By using the structured questionnaires, we collected primary data from customers (N 1 = 651) and suppliers (N 2 = 159). The results indicate that customer loyalty and brand awareness play pivotal role in the customers’ side of e-relational capital formation, whereas supplier trust and relationship performance have crucial importance in the suppliers’ side of e-relational capital building. Keywords Relational capital · Retail industry · Electronic word-of-mouth
1 Introduction In the last few decades, relational capital in the retail industry has attracted an immense scholarly attention [1]. The success of retailers was ever since marked as dependent on the success of relationship management in a supplier–retailer– customer supply chain [2]. Likewise, customer centricity has become a synonym for competitive advantage on a global scale. Therefore, many retailers have adopted V. Vukmirovi´c Institute of Economic Sciences, Belgrade, Serbia M. Radoni´c GoDaddy, Belgrade, Serbia M. Milosavljevi´c (B) University of Belgrade, Belgrade, Serbia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 J. L. Reis et al. (eds.), Marketing and Smart Technologies, Smart Innovation, Systems and Technologies 280, https://doi.org/10.1007/978-981-16-9272-7_4
35
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V. Vukmirovi´c et al.
complex relation marketing strategies and have customized their approach to different customer segments. Relational capital in the retail industry might not be a novel topic. Relational capital refers to ‘assets that are rooted in interpersonal relationships through a history of interaction between actors’ [3]. However, measuring e-relational capital and tracing its antecedents attract immense attention from scholars and practitioners worldwide. The aim of this paper is to measure the e-relational capital of the fastmoving consumer goods retailers (FMCG retailers) in Serbia and to explore and examine the predicting power of a number of drivers of e-relational capital. To fulfill this aim, we narrowed the components of the relational capital to the relationship of retailers with customers, on one side, and suppliers, on the other, and accordingly conducted two separate, but interrelated studies. We measured the quality of e-relational capital with e-word-of-mouth (e-WOM). Particular drivers of customer e-WOM in this study were customer loyalty and brand awareness, and specific drivers of supplier e-WOM were trust, commitment, and relationship performance. Three main original values are obtained in our study—the digital aspect of relational capital measurement, the holistic approach to the measurement of relational capital drivers, and the geographical context of Serbia as a developing country. The remainder of this paper is organized in the following order. Section 2 reviews the literature and develops hypotheses. Section 3 thoroughly elaborates on the methodology used for two interrelated studies. Section 4 delineates the results. Section 5 contextualizes the results by dissecting the key findings, providing the main contributions, implications, limitations and further recommendations, and conclusions.
2 Literature Review 2.1 Customer e-WOM The advent of Internet technologies and digital media has enabled the spread of consumption-related user-generated content through online discussion forums, review and shopping Web sites, social networking sites, and blogs [4]. Based on a widely accepted definition by Hennig-Thurau et al. [5], electronic word-of-mouth communication (e-WOM) is referred to as ‘any positive or negative statement made by potential, actual, or former customers about a product or company, which is made available to a multitude of people and institutions via the Internet.’ This phenomenon has received significant academic attention as researchers investigated the impact of e-WOM on pre-purchase evaluation [1], purchase intention [6], and post-purchase product perceptions [7]. The interest in this topic is rising due to the shift from the traditional paradigm which used to perceive tangible assets and the exchange of goods as a focal point in company–customer value creation [8]. The new approach is based on the evolution
Drivers of e-Relational Capital in the Retail Industry
37
of the customer role from a passive recipient of value to an active value co-creator in terms of communication and relationship activities [9]. Companies may be willing to cultivate their relationships with customers through active communication, as this is proved to be the mean to enhance customer loyalty and achieve improved sales performance [10]. Recent findings suggest that customer e-WOM is motivated by customer satisfaction, considering opposites of satisfaction attitudes [11]. The interactive nature of social media platforms and the rise of consumer activism have encouraged customers to take an active role in online discussions with other users. Individuals’ propensity to mimic the behavior of their acquaintances or prominent social media users suggests that highly engaged users should be in the focus of companies’ engagement campaigns as they can lead, by example, in generating company-related content [12]. Highly engaged individuals are more likely to create favorable attitude toward a company or brand, as engagement is proved to be a predictor of customer loyalty [13] which in turn can elicit favorable behavioral response. As inferred by Lin and Wang [14], customer loyalty is observed as customers’ motivation to realize repeat purchases and engage in sharing favorable e-WOM for a retailer. Significant driver of customer loyalty in retailing is proved to be the pricing policy [15]. As explained in Wieseke et al. [16], the rationale behind this claim can be found in the social exchange theory which posits that relationship between exchange parties is sustained if the rewards exceed the cost of exchange. An analogy with the retail industry would be when customers are offered with points-based loyalty programs which provide discounts to ensure their prolonged participation in mutual relationships [17] and consequently influence positive behavioral responses in form of e-WOM [18]. Considering the hierarchy of effects, model [19] proposes that brand awareness, being the initial phase of the model, may be a precondition for e-WOM activities in the final, conative stage of the model. Observing user interactions within a social media fan page, authors have proved that higher levels of brand awareness positively influence e-WOM activities. As higher levels of brand awareness can influence the brand image and brand equity formation [20], it would be advisable to investigate their impact on e-WOM creation as well. Literature indicates that customer’s ability to relate to the brand because of customer self-image and brand image congruency motivates brand advocacy behavior [21]. Therefore, if the customer’s and brand’s set of values overlap, customer can be motivated to create favorable e-WOM for the brand [22].
2.2 Supplier e-WOM Existing body of literature has provided studies on the influence of customer engagement in e-WOM creation and its impact on building customer–retailer relationships [23]. On the contrary, there is a scarcity of research regarding the impact of digitally supported communication on the relationship between other supply chain parties [24].
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Different aspects of supplier–retailer relationships have received substantial academic attention. As observed in Jain et al. [25], commitment has a moderating effect on the interaction between the aforementioned parties. Commitment, referred to as supplier’s tendency to sustain and reinforce valuable relationships which bring benefits in the long term, was proved to be critical for the success of exchange relationships in supply chains [26]. Trust, being the measurement of faith in partner’s honesty and dedication toward achieving mutual gain, was proved to have critical importance for the success of supplier–retailer collaboration [27]. Finally, supplier– retailer relationship performance (as a measure of exchange activities, effectiveness, and efficiency) has been a vividly discussed topic in the concurrent scholarly publications [28]. Nonetheless, existing body of literature does not provide evidence on the influence of supplier trust, commitment, or relationship performance on supplier’s tendency to generate e-WOM. Authors mostly tackle the issue of supplier–retailer e-relationship capital creation by observing the potential of social media for improving their collaboration and performance in general. It is advocated that relationships between supply chain parties can be improved through social media communication, as B2B communication becomes less formal and more interactive by gaining human dimension [29]. By establishing a committed relationship, retailer can benefit from supplier’s brand promotion blogging initiatives, as positive outcomes such as improved brand visibility are beneficial for both parties [30]. Accordingly, Rapp et al. [31] states that suppliers’ use of social media for brand promotion through supply channels and continuous communication with retailers encourages both retailer and brand performances.
2.3 Study Hypotheses Following the previous literature review section and the aim of this study, we conducted two separate studies aimed at exploring the factors that drive relational capital. The proxies for the relational capital creation were recommendations by customers, on one side, and suppliers, on the other. The recommendations were analyzed as electronic recommendations—electronic word-of-mouth—as perceived by both customers and suppliers. Three main hypotheses were set in this study as follows: H1: Customer satisfaction, customer engagement, and pricing policy positively affect customer loyalty. H2: Customer loyalty and brand awareness positively affect customer e-WoM. H3: Supplier trust, supplier commitment, and relationship performance positively affect supplier e-WoM. This set of hypotheses is graphically conceptualized in Fig. 1.
Drivers of e-Relational Capital in the Retail Industry
39
Fig. 1 Hypothesized model
3 Methods 3.1 Research Instruments, Variables, and Measures In order to collect the primary data from two broad stakeholder groups—customers and suppliers—we developed two different questionnaires. Both questionnaires were in electronic forms and based on computer-assisted web interviewing (CAWI). All the constructs, excluding the demographic sections, were measured on a multi-itemed scale (7-point Likert-type scale). All the constructs used in the first questionnaire were supported by the concurrent literature. The overview of questionnaires’ structures, measures, and type of connection to the existing literature is given in Table 1. Both questionnaires were pilot tested by four test respondents to improve readability of particular inquires and the structure of the questionnaire as a whole.
3.2 Sampling Procedure and Data Collection For the collection of data from customers, the convenient sampling procedure was used. We tried to include respondents from various demographic groups, and accordingly the questionnaire was iteratively distributed to diversify the demographic features of the sample. In total, the questionnaire was distributed to 3260 addresses, and 651 were returned as valid (19.96%). As for the supplier-based questionnaire, the snowball sampling procedure was used. This procedure is based on the activation of referral chains. The initial group
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V. Vukmirovi´c et al.
Table 1 Measures used in the study Variables
No. of items
Type of connection to the existing measurement scales
Customer satisfaction
5
Reworded from Bloemer and Odekerken [32]
Customer engagement
4
Adapted from Monferrer et al. [33]
Customer loyalty
5
Inspired by Camarero Izquierdo et al. [34]
Pricing policy
3
Developed following Zhong and Moon [35]
Brand awareness
3
Reworded from Godey et al. [36]
Corporate image
3
Customer e-WOM
3
Based on Goyette et al. [37]
Supplier trust
5
Collected from Mungra and Yadav [38]
Supplier commitment
3
Relationship performance
4
Supplier e-WOM
3
Developed by the authors, following Goyette et al. [37]
of suppliers was based on the emailing list provided by three retail companies. The respondents were key informants on buyer–supplier relationship (sales managers or key accounts). Since this procedure might be a subject to a myriad of drawbacks, the questionnaires were coded in order to decrease any potential sub-invasive clustering.
4 Results 4.1 Study One: A Customer Perspective Sample features. After excluding invalid responses, we collected a total of 651 valid questionnaires from customers of FMCG retailers. The gender split was highly disbalanced—430 respondents were females (66.1%), whereas 218 were males (33.5%) and the remainder did not prefer to disclose their gender. The average customer was 32.16 years old with STD = 13.368 (the youngest respondent in the sample was 17, and the oldest 82 years old). Approximately, 55% of respondents were fulltime employed, and the remaining was either unemployed or partially financially supported by family or friends. The sampled respondents marked shopping groceries and other FMCG products as a ‘good experience’ (mean = 4.62, STD = 1.661). Pre-analysis. Prior to testing the study one hypotheses, we conducted a pre-analysis including the descriptive analysis of variable constructs (means and standard deviations), reliability analysis (Cronbach’s Alpha) for all multi-itemed constructs, and correlation analysis (Pearson moment two-tailed coefficient analysis) to test interdependence among independent and dependent variables.
Drivers of e-Relational Capital in the Retail Industry
41
Table 2 Descriptive statistic, internal reliability, and correlation matrix for the customer-based relational capital Mean STD Customer satisfaction
α
4.396 1.568 0.956
Customer engagement 3.121 1.531 0.904
2
3
4
5
6
0.642**
0.791**
0.607**
0.675**
0.395**
0.606**
0.705**
0.571**
0.582**
Pricing policy
4.272 1.668 0.961
0.624** 0.703** 0.426**
Customer loyalty
3.443 1.603 0.911
0.606** 0.569**
e-word-of-mouth
2.558 1.698 0.959
0.473**
Brand equity
4.210 1.523 0.916
**p < 0.00
The composite scores for each variable were measured as an arithmetic mean of individual items. The descriptive statistics for the multi-itemed constructs is displayed in Table 2. As presented in this table, customers are moderately loyal to the retail stores where they frequently shop for FMCG (mean = 3.443, STD = 1.603). Furthermore, brand equity was relatively good (mean = 4.210, STD = 1.523). Nonetheless, the composite score for e-WOM was relatively low (mean = 2.558, STD = 1.698). All the multi-itemed constructs were controlled for internal reliability using the Cronbach’s Alpha test (see Table 2). The values of α were far above the traditional threshold of 0.70, which was expected since the measures within variables were reworded and adjusted from the prior, already empirically validated studies. As shown in Table 2, we found a number of strong and moderate statistically significant correlations between the observed variables. Particularly, strong correlations were found between customer satisfaction and pricing policy (b = 0.791) and customer engagement and customer loyalty (b = 0.705). Since the correlation was found between the independent variables, we conducted the tests for auto- and multi-collinearity, by examining the Durbin–Watson test and variance inflation factor. Hypotheses testing. Finally, we tested the study one hypotheses. In the first regression model, the dependent variable was customer loyalty, and the independent variables were customer satisfaction, customer engagement, and pricing policy (Table 3). The value for the Durbin–Watson test was 1.896, which is between the traditional threshold (1.500 < DW < 2.500). The variance inflation factors (VIF) were far below the threshold of 10 (3.008, 1.780, and 2.796, respectively). Accordingly, we assumed that there was no auto- or multi-collinearity among the observed variables. The independent variables predicted 56.1% of the variability in customer loyalty (R2 = 0.561, p < 0.000). Accordingly, we confirmed H1. With regard to the individual influence, all the observed variables were statistically significant predictors of customer loyalty. In the second multivariate OLS regression model, the dependent variable was eWOM, and the independent variables were customer loyalty and brand equity (Table 4). The value for the Durbin–Watson test was 1.840, which is between the traditional threshold (1.500 < DW < 2.500). The VIFs were, once again, far below the threshold
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V. Vukmirovi´c et al.
Table 3 Regression model for customer loyalty Dependent var.
Unst. Coeff.
St. Coeff.
Customer loyalty
B
Beta
SE
t
Sig.
VIF
(Constant)
0.385
0.127
3.036
0.002
Customer satisfaction
0.091
0.046
0.089
1.966
0.050
3.008
Customer engagement
0.517
0.036
0.494
14.206
0.000
1.780
Pricing policy
0.244
0.042
0.254
5.834
0.000
2.796
R
0.749
Adj R2
0.559
DW
1.896
R2
0.561
SE
1.065
F
275.257
Table 4 Regression model for the customer e-WOM (customer-based relational capital) Dependent var.
Unst. Coeff.
e-WOM
B
St. Coeff. SE
t
Sig.
VIF
Beta
(Constant)
−0.018
0.161
−0.109
0.913
Customer loyalty
0.473
0.042
0.447
11.222
0.000
1.582
Brand equity
0.224
0.044
0.201
5.054
0.000
1.582
R
0.591
Adj R2
0.348
DW
1.840
R2
0.350
SE
4.371
F
174.213
of 10 (both were 1.582). Accordingly, we assumed that there was no auto- or multicollinearity among the observed variables. These two independent variables predicted 35% of the variability in e-WOM (R2 = 0.350, p < 0.000). Therefore, we confirmed H2. By looking at individual effects of two independent variables (customer loyalty and brand equity), both of them were statistically significant predictors of e-WOM.
4.2 Study Two: A Supplier Perspective Sample features. In total, 159 representatives of vendor companies responded to our questionnaire. The respondents in vendor companies were key informants on buyer (retailer)–supplier relationship. The average age of respondents was 34.07 (STD = 6.842). The gender breakdown was even (male = 50.9%, female = 49.1%). As for the educational background, majority of respondents had finished tertiary education (72.3%). Finally, respondents were experienced, as the majority of them had more than 5 years of experience in the company they worked for. As for the company structure of respondents, large companies were dominant (54.1%), followed by mediumsized (18.2%), small (19.5%), and micro (8.2%). The majority of suppliers had long-lasting relationship with selected retailer, as 73% of them expressed that the duration was longer than three years.
Drivers of e-Relational Capital in the Retail Industry
43
Table 5 Descriptive statistic, internal reliability, and correlation matrix for the supplier-based relational capital Mean Supplier trust
3.386
STD 1.631
α
2
3
4
0.925
0.642**
0.737**
0.613**
0.633**
0.427**
Supplier commitment
4.402
1.670
0.971
Relationship performance
3.219
1.555
0.911
Supplier e-WOM
2.610
1.778
0.965
0.652**
**p < 0.00
Pre-analysis. Before the hypothesis testing, we analyzed descriptive statistics (means and standard deviations) for multi-itemed constructs as an arithmetic means of individual items. Respondents (suppliers) marked supplier commitment as a stronghold of the e-relational capital creation (mean = 4.402, STD = 1.670). However, suppliers’ readiness to recommend the buyer on their e-channels was marked as relatively low (mean = 2.610, STD = 1.778). These results are displayed in Table 5. Table 5 also shows the results for the internal reliability test (Cronbach’s Alpha). All the constructs—supplier trust, supplier commitment, relationship performance, and supplier e-WOM—exceeded the traditional threshold of 0.700, 0.925, 0.971, 0.911, and 0.965, respectively. Finally, we found a number of statistically significant correlations between the observed variables. In an independent–dependent variable terms, two correlation coefficients were very high (supplier trust = 0.613, p < 0.000, and relationship performance = 0.652, p < 0.000), and one was moderate (supplier commitment = 0.652, p < 0.000). Hypotheses testing. Since a number of correlations were found to be significant, even among the independent variables, we tested the results for possible auto- and multi-collinearity. The value for the Durbin–Watson test was within the expected boundaries (1.500 < DW < 2.500), and the variance inflation factors were far beyond the threshold of 10 (supplier trust = 2.465, supplier commitment = 1.879, and relationship performance = 2.420). Accordingly, we assumed that there was no auto- or multi-collinearity among the observed variables. The independent variables predicted 46.6% of the variability in supplier e-WOM. Therefore, we confirmed H3. As for the individual prediction, supplier trust and relationship performance were isolated as statistically significant predictors (p = 0.001, and p = 0.000), as presented in Table 6.
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V. Vukmirovi´c et al.
Table 6 Regression model for the supplier e-WOM (supplier-based relational capital) Dependent var.
Unst. Coeff.
St. Coeff.
Supp. e-WOM
B
Beta
SE
t
Sig.
VIF
(Constant)
0.063
0.300
0.208
0.835
Supplier trust
0.344
0.100
0.315
3.421
0.001
2.465
Supplier commitment
−0.073
0.086
−0.069
−0.853
0.395
1.879
Relationship performance
0.530
0.104
0.463
5.075
0.000
2.420
R
0.683
Adj R2
0.456
DW
2.178
R2
0.466
SE
1.312
F
45.096
5 Discussion and Conclusion 5.1 Key Findings, Contributions, and Implications The aim of this paper is to examine the impact of customer relations and supplier relations on forming the e-WOM in retail industry. The results presented in this study indicate that customer loyalty with its constituents (customer satisfaction, customer engagement, and pricing policy) and brand awareness are solid predictors of creating the customer e-WOM. Although customers are perceived as one of the key stakeholders for retailers, the authors have narrowed the study in both ways, analyzing the customer, but also the supplier perspective. In order to sustain everyday operations, retailers are highly dependent on stable suppliers and stable partnerships. Therefore, this study emphasized supplier trust, commitment, and performance relationships as key determinants for suppliers’ readiness to recommend retailers. Each of these factors has shown a significant correlation and impact on creating the supplier e-WOM and generating the value of e-relational capital. Interestingly, suppliers’ readiness to recommend the buyer on their e-channel was reported lower than expected. On the contrary, retailers use their marketing budgets to promote suppliers and their products, empowering customers to purchase them ‘in-store’ or online [31]. Building supplier trust, but also holding the suppliers accountable through supplier commitments, could be seen through building private labels (repacked suppliers’ products as part of the retailer’s sales strategy). The correlation between every key determinant of supplier e-WOM has been significant, with the highest recorded correlation between supplier trust and relationship performance. However, the study reached for a paucity of factors which might be predictors of supplier e-WOM. In a summary manner, both aspects of this study demonstrated to have significant contributions to value creation in e-relational capital through customer and supplier e-WOM. Having that said, value creation through e-WOM puts e-relational capital in a spotlight in retail industry. The vast majority of research analyzed the traditional ways of WOM, not concerning the relational capital of retailers, Ngarmwongnoi et al. [1] analyzed the impact of e-WOM on pre-purchase evaluation, Erkan and Evans [6] analyzed the
Drivers of e-Relational Capital in the Retail Industry
45
impact of e-WOM on purchase intention, and Liu et al. [7] put their focus on postpurchase product perceptions. Contrary to the aforementioned, this study has taken a different approach, measuring the impact of customer loyalty, brand awareness, but also supplier trust, engagement, and performance relationship on e-WOM as part of e-relational capital. This study has a customized approach, analyzing the perspectives of both customer and supplier. Accordingly, the study adds to the understanding of how the e-WOM is generated from different perspectives. More precisely, the study puts a spotlight on the relational capital and its main constituents as the key success factors in retail industry. The practice and academia have seen a significant number of similar studies in developed countries. On the other side, the study of this kind has been deficient in developing countries like Serbia. The practical implication of the results is that both segments (customers and suppliers) actively affect the creation of e-WOM in retail industry. Practitioners should concentrate on the holistic look on the value chain to avoid any sub-optimizations in relational capital building.
5.2 Limitations and Further Recommendations This study has several flaws. First one is related to the synergetic effects of intellectual segments, among which the spotlight has been put on relational capital. Certain elements from different intellectual capital segments (human, innovation, or structural capital) might affect key determinants [39] presented in this study. However, the complexity of intellectual capital requires multiple interrelated studies to be performed. Second, the findings from this study should not be simply generalized to other markets, as customer behavior and supplier interaction could vary among different locations. This, in turn, opens an avenue for further studies in other countries and regions. Third, the supplier-side study is based on a relatively small sample and allows for speculations and judicious judgments, rather than sophisticated conclusions. Other studies should put a stronger focus on a supplier side of relational capital creation.
5.3 Concluding Remarks This study adds to the growing body of knowledge related to the relational capital building in the retail industry. By using e-WOM as an indication of the relationship quality both with customers and suppliers, we provide a number of explanations of the main antecedents and drivers of e-relational capital formation. From an emerging literature perspective, this study provided an empirical evidence on customer and supplier role in creating e-WOM as a facilitator of e-relational capital formation.
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From a practical perspective, this study implies that in a highly competitive and fastpaced retail industry, building e-relational capital could be a strategy toward creating sustained competitive advantage.
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Innovative Business Models and Applications for Smart Cities
Cultural Micro-nodes for Smart Cities Carole Edrich and Drago Indjic
Abstract The human capital outperforms income and every other variable in the happiness of cities. Yet the “hard to reach”, isolated and disenfranchised urban communities in deprived areas are inaccessible through traditional policy channels. We present a route towards unlocking the potential of these urban micro-communities and street-level creatives through engagement that respects their identity, empowers them, their surrounds, and the cities themselves while simultaneously benefiting creative freelance residence. The language of dance is the organic entry point to transcend multiple societal barriers, able to support the inclusion and self-empowerment. The movement vocabs by two dancers and their individual interpretations of alternate real and augmented reality views demonstrate the creative production, capture and non-verbal exchange between the highly diverse micro-communities. The captured digital identities, titles and contracts embedding the collective creative outputs reflect the individual and collective economic agency. The resulting structured, aggregated value tokens facilitate targeted impact and cultural policies and ultimately conflate the Smart City’s ratings. The early-stage apps supporting the creative installations and multimedia communication are expected to enter fintech and legaltech accelerators in two countries. Keywords Smart city · Culture · Digital assets
1 Smart City and Cultural Attractiveness The cities participate in global tournaments. Across the developed world, cities vigorously compete for human capital, including a globally migrating youth exhibiting the nomadic lifestyle. In parallel, the migrants and refugees are also attracted by the leading cities branded and perceived cultures. The physical infrastructures are being C. Edrich DanceGRIST, London, UK D. Indjic (B) Raˇcunarski Fakultet, Kneza Mihaila 6, 11000 Beograd, Serbia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 J. L. Reis et al. (eds.), Marketing and Smart Technologies, Smart Innovation, Systems and Technologies 280, https://doi.org/10.1007/978-981-16-9272-7_5
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funded, evaluated, and ranked independently by various institutions. The cities are also national trophies with a highly concentrated portfolios of cultural assets. A smart city as defined in [1] is a vertical of Internet of Things, a network that not only connects people, but also the objects around them, and involves the categories including transport and mobility, sustainability, governance, innovation economy, digitalization, living standard, and subjective expert perception. Numerous scores and indicators have been proposed to reflect “smartness” achieved, the value for money behind capital investments, the circular economy propensity, or even sustainable tax base growth. The built environment, infrastructure, ecology, flows, and similar categories are often easily quantifiable components of the physical urban sphere. The “non-smart”, traditional urban rankings and indexes reflect the official sector country-level baselines of the sovereign risk [2], human development indexes [3] and travel industry paid advertisements or crowd-sourced “Most Livable City” rankings such as those listed by search engines [4]. Data behind the city’s “smartness” scores indicate large infrastructural expenditure, doubling from 2018 to 2023 [1]. The investment flows deployed to cities can either lead or lag human capital, partially infused by qualitative, hedonicadjusted criteria of real estate markets, impact, or economic development, and not just perfectly quantifiable 5G network speeds or NOx concentration. In physical sphere, the societal and national safety, climate, environmental and similar risks are routinely addressed by a myriad of governmental technologies targeting security and resilience. Nature and geopolitics are often acting as the primary baseline. In the (re)insurance market, Lloyd’s is ranking 279 cities [5]. In aggregate, these leading cities contribute over 40% of global GDP and yet face 22 potential threats ranging from the interstate conflict to volcanic activity (comprising 59% man-made risks). In addition to these slowly adjusted metrics, across many most developed cities Big Data technologies and “nowcasting” analytics is gathered through sensors to automate a range of services to bring about better urban performance, lower costs, or reduced environmental impacts. Yet citizens often remain passive and isolated even amid the smart City advanced networks and technologies. The lack of vibrancy, awe, and “wow” effects would be obvious to a casual city explorer. The urban diversity and cultural richness are fundamental drivers of many development indices, including those reflecting the top-level UN principles. A set of advanced technologies and networks is expected to overcome passive citizenship, gentrification and content consumerism encouraged by Big Tech and at least reflect, if not even help integrating and empowering local communities. Notably, the IoT assets and sensory intelligence are owned by the centralized public and private institutions, but not “smart” enough to target, capture and evaluate the inner life of the city, the informal urban culture “buzz”. The cultural output of local communities represents an alternative data canvas. It is intangible, difficult to quantify and hard to value and trade using traditional market mechanisms. Furthermore, as a complex, evolving network of social and physical systems, it is uniquely fragile, making the organic micro-cultures difficult to sustain, become attractive to newcomers and ultimately develop economically.
Cultural Micro-nodes for Smart Cities
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Young digital nomads and travellers are eager to participate in a quest for “edginess” of experiences. They seek novelty and “otherness” whilst cleaving to selforganized “tribes” and can annotate and declare even the safest, cleanest, and “smartest” cities as dull. No urban policy action is capable of directly rectifying the community-generated low global ranking. Still, even the most influential digital nomads will eventually complete the demanding experiential search for their ultimate permanent residence. Before settling down, they will also start paying more attention to traditional macro-economic factors, hedonic real estate indexes and even local deprivation data. The highly advanced digital technologies are at hand from childhood, penetrating even the most deprived urban communities. The mobile devices became globally ubiquitous, facilitating a vast range of communication and fintech requirements of young demographics. The resulting Big Tech coercive forces are massive, instantaneous and yet unaccounted or less accountable to traditional cultural organizational and developmental policies. The current urban development policies are experiencing fundamental mismatch to popular cultures and identities. They have not aged well, and the outreach, inclusion and similar top-down initiatives have transient effects, unable to produce sustainable structures within the communities and collectives that are often at the very forefront of popular technology and cultural adoption curves—witness the gaming, or augmented reality, or a combination thereof, for example. The advanced components of these systems often quickly propagate through digital technology value chains, albeit in a convoluted manner as examples of abandoned consumer products like Microsoft’s XBox Kinetic and Intel RealSense have shown to the gaming industry. Many vulnerable youths lacking financial literacy [6] have most probably experienced virtual in-game assets and possibly even the speculative crypto assets. Here we are interested in the “grassroot”, neighbourhood, and community-level mechanisms of supporting the viral cultural content creation and management. Unlike urban management “warning” signals related to physical sphere, broadcasted topdown and potentially exacerbating the “us” and “them” power divisions given ruleand legislation-based transmission of the highly controlled, coercive, and sanitized signals, we focus on the cultural signals flowing bottom-up, from below. Therefore, while the “smart” inputs and data appear congruent, our process and goal are radically different. Our early experiments show that the existing and emerging smart city infrastructure functioning on the edge of the IoT, AI devices, and sensors be re-purposed to create sustainable communities whose creative DNA can be re-purposed itself, becoming endogenous alternative, owned, micro-business model input, internalized within a sustainable, circular economy.
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2 From Creative Style to Digital Asset The performing arts and dance in particular is one of the highest forms of the immersive, engaging, trans-cultural cultural content forms. All cultures and numerous subcultures establish, signal, and strengthen their collective identities through body languages and movement [7]. Our contribution is the definition of a new engagement channel for micro- and mainstream communities to develop human capital, the comfortable coexistence and collaborative creativity. Previous studies [8, 9] have indicated that such engagement can bring and have direct impact on the human capital and “happiness” across an aspirational “smartening up” city. Here, we scope the highest level, urban policy objectives, the organizational aspects of theory and practice behind the collective performing arts. The policy drivers and a spin-off micro-business model are two main research avenues. Furthermore, we target the street level, spontaneous events, and individual creatives [10]. The local creative supply will ultimately enhance the “smart City” creative capital modelled in [11] and “happiness” across the city that will be instantly visible, or tradable globally, thereby exhibiting potential for transferable well-being, cultural “upside” metrics described in the previous section. To understand the fundamental challenges in investigating the quantification of cultural contributions to cohesion and “happiness” [12], we need to accept the microweltanschauungs possessed by the micro-communities within our cities, and how they are affected and impact space and place. Once accepted and modelled at collaborative, even if spatial street-level and time-localized, we can find more equitable ways to normalize (in the unified structuring sense, not simply commoditizing) the performing art and creatives valuation factor data that will power the creative empowerment platforms. There are enough non-technological challenges in reaching these diverse communities, each of which sees their own urban community, city, and the world beyond in terms of “us” and “them” in contemporary anthropological language. This salient issue is best illustrated by the same non-standard, linear, cultural means that best enable “us” to reach “them”. We envisage the re-purposing of the outputs of various multi-modal dimensions of the individual emotional AI (facial coding, gesture, etc.) as the underlying atomic cultural components. The creative self-identification is followed by fusion, communication, translation, and community enhancement through collective interactions rather than plain self-video broadcasting on the social media. Detailed technical aspects of the underlying technologies for emotional AI, empathic media [13] or biometric behavioural profiling (aimed at identity verification or consent provision rather than communication) are beyond the high-level scope. We consider the already available, affordable technological foundations and services at our disposal at massive, retail and even trans-national scale. This is a novel, synergetic value-adding step that sets it apart from a human– computer interfacing in research and practice. A counterexample of an object of study is a virtual dance partner, or an avatar—acrobot, dancebot—character in gaming.
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Therefore, instead of creating avatars in metaverse or augmented reality, our objective is to provide kinesthetic, experiential and social learning processes to support genuine creatives and latent creatives, the micro-community members of public. A collateral benefit is the increase in actual physical movement; becoming a habit will likely reduce the need for expensive social prescriptions later. The privacy concerns in the product safety and regulatory compliance domains, for example the driver monitoring, and interior sensing systems have been highlighted in [14, 15]. We can resolve the issues of informed consent and emotional state since the creative agency and the spontaneity in dance are consensual, exhibiting “free will”. By metaphor of computer games, we are supporting “play” rather than using technology to coerce behaviours or enforce regulatory compliance. A case study will be presented through successive unfolding of the narratives from the collective to the atomic dancelets. The elementary first step, necessary framework is the language that can capture the rich multi-modality of dance. Table 1 represents a high-level, cognitive to natural language translation as a 28-step symbolism between two dancers that will be used to calibrate the data and process flow models for further field experiments. While performers would recognize this as choreography, it is in fact a “training” or communication “test signal” designed for an open trial “in the wild” with the objective of open sharing and reproducibility across global cultures. The intermediate language of wearables, sensors and physical space is traditionally represented within a human context. Several human behaviour ontologies have been proposed, primarily in the clinical setting, that can span multiple domains (physical activity, nutrition and clinical) for context-awareness [16]. However, they encompass a large variety of life activities and domains, therefore too broad, whilst those behind the biometrics are designed for the high-resolution discrimination underlying the identity verification, thus too narrow, even in psychometric sense. We focus on a single domain of dance to capture and interpret culturally richer behavioural context. Like human behaviourists, we are also interested in fusing the multi-level, multi-modal information. We aim to ascertain abstract notions, albeit contextualized within a single activity rather than those incorporated within “always on” lifestyle behaviour modelling and identification often found behind wellness and fitness monitoring apps. We would like to ascertain “the push to talk” spontaneous desire rather than the surveillance and clinical mechanisms. The creative agents—dancers, by intent, not only by trade—joining in the scene can be visiting (either volunteering from a community or offered by our custom social networking platform) local, trained or not, therefore even simply members of the public “in the wild”. The concepts of physical proximity, communication, and immediate feedback are crucial in evaluating opportunities for capturing and enriching the value of a group gathering or community. The high-resolution localization services available across the 5G networks, the in-door positioning system technologies, and movement capture devices embeddable within the edge AI offer useful upgrade paths [17]. The cross-cultural communication is symbolic, non-verbal and genuinely multimodal. Dancelets, the atomic digital assets created and casually shared by digital natives, can equally well represent the cultural and reputational currency. The missing
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Table 1 A sample vocabulary of dance Spoken
Movement vocabs for two dancers: two interpretations; micro-communities difference expressed non-verbally
‘Them-and-us’ often leads to an adversarial approach
Choreography of 2 separate dancers showing in different ways that every community sees itself alone and expresses that in different ways
When it doesn’t, it can become a rationalisation for avoidance of conventional employment
One dancer illustrates downright refusal, the other a shrug or similar showing different responses
This can mean crime
2 different movement/visual interpretations of crime
Or unemployment
2 different movement/visual interpretations of unemployment
Joining a non-hierarchical team, where the members themselves choose a project
One dancer shows communication between equals, the other dancer shows mutual choice
Is both empowering
2 different interpretations of empowerment
And educational
2 different interpretations of being educated
Dance is a great way to reach disempowered groups and micro-communities within cities
2 different movement phrases illustrating communicating and learning with dance
And apps are non-threatening ways to collaborate
2 different-but-convergent movement illustrations of using an app
Imagine what might happen if those least empowered in Smart Cities
2 different movement interpretations of ‘imagine’
Whether stay-at-home mums
2 different movement interpretations of stay-at-home mums
Disempowered youth
2 different movement interpretations of disempowered/minority youth
Or those feeling lost
2 different movement interpretations of feeling lost
Who inhabit urban spaces of poverty, disempowerment, or isolation
1 movement interpretation of poverty and isolation, 1 movement interpretation of disempowerment and isolation
Can create value
2 different movement interpretations of creating value
Exchange value
2 different movement interpretations of exchanging things of value
Together
Convergent (i.e. starts different ends the same) movement interpretations of coming together
Alone
Divergent (i.e. starts the same ends different) movement interpretations of being alone (continued)
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Table 1 (continued) Spoken
Movement vocabs for two dancers: two interpretations; micro-communities difference expressed non-verbally
In new groups or old
1 movement interpretation of being in a new group, 1 movement interpretation of being in an old group
Non-hierarchical Agile project development 1 movement interpretation of listening promotes and encourages those voices less heard together, 1 movement interpretation of speaking and being heard for the first time It is naturally collaborative
Shared movement interpretation of collaboration
It is organic and facilitative
1 movement interpretation of organic growth, 1 movement interpretation of helping others
And once the basic data points are established, the entire process, including project progress, value creation and collective digital assets can be shared transparently
Consecutive movements, one of establishing a basic framework (data points) and then one of sharing transparently and freely
The transparency itself is an essential aspect of the work. Without it “Us and them” is perpetuated
One movement phrase of us and them which stays the same. This ends slightly before the other movement phrase where the ‘us and them’ feeling is reduced
With it, alongside growing microbusinesses we break barriers, allowing micro-communities to reach out to others, helping trans-community cohesion, helping change feelings of disenfranchisement to those of personal empowerment
Movements: breaking barriers, growth, community, outreach, community cohesion/togetherness, phrase moving from disenfranchisement to empowerment on one dancer, the other disenfranchised looks on
And increasing the artistic, individual, economic Dancers’ finale, movement vocabulary on values of cities, alongside democratic growth and collaboration participation
chunk is the ability to cross between digital and analog business worlds: the rails to the analog creative business world require careful upgrading, addressed below.
3 Community Value Assembly We aim to “unlock” the potential of creatives at the street and micro-business level through the “smart” infrastructure, increasing the cultural ranking and economic prospects of the urban micro-cultures. Perhaps most importantly, facilitators or initiators, those gathering free spirits behind the digital content, thus digital property producers are digital natives, digital platform-wise, aspiring to participate in future shared creative economies without
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being subject to BigTech monopolies and capture. Therefore, protecting the personal, creative and economic identities, at individual and cooperative levels, is paramount. However, conventional methods—local authorities, NGOs, charities, etc.,—are heavily intermediated, delegated and ultimately top-down. They—as in “them”, the agents of the power—are thus barriered, unable to reach out to many of the zoned communities most in need. Exactly by raising the human and economic capital, and “happiness” of these communities, we can make the greatest urban impact and ensure the economic protection starting with most vulnerable local neighbourhoods. Consider community cohorts, with different weltanschauungs, creative and socioeconomic drivers. They prioritize different aspects of their lives—and different ideas—firstly as their identity and secondly, symbolic, creative and/or intellectual digital asset—property—offered for eventual economic exchange. Whilst valuable in and of itself, as a socio-cultural anchor, neurodiversity marker, anthropological place-maker and statement of self, harmonization, and cultural factor fungibility is required so that such digital property (casually declared a non-fungible token) can be assessed and recorded transparently and equitably. We consider virtually any mobile phone platform suitable for the field scale-up experimentation. Starting from a customized Unified Communication-as-a-Service platform in production [18] and an augmented reality app [19] shown in Fig. 1, we expand in legaltech direction, whereby “performing art digital identifies” will be stored in secure mobile wallets, rewarded as the collaborative digital property subject to the computable contracts, or their creator scrum-coached and helped to create microbusinesses. We are ready to conduct the creative culture experiments “in the wild” targeting the index of multiple deprivation (IoMD), or its international equivalents, arguably uniquely very precisely localized, at the most granular, street level. The required open geospatial data for policy targets can be sourced from various public government agencies and can be combined with the consumer, retail economic data collected, as published in the UK [20].
Fig. 1 Looking through AR app [16], a dancing avatar comes alive from a street art wall at a particular location and can be send to a friend by using [15]
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The real estate and housing markets behind many metrics reviewed in Sect. 1 reflect the long-term impact of the intangible, cultural factors worth exploring further [21]. The balancing of the city’s risk averse safety, downside (“cons”) and cultural upside (“pros”) metrics is the key. The digital device owner’s and collective identities within the linked “smart” City data can reflect the cultural value contributed to the highly localized communities: we can consider, for example, the infrastructural development and the impact delivered across the local communities at the highest risk. The overall impact to the shared economy and public benefits is expected to exceed the indexes targeted by classical public development finance, cultural policy and even the anticipated location-programmable central bank digital currencies.
4 Summary: Cultural Immersion The focus of our paper was an opportunity to leverage the cross-modal, immersive networking services supplied to mobile and edge devices and evaluate the public, cultural, and even trans-cultural intangible benefits at the municipal level. The collectively produced, contractually assured digital content is the core concept in our approach. Both the creative producer and consumer devices are already in place, but required digital platforms are yet to be launched. Often very diverse local cultures co-exist at street level, within the identical 5G signal coverage zone, without interference. Therefore, the Scrums between any two communities will be cross-cultural: and will further establish if urban symbols, crafts, transactions, and organizations are more conducible between equal IoMD clusters within a single nation, or disparate IoMD across two languages or nations. Our early rounds of creative projects were fully impact, public and community funded from 2019 to date. The results regarding the collaborative development of micro-business ideas through non-hierarchical voluntary structures have so far exceeded expectations. We expect to attract additional research funding and grants at the municipal level targeting the public, cultural policy sphere across the Europe. Initially, the field trials will be highly locally focused. In the first instance, within a single national, local, or regional culture, even a smart space or a building can represent a test bed. We will attempt to follow open standards and open technologies, testing the ad hoc 5G micro infrastructure within a dance studio or a city square. At the next phase of our project, the cross-city collaborative impact building through shared kinesthetic, experiential, and collaborative learning [22] will be undertaken. Following suggestions [21, 23] that human capital outperforms income and every other variable in the happiness of cities, by mixing, sampling, and evaluating the collaborative, immersive experience for a targeted demographic we expect to establish data points around which greater “soft” human and “hard” economic output, capital, as well as “happiness” gains can be facilitated. We will aim to continue developing our apps and platform simultaneously in a legaltech sandbox [24] and as a further series of proof-of-concept artistic, social/impact business and local projects,
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launching simultaneously in the UK and Serbia. Notably, the creative digital property is a traditional legal concept whose multifarious digital and contractual forms represent an active research domain across legaltech [25]. The digital identity, asset, consent, and contractual legal forms are explored by digital tokens and Web 3.0 principles. The creative local “supply” is relatively easily sourced but the distribution—an “upstream” value aggregation and propagation— requires further legaltech field experimentation “in the wild”. The resulting framework will enable the creative output value transformation, price discovery and ultimately translation into the economic realm and self-sufficiency. The secondary benefits of highly localized normative and cultural policies may overweight the orthodox economic benefits. In aggregate, the mix of visitors, citizens, and producers is expected to produce the desired network effects. The creative collaboration is the roadmap to increasing the value of both existing and emerging communities and cities. Following the initial experimentation in establishing, verifying, and exchanging the creative identities within small communities, we will develop Web 3.0 gateways to the real, regulatory compliant world where members can collaborate, or where an existing collective can participate in an economic value exchange, and micro-business idea exploration (gamification) suitable for either private (corporate, impact) or targeted public (local community) funding for maximum socio-economic impact. The interplay of physical, virtual digital and prosperity indexes represents valuable, complex social and development metrics. The organizational form elaborated above is closer to the native digitally facilitated, genuine legaltech rather than traditional corporate, partnership or even cooperative legal forms. We will aim to be digital asset and blockchain protocolagnostic, therefore acceptable for the public city nodes as the decentralized autonomous organizations (DAO) apps. Starting with this “pathways” paper, we envisage rolling out and scaling up the creative empowerment platforms initially across Europe, and then beyond. The idea is to advance the creative community beyond the usual fintech payment and crowd giving/funding platform sources of funds and by providing demonstrations of cultural–social value in terms of each communities’ developed assets, promote agency, self-sufficiency, and resilience. The assignment of “togetherness” via a joint, mutual business structure identity via legaltech is the step forward. The further governance experimentation—preferably inside a regulatory sandbox—is a necessity. In summary, we have outlined the engineering, data modelling and legal frameworks behind mobile and the edge AI devices, digital identity and creative asset platforms envisaged to support the creative collectives inside the Smart Cities. The tokenized multimodal dancelets are going to be curated and natively semantically organized, facilitating content search, copyright protection and the performance arts contract management.
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References 1. Smart city initiative investment worldwide in 2018–2023. https://www.statista.com/statistics/ 884092/worldwide-spending-smart-city-initiatives/. Last accessed 21 Sept 2021 2. IHS sovereign risk solutions. https://ihsmarkit.com/products/sovereign-risk-service.html. Last accessed 21 Sept 2021 3. UN human development index. http://hdr.undp.org/en/content/human-development-index-hdi. Last accessed 21 Sept 2021 4. https://en.wikipedia.org/wiki/Most_livable_cities. Last accessed 21 Sept 2021 5. Lloyds GDP@Risk. https://cityriskindex.lloyds.com/explore/. Last accessed 21 Sept 2021 6. Financial planning for young adults. https://www.skillsplatform.org/blog/financial-planningfor-young-adults-is-the-financial-education-children-receive-in-the-uk-enough-to-set-themup-for-life/. Last accessed 21 Sept 2021 7. Mły´nczyk, L.: Creating a collective identity in the digital age: the perspective of behavioural economics. Collective Identities 17(5(68)) (2020) 8. Yong, E.: Understanding cultural diversity and economic prosperity in Europe: a literature review and proposal of a culture–economy framework. Asian J. German Eur. Stud. 4, 5 (2019) 9. Bassett-Jones, N.: The paradox of diversity management, creativity and innovation. Creat. Inno. Manage. 14, 2 (2005) 10. Ceci, M., Kumar, V.: A correlational study of creativity, happiness, motivation, and stress from creative pursuits. J. Happiness Stud. 2 (2016) 11. Batabyal, A., Nijkamp, P.: Creative capital, information and communication technologies, and economic growth in smart cities. In: MPRA Archive, https://mpra.ub.uni-muenchen.de/83952/ 1/MPRA_paper_83952.pdf. Last accessed 13 Oct 2021 12. Sepe, M.: The role of public space to achieve urban happiness. Int. J. Sus. Dev. Plann 15, 1 (2020) 13. McStay, A.: Emotional AI. Sage, London (2018) 14. Crawford, K.: Time to regulate AI that interprets human emotions. Nature 592, 167 (2021) 15. McStay, A.: Emotional AI, soft biometrics and the surveillance of emotional life. Big Data Soc. 1(7) (2020) 16. Razzaq, M.A., et al.: mlCAF: multi-level cross-domain semantic context fusioning for behavior identification. Sensors 10(17), 2433 (2017) 17. Qualcomm.: https://www.qualcomm.com/videos/5g-single-cell-positioning-ota-demonstra tion. Last accessed 21 Sept 2021 18. Pi Prim.: https://play.google.com/store/apps/details?id=rs.tp.sek035. Last accessed 21 Sept 2021 19. https://upmystreet.theculturalassembly.com/52-2/. Last accessed 21 Sept 2021 20. Consumer Data Research Center.: https://data.cdrc.ac.uk/dataset/cdrc-residential-mobilityand-deprivation-rmd-index-lsoa-geography. Last accessed 21 Sept 2021 21. Hill, R.: Hedonic price indexes for housing, OECD Statistics Working Papers. https://doi.org/ 10.1787/5kghzxpt6g6f-en. Last accessed 21 Sept 2021 22. Dantas, L., Cunha, A.: An integrative debate on learning styles and the learning process. Soc. Sci. Human. Open 2, 1 (2020) 23. Florida, R., Mellander, C.: The happiness of cities. Reg. Stud. 47, 4 (2013) 24. k://lab, https://www.karanovicpartners.com/k-lab/. Last accessed 21 Sept 2021 25. Chishti, S., et al.: The LegalTECH Book. Wiley, London (2020)
Sociocultural Trend Reports as an Intelligence Tool of Strategic Cultural Management Nelson Pinheiro Gomes
and William Afonso Cantú
Abstract This work aims to explore the nature of sociocultural trend-related reports, considering their objectives and contents. These strategic objects are intelligence tools that guide social and business actors. After understanding their nature, we explore an adaptable structure that can guide the development of future trend-related reports from an academic and/or a business perspective. To inform our proposal, we articulated the results of a literary review and of a content analysis performed on a sample of reports that illustrate the contents and structures of these works. The resulting outline has an adaptable scheme that can work for different types of reports according to specific intelligence needs, informing decisions and contextualizing major sociocultural patterns and changes. Keywords Trend studies · Trends · Trend report · Coolhunting
1 Introduction We understand the concepts and practices associated to the analysis of sociocultural trends as Trend Studies. Gomes et al. illustrate that they manifest from a strategic and creative field. They are an approach (more than a discipline) that incorporates practices and methods from Culture Studies, among other disciplines—approach as an articulation of methods and concepts [1, pp. 239–240]. Although they possess (i) specific perspectives and theories on sociocultural systems and concepts, like trends and cool; and (ii) new connections of practices and methods for objectives like trend identification, analysis and application, Trend Studies mostly articulate existing theories, concepts, and methods/techniques than inhabit disciplines from Social Sciences and Humanities. In this regard, there are specific ways to develop N. P. Gomes (B) · W. A. Cantú CEAUL/ULICES University of Lisbon Centre for English Studies, School of Arts and Humanities, University of Lisbon, Alameda da Universidade, 1600-214 Lisbon, Portugal e-mail: [email protected] W. A. Cantú e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 J. L. Reis et al. (eds.), Marketing and Smart Technologies, Smart Innovation, Systems and Technologies 280, https://doi.org/10.1007/978-981-16-9272-7_6
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sociocultural trend analysis and to apply the results, mostly in a strategic context. As Els Dragt illustrates, “it studies change and provides an analysis of emerging shifts in people’s needs and wants. These trend insights are essential during any innovation process as a foundation to create future proof concepts that improve people’s quality of life” [2, p. 5]. The author clearly underlines the study of trends for the generation of concepts. We see this as the creation of solutions that can resist short-term change and that are aligned with major mindsets and emerging changes in behavior. By analyzing trends, we find connections between signals and other data. We understand the links between people, groups, behaviors, objects, and ideas. To understand these connections is to have a greater insight into change and current motivations. However, to study trends is to understand trends in a structured fashion: “in the context of an ever-changing world, trend research can be used as a method to identify and understand change in a structured way in order to be aware of possible directions of change” [2, p. 14]. Considering this, this paper aims (i) to understand the nature of trend-related reports as intelligence tools with a strategic nature; and (ii) to propose an adaptable structure for their development. For this, we did a literary review to underline the major concerns and perspectives on the nature of reports. Also, we performed a content analysis on a sample of trend-related reports to categorize their main sections and applied methods. We start our work with a review of the “trend” concept and what trend management is in articulation, mainly, with “cultural strategy” [3]. The next point addresses the results of the literary review on trend reports and the results of the content analysis to propose a script for the development of reports, highlighting the benefits for business and marketing. As a result, the proposed work can act as a business and academic companion for the development of these reports and for further critical reflections on these works.
2 Trends Management To advance our understanding of Trend Studies and the purpose of its reports, it is necessary to have a clear perspective of its major concept: “trends.” The most common definition of trend is related to “change.” For Henrik Vejlgaard, “a trend is a process of change that (sometimes) comes about because of product development that (sometimes) result in new products” [4, p. 8]. Devon Powers highlights “trends as the lingua franca of cultural change” and as a direction change [5, pp. 3, 37] William Higham suggests that it is a “general direction or (…) a general movement over time of a statistically detectable change” [6, p. 15], while Mason et al. define trends as “increasingly universal and global, with the basic needs and drivers of change” [7, p. 147]. Higham also indicates that there are forces in play and trends come from political, economic, sociocultural, and technological changes [6, p. 48]. On a different vision, Gillaume Erner points to the more invisible, to that which is not in the mainstream. For the author, trends underline background movements and underground phenomena [8, p. 13]. In fact, trends impact all aspects of our
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daily life and lifestyles. They are a full system that connects mindsets to objects and practices/behaviors associated to them both on the mainstream and the fringes. Not only are they the result of many forces, but they are also a product of its own impact in society, closing a circle of influence that never ends and that promotes constant changes, even small ones and in consolidated trends. The practice of studying trends generally involves observation and gathering of data; the systematization of data and trend identification; the application of trends in an applied context [1, 2, 6, 9]. We can apply one or more of these major stages according to specific objectives. Dragt specifies that “trend research is firstly about detecting manifestations of change happening right now. […] Secondly, trend research is about understanding change. […] And last but not least, trend research serves as a foundation for vision building, strategy development and guides decision making” [2, pp. 14–15]. In result, Trend Studies not only perform a type of sociocultural analysis or mapping of major behavior changes, but it also provides insights for decision making at several levels, as we will see further on. This leaves us with the question of trend management. The term is very straightforward, and it implies the application of the trend analysis results into concrete actions, especially in strategic contexts. As Dragt indicates, “it can be applied to social, public and commercial challenges.” [2, p. 14]. Studying trends and applying in business is particularly relevant in a society that continuously seeks its cultural roots to become relevant for the audiences [10, p. 18]. Trend results are managed to generate insights, guidelines, and solutions for business, social, economic, and political questions. The results of trend analysis can be applied to branding, or to marketing, as Higham [6] addressed, giving a better insight into consumer behaviors and needs and guiding the company across changes in the market and in lifestyles. As Higham indicates, “identifying trends can provide enormous benefits for companies across a range of sectors. And it is increasingly important in today’s rapidly changing world” [6, p. 1]. It is an intelligence tool to navigate major changes, sometimes more invisible ones or more difficult to understand. We take this opportunity to highlight the potential connections between trend analysis and management and a strategic management of cultural analysis. The approaches of Cultural Branding [11] and Cultural Strategy [3] call into attention the benefit of analyzing culture with strategic purposes, mainly at the level of branding and marketing. Following these authors, Gomes [12] suggested potential connections between trends and this Cultural Strategy/Branding in a context of strategic cultural management, and the importance of considering the identification of changes in mindsets and sociocultural trends to translate them into concepts/cultural expressions [12, p. 33]. Powers also saw potential links between trend analysis and Cultural Strategy. As the author states, “trend knowledge comes to serve as the basis for an ongoing advisory relationship that will result in better cultural strategy” [5, p. 106]. She also highlights that “Douglas Holt and Douglas Cameron argue that cultural strategy is the key to astute cultural innovation” and concludes that “on the one hand, it acknowledges the nonscalability of cultural strategy, which is grounded in qualitative research that is necessarily specific, contextual, and tailored. On the other hand, it implies that once such a customized approach is engaged, it is continuous; the
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landscape is ever changing, and the need for newer, better strategy never ends. The trend business follows the logic of cultural strategy in its bid to vend its services” [5, p. 106]. Both work in a frame of a continuous process of observation/analysis to generate updated insights and results on the more recent changes and sociocultural manifestations. For Holt and Cameron, the focus of Cultural Strategy is on cultural innovations “that adapt and repurpose source material (subcultures, media myths, brand assets)” [3, p. 186], bearing “the right ideology, which is framed through the right myth, expressed with the right cultural codes” [3, p. 176]. In turn, these cultural innovations generate symbolic, social, and functional value [3, pp. 190–191] to consumers. The authors address the necessary process as cultural strategy and it involves six steps: Map the Category’s Cultural Orthodoxy; Identify the Social disruption that can Dislodge the Orthodoxy; Unearth the Ideological Opportunity; Appropriate Source Material; Craft the Cultural Strategy [3, pp. 196–199]. It is important to review in detail this last step of the process: “[…] cultural strategy requires identifying a specific opportunity that opens up at a particular historical moment, within a particular societal context; and then responding to this opportunity with a particular cultural expression, made up of ideology, myth, and cultural codes. […] cultural strategy must be far more specific and directive as well. […] cultural strategy directs everyone involved in the innovation to craft a particular cultural expression into every component of the offering. […] Cultural Strategies are detailed documents that specify nuanced direction in terms of ideology, myth, and cultural codes. In cultural Innovation, details matter” [3, p. 199]. This inspires the definition of an “activation” section in our proposed structure for a trend focused report. In fact, cultural strategies, approached by the aforementioned authors [3], as detailed documents have an echo in trend reports, since they strive for stimulating the creation of innovative projects. We can see the connections in the authors’ concepts. Although different, there are connections in the “nuanced directions” in terms of: “ideology”—the emerging mindsets that are the invisible basis of sociocultural trends; “myth”—the correct articulation of cultural elements in a code; “cultural codes”—the managers of sociocultural practices and discourses that allow for lifestyle structures and the communication of meanings. These things are also addressed in most informative and business trend reports, even if in a different capacity. If this cultural strategy document has a specific brand and question in mind, some trend-related reports can be wider, addressing major sociocultural trends in larger geographies or specific topics or activity sectors. Nonetheless, trend focused reports can also be developed for a specific brand or product/service with marketing, branding, strategic communication, product/service development, audience relations, among others, purposes.
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3 The Nature(s) and Categories of Trend Reports A trend-related report is a tool to “inspire the reader” [13, p. 150]. Lopes indicates that trend reports are instruments that help to protect the “image of an enigmatic field” [14, p. 341]. We can also see in Dragt that a trend report is: “a way to give an in-depth description of several trends. You can deliver a report in a hardcopy or digital format. (…) You can also add trend implications for the specific client’s case and integrate trend advice into the report” [2, p. 150]. The main role of the report is to provide previous insights of the market and point to divergences, to help tackle risks, stimulate innovation and provide inspiring references [15]. However, the focus may not be on the identification of trends. Higham highlighted that we could present trends, or we “can present on a single sector or demographic, or across a range of them” [6, p. 198]. Therefore, it is important to categorize possible types of reports. As William Higham adds, “you can present trend data as a written report or verbally, with photos, illustrations and video footage or just plain text” [6, p. 198]. Several authors agree that reports mix visual elements and text [2, p. 150, 13, p. 150] and that some “lean heavily on visual analysis” [5, p. 93], according to the objectives and chosen layouts and mediums. Tessa Cramer underlines the importance of starting the report with a methodological explanation (and explain the used sources) to justify the presented perspectives and add value to the results [13, p. 150]. Devon Powers underlines the importance of turning raw information on trends into strong narratives and “measurable outcomes” through rigorous methodologies [5]. The author also highlights the importance of packaging for trends to be perceived as something of value and to be communicated and sold. This involves a structure with “names and stories, data and evidence, images and formats” [5, p. 92]. Referring to Lachut and Fawkes, Powers suggests that by addressing a solid methodology, “there is a claim that a trend is a cultural metric” [5, p. 93]. Adding that by using a more empirical method, instead of relying on instinct, we can “understand common themes across diverse, largely qualitative data sources as proof that a trend exists” [5, p. 93]. The topic on how to structure both research and resulting reports is growing in importance. Since long there have been different templates for reports. As Powers underlined regarding a “Future Abstracts” subscription from 1975, we could already see information on movies, games, academic works, graphs and statistics, among others [5, p. 56]. Today, Cramer suggests that we can “use storytelling, interviews, poetry, visuals and photos” [13, p. 152]. For Higham, reports must be solid with several evidence types and should mix “empirical data with stories and evocative real-life examples” [6, p. 201], while Powers underlines that “showcasing a variety of images together is eye-catching; “reading” them in tandem draws from a range of traditions in visual studies, including anthropology, cultural studies, content analysis, and semiotics” [5, p. 94]. As we can see, there is a wide range of practices from which we can draw. Powers addresses the topic of quantitative data, suggesting the importance of metrics and that “numbers certainly matter when it comes to measuring trends; forecasters are ardent users of statistics, surveys, Big Data, and other tools” [5, p. 92]. This can be done via primary sources or, many times, via desk research—gathering of data
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in secondary sources. Cramer et al. [16, p. 46] add that they usually contain a great number of innovation examples. Higham also suggests that there should be examples of how trends were applied to improve “revenue streams or market growth” [6, p. 201]. The presentation of signals can be seen as one of the most important elements in the report, but they must be coherent as groups. Referring to S. Lachut of PSFK, Powers suggests that when presenting a trend, it is necessary to have many signals that are similar or that point in the same direction [5, p. 93]. We see this collection and analysis of signals as coolhunting (see [9, pp. 63–65] for a review of the method). These signals/objects can be registered and analyzed following a cool cultural innovations script/process [17]. Although there are other expressions like signaling [16] or as part of scanning [2]. To finish this topic, we must understand that the process of a trend identification can be articulated with the way we present/report it. After a literary review, Gomes et al. [1] concluded that the trends identification process had four steps. We follow with this process: (i) context (cultural analysis and data recovery) where we can have field research with street hunting [2, p. 54] (a sort of field coolhunting) or primary observation and focus groups [6, p. 50], as well as other ethnographic practices and visual tools [18, p. 120]; interviews [2, p. 54; 7, p. 50; 18, p. 120); visit events [2, p. 54; 7, p. 80), conferences and cultural spaces [16, p. 48]; desk research/secondary research [2, p. 54; 6, p. 50], including business publications and feeds [7, p. 79]; and monitoring media [2, p. 54; 6, p. 50; 7, p. 79] where tools like clipping and content analysis can come into play; academic works [5, p. 56; 7, p. 81]; develop a PEST analysis [6, pp. 77–78, p. 175] and even a SWOT analysis in a trend audit for a company [6, p. 208]; observe innovations/signals [7, pp. 70–77] in the perspective of coolhunting (or other similar designation). All this can be performed in a context of cultural triangulation for trends [18, p. 120–145; 19, p. 337], a process that crosses different methods that complement one another [20, p. 34]; (ii) As Mason et al. [7] and Higham [6] suggested and Dragt [2, p. 107] underlined, it is important to cluster the signals and information by affinity. This will generate groups of information that will allow the researcher to identify trends and understand their nature; (iii) stage three is the moment where we define the main elements of the trend, and (iv) stage four determines the nature of the text and its description [1, pp. 258–260]. This is the moment where we define its main characteristics, giving it a written form and a name [9, pp. 75–76; 2, pp. 124–127]. These elements are often present in reports, or at least their results. The strategic roles of trend-related reports have different impacts. We start our reflection underlining authors like Higham [6], Raymond [18] Kjaer [21], Dragt [2] and Powers [5] that have illustrated the potential role of Trend Studies in business and strategy. Powers explored this aspect and even stressed the importance of the report: “In the trend business, a central mechanism for the dissemination of strategy consulting is the report—which, as I noted above, is also a key communication device and product” [5, p. 104]. The report is the one of the main products to present the result of a study or the guidelines to assist actions. It is important for marketing, innovation and strategic departments that can act based on the insights and proposals. But it can also serve as the starting point for a trend consultancy within the company. Powers
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also highlights, as our research suggests, that there are several kinds of reports and that “many trend forecasters create on a regular basis general topical reports, which they sell individually and offer on a subscription basis to clients. (…) The content of these reports is a mix of striking visuals, interviews with experts, statistics and figures, and information that piques ideas, sometimes underwritten by a corporate sponsor” [5, p. 104]. However, here the important element to underline is that a “strategic purpose of these reports is to create actionable outcomes. Reports may identify a new market or point of sale, propose responses to social changes, or alert their readers of technologies, platforms, or consumer behaviors that are relevant for their businesses” [5, p. 105]. We can see that reports may have an informative function—shedding light into topics, contexts, developments, and behaviors, but they also allow for the activation of specific strategies and actions. After this literary review, we focus our attention on actual reports produced recently, to understand their components, nature, and objectives. To review their content, we have chosen the content analysis method. According to Krippendorff, it is “a research technique for making replicable and valid inferences from texts (or other meaningful matter) to the contexts of their use” [22, p. 36]. In our case, we are using its heuristic function to enrich our exploratory approach, to enhance discovery and see what can be found [23, p. 30]. In terms of process, our review considers the operational steps of Wimmer and Dominick: “1. Formulate the research question or hypothesis. 2. Define the universe in question. 3. Select an appropriate sample from the population. 4. Select and define a unit of analysis. 5. Construct the categories of content to be analyzed. 6. Establish a quantification system. 7. Train coders and conduct a pilot study. 8. Code the content according to established definitions. 9. Analyze the collected data. 10. Draw conclusions and search for indications” [24, p. 160]. Regarding steps 2, 3 and 4, we have chosen written trend reports for 2020, 2021 and 2022 [25–31] in a convenience sample of non-probabilistic nature, that address macro trends and that are in an open access regime (or via free registration) as selection criteria. All chosen reports work with sociocultural trends with large impact and we consider the structure and different contents of each. The main categories under review are the chapters/structure of the documents; the methods that are highlighted (mentioned or clearly present); and the main objectives/nature (Table 1).
4 How to Build a Report for Strategic Insights The script and proposed structures in this chapter are built upon the results of the literary review and the content analysis of the reports developed in the former chapter. After both these exercises, it is clear that there is not one single structure for a trend report, as Carvalho also underlined [15, p. 13], although they have similar elements. Our proposed structure(s) takes all these elements into consideration.
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Components of the Report: (a) Nature, Context, Objectives, and Methodology. It is important to present the document, by defining its nature (type of report) and objectives, followed by the used methodology. The analyst should be clear in terms of the used methods/techniques and the context of the observation and gathering of data (when; where; what; etc.); (b) Desk Research. The objective is to collect data from secondary sources that have already been worked on, such as specialized reports and statistical elements. It can also involve (i) a literary review of technical and scientific works and essays regarding the themes, and (ii) a clipping/review/content analysis of media sources, Table 1 Trend reports content analysis Title and institution
Structure
Main methods
Objectives/Nature
“2022 Trend Report: The roaring 20s are coming back”, by Trend Hunter
1. Presentation of Coolhunting business services and approaches; 2. Reading instructions; 3. Trend list/map; 4. Signal clusters (with examples, insights, pattern description, analytical elements)
Objective: Inspire Innovation Nature: The focus is on signal patterns and their analysis
“Trends 2021” by Fjord, Accenture
1. Presentation; [For Desk research each trend: 2. Trend context; 3. Desk research; 4. Insights]; 5. Business presentation; 6. Team; 7. Sources
Objective: To present trends Nature: A review of trends with cases and insights
“Connecting the Dots 1. Presentation and 2021” by GWI approaches; [For each topic: 2. Context; 3. Desk research; 4. Primary data; 5. Insights]; 6. Methodology; 7. Business contact
Desk research; Online surveys
Objective: To present clustered information/trends Nature: A review of trends with primary and secondary data, as well as insights
“Trends Transformed 1. Presentation; 2. 2021” by Mindshare Trend list/map; 3. Trend development map; [Clusters of Trends—(for each trend: 4. Description and context; 5. Essay); 6. Desk research; 6. Signal clusters; 7. Insights]; 8. Business contact and team
Desk research; Coolhunting
Objective: To present trends and brand insights Nature: A review of trends in clusters with quantitative–qualitative data, as well as insights
(continued)
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Table 1 (continued) Title and institution
Structure
“Top 10 Global Consumer Trends 2021” by Euromonitor International
1. Trend list/map; Surveys; Presentation; [For each Coolhunting trend: 2. Description; 3. Context and quantitative data; 4. Signal clusters]; 5. Methodology; 6. Team
Main methods
Objectives/Nature Objective: To present trends Nature: a review of trends based on primary data
“Global Trends 2020” 1. Presentation; 2. Desk research; by IPSOS Macro forces (Mega Interviews; Online Trends); 3. Values map; surveys 4. Trend list/map; [For each trend: 5. Context and quantitative data]; 6. Insights (expanded reflections); 7. Team; 8. Business contact; 9. Methodology; 10. Sources
Objective: An articulation of macro and micro elements to review trends Nature: a review of values, trends and insights/reflections in an articulated way
“2021 Global 1. Presentation; [For Surveys Marketing Trends” by each trend: 2. Context Deloitte and quantitative data; 3. Cases; 4. Insights; 5. Sources; 6. Team]; Business contact
Objective: To articulate sociocultural movements with marketing practices Nature: a review of trends with insights
Developed by the authors
audiovisual and other materials. (c) Observation. Urban immersions and observations in firsthand of cultural practices allow for the construction of narratives with an ethnographic inspired nature; (d) Interviews and Questionnaires. Surveys are one of the preferred methods for big reports. Interviews give an in-depth view of specific topics and questionnaires can add the perspective of a larger set of data; (e) Coolhunting. A gathering of analyzed signals (cool cultural innovations) (see [17]) organized into clusters; (f) PEST and SWOT analysis. A PEST analysis can be an asset in all types of trend reports. Nonetheless, a SWOT analysis can also be helpful if we are doing a report for a specific institution/product/service, and can give insights regarding the company, the service, or the product; (g) Systematization. It is important to systematize and categorize the former information into clusters that are easily perceivable by the reader. It adds credibility to the report, whether the clusters are trend-related or organized by topics. The systematization can be done following different approaches such as mind-mapping, wall of evidence, diagram, among others; (h) Trend Narratives. If we are building a report for the presentation of sociocultural trends, we must have a section where they are presented and described. In alternative, as seen in several examples, the analyst may choose to present the trend and then its context and analyzed/related data; (i) Insights. Either presented by trend or at the end of specific sections, or even at the end of the document
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(it depends on each report and the specific objectives), the insights are the strategic translation of the data and its analysis into applicable guidelines that can vary from each research/report; (j) Activation. (i) Identify lines of action and mindset opportunities to create new products and projects with relevance, based on the gathered data; (ii) apply the cultural formula to articulate cultural elements with a specific cultural code (see [17]); (iii) generate the solution as a narrative. Sections (b) to (e) can take place for each trend, or they can be developed only once, if the objective is not to identify trends, but to generate a different study. Although these sections work well together in a report, there are different types of trend-related reports with specific objectives: (a) Trend Report. The main objective of this work is to present trends and their related data and insights. It can incorporate all discussed sections from (a) to (i). In terms of marketing and branding, it gives insights on the major consumer changes and points paths towards new strategies, products/services, communication narratives and ways to engage with audiences. This report synthesizes the main mindset patterns in society based on the data gathered for the analysis; (b) Coolhunting Report. As the name itself states, the focus of this document is mapping signals of trends, clustering and analyzing them. This report draws heavily on sections (a), (d), (g) and (i) and its objective is to do an exploratory study of a specific topic, theme, or even trend. If it is developed for a business context, to help inspire new products/ services/ communication paths, it can also benefit from a SWOT analysis (section g) or other methods; (c) Thematic/Sectorial Reports. Trend researchers can also develop a trend-related report to research a specific topic or activity. Here, the objective is not to identify trends, but to see how they are impacting topics and sectors. This report can use sections from (a) to (g) and (i); (d) Brand or Product Report. This report is focused on a specific institution/brand. It works as an intelligence diagnosis tool and presents results targeting the institutional interests/objectives. First, it sees what trends the brand is addressing and which ones it is not. After this, and according to the specific objectives, it gathers information on the targeted trends and presents insights for possible solutions. Also, it translates large trends and patterns into specific actionable patterns focused on the potential interests of the institutions that point to solutions. If we are dealing with a study targeting a specific product/service, the process goes into sources of inspiration as well as the brand context. In terms of structure, it can use sections (a) to (j), but it will depend on the specific objectives and interests of the institution.
5 Conclusion Trend-related reports can have different natures (trend focused; coolhunting; thematic or sectorial; brand/product focused) and have an important information function to underline strategic insights and paths. They are intelligence tools that inform marketing and innovation professionals. Nonetheless, as Powers illustrates, “despite the attempt to make reports carriers of actionable goals, one of their central purposes is to be informational and promotional” [5, p. 105]. It is important to consider this
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perspective, because reports point ways and even solutions, but they must be carried out by the internal teams of the institutions or with the support or trend professionals in a next stage of application and knowledge/intelligence activation. Further studies should address and review the impact of the applications of these scripts when building new reports as well as their effectiveness in guiding business decisions.
References 1. Gomes, N., Cohen, S., Cantú, W., Lopes, C.: Roteiros e modelos para a identificação de tendências socioculturais e a sua aplicação estratégica em produtos e serviços. Moda Palavra. 14(32), 228–272 (2021) 2. Dragt, E.: How to Research Trends: Workbook. BIS Publishers, Amsterdam (2018) 3. Holt, D., Cameron, D.: Cultural Strategy—Using Innovative Ideologies to Build Breakthrough Brands. Oxford Press, Oxford (2010) 4. Vejlgaard, H.: Anatomy of a Trend. McGraw-Hill, New York (2008) 5. Powers, D.: On Trends: The Business of Forecasting the Future. University of Illinois, Illinois (2019) 6. Higham, W.: The Next Big Thing. Kogan Page, London (2009) 7. Mason, H., Mattin, D., Luthy, M., Dumitrescu, D.: Trend Driven Innovation. Wiley, New Jersay (2015) 8. Erner, G.: Sociología de las Tendencias. Gustavo Gilli, Barcelona (2016) 9. Gomes, N., Cohen, S., Flores, A.: Estudos de Tendências: contributo para uma abordagem de análise e gestão da cultura. Moda Palavra. 11(22), 50–81 (2018) 10. Mendonça, F.: Um sul para a pesquisa de tendências. In: Tendências mitos, métodos e experiências sobre consumo e futuros (2020) 11. Holt, D.: How Brands Become Icons: The Principles of Cultural Branding. Harvard Business School Press, Boston (2004) 12. Gomes, N.: Gestão da Cultura: estratégia e articulações no âmbito do branding e das tribos urbanas. e-revista Logo. 8(2), 25–47 (2019) 13. Cramer, T.: Becoming futurists: reluctant professionals searching for common ground. Ph.D. Thesis, Maastricht University (2020) 14. Lopes, M.V.: The discourse of fashion change: trend forecasting in the fashion industry. Fashion, Style Popular Culture 6(3), 333–349 (2019) 15. Carvalho, S.: Relatórios de pesquisa de tendência: da construção à troca mercadológica. In: V Reunião Equatoriana de Antropologia e XIV Reunião de Antropólogos do N/NE, 2015, Maceió (2015) 16. Cramer, T., van der Duin, P., Helsemans, C.: Trend analysis. In: van der Duin, P. (ed.) Foresight in Organizations—Methods and Tools. Routledge, NY (2018) 17. Gomes, N., Cantú, W.: Cultural mediations between branding and lifestyles. In: Goonetilleke, R.S., et al. (eds.) Advances in Physical, Social and Occupational Ergonomics. Springer, Switzerland (2021) 18. Raymond, M.: The Trend Forecaster Handbook. Laurence King Publishing, London (2010) 19. Kongsholm, L., Frederiksen, C.: Trend Sociology, v. 2.0. Pej Gruppen, Herning (2018) 20. Porta, D., Keating, M.: Approaches and Methodologies in the Social Sciences: A Pluralist Perspective. Cambridge University Press, Cambridge (2008) 21. Kjaer, L.: The Trend Management Toolkit. Palgrave MacMillan, London (2014) 22. Krippendorff, K.: Content Analysis—An Introduction to Its Methodology. Sage, London (2004) 23. Bardin, L.: Análise de Conteúdo. Edições 70, Lisboa (1979) 24. Wimer, R., Dominick, J.: Mass Media Research. Wadsworth, Boston (2011) 25. www.trendhunter.com/
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www.accenture.com/pt-pt/insights/interactive/fjord-trendswww.gwi.com/reports/trends-2021 www.mindshareworld.com/uk/news/trends-transformed-2021 https://go.euromonitor.com/white-paper-EC-2021-Top-10-Global-Consumer-Trends.html www.ipsosglobaltrends.com/downloads-2/ www.deloitte.com/us/en/insights/topics/marketing-and-sales-operations/global-marketing-tre nds.html 31. https://www.gwi.com/reports/trends-2021
Employing Trait Emotional Intelligence in an Adaptive E-learning Environment Teklehaimanot Embaye, Zorica Bogdanovi´c , Dušan Bara´c , Tamara Naumovi´c , and Božidar Radenkovi´c
Abstract This paper investigates possibilities of harnessing trait emotional intelligence in e-learning ecosystems with particular focus on enhancing adaptivity. The goal of the paper is to develop a model for adaptive e-education based on trait emotional intelligence as a criterion. Employing Trait Emotional Intelligence (TraitEI) as a model and agglomerative hierarchical cluster analysis technique, we identify segments of students attending the online course Digital Marketing within the e-learning platform at University of Belgrade, Faculty of Organizational Sciences, Department for E-Business. We found out three important clusters of students exist: those that have “Average TraitEI, Average Performers”; those that have “Slightly above Average TraitEI, High Performers”; and those that have “Above Average TraitEI, Super Performers.” The characteristics that most differentiate the super performers group from the rest is the extent to which cluster members have high score of well-being, self-control, emotionality, sociability and a higher record of global TraitEI profiles in general. Comparative analysis using python machine learning packages is used to validate the relevant clusters based on Achievement Emotions Questionnaire (AEQ). The method is found to be useful tool to assist educators in segmenting students and by doing so, online course designers will have the ability to design and develop intervention course materials tailored to better meet the needs of different groups of students. The contribution of this study is reflected in the fact that the proposed model for segmenting students into relevant groups based on emotional intelligence can provide better adaptivity in e-education. In addition, the study can contribute to building more effective educational strategies in an e-learning environment. Keywords Trait emotional intelligence · Adaptive E-learning · Digital marketing course · Academic performance · Cluster analysis
T. Embaye · Z. Bogdanovi´c (B) · D. Bara´c · T. Naumovi´c · B. Radenkovi´c Faculty of Organizational Sciences, University of Belgrade, Jove Ili´ca 154, Belgrade, Serbia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 J. L. Reis et al. (eds.), Marketing and Smart Technologies, Smart Innovation, Systems and Technologies 280, https://doi.org/10.1007/978-981-16-9272-7_7
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1 Introduction Emotional intelligence (EI) has been viewed as a critical factor influencing work productivity, ability to work in diverse environments, business growth, academic performance and a potential to succeed in an extraordinary way. Similarly emotional intelligence has gained a great popularity and traction in marketing and leadership fields as studied by Abdel Halim [1], stating almost 60% of global enterprises use the emotional intelligence tests in the initial screening process of managers, sales representatives and other personnel. In another research conducted by Kidwell et al. [2], the authors examined how sales professionals use emotions in marketing exchanges to facilitate positive outcomes for their firms, themselves and their customers. So what is emotional intelligence? Emotional intelligence is the ability to monitor one’s own and others feelings and emotions, to discriminate among them and to use this information to guide one’s own thinking and action [3]. Therefore, investigating the role of emotional intelligence in identifying the segments of students in an online environment is of paramount necessity to provide adaptive e-education. Adaptation of e-learning systems to individuals or groups based on their behaviors, current knowledge, learning preferences and future goals can help avoid the one-sizefits-all model of today’s e-education systems. Our coauthors have done a great work in Despotovi´c-zraki´c et al. [4], by developing an approach for a group-wise adaptive e-education based on learning styles in the Moodle LMS. In this paper, we develop an approach to understand learner behavior and dynamic changes in student needs based on emotional intelligence qualities like self-control, well-being, emotionality and sociability so as to create appropriate clusters. As stated in Achar et al. [5], emotions underpin all human actions, even our most rational and logical decisions are influenced by our emotions. Therefore, understanding how students’ emotions affect their academic performance while they are utilizing digital technologies for learning purposes is of potentially enormous value to all types and sizes of e-education services [6]. In this research, propose an advanced approach of enhancing personalized elearning service delivery by identifying relevant segments of students using techniques of hierarchical clustering based on their trait EI profiles. As acknowledged by Verma [7], owing to the speed of digital content and digital communications, digital emotional expressions are more contagious than physical emotions. On the other hand, while the global e-learning usage is expected to grow continuously, the efficiently of the self-paced e-learning systems is not appreciable. This shows the lack of effective emotional interaction between learners, learning content and teachers [8]. The present study uses comparative cluster analysis on Trait Emotional Intelligence Questionnaire (TEIQue), Achievement Emotions Questionnaire (AEQ) and students’ GPA to identify segments of students in line to Trait Emotional Intelligence Theory [9]. The authors briefly describe the model of Trait Emotional Intelligence for academic performance, then discuss and apply cluster analysis using anaconda 4.10.1
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and python 3.8.8. The paper continues with a discussion of literature review, description of the research question, methods and results, and concludes with a discussion regarding the models implementation in Moodle LMS.
2 Literature Review 2.1 Trait Emotional Intelligence Theory A number of researches into the brain, human behavior, educational performance, business growth and medicine have identified new findings and evidences proving cognitive intelligence (IQ) is not, in and of itself, sufficient and that in order to lead a more effective, holistic, abundant and ethical life, one needs to develop and apply an additional dimension of knowledge. This dimension of knowledge is the Emotional Intelligence (EI) also called as Emotional Quotient (EQ), a dimension of life that enriches the rational one by providing emotion-related information [9]. According the study made in Keider [10], using EI skills and techniques, an educator and the educational system at large will be better able to achieve their educational objectives with the students as individuals and as a group. In an attempt to investigate the psychometric aspects of students’ preparedness for online learning, students’ EI has been examined in Buzdar et al. [11], as a determinant indicator. In another study conducted in Shen et al. [12], the researchers used emotion detection technologies from biophysical signals to explore how emotion evolves during learning process and how emotion feedback could be used to improve learning experiences. EI curriculum for students in higher education has also been developed as in Machera and Machera [13], that can be used as a therapy to emotionally challenged students by equipping them with skills to manage these emotions. Study-related adaptivity in e-learning environment has been done by Fatahi [14], which is based on learner’s personality and emotion. The author employed the Myers-Briggs Type Indicator (MBTI) model for personality and the Ortony, Clore & Collins (OCC) model for emotion modeling. Whereas another study by Alshammari and Qtaish [15] used learning style and knowledge level of students in order to provide a more personalized and adaptive learning experience in an e-learning environment. The above stated studies have done tremendous work in evaluating the implication of EI in education in general and in academic performance in particular. Others have employed learners’ characteristics like personality, emotions, learning styles and knowledge levels to propose adaptive learning systems. However, little work has been done to investigate the significance of EI in an e-learning settings with the purpose to provide students and teachers with adaptive e-education services so as to empower their emotional competency for better academic performance. This paper is a continuation of our previous work in which we assessed the significance of EI in e-learning environment [16]. We found that trait EI which is based on Trait Emotional Intelligence Theory [9] significantly correlates with academic performance measured
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in GPA. This study utilized TraitEI as a model to segment students into relevant clusters. Trait EI refers to a collection of emotion-related dispositions and self-perceived abilities and is assessed with self-report measures—making it more subjective and aligned to personality theory. Our approach is unique in that (1) it focuses specifically on e-learning environment; (2) we have applied a combination of both the TraitEI and the AEQ datasets to identify hidden clusters of students on an e-learning setting and developed a model to be implemented in Moodle LMS. Trait Emotional Intelligence Questionnaire (TEIQue). The TEIQue is an integral part of the academic research program on trait emotional intelligence (trait EI) [17]. Trait EI, alternatively called as trait emotional self-efficacy, can be formally defined as a constellation of emotional perceptions assessed through the TEIQue instrument and rating scales. The instrument measures 15 emotional traits (facets) concerning four factors (Well-Being, Self-Control, Emotionality and Sociability) and a global trait EI score.
2.2 Achievement Emotions Questionnaire (AEQ) The Achievement Emotions Questionnaire (AEQ) is a multidimensional self-report instrument designed to assess college students’ achievement emotions. It is based on a program of quantitative and qualitative research that examines students’ emotions experienced in academic achievement situations that is, attending class, studying and writing tests and exams [18]. The class-related and learning-related emotion scales include 80 and 75 items, respectively. Both scales measure eight emotions: enjoyment, hope, pride, anger, anxiety, shame, hopelessness and boredom. While the test-related scale include 77 items and measures eight test emotions pertaining to enjoyment, hope, pride, anger, relief, anxiety, shame and hopelessness. Learningrelated emotions dataset developed from our previous study [16] has been used for a comparative cluster analysis to validate our hierarchical cluster on TraitEI dataset.
2.3 Hierarchical Cluster Analysis Cluster analysis is an unsupervised machine learning task. It involves automatically discovering natural grouping in data. Unlike supervised learning and predictive modeling, clustering algorithms interpret the input data and find natural groups or clusters in the feature space. Clustering techniques apply when there is no class to be predicted but rather when the instances are to be divided into natural groups [19]. Hierarchical clustering is one type of unsupervised learning algorithm which is based on hierarchical ordering. It refers to a collection of methods that seek to construct a hierarchically arranged sequence of partitions for some given object set [20]. Typically, the methods produce a hierarchy based on some proximity measure
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defined for every pair of objects. Strategies for hierarchical clustering generally fall into two types: agglomerative (bottom-up) hierarchical clustering and divisive (topdown) hierarchical clustering [21]. In this study, we have employed agglomerative (bottom-up) hierarchical clustering. In agglomerative clustering, the cluster formation starts with individual data points. Each point is considered as one cluster [22]. Assume there are N data points. In the beginning, there will be N clusters. Then, the distance between each pair of cluster is found and the clusters closest to each other is matched and made as one cluster. This would result in (N − 1) cluster. In the next step, the distance between pair of clusters is found and the clusters closest to each other are matched and made as one cluster. This would result in (N − 2) clusters. The same process is repeated until all the data points are merged into one cluster, which is the root cluster.
3 Method and Design 3.1 Study Design This study is being done as part of a series of research studies on the implementation of Trait Emotional Intelligence in e-learning environment. The study has three phases: In the first phase of the study [16], the authors made an assessment of the significance of emotional intelligence in e-learning by applying trait emotional intelligence measurement instrument, TEIQue along with the Achievement Emotions Questionnaire (AEQ), an instrument used to measure achievement emotions. The main research questions were, “Do students who claim a higher score of emotional intelligence have better academic achievement? How is academic achievement correlated to the different factors and facets of emotional intelligence in an online environment?” To validate our research findings, we have done a statistical and correlational analysis of EI scores against Achievement Emotions Questionnaire and students’ GPA. We found out that statistically significant correlations exist and gave us a foundational concept for the second phase of the study. In the second phase of the study, which is this study, we have applied clustering analysis using machine learning algorithms to investigate segments of students based on their self-reported TraitEI. In the third phase, we will study on ways to technically implement TraitEI into elearning system like Moodle by making use of some components of AI for better automation. Figure 1 adapted from our previous study presents all the components and interactions of the overall study.
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Fig. 1 Study design—interaction of TraitEI and AEQ in Moodle E-Learning. Source Embaye [16]
3.2 Participants In this study, we used the same dataset developed from our previous study in which, about 100 students taking the course Internet Marketing using the e-learning platform Moodle were requested to participate in the study with their consent. Two questionnaires, based on Trait Emotional Intelligence Questionnaire Short Form [23] and Achievement Emotions Questionnaire (AEQ) [24]. The questionnaires have been designed using Microsoft Forms and shared with the students for response. The willing respondents comprised of 61 students (39 female; Age range 21–27, M = 23.1, SD = 1.36) in the Department of E-Business, Faculty of Organizational Sciences, University of Belgrade. The teaching–learning process for the specified course was offered completely using Moodle e-learning platform and BigBlueButton, Open Source Virtual Conferencing Software. A 45 min lecture was given to students on introductory concepts of Emotional Intelligence. After the lecture, the questionnaires were made available to students on the e-learning platform Moodle along with the lecture material of the session.
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3.3 Instruments The TEIQue–SF consists of 30 items designed to measure global trait EI (e.g., “Expressing my emotions with words is not a problem for me.”; “I often find it difficult to see things from another person’s viewpoint”). The trait emotional intelligence (trait EI) model measured by TEIQue successfully integrates and extends EI-related ideas in a general framework that incorporates 15 specific facets which are categorized into four factors. The Global score gives the individual subject a snapshot of the general emotional functioning. It is an index of one’s perceived ability to understand, process, and utilize emotion-related information in everyday life. According to trait emotional intelligence theory [9], these perceptions are completely central and vital because they have a creative influence in life, in the specific sense that they create the reality one is experiencing. The factor level provides a useful level of intermediate measurement and description as presented in Table 1, where the scores of trait EI are interpreted as: 1–30%—below average; 31–70%—average; and 71–100%—above average (High scorers). The AEQ instrument [24] measures emotions in three settings. The instrument measures eight class and studying related emotions which consists of enjoyment, hope, pride, anger, anxiety, shame, hopelessness and boredom using relevant scales and measures eight test-related emotions which consists of enjoyment, hope, pride, anger, relief, anxiety, shame and hopelessness. By implication, emotions can vary in class, studying or in examination. For example, enjoyment of classroom instruction may be different from enjoying the challenge of an exam. Therefore, measures of achievement emotions should distinguish between emotions experienced in these different settings. Table 2 presents all the expected and observed observations from the data collection results of our previous study. Here, the observations for TraitEI (Well-being, Self-control, Emotionality, Sociability and Global TraitEI) are converted to percentage instead of the original data which was 1–7 Likert scores. Table 1 The sampling domain factors of trait emotional intelligence in adults and adolescents Trait EI factors High scorers (71–100%) perceive themselves as: Well-being
Successful and self-confident; Cheerful and satisfied with their lives; Confident and likely to “look on the bright side” of life
Self-control
Capable of controlling their emotions; Capable of withstanding pressure and regulating stress; Reflective and less likely to give into their urges
Emotionality
Clear about their own and other people’s feelings; Capable of communicating their feelings to others; Capable of having fulfilling personal relationships; Capable of taking someone else’s perspective
Sociability
Accomplished networkers with excellent social skills; Capable of influencing other people’s feelings; Forthright, frank, and willing to stand up for their rights
Global Trait EI Successful and self-confident; Capable of controlling their emotions; Clear about their own and other people’s feelings; Accomplished networkers with excellent social skills; and all the above traits
82 Table 2 TEIQue and AEQ scale statistics (N = 61)
T. Embaye et al. Features
Possible range
Observed range
Mean
GPA
0–10
7–9.95
7.98
Enjoyment
10–50
27–45
36.16
Hope
6–30
15–30
22.62
Pride
6–30
16–29
21.95
Anger
9–45
9–40
18.72
Anxiety
11–55
11–44
26.43
Shame
11–55
11–41
24.72
Hopelessness
11–55
11–44
21.79
Boredom
11–55
12–48
25.97
Well-being
1–100
40.43–97.57
76.86
Self-control
1–100
28.57–95.29
65.00
Emotionality
1–100
46.43–92.86
72.71
Sociability
1–100
38.14–95.29
70.00
Global Trait EI
1–100
52.86–88.57
71.71
3.4 Procedure This study focuses in finding ways to segment online students into relevant groups so as to provide personalized and group adaptive e-education. To do this, the dataset was preprocessed using the sklearn python 3.8.8 library and unnecessary non-numeric features were dropped. The data related to TraitEI were converted from 1 to 7 Likert score to percentage in line with TraitEI profile scores [17] and then the data were scaled and normalized. The Scipy cluster hierarchy python library was used to perform hierarchical cluster analysis, first on TraitEI and AEQ separately and finally on the combined dataset. Matplotlib was used to visualize the results and findings. Table 3 presents sample data from the dataset. Results and findings are discussed in the next sections along with visual presentation.
4 Results and Discussion Exploratory and descriptive statistics, internal consistencies of the measures, together with the inter-correlational analysis of the dataset is done in our previous paper. In this study, we have focused in hierarchical cluster analysis to identify relevant students’ segments based on TraitEI and validate the consistency of the clusters by doing similar analysis on achievement emotions and academic performance. The details of the experiment results and analysis related to TraitEI are illustrated in figures below. As illustrated in Fig. 2, the number of possible clusters are indicated by the threshold y-axis lines in the dendrogram. Threshold line 4 shows we have two possible
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Table 3 Sample TraitEI score in percentile No.
Well-being
Self-control
Emotionality
Sociability
TraitEI
1
66.67
57.14
53.57
57.14
58.10
2
85.71
78.57
73.21
85.71
80.95
3
95.24
64.29
85.71
76.19
80.48
4
52.38
42.86
69.64
57.14
56.67
5
66.67
59.52
62.50
69.05
64.76
6
57.14
52.38
46.43
69.05
52.86
7
88.10
80.95
78.57
80.95
83.81
8
76.19
50.00
75.00
95.24
76.19
9
40.48
64.29
87.50
47.62
63.33
10
85.71
69.05
76.79
88.10
80.00
Fig. 2 Dendrogram to identify student clusters based on TraitEI profiles
clusters. Whereas threshold line 3 shows we can have three clusters. As we go downward in the figure, we notice that the distance between the clusters becomes shorter and shorter, making them more similar clusters. Therefore, three clusters are more convenient as illustrated in Fig. 3. After we did a similar analysis on the dataset based on the AEQ factors and the combined dataset from TEIQue and AEQ, we found out related clusters as illustrated in Fig. 4.
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Fig. 3 Agglomerative cluster analysis of TraitEI profiles of students. Three clusters: Cluster 1, purple (44.26%)—“Average TraitEI, good performers”; Cluster 2, green (13.11%)—“Slightly above average TraitEI, high performers”; Cluster 3, red (42.63%)—“Above average TraitEI, super performers”
Fig. 4 Left—Dendrogram to identify students’ clusters based on achievement emotions questionnaire (AEQ) scores of students. Right—Dendrogram to identify students’ clusters based a combined dataset TEIQue and AEQ
5 Conclusion Although there are a number of studies on adaptivity of e-education [4, 25, 26], our approach is unique in that we have employed Trait Emotional Intelligence (TraitEI) as a model and agglomerative hierarchical cluster analysis technique [22] to identify segments of students attending an online Digital Marketing course. Three clusters of students are identified which includes: students that have “Average TraitEI, Average Performers”; those that have “Slightly above Average TraitEI, High Performers”; and those that have “Above Average TraitEI, Super Performers.” These clusters
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are similar to TraitEI profile scores with slight difference. In the case of TraitEI profiles, there are three categories: below average (1–30%), average (31–70%) and above average (71–100%). However, in our study, we have not found students with ‘Below Average’ TraitEI profiles. This might be due to the self-report nature of the questionnaires we used to collect data and few participants in the study. We conclude that Trait Emotional Intelligence can be used as a criterion to segment students into relevant groups and can be easily implemented in the Moodle LMS by keeping a record of students’ TraitEI profiles as a component of students’ user profiles in the system without the need for technical implementation. The contribution of this research on the top and beyond the existing literature is of paramount importance in that complex subjects as such emotional intelligence which is being successfully used in the enterprise along with a validated achievement emotions measurement tool AEQ and students’ GPA is employed to recognize students’ dynamic behavior in the e-education environment with the purpose to identify relevant student segments and so as to serve leaners with personalized learning materials. By employing advanced trait emotional intelligence measurement tools, a more granular clustering of students can be done for better understanding learners’ behavior in the online leaning management system. However, the described approach has a limitation in that our previous research used the short form of trait emotional intelligence measurement instrument which gives only the snapshot of the emotional characteristics of the participants. Moreover, there was no sufficient data collected as only 61 students responded to the questionnaires. In the third phase of our research, we plan (1) to employ advanced trait emotional intelligence measurement tools and engage large number of students from variety of courses and departments so as to prepare a comprehensive dataset; (2) to integrate and/or develop emotional intelligence testing system with online learning management systems for better and faster exchange of TraitEI profiles of online learners; (3) to automate much of the work of data collection and cluster analysis by employing some components of Artificial intelligence in the Moodle LMS for enhancing adaptivity in e-education.
References 1. Abdel Halim, E.: The relationship between emotional intelligence and marketing effectiveness and its impact on market spread (loyalty, product positioning and mental image) for multinational companies. Arab J. Admin. 0(0), 227–250 (2021) 2. Kidwell, B., Hardesty, D.M., Murtha, B.R., Sheng, S.: Emotional intelligence in marketing exchanges. J. Mark. 75(1), 78–95 (2011) 3. Mayer, J.D., Salovey, P.: What is emotional intelligence. Emot. Dev. Emot. Intell. Educ. Implic. 3, 31 (1997) 4. Despotovi´c-zraki´c, M., Markovi´c, A., Bogdanovi´c, Z., Bara´c, D., Sciences, O., Ili´ca, J.: Providing adaptivity in Moodle LMS courses. Educ. Technol. Soc. 15, 326–338 (2012) 5. Achar, C., So, J., Agrawal, N., Duhachek, A.: What we feel and why we buy: the influence of emotions on consumer decision-making. Curr. Opin. Psychol. 10, 166–170 (2016)
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6. Digital marketing strategies for eLearning companies—eLearning Industry. [Online]. Available: https://elearningindustry.com/advertise/elearning-marketing-resources/blog/digital-mar keting-strategies-for-elearning-service-providers. Accessed 26 Jan 2021 7. Verma, I.M.: Experimental evidence of massive-scale emotional contagion through social networks. Proc. Natl. Acad. Sci. U.S.A. 111(29), 10779 (2014) 8. Top 20 eLearning statistics for 2019—eLearning industry. [Online]. Available: https://elearn ingindustry.com/top-elearning-statistics-2019 9. Petrides, K.V.: Trait emotional intelligence theory. Ind. Organ. Psychol. 3(2), 136–139 (2010) 10. Keidar, D.: Emotional intelligence and education. Stud. Eduk. 37(37), 327–348 (2015) 11. Buzdar, M.A., Ali, A., Tariq, R.U.H.: Emotional intelligence as a determinant of readiness for online learning. Int. Rev. Res. Open Distance Learn. 17(1), 148–158 (2016) 12. Shen, L., Wang, M., Shen, R., Journal, S., April, N: Affective e-learning: using ‘emotional’ data to improve learning in pervasive learning environment. 12(2) (2016) 13. Machera, R.P., Machera, P.C.: Emotional intelligence (EI) a therapy for higher education students. Univers. J. Educ. Res. 5(3), 461–471 (2017) 14. Fatahi, S.: An experimental study on an adaptive e-learning environment based on learner’s personality and emotion. Educ. Inf. Technol. 24(4), 2225–2241 (2019) 15. Alshammari, M.T., Qtaish, A.: Effective adaptive e-learning systems according to learning style and knowledge level. J. Inf. Technol. Educ. Res. 18, 529–547 (2019) 16. Embaye, T.: Assessing the significance of emotional intelligence in e-learning. In: International Conference E-Business Technologies, p. 53, 2021 17. Palmer, B.R., Stough, C., Harmer, R., Gignac, G.: Psychometric properties of the trait emotional intelligence questionnaire (TEIQue), pp. 103–117 (2009) 18. Pekrun, R., Goetz, T., Titz, W., Perry, R.P.: Academic emotions in students’ self-regulated learning and achievement: a program of qualitative and quantitative research. Educ. Psychol. 37(2), 91–105 (2002) 19. Ngo, T.: Data mining: practical machine learning tools and technique, third edition by Ian H. Witten, Eibe Frank, Mark A. Hell. SIGSOFT Softw. Eng. Notes 36(5), 51–52 (2011) 20. Köhn, H., Hubert, L.J.: Hierarchical cluster analysis. Wiley StatsRef Stat. Ref. Online, pp. 1–13 (2014) 21. Hierarchical clustering—Wikipedia. [Online]. Available: https://en.wikipedia.org/wiki/Hierar chical_clustering. Accessed 31 Aug 2021 22. Subasi, A.: Chapter 7—clustering examples. In: Subasi (ed.) Practical Machine Learning for Data Analysis Using Python, pp. 465–511. Academic Press (2020) 23. Deniz, M.E., Özer, E., Isik, E.: Trait emotional intelligence questionnaire-short form: validity and reliability studies. Egit. ve Bilim 38(169) (2013) 24. Pekrun, R., Goetz, T., Frenzel, A.C., Barchfeld, P., Perry, R.P.: Measuring emotions in students’ learning and performance: the achievement emotions questionnaire (AEQ). Contemp. Educ. Psychol. 36(1), 36–48 (2011) 25. Arsovi´c, B.: Adaptivity in e-learning LMS platform–approaches and solutions. In: Proceedings of the 2nd International Conference on e-Learning (eLearning–2011), pp. 49–54 (2011) 26. Graf, S.: Fostering adaptivity in e-learning platforms: a meta-model supporting adaptive courses. CELDA 1, 440–443 (2005)
Cyber-Physical Systems and Digital Twins as a Concept of Building the World of Intellectual Technologies and Management of Production Processes Tatyana Astakhova, Mikhail Kolbanev, and Anna Krasnova Abstract The twenty-first century is the century of the fourth industrial revolution, or as we used to call it Industry 4.0, in which cloud computing, 5G, the Internet of Things (IoT), artificial intelligence and other technologies are a big step toward creating a world of intelligent technologies. These concepts allow you to create optimal conditions and endow systems with greater efficiency through their feedback, which allows physical processes to influence the digital world and vice versa. But from different points of view, they are not identical in many ways. This article summarizes the differences and correlations between the two concepts. Also, the concept of managing production processes using digital twins has been built, significant differences between digital twins and models in ERP systems have been demonstrated. Keywords Digital twin · Cyber-physical systems · Intelligent technologies · Concept · Digital transformation
1 Introduction Humanity is entering a new era, the era of intellectual technology. Everything that surrounds us is rapidly changing and evolving. We are entering the era where intelligent systems are able to perform the functions of optimization, decision-making, automatic analysis and many other functions while interacting with the real world in real time. Human–machine interactions are becoming increasingly close, which leads to the construction of new control models. The efficiency of work processes will be much higher due to the online operation and close connection with the machines for solving complex tasks. Now we are on the path of digitalization of all existing T. Astakhova · A. Krasnova (B) Nizhny Novgorod State Engineering and Economic University, 22a Oktyabrskaya St., Knyaginino 606340, Russia M. Kolbanev St. Petersburg State Electrotechnical University “LETI”, 2 Instrumental St., St. Petersburg 197022, Russia © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 J. L. Reis et al. (eds.), Marketing and Smart Technologies, Smart Innovation, Systems and Technologies 280, https://doi.org/10.1007/978-981-16-9272-7_8
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processes, which leads to global problems associated with the rapid development of digital technologies. Modern information and communication services cover almost all types of human life: household activities, work, entertainment, medicine, education, trade, etc. The main direction in the development of the information service remains the expansion of the list of services and the improvement of their quality [1]. Modern industry is also experiencing a change in existing business processes due to digital technologies. Production is moving to intelligent manufacturing, where the role of cyber-physical systems and digital twins is central. Intelligent manufacturing with these concepts (cyber-physical systems and digital twins) controls the state of production in real time throughout the product lifecycle, so in real time they can: • • • •
get information about objects; determine the change in characteristics; make a conclusion within the previously established rules; make decisions based on the received information and issue certain commands.
According the Presidential Decree “On the Strategy for the Development of Information Society in the Russian Federation for 2017–2030,” the digital economy is an economic activity, where digital data are a key factor in production, processing large volumes and using the results of analysis of which, in comparison with traditional forms of management, make it possible to significantly increase the efficiency of various types of production, technologies, equipment, storage, sale, delivery of goods and services. The purpose of creating digital economy is formation of information space based on knowledge, which is carried out through the development of science, the implementation of educational and informative projects [2].
2 History and Development of Cyber-Physical Systems and Digital Twins Industry 4.0 and digital economy are based on cyber-physical systems, some of the elements of which are physical, and the other part is cybernetic elements. The main goal of cybernetics is to identify general patterns of control processes and information transfer in systems of different physical nature. Research in this area is aimed at cybernetic systems, considered without regard to their physical implementation, that is, that it studies the result of the work of this class of systems. The concept of a “black box” was first formulated in cybernetics as a device that performs an operation on an input potential, which, instead of the properties and interrelationships of the components of the system, studies its response of the system as a whole to changing conditions. The subject of the research is control processes in complex cybernetic systems. Systems are studied in cybernetics according to their reactions to external influences, in other words, according to the functions that they perform.
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Cyber-physical systems represent the centralized and/or distributed hardwaresoftware system realizing physical and infocommunication processes of collecting, processing, accumulating, storing, searching, protecting, distributing and using data and information and interacts with real-world objects through physical processes [3]. There is also an opinion that cyber-physical systems need to be investigated from the position of mixed approach, involving the simultaneous study of interaction of physical processes, software and networks. As a challenge for researchers of the cyber-physical system, it is the synchronization of time of events occurring in the real world with time of events in the virtual space [4]. Cyber-physical systems can be considered as a complex of computers built into the process control loop so that physical processes affect the course of calculations and vice versa. At the same time, these elements are connected to each other by means of analog-to-digital (ADT) and digital-to-analog (DAT) transformations and physically due to joint use of time, space and energy resources. Speaking about the field of application of cyber-physical systems, we can say that they extend to all types of human activity affecting the interests of society as a whole, forming such systems as smart cities, houses, industrial systems, transport, military and energy systems. The developer of cyber-physical system must ensure coordination of the behavior of physical and cybernetic systems, and this is not easy to achieve, since it is difficult to combine analog and digital process models with each other. Examples of cyber-physical systems are • • • • • •
unmanned transport, precision farming system, KUKA robots, sensor network of mobile objects, a swarm of aircraft, digital twins of physical entities, etc.
But now time does not stand still and innovations in digital technologies are gaining more and more popularity, giving new opportunities to a person that did not exist before. These innovations are based on end-to-end technologies, information systems, which makes it possible to new technologies that lead us directly to the digital economy. A digital twin, according to the classical definition, is a digital copy of living or artificial physical object [5]. The term digital twin refers to digital copy of potential and real physical assets (physical twin), processes, people, places, systems and devices that can be used for various purposes. Digital twins are designed to facilitate the means of monitoring, understanding and optimizing the functions of all physical assets, ensuring unhindered data transfer between the physical and virtual worlds [6]. The definitions of digital twin differ due to the scope of its application; for industrial processes, digital twin is a digital model of some physical entities created in cyberspace that interact in real time. In relation to this model, the physical entity is the original.
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The digital twin becomes an integral element of the process of activity, rigidly connected with the original. This means that if the twin or its original cease to exist or connections between them are severed, then the physical entities reflected by the twin cannot be explored, studied or somehow used in the process of activity. The connections between digital twin and its original must support such information interaction, in which: any changes in the original change the states of digital twin; any physical effects on the original are allowed only after testing them on digital twin. The organization and support of such connections require the use of information and communication technologies of the latest generation. For example, connections can be implemented as follows: • from the original to the twin using the Internet of Things; • from the twin to the original using artificial intelligence and machine learning algorithms, which give estimates of the current state of the original, predict possible changes in the state in the future, and form the basis of the decisions of the subjects of activity—users of twin (Fig. 1). In terms of structure, digital twin is a complex of interconnected computer models that can reliably display the original object, its state and behavior under various environmental conditions and control influences. Models form a view of full life cycle of an object, allowing you to detect, analyze, predict, and prevent unwanted situations during the operation of an object.
Fig. 1 Building architecture of digital twin
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3 The Concept of Building a World of Intelligent Technologies: Comparison and Interrelation In connection with the transition to digital society, any activity has become defined by modeling a new type of processes, the peculiarity of which is the convergence of material and information flows, which cannot be separated from each other on the principle of cybernetic systems [7, 8]. Cyber-physical systems and digital twins include similar characteristics, and describe the interaction of two worlds physical with “cyberspace.” Now cyberphysical systems equate more to the scientific category, and digital twins, in turn, to the technical category. Digital twins, like cyber-physical systems, include cyber-physical and physical spaces. With the help of the cyber-physical world, they monitor, interact and manage the physical world in real time. However, there are certain differences regarding cyberspace: the digital twin is more based on virtual models, which are an identical copy of physical object, and cyber-physical systems emphasize the integration and cooperation of computing systems, communications and management. Considering digital twins and cyber-physical systems in terms of their functions, sensors and actuating mechanisms provide interaction between physical and cyber worlds for data exchange and management in both concepts. Thus, sensors and actuating mechanisms can be considered as the main elements in cyber-physical systems, while models and data are the main elements for digital twins for example, how it is presented in the work [9] (Fig. 2).
Fig. 2 Hierarchy of concepts of digital twin and cyber-physical systems
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From hierarchical point of view, it is important to note that these concepts have different components at each level. Both elements can be divided into single level, system level, and SoS level. According to hierarchical structure, cyber-physical systems and digital twins can be implemented in three stages. At the first level, it is necessary to build a modular layer, which is based on intelligent monitoring, intelligent control and equipment state management. At the second step, you must build system level. And at the third step, the SoS level is implemented by means of levels 1 and 2.
4 Manufacturing Process Control Concept Using Digital Twins and Cyber-Physical Systems The digital twin becomes an integral part of the process of activity, rigidly connected with the original. This means that if the double or its original ceases to exist, or the connections between them are severed, then the physical entities reflected by the double cannot be investigated, studied or otherwise used in the process of activity. The links between the digital twin and its original must support such informational interaction in which: any changes to the original change the states of the digital twin; any physical influences on the original are allowed only after testing them on a digital twin. The organization and support of such links require the use of the latest generation of infocommunication technologies. For example, links can be implemented like this: • from the original to the double using the Internet of Things; • from a double to the original using artificial intelligence and machine learning algorithms, which provide estimates of the current state of the original, predict possible changes in the state in the future, and form the basis for decisions of subjects of activity—users of the double. The role of digital twins in improving business efficiency is steadily growing, and it can be argued that companies that do not implement these technologies are literally playing in their competitiveness every day. Evidence that digitalization is a modern trend in the development of the business of industrial companies is the fact that today an increasing number of companies are creating services or offices of digital transformations in their structure, receiving the following effects: • • • • • •
accelerated cost reduction in production, technological and logistics processes reduction in the share of manual labor in production reduced downtime and increased equipment utilization significant reduction in the time for changeover of equipment with digital control improving the quality of processes and manufactured products, reducing rejects improving the safety and ergonomics of work in production
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Table 1 Differences between digital twins and models in ERP systems System differences
Technological differences
Influence on the process of activity
– The amount of data that the – Technologies of the Internet – The object of activity twin consolidates is of Things, sensorics, acquires, in addition to significantly larger than robotics, autonomous power physical and digital form; – The subject may not interact available to traditional supply, wireless with the object in physical models of the same activity; communication, etc. allow – The rate of data transfer space; you to work with up-to-date, – Operating, production and between the twin and relevant and accurate data other types of activities of physical objects is about originals; enterprises become qualitatively higher than the – Technologies of artificial completely informational rate of change of data on the intelligence, machine subject areas of databases; learning, modeling give – The computational power of accurate estimates of the twins makes it possible to state of the original and solve computational predict possible changes in problems of a states in the future; – Technologies of augmented, fundamentally different virtual, mixed reality make complexity it possible to visualize the data that make up the digital twin
• reducing labor intensity and improving the quality of the production management process and many other indicators (Table 1). Digital twins are gradually coming into all spheres of business and every person’s life, and over time they will become more and more obvious and noticeable. More and more organizations are moving to digital twins, which provide interactions between participants, improve the effectiveness of various indicators, depending on the area of interaction, by digitizing the processes of interaction with their consumers.
5 Conclusion The twenty-first century is the fourth industrial revolution, or as we used to call it Industry 4.0, in which cloud computing, 5G, the Internet of Things (IoT), artificial intelligence and other technologies, are a big step toward creating a world of intelligent technologies. These concepts allow to create optimal conditions and give systems more efficiency at the expense of their feedback, which allows physical processes to influence the digital world and vice versa. Cyber-physical systems and digital twins include properties such as real-time interaction, relationship between physical and virtual world, and integration of organizations. The comparison from different points of view presented in this paper allows better understanding of cyber-physical systems and digital twins, which seem
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conceptually similar. It also helps identify similarities and differences as promising technologies that emphasize cyber-physical integration. Digital twins have become a truly powerful catalyst for the development of modern companies. Thanks to them, the technical support of the system is greatly simplified, resources are saved, the risks of errors and failures are minimized, which prolongs the period of stable operation of the product. All this allows the business to get the highest possible return on investment, improve competitiveness and build customer loyalty. It can be concluded that the introduction of a digital twin is of great commercial benefit to the business and provides innovative ways of making a profit. But many companies are afraid of change, afraid to change existing management models, this is due to the fact that many managers are afraid to take risks, do not want to change the already working management models, thereby pushing themselves a step back from companies that take risks and move to new models using digital twins. We plan to consider this problem in our future works.
References 1. Mikadze, S.Y., Kolbanev, M.O., Tatarnikova, T.M.: Model of information interaction for service enterprises. Instrument Making (9) (2014) 2. Shamin, A.E., Frolova, O.A.: University of Future in the era of digital economy. Training of modern economic personnel to solve new problems. Nikonovsky Readings (23) (2018) 3. Zakharov, V.V.: Dynamic interpretation of formal description and solution of the problem of modernization of complex objects. Instrument Making (10), 914−920 (2019) 4. Fass, D., Gechter, F.: Towards a theory for bio-cyber physical systems modelling. In: Duffy V.G. (ed.) Digital Human Modeling. Applications in Health, Safety, Ergonomics and Risk Management: Human Modeling. 6th International Conference, DHM 2015, (Los Angeles, 2–7 Aug, 2015), Pt 1. p. 248. Springer, N.Y. (2015) 5. El Saddik, A.: Digital twins: the convergence of multimedia technologies. IEEE Multimedia 25(2), 87−92 (2018) 6. Khajavi, S.H., et al.: Digital twin: vision, benefits, boundaries, and creation for buildings. IEEE Access 7, 147406−147419 (2019) 7. Kolbanev, M.O.: Information technology support for digital economy. In: Kolbanev, M.O., Korshunov, I.L. (eds.) Information Technologies of Digital Economy, pp. 5−9 (2017) 8. Kolbanev, A.M., Kolbanev, M.O., Tsekhanovsky, V.V.: Models of information interaction, p. 172. Publishing House of St. Petersburg State Technical University “LETI,” St. Petersburg (2016) 9. Tao, F., Qi, Q., Wang, L., Nee, A.Y.C.: Digital twins and cyber–physical systems toward smart manufacturing and industry 4.0: correlation and comparison. Engineering 5, 653–661 (2019)
Towards an Impartial Evaluation of Cities’ Smartness: A Multivariate Statistical Approach Veljko Uskokovi´c, Milica Mariˇci´c, and Veljko Jeremi´c
Abstract The issue of mapping the smartness of cities has attracted the attention of various stakeholders. One of the ways of quantifying city smartness and benchmarking cities based on the level of the achieved smartness is using composite indicators (CIs). However, the topic often cited as the slippery slope of CIs includes methodological issues when combining several indicators into one synthesized value. Aiming at providing a possible remedy to the subject, we employed the I-distance method to the PricewaterhouseCoopers (PWC) Cities of Opportunity Index. The results pointed out leader cities in terms of smartness, with the additional benefit of the study being encapsulated in much-needed inputs of essential components of the index. Consequently, decision-makers can foster the inputs of the study to raise the bar for a particular city. Keywords Smart city · I-distance method · Composite indicator · Ranking
1 Introduction Policymakers are in a continuous quest for providing an integrated framework that will encapsulate pillars of city smartness [1]. Numerous research attempts have been made to present methodologically sound and government-useful models for measuring city smartness throughout the years. However, besides the usage of individual indicators, composite indicators (CIs) in the field are emerging. Namely, with the expansion of indicators depicting the smartness of the cities [2], it is even more challenging to provide a statistically robust framework for integrating several indicators into one value representing the smartness of the city. Although composite indicators contribute to the stakeholder’s comprehension of observed multi-indicator phenomenon (such as smartness of cities) through straightforward comparison of monitored entities [3], issues such as providing impartial weighing scheme remain of high importance [4]. Aiming to tackle this frequently V. Uskokovi´c · M. Mariˇci´c · V. Jeremi´c (B) University of Belgrade, Jove Ili´ca 154, 11000 Belgrade, Serbia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 J. L. Reis et al. (eds.), Marketing and Smart Technologies, Smart Innovation, Systems and Technologies 280, https://doi.org/10.1007/978-981-16-9272-7_9
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cited challenge, we present an approach that can serve as the potential remedy to the issue. This paper aims to analyse the PWC Cities of Opportunity Index and to propose an alternative ranking using the originally proposed indicators and the data-driven statistical multivariate approach. The multivariate statistical analysis applied is the I-distance methodology [5]. The organization of the paper is as follows: Section 2 features a literature review on the issue of CI creation, currently devised and proposed rankings on the topic of smart cites and the overview of the PWC Cities of Opportunity Index. The statistical method employed and the data set are briefly outlined in Sect. 3. The research results are presented and elaborated in Sect. 4. The concluding remarks are presented in the final chapter.
2 Literature Review To better understand the analyses conducted in the paper and the importance of such analysis, the literature review is divided in three parts. First, we outline the complex procedure of CI creation, followed by the overview of the smart city concept, while we conclude with the CI analysed in the paper. According to OECD [6], composite indicators are formed “when individual indicators are compiled into a single index, on the basis of an underlying model of the multi-dimensional concept that is being measured”. Composite indicators are practical and quite informative; however, several steps in their creation raise significant concerns among academia [7]. The commonly cited slippery steps are the following: normalisation, weighting approach, and aggregation. The first step that comes intuitively after choosing individual indicators which are commonly measured in different scales (euros, dollars, kilos…) is putting them all on standard scale. The process which solves the mentioned issue is normalisation [8]. There are several wellknown methods of normalization [9]: standard deviation from the mean (z-scores), distance from the group leader, distance from the mean, and others. The second step sees the process of weighting individual indicators where weights should reflect the contribution of each indicator to the overall metric [10]. The idea of weighting is to assign weights to indicators which will reflect their relative importance to the general (total) composite indicator [8]. What comes as an issue is how to choose an appropriate weighting scheme from the many approaches that have been proposed [11]. At the end, final step in composite indicator creation process is aggregation: the process of combining multiple indicators into a single number. It is as important as the previous two steps [12]. According to Zhou et al. [13], aggregation methods can be linear, geometric and multi-criteria categories. Taking all the above-mentioned into account, we can conclude that the steps of normalization, weighting, and aggregation can be solved on many ways, and that the question which emerges is which approach to take for each of the steps?
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As a consequence of rapid city development, tremendous city population growth, and eternal human goal to get optimized whatever can be optimized, a governmental interest in concept of smart cities arose [14]. In last decade, the concept of smart city has been thoroughly examined and analysed, therefore defined [15] as a: “a hightech intensive and advanced city that connects people, information and city elements using new technologies in order to create a sustainable, greener city, competitive and innovative commerce, and increased life quality”. Sounding as much appealing as one can imagine this concept has had many powerful policymakers change their decisions and strategies of further development because it undeniably provides public safety, overall enjoyment and sustainable economic growth. Whatsoever, it is interesting to underline the fact of emerging interest in measuring the level up to which the cities smart implementations has increased. Hitherto, two ways have been developed to measure such level, either with single indicators such as key performance indicators (KPI) or with CIs. The latter is at our most concern and as a matter of fact, there are a few different composite indicators that are in use all over the world [16]: China Urban Sustainability Index, City Prosperity Initiative (CPI), European Green City Index, and European Green Capital Award. As to scrutinize the concept of smart city, one should be given with fair explanations of what real intention of making a smart city is, what its main characteristics and core elements are, and how sustainable smart city is. In order to briefly answer these questions without soaring into rather philosophical deep-values discussion, primarily it is to be acknowledged that besides technical, technological and economical characteristics, social ones are of utmost importance. Consisted of human capital and social capital, social characteristics demand as much investment as economical ones because their fulfilment makes a city smart [17]. Human capital accompanies specific skills, knowledge, ideas and capabilities of individuals [18]. Social capital includes multilateral connections between people (citizens) among themselves and connections between social institutions as well. It can be concluded that socially active human beings are irreplaceable for an adequate development of all particular components of a smart city [19]. To sum up, people are the leading innovation providers who actually make smart city more humane, vivid and open-minded. A smart city requires people with readiness and willingness to participate in public and social life, independently make decisions and always tend to be creative in every way [20]. When it comes to sustainability of such a concept, it is undoubtedly evident on the connection between sustainable development and the social dimension of smart cities. Argument in favour of such a statement is that no sustainability can be expected without people who are actively participating in making it possible. However, widely used definition of sustainability from [21] states that it is “development that meets the needs of the present without compromising the ability of future generations to meet their own needs”. More to the point, achieving sustainability means establishing continuous social development with ICT, thus making a smart city to be seen as “an icon of a sustainably liveable city” [22]. The ultimate tool for connecting people and creation of global social network which ensures prosperity of sustainable smart city is the Internet.
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However, within any discussion economical aspect is second to none to be examined—the same case is in here. Economic issues imposed before smart cities to overcome include establishment of new business opportunities, creation of job openings, creating a good business climate, competitive advantage creation and productivity improvement [23]. Whatsoever, Snieska and Zykiene [24] go further and emphasize that the characteristics of future smart cities related to economy on which the local governance should focus should be international accessibility, economical vitality, innovativeness, safety, health of residence, and inhabited with responsible society. To conclude, complex analysis is to be undergone in order to develop a composite indicator such as smart city composite indicator. Furthermore, it is the question of how this indicator is used and what for. According to Bhattacharya et al. [25], composite indicator of smart city indicates how much sustainable development is achieved at certain are wherever and whatever it concerns, thus mainly occupying sustainable development in economy, culture, social dimension, etc. The CI that attracted our attention and that we aim to scrutinize as a case study is the PWC Cities of Opportunity Index [26]. The index is comprised of ten compounding pillars: City gateway; Cost; Demographics and liveability; Ease of doing business; Economic clout; Health, safety, and security; Intellectual capital and innovation; Technology readiness; Transportation and infrastructure; Sustainability and the natural environment [26]. The methodology behind PWC COI is equal-weight approach with linear aggregation. The CI was first issued in 2007, and since then, it gained visible media attention (for example [27]). To our knowledge, so far, complex multivariate analysis on the index has not been published.
3 Method and Data Aiming at impartially incorporating several individual indicators into one synthesized indicator, which will serve as the rank of the observed cities, we proposed the utilization of the I-distance method. The suggested method has established itself as the viable choice for incorporating many variables into a total score while eliminating the duplicity of variability that compounding variables deliver to the total score [28–30]. Moreover, besides the ranking of the observed entities (countries, regions, cities, organizations, etc.), using the information on the correlation coefficient of each variable and the I-distance score, the importance of the individual indicators can be determined [31, 32]. Consequently, decision-makers are delivered with much-needed feedback about the importance of observed variables for the process of ranking [17]. As a case study, we evaluated the PWC Cities of Opportunity Index (2021) for the year 2020. The data are publicly available at [26].
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4 Results After conducting the I-distance method, we obtained I-distance values and, consequently, the importance of each indicator for ranking (Table 1) and the ranks of each observed city (Table 2). We will firstly provide the analysis of the obtained importance of individual indicators. The indicators in Table 1 are sorted from the most important indicator for Table 1 The importance of indicators for the ranking process based on the I-distance method Indicator
r
Intellectual capital and innovation
0.941
Technology readiness
0.905
Health, safety, and security
0.879
Demographics and liveability
0.872
Ease of doing business
0.858
Economic clout
0.749
City gateway
0.700
Transportation and infrastructure
0.637
Sustainability and the natural environment
0.552
Cost
0.339
Table 2 Ranks of cities according to the PWC and the I-distance method City
PWC rank
I-distance rank
City
PWC rank
I-distance rank
London
1
1
Dubai
16
16
Singapore
3
2
Beijing
19
17
Paris
6
3
Shanghai
20
18
Toronto
4
4
Kuala Lumpur
17
19
New York
2
5
Moscow
21
20
San Francisco
5
6
Milan
18
21
Stockholm
7
7
Buenos Aires
24
22
Hong Kong
8
8
Mexico City
22
23
Chicago
10
9
Johannesburg
23
24
Berlin
11
10
Istanbul
25
25
Seoul
14
11
Mumbai
28
26
9
12
Sao Paulo
26
27
Los Angeles
12
13
Rio de Janeiro
27
28
Tokyo
13
14
Jakarta
29
29
Madrid
15
15
Nairobi
30
30
Sydney
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the ranking to the least important. As we can see, the importance, measured through Pearson’s correlation coefficient ranges from 0.339 to 0.941. Intellectual capital and innovation represents the most critical pillar with the r = 0.941. It consists of three crucial factors: Percentage of the population with higher education, World university rankings and Number of libraries with public access. The percentage of highly educated people contributes both to economic and noneconomic aspects of society [33]. Understandably, having a world-class university is priority number one for any emerging or developed economy [34], while a number of public libraries represent an excellent proxy of developed societies with examples, such as Norway, where all municipalities have a public library [35]. Technology readiness, with r = 0.905, is of high importance for the process of ranking and its compounding variables need to be thoroughly evaluated. For instance, Internet access in schools can improve the quality of education process and teaching management [36]. Also, Broadband quality has been singled out as a main priority for dozens of governments, policy makers, and regulators to rapidly develop their economic and socio-political strategies [37]. Finally, Digital security is crucial for securing a smart city concept [38]. Worth mentioning is the pillar Demographics and liveability, with r = 0.872, represented with two factors: Working age population and Quality of living. A number of researchers are tackling the uncertainty about global future economic growth with the trend of working-age population keep on levelling up [39]. Also, pillar Ease of doing business (r = 0.858), which encapsulates Starting a business and Number of foreign embassies and consulates, are two aspects often cited as the drivers of progress [40, 41]. Next, we provide the insights on the obtained ranks and the official PWC ranks. Obtained ranks are similar to the official PWC ranking, with some differences noted. As we can see, London tops the ranking on both approaches. For instance, Paris has risen in rankings (from 6th to 3rd position), while NYC fell three spots (from 2nd to 5th position). Looking at the cities at the bottom of the ranking, we can see that the rank changes have been minimal. To additionally explore the obtained rankings, Spearman’s correlation coefficient was calculated between the two ranks. The obtained coefficient is 0.983, indicating that the rank changes are slight.
5 Conclusion In the last decade, a new type of rankings appeared: rankings of cities based on their level of achieved smartness. These metrics are becoming a valuable tool for framing city governance on a global scale. Moreover, they became catalyst for competition among cities in terms of quest for the investment and human capital [42]. Surge in the interest of cities smartness has propelled the lines of research integrating sustainability and green into measuring cities smartness [43, 44], altogether pinpointing
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the need for composite index of cities’ smartness that encapsulates many different aspects of city. Herein, the I-distance method was implemented on the PWC Cities of Opportunity Index. The obtained findings indicate that among the ten indicators, Intellectual capital and innovation stands out as the most important for the ranking system, followed by Technology readiness. This is a change compared to the official weighting scheme, which observes all the indicators with the same importance. Additionally, the analysis outlined that the weighting approach needs refinement as some indicators, such as Cost, were given visibly lower importance compared to the official ranking methodology. Therefore, one of our suggestions for further development of the PWC Cities of Opportunity Index is to refine the equal weighting approach. Our study pointed out the need to go beyond the subjectively formed weighting scheme in constructing a composite index of cities’ smartness. This is especially the case when assigning equal importance to each compounding indicator. In addition, the proposed approach sheds light on the essential components of cities’ smartness, thus enabling decision-makers to push forward agendas that will improve those components in particular.
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Customer Data Management and CRM
HJ-BIPLOT as a Basis for the Search of Clusters Based on Pension Indicators for Latin American Countries Cristian Cornejo , Claudio Ruff , Luis Benítes , Joe Alexis González , and Purificación Galindo
Abstract In the 1980s, Chile’s Decree-Law No. 3500 introduced a new Pension System in Latin America based on individual savings by workers during their working life, thus discarding the distribution model. The system has been implemented in several countries in the region, such as Mexico, Uruguay, Peru, Colombia, Panama, Costa Rica, El Salvador, and the Dominican Republic, so that today in Latin America, two types of systems coexist, one with a public fund and the other with individual savings managed by private companies called Pension Fund Administrators (AFP). Since before the Pandemic, Latin America has had demographic, occupational, and other problems, which have deepened with COVID-19 and have had a negative impact on the economies of various countries in the region, and which have seen pension savings as a support option for overcoming the crisis. Different politicians and experts have analyzed the situation, if this withdrawal of savings from pension funds supports people to overcome one of the worst economic crises in recent years, risking the pension systems to get rid of assets in different markets, mainly where demand is weak and liquidity is low. This article seeks to explain the trend of the AFPs using the HJ-Biplot statistical method. Keywords Multivariate analysis · Cluster · HJ-Biplot · Latin America · Pension system · Environmental variables
1 Introduction In several countries, pension systems, whether through their public or private systems, face important challenges under strong pressures for their reforms, which have led C. Cornejo (B) · C. Ruff · J. A. González Centro de Investigación Institucional, Universidad Bernardo O’Higgins, Santiago, Chile e-mail: [email protected] L. Benítes Departamento de Ingeniería Industrial, Universidad Nacional de Trujillo, Trujillo, Perú P. Galindo Departamento de Estadística, Universidad de Salamanca, Salamanca, Spain © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 J. L. Reis et al. (eds.), Marketing and Smart Technologies, Smart Innovation, Systems and Technologies 280, https://doi.org/10.1007/978-981-16-9272-7_10
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them to generate different structural changes both in Europe and in Latin America [1], since worldwide, pension systems have experienced multiple problems to sustain optimal financing and thus be able to maintain or improve their benefits. Only a few developed countries are capable of granting decent pensions to their retirees [2]. Although several Latin American nations have had to coexist with various political and economic difficulties, they have probably done a more proactive and transformative job in social security reforms compared to other regions of the world [3]. For decades, Latin American countries have undergone pension reform processes that, in a certain way, have contributed to the fiscal sustainability of the countries but have not been able to provide all people with broad social protection coverage, directly affecting citizens in their elderly years [4]. It is known that until the 1970s, Chile and Uruguay had the most advanced and splendid social security systems in Latin America. In addition, they shared important similarities, which lasted until the so-called social security crisis [5], since Chile in 1981 implemented the reform of the pension system, converting from a public system to a private capitalization system, being the first country in the world to completely privatize the pension system, which influenced other countries worldwide to follow its footsteps [6]. This has its origin in the fact that Chilean pensions generated profits and benefits, and, in addition, these individual pension savings accounts, at least in Latin America, promised to optimize and increase benefits by increasing savings rates, which would lead to more significant economic growth [7]. By the 1990s, thousands of people in Latin America were already participating directly in financial capital results, given the pension reforms implemented by the countries of the region [8]. The implementation of these new pension rules has exposed countries to multiple inequalities that have impacted the role of the system and its respective benefits [9]. In the last decade, along with globalization and the fourth industrial revolution, Latin America has been facing a slight economic recovery, through new challenges and opportunities that have arisen in a global context of high uncertainty that has brought with it a decline in citizen confidence, hand in hand with global demands related to the Sustainable Development Goals and the 2030 Agenda for Sustainable Development to OECD, CAF, and ECLAC. Also, there have been significant social, economic, and demographic changes with a strong trend toward an aging population due to the increase in life expectancy [10], which has generated that social security policy is one of the main issues, given the desire of people to have greater economic stability in their elderly years [11]. Although the region has made significant progress in reducing poverty, the same has not been true of inequality when it comes to implementing social policies; instead, the need has arisen to create complementary policies to promote the social inclusion of the most vulnerable population, given the multiple causes and consequences of this situation. The publication of data and the generation of reliable information are constant challenges for public and private entities participating in the system. In this scenario, many international organizations have emerged that provide information on Social Security and Development, as well as statistics on individual capitalization regimes, such as the Economic Commission for Latin America and the Caribbean (ECLAC)
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and its database of non-contributory social protection programs in Latin America and the Caribbean, the Organization for Economic Cooperation and Development (OECD), the World Bank and its World Development Indicators data, the IberoAmerican Social Security Organization (OISS), the International Social Security Association (ISSA), the International Association of Pension Fund Supervisory Agencies (AIOS), the International Labor Organization (ILO), the International Organization of Pension Supervisors (IOPS), the International Organization of Employers (IOE), the Inter-American Conference on Social Security, PensionsEurope, and also the International Federation of Pension Fund Administrators (FIAP) and the Pension Network in Latin America and the Caribbean (PLAC Network), from which the data for this study were extracted. In this context, and placing this research in its specific context of analysis of variables that have an impact on the Latin American pension systems and given the questions and demands that arise, regarding the role played by the Pension Systems on people at the time of retirement, it is significant to highlight various research studies that describe the Latin American pension systems [12]. There are studies related to lessons learned [13], criticisms [14], challenges [15], impacts of regulatory regimes on the performance of the private pension fund market [16], those that analyze the economic and social effects [17], as well as those that analyze by gender [18] and their inequality [19]. In addition to the above, publications are related to pension reforms in Latin America [20] and the reforms introduced in Latin American pension systems [21]. Given the above, it is of utmost relevance to contribute with research focused on the analysis of the pension systems, as well as in the investigation of the way in which these systems behave at the Latin American level under the main indicators of each of the countries. In this area, this research is a precursor in finding answers by applying the HJ-Biplot multivariate study method [22], which proposes a form of simultaneous representation for data matrices between twelve Latin American countries in light of the data published by Red PLAC with the purpose of clustering and representing the existing relationships between variables analyzed with the respective Latin American countries by projecting them in a subspace of dimension two.
2 Background In 2005, 44% of Latin American countries, that is, 11 of them, had implemented a type of private structural reform in their pension systems, either partially or totally. These new implementations were carried out with various failures so that nations such as Argentina, Bolivia, Chile, Colombia, Costa Rica, Mexico, Uruguay, Dominican Republic, El Salvador, Panama, and Peru have had to discuss or modify these reforms to incorporate or increase non-contributory pillars, coverage, financial balances [23], as well as population aging patterns [24]. Other Latin American countries have regarded Chile as an example to follow in terms of its social progress and economic development [25], even though this system has given rise to the provisioning of
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capital and benefits highly concentrated in the Pension Fund Administrators and not in fair pensions for retired workers [26]. In today’s Latin American context, it is a challenge to be able to provide both social and financial guarantees in pension systems so that they provide decent pensions to retirees that are sustainable over time.
3 Technical Analysis In 2015, the Inter-American Development Bank (IDB) formed the Pension Network in Latin America and the Caribbean (PLAC Network). As it states on its Web site, its objective is “to accompany the efforts of the countries of the region to improve the institutional and technical capacity of their pension institutions”; thus, the 19 members of this network have a space to study, learn, and discuss international practices through the implementation of activities financed by the IDB that has the support of institutions such as The International Association of Pension Fund Supervisory Agencies (AIOS), the Caribbean Association of Pension Supervisors (CAPS), the Inter-American Conference on Social Security (CISS), and the Ibero-American Social Security Organization (OISS), all with the aim of projecting and improving pension systems in the region. This network determined a series of pension indicators comparable among the member countries and included in the “User’s Manual: Pension Indicators of the PLAC Network.” These indicators were created as a tool for modifying, correcting, and/or improving aspects of pension systems related to coverage, adequacy of benefits, financial sustainability, equity and social solidarity, efficiency, and institutional capacity [27].
4 Methodology The Biplot method was created at the beginning of the 1970s, with the purpose of describing approximately a rectangular matrix by means of low-dimensional graphs, with which it is possible to observe interrelationships that occur between individuals that are analyzed and the respective variables that are defined, as well as the relationships between the sets. Currently, various researchers are using the different Biplot applications in different sciences [28, 29]. The contributions made concerning the results obtained in recent years led to the development of this research with the purpose of continuing to contribute with these theories to issues related to pension systems. The research was carried out by analyzing 45 variables published in the User’s Manual: Pension Indicators of the PLAC Network in its environment category such as demographic, economic, labor market, and capital market. It should be considered that the variables used for the study were those that had complete information for
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each Latin American country analyzed. This ensures the interpretation of all the variables of the group on each occasion considered (see Table 1).
4.1 HJ-Biplot Method For this study, the HJ-Biplot method [22] has been applied, which proposes a form of simultaneous, two-dimensional representation of row and column markers with maximum quality of representation [29]. These two dimensions are generated through principal component analysis (PCA) by selecting, usually, the two components that absorb the greatest variance of the study data in order to maintain the quality of their representation. In the HJ-Biplot, the analysis variables will be represented as arrows, born from the origin of the factorial axes, representing the average of the data. In addition, the length of each arrow corresponds directly to the standard deviation of the observed variable. On the other hand, if the angle formed between two arrows is close to 0° or 180°, the HJ-Biplot will indicate that there is a strong direct or inverse correlation, respectively, for the observed variables. On the contrary, if the angle between two arrows is close to 90° or 270°, it will indicate a minimal correlation between the observed variables [30]. In the case of individuals, these will be represented as points coordinated by the principal components, of which, by projecting the point xi on the variable b j , a graphic representation of the scalar product and the incidence of the variable b j on the positioning of the individual xi is obtained. Accordingly, if the projection of a point x j falls on the variable b j , it indicates that this point is located above the average of that variable; on the contrary, if the projection of point x j falls on the projection of variable b j in the opposite direction of the arrow according to the coordinate origin, it indicates that point x j is located below the average in variable b j . For this research, the data comprise a matrix that gathers comparable indicators between countries, which are represented through rows i 1 , i 2 , . . . , i m , and the different variables analyzed are represented in columns j1 , j2 , . . . , jn , optimizing the representation of both in the HJ-Biplot. Diagram 1. HJ-Biplot formulation. H = VD X m×n = U DV T J = UD where X m×n is our initial data matrix, U are the eigenvectors of X X T , V are the eigenvectors of X T X , and D are the singular values of X . The following representations are quite interesting, given that, through the HJBiplot method, a graphical representation of the twelve Latin American countries is
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Table 1 Study variables Categories
Variables
Code
Demographics
Fertility rate
F
Economic
Labor market
Life expectancy of males born
LEM
Life expectancy of females born
LEF
Life expectancy at age 60 male
LEM60
Life expectancy at age 60 female
LEF60
Life expectancy at age 80 male
LEM80
Life expectancy at age 80 female
LEF80
Percentage of women over 80 years old
%W >80
Old age dependency ratio
OAD
GDP per capita PPP USD $
GDPPPP
GDP per capita current USD
GDPC
GDP as a percentage of world GDP
GDP%W
GDP growth (%)
GDPG%
Inflation rate
INFLA
National savings rate
NSR
Public expenditure on social protection (% of GDP)
SPPS%
Total labor force participation of women (%)
TLFPF%
Total labor force participation men (%)
TLFPM%
Total participation in total labor force (%)
TLFPT%
Participation of young people in the labor force, female (%)
YLFPF%
Participation of young people in the labor force, male (%)
YLFPM%
Participation of young people in the total labor force (%)
YLFPT%
Labor force participation in prime-age female (%)
PALFPF%
Labor force participation in prime-age male (%)
PALFPM%
Total prime-age labor force participation (%)
PALFPT%
Old-age labor force participation female (%)
OALFPF%
Old-age labor force participation male (%)
OALFPM%
Total old-age labor force participation (%)
OALFPT%
Informal labor female (%)
ILF%
Informal labor male (%)
ILM%
Informal labor force total (%)
ILT%
Self-employed females (%)
SEF%
Self-employed males (%)
SEM%
Self-employed total (%)
SET%
Employment protection index
EPI
SMB employment
SMBE (continued)
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Table 1 (continued) Categories
Capital market
Variables
Code
Minimum wage workers
WUMW
Rural employment (%)
RE%
Domestic credit of banks as % of GDP
DCB%GDP
Financial system deposits as a percentage of GDP (%)
FSDGDP%
Assets of insurance companies as a percentage of GDP (%)
ICAGDP
Pension fund assets over GDP (%)
PFAGDP
Market capitalization over GDP (%)
SMCGDP
Net public debt (%) of GDP
NPD%GDP
Gross public debt (%) of GDP
GPD%GDP
Source Own elaboration based on information published by Red PLAC on its website
obtained, which allows us to observe how they cluster in the region. All of the above was performed through the MultBiplot program in MATLAB environment.
5 Results The analysis of the first Biplot representation, with the absorption of 74.19% of the variance, shows the first characteristics of the Latin American countries in relation to the general demographic variables that impact the pension systems. The graph provided in Fig. 1 shows three groups made up of the following: Cluster 1 (Brown): Panama and Costa Rica; Cluster 2 (Red): Chile and Uruguay: Cluster 1 (Brown): Panama and Costa Rica; Cluster 2 (Red): Chile and Uruguay; Cluster 3 (Blue): Argentina, Brazil, Colombia, El Salvador, Mexico, Paraguay, Peru, and the Dominican Republic. In Cluster 1, it can be seen how life expectancy of women at age 60 (LEF60) has a direct representation for Panama and Costa Rica, as well as life expectancy of men at age 60 (LEM60), life expectancy of women at age 80 (LEF80) and life expectancy of men at age 80 (LEM80). Thus, Panama and Costa Rica have the best indexes for life expectancy in old age, both for men and women in the two age ranges studied. In Cluster 2, it is observed that there is a positive relationship between female life expectancy at birth (LEF), male life expectancy at birth (LEM), old-age dependency ratio (OAD), and percentage of women over 80 years of age on average (%W >80), with Chile and Uruguay obtaining the highest scores in the mentioned variables among the countries under study. Cluster 3 groups the largest number of countries in the analysis, most of which present projections below the average in the variables of life expectancy at 60 and 80 years of age (LEF60, LEF80, LEM60, and LEM80), with Brazil and Colombia being the closest to the average, in comparison with the large gap between countries
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Fig. 1 Clustering of demographic variable clusters in MultBiplot
such as Paraguay, El Salvador, and Mexico in the aforementioned variables. Consequently, it can be seen that the countries falling behind in terms of life expectancy in old age lead their projections on the fertility (F) variable. The analysis of the second Biplot representation with the absorption of 66.37% of the variance shows the characteristics of each country with respect to its economic activity in general, according to the variables GDP per capita (PPP in US dollars), GDP per capita (current US dollars), GDP as a percentage of world GDP, GDP growth as a percentage, inflation rate, national savings rate, and public expenditure on social protection as a percentage of GDP (Fig. 2). As in the previous HJ-Biplot of demographic variables, in the economic indicators, three clusters were also obtained: Cluster 1 (Brown): Chile, Panama, and Uruguay; Cluster 2 (Red): El Salvador, Paraguay, Peru, Colombia, Dominican Republic, Costa Rica, and Mexico; Cluster 3 (Blue): Brazil and Argentina. There were variations with Panama and Costa Rica concerning the previous analysis since Panama is now located next to Chile and Uruguay, which are similarly projected with respect to GDP per capita (GDCP and GDPPPP). Regarding the National Savings Rate (NSR), Chile and Uruguay present similar projections, being this variable in which Panama shoots up and disperses in Cluster 1.
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Fig. 2 Clustering of economic variable clusters in MultBiplot
Costa Rica joins Cluster 2, which, for the most part, is projected below average on GDP per capita variables (GDCP and GDPPP) but remains close to average on all other variables, except for Paraguay and the Dominican Republic, which are projected well above average on GDP growth (GDPG%). Brazil and Argentina are projected positively in the variables that have a negative impact on economic indicators, which are GDP as a percentage of world GDP (GDP%W), SPPS% public expenditure on social protection as a % of GDP (SPPS%), and the inflation rate (INFLA). The third Biplot representation analysis with an explanation of 64.77% of the variance shows the characteristics of the Latin American countries analyzed, considering the labor market in a generic way according to the variables analyzed, such as total participation in the labor force, participation in the young labor force, informal work, independent workers, workers with minimum wage, rural employment, among others. As in the two previous analyses, graph shown in Fig. 3 related to the labor market variables identifies three clusters that are made up of the following: Cluster 1 (Brown): Mexico and El Salvador; Cluster 2 (Red): Argentina, Brazil, Chile, Costa Rica, Panama, Dominican Republic, and Uruguay; Cluster 3 (Blue): Colombia, Paraguay,
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Fig. 3 Clustering of labor market variable clusters in MultBiplot
and Peru. In this analysis, absolutely new groups are obtained, where cluster 2 stands out, being the only one that is above the average in the SME employment variable (SMBE) but, highlighting its low deviation and that it is mostly represented in the vertical axis, which absorbs only 19% of the variance, would limit us to conclude that these countries have significantly higher figures in the observation variable. On the other hand, the percentage of informal labor of women (ILF%), percentage of informal labor of men (ILM%), and percentage of informal labor, total (ILT%) are variables that present a high correlation with similar deviations, from which it is concluded that there are minimal gender differences in the variable of % of informal labor. Cluster 3 shows significantly high projections on the vast majority of variables in the labor market category of Table 1, except the variables of % informal labor (ILT%, ILF%, and ILM%), the employment protection index (EPI), and SMB employment (SMBE). The above highlights a great leadership in the participation, labor force, and self-employment indexes of Colombia, Paraguay, and Peru, the latter standing out above all the nations observed. The fourth Biplot representation analysis with the absorption of 64.77% of the variance shows the characteristics of the twelve Latin American countries analyzed
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with respect to the Capital Market in general according to the variables analyzed such as deposits of the financial system versus GDP, assets of insurance companies versus GDP, assets of pension funds versus GDP, stock market capitalization versus GDP, net public debt, among others. The HJ-Biplot of graph shown in Fig. 4 related to the capital market variables shows three clusters: Cluster 1 (Brown): Brazil and El Salvador; Cluster 2 (Red): Argentina, Colombia, Costa Rica, Mexico, Panama, Paraguay, Peru, Dominican Republic, and Uruguay; Cluster 3 (Blue): Chile. Cluster 1 presents above-average projections in all the analysis variables of graph shown in Fig. 4, respective to the capital markets category of Table 1, visually presenting the high figures in general for El Salvador and Brazil compared to the other countries under study. In Cluster 2, Argentina stands out significantly in the variables Net Public Debt as a percentage of GDP (NPD%GDP) and Gross Public Debt as a percentage of GDP (GPD%GDP), which are directly related. In Cluster 3, there is only Chile, mostly projected above average in Pension Fund Assets over GDP (PFAGDP), Domestic Credit by Banks % GDP (DCB%GDP),
Fig. 4 Clustering of capital market variable clusters in MultBiplot
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and Stock Market Capitalization over GDP (SMCGDP). These variables are shown with a fairly significant direct relationship and are well represented in the horizontal factorial axis, which absorbs approximately 43% of the variance, thus justifying a good positioning of Chile concerning the source data. When analyzing the twelve countries studied, with all the variables that have implications in the pension systems according to the user’s manual: pension indicators, environment category, published by Red PLAC, four clusters are identified, represented in graph shown in Fig. 5, which has a percentage of inertia explained by the first factorial plane that exceeds 53% (where the first axis explains 31% of the variability and the second 22%). The four clusters are made up of the following: Cluster 1 (Brown): Paraguay and Peru; Cluster 2 (Blue): Panama, Colombia, and the Dominican Republic; Cluster 3 (Red): Chile, Uruguay, and Costa Rica; Cluster 4 (Purple): Brazil, Argentina, and El Salvador. Cluster 1 shows how the variables F (fertility rate) and YLFPM% (youth labor force participation %, male) have a high positive impact with these countries, i.e., a
Fig. 5 Clusters of Latin American countries with variable pension systems in MultBiplot
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positive correlation, as well as with the variables TLFPM% (total % labor force participation, male), OALFPF% (old-age labor force % participation, female), OALFPM% (old-age labor force % participation, male), OALFPT% (old-age labor force % participation, total), SEF% (% self-employed female workers), and WUMW (minimum wage workers). In Cluster 2, there is a positive relationship between the variables RE% (% rural employment), TLFPT% (total % labor force participation, total), TLFPF% (total % labor force participation, female), GDPG% (GDP percentage growth), PALFPF% (% labor force participation in prime-age, female), PALFPT% (labor force participation in prime-age, total) and SEM% (% self-employed). Cluster 3 has a positive relationship between the variables OAD (old-age dependency ratio), ICAGDP (insurance company assets to GDP (%)), GDPC (GDP per capita, current USD$), GDPPPP (GDP per capita, PPP USD$), LEF (life expectancy at birth, female), LEM (life expectancy at birth, male), LEF60 (life expectancy of females at age 60), LEF80 (life expectancy of females at age 80), and values close to the average with respect to the variable YLFPM% (youth labor force participation %, male). Cluster 4 has variables that have a negative incidence, i.e., an inverse relationship with the labor force variable, such as the variables %W >80 (percentage of women over 80 years old on average), SPPS% (public expenditure on social protection as % of GDP), GPD%GDP (gross public debt, % of GDP), NPD%GDP (net public debt, % of GDP), and INFLA (inflation rate).
6 Conclusions In this research, different key variables related to the pension systems have been approached, with emphasis on the environmental variables detailed in the User’s Manual: Pension Indicators of the PLAC Network, classified into demographics, economic indicators, labor market, and capital market, which will guarantee the correct comparison between twelve Latin American countries according to the latest published data. The detailed study of the research topic, and the review of the state of the art in the field, made it possible to delimit aspects and apply a new statistical research technique to the pension systems, such as the HJ-Biplot method, thus joining research in other areas of the social sciences, health, among others. The multivariate graphical representations, detailed in each of the topics covered by the study, have made it possible to obtain specific conclusions for each of them. Based on the learning obtained in the analyses, the following are general conclusions that add to the research carried out. In the analysis of the first Biplot representation, the study of different general demographic variables that have an impact on the pension systems revealed the existence of two fundamental approaches to this item: One of them is materialized in the inverse correlation that exists between the total population of Latin American
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countries and life expectancy, since the larger the population of the country, the lower the life expectancy at birth and at old age, which is shown mainly in countries such as El Salvador, Paraguay, and the Dominican Republic. Another dominant approach in the analysis of demographic variables is found in the main exponent called fertility rate, since countries such as Chile, Brazil, Costa Rica, Colombia, and Uruguay, in relation to the rest of the countries in the region analyzed, are experiencing problems derived from the sustained and rapid decline of their population as a result of low fertility rates, associated with an aging population and longer life expectancy; this is leading to an increased dependency of the elderly, and research is needed to improve the demand for social protection services, since the resources needed to make pension systems sustainable are increasing rapidly. In the second Biplot representation, it was shown that 25% of the region analyzed (Chile, Uruguay, and Panama) have a better GDP per capita than the rest of the countries analyzed. Hence, their inhabitants have greater spending power and savings capacity than the rest of the countries analyzed, which is why it is vital improving the economies of Latin American countries, promoting economic reforms based “perhaps” on greater openness of their markets, implementation of reforms to improve public spending in terms of disbursements for old-age pensions. Another challenge is to control inflation so that countries such as Argentina and Brazil do not continue to turn investments negative in terms of returns since they deteriorate pension systems even more, public policies must be generated to protect the elderly and continue to count on initiatives and support such as those carried out by the IDB through the PLAC Network to have mechanisms to detect problems and improve pension systems. The third Biplot representation analysis of this research with respect to the labor market of the Latin American countries studied shows that Peru, Paraguay, and Colombia have a high number of self-employed workers, mainly women, countries such as El Salvador and Mexico, which stand out for the large amount of informal work, Argentina and Costa Rica, with a large number of minimum wage workers and a high percentage of rural employment, have an impact on the pension systems and social security in general in each country, given the low returns to the system, reduced coverage, unemployment, and informal work, which increases evasion of the respective pension payments. The fourth Biplot representation shows the characteristics of the twelve Latin American countries analyzed concerning the capital market in general, highlighting Chile in which, according to the data analyzed, the assets of the pension funds represent a large percentage of the national gross domestic product, with a high stock market capitalization of its financial assets in diversified investment portfolios in fixed income, equity, and national and international markets. In addition, the financial resources provided to the private sector by depository corporations (except central banks), through loans, purchases of non-bank securities, and trade credits, and other receivables, which establish a claim for repayment, are higher than the rest of the countries in the region. Peru is one of the countries with the least amount of liabilities requiring the payment of interest and/or capital by the public sector; Argentina is the Latin American country (among those analyzed) with the highest
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net public debt as a percentage of GDP. At the same time, the Dominican Republic and Paraguay have the lowest demand, time, and savings deposits in deposit money banks and other financial institutions as a proportion of GDP. When analyzing the twelve Latin American countries regarding the Environmental variables identified in the “User’s Manual: Pension Indicators of the PLAC Network,” it can be affirmed that many of them present certain similarities when evaluating the indicators that impact their respective Pension Systems, and can be classified as follows: • Paraguay and Peru: are characterized mainly by their similar labor market since they have a high male labor force composed mainly of young people and older adults. In addition, they have a large number of self-employed workers, a high percentage of the employed personnel receive labor income equal to or less than the minimum wage, which makes it impossible for them to cover all their workers in terms of social security. In terms of demographics, its similarity in high fertility rates should be added over the rest of the analyzed countries. • Colombia, Panama, and the Dominican Republic: Although like Paraguay and Peru, these countries have a strong correlation in the labor market variables, they differ in that, in their high labor force, the number of women stands out, where many of them are in the prime working-age group. These countries also have similarities among their workers, such as many of their male workers are selfemployed; a large percentage of employed people (of working age) work in rural sectors. In demographic terms, they are similar in terms of the life expectancy of men at 60 years of age, and in economic terms, their similarity in the percentage of GDP growth and their high national savings rate. This, like cluster 1, makes it impossible for them to cover all their workers in terms of social security. • Chile, Costa Rica, and Uruguay: This group of countries, unlike the two previous ones, is characterized by its high correlation in the capital market, given that they have a high percentage over the gross domestic product in pension fund assets, insurance company assets, financial system deposits, and stock market capitalization. In demographic terms, they are well characterized in the variable life expectancy since it is higher than the rest of the countries analyzed, and therefore, they also have a high dependency rate in old age. Moreover, economically, they have a high correlation in their GDP per capita in purchasing power parity, with Chile standing out among all of them. • Argentina, Brazil, El Salvador, and Mexico: These countries are characterized mainly by high rates of informal labor, which make the current pension systems unsustainable. This, like Colombia, Panama, Paraguay, Peru, and the Dominican Republic, makes it impossible for them to cover all their workers in terms of social security. In addition, economically, their similarity in the percentage of their GDP as a percentage of world GDP, their high levels of inflation, and their high public spending, related to disbursements for services and transfers to individuals and
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families that cover illness and disability, old-age pension, survivors, family and children, unemployment, housing, and social exclusion. The variable employment of SMBs shows a very low contribution of the two axes, and its representation in the plane is also very low.
7 Discussion, Input, and Future Research The sustainability of the pension systems in Latin American countries has become one of the most critical challenges to be addressed, especially today with the COVID-19 pandemic. Countries such as Chile, Peru, Colombia, and Uruguay have proposed making some kind of adjustment or improvement to the reforms of the current systems, given the acceleration of aging and the social discontent and public questioning generated by the uncertainty of the future regarding the pensions that are being granted or will be granted in the future. This generates pressure on the governments of each country, which should place greater emphasis on new public policies linked to the financial sustainability of social protection by improving their pension systems. The development and application of the multivariate statistical method used in this research give grounds to continue using and applying other Biplot techniques to published data related to the pension systems, its actors, and others since some of them have not been applied yet. The research presented here is intended to offer contributions to the analysis of the pension systems, which may never end since any aspect of the matter is always susceptible to improvement. This work concentrates its efforts on the indicators of the environment, that is to say, specific issues, so that the statistical data published by Red PLAC in its User’s Manual: Pension Indicators, in other environment categories: performance, sustainability, and other databases related to the pension systems, their actors and others, are pending for future work.
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Macroeconomic Relations Between Chile and Africa Observed Through Big Data Analysis. Realities and Perspectives Claudio Ruff , Marcelo Ruiz , Alexis Matheu , Virginie Delalande, and Luis Benites
Abstract The dynamics of South–South relations have begun to interest economic research production regarding the bilateral relationships between Africa and Latin America. This paper aims to analyze the reality of the African continent concerning the economic logic of Chile. The methodologies used are the polynomial regression model to analyze the two best variables for measuring the relation between countries, and likewise, there were used advances techniques of multivariate analysis. The conclusion is that Africa has been installing infrastructural power, and also, it has strengthened its democratic institution, which has been introducing its population in the forms of global consumption. Keywords Africa and Latin America · Foreign trade · Economic growth · Macroeconomics · Trade relationships
1 Introduction During the last 60 years, regarding the growth and development of the region, the economic relationships between Chile and Africa are strongly influenced by the historical context in the mid-1970s, when both regions converged on the economic liberation of their respective national economies. In fact, Africa has developed fluctuating economic progress in the last decades. It has been guided by the pursuit of higher economic well-being and development. Additionally, the African continent has been through several political processes, including the independence of some countries, the instauration of a republic in many others, and the achievement of a high level of economic and social development.
C. Ruff · M. Ruiz · A. Matheu (B) · V. Delalande Centro de Investigación Institucional, Universidad Bernardo O’Higgins, Av. Viel 1497, Santiago, Chile e-mail: [email protected] L. Benites Universidad Nacional de Trujillo, Trujillo, Perú © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 J. L. Reis et al. (eds.), Marketing and Smart Technologies, Smart Innovation, Systems and Technologies 280, https://doi.org/10.1007/978-981-16-9272-7_11
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Due to the increase in the income flow and political stability in some countries, the African continent’s perception of poverty can start a change in the next years. This is because the African countries have shown, since the year 2000, a growth of GDP close to 5% and higher than the percentage seen in Latin America and Europe. The evidence of such growth is based on a high rate of young population, a rise of the middle class, rapid urbanization, and the export of natural resources. Nevertheless, the bilateral connections between Africa and Latin America are not traditional, and in consequence, there is a lack of studies focused on this subject. Likewise, both geographical zones are part of the developing world, highlighting the importance of increasing trades between both regions encouraged by the growing South–South trade [1]. In regard to the African continent, today, it is sustained by an evident change of expectations because, in most of its countries, the people have started to understand their rights as citizens. In this sense, political awareness obstructs dictatorial governments. Thus, some African history features, such as poverty, isolation, and violence, are becoming exceptional [2]. Having said that, considering its economic relation, the objective of the research is to analyze the reality of the African continent to evaluate future perspectives, which can strengthen the relations between Chile and Africa. Considering this context, our research proposes the following hypothesis, and the last decades have seen an expansion and deepening of international trade between Africa and Latin America (South–South relations), which shows the increase in economic growth in Africa, as a result of the political stability that certain countries have achieved and the arrival of capital inflows that have incremented the consumption capacity of the continent’s population.
2 Importance of International Trade The relation between the expansion of international trade and growth of gross domestic product (GDP) has been considerably high, according to the World Trade Organization (WTO), because it promotes the economic growth, the development of the countries, and the creation of new sources of employment all over the world. In 2018, 98% of the world trade of goods was conducted under the WTO norms, which embodies respect to a multilateral system of norms and discipline that tends to free and equitable trade. It is a fact that commercial exchanges are necessarily correlated with the trade policy of each country. The countries exchange goods and services between them because they can buy those abroad at lower prices than in local markets, also considering costs of shipping and transfer, as the case may be. These exchanges are possible as economies progressively open up and liberalize their trades to the rest of the world, which is based on fundamental principles of the modern economy, exchanges, and specialization [3], where the advantages and profits are obtained by price differences. The differences are caused by many reasons. Among them, it could be found
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endowments of the factor of production, availability and use of technology, cost of production, prices of tradable goods, and low trade barriers. Other factors that strongly contribute to the advantages of international trade are the economies of scale of production, for the reason that instead of having a large number of small producers, the countries specialize in the production and exportation of goods that can be produced at a lower opportunity cost than the rest of the world. The reduction of transaction costs, customs law, and especially shipping costs verify the gravity model of international trade [4] and its correlation with international exchange. The e-business that uses platforms has provided a new space where transactions can be done: the “Two-sided Market” [4]. In other words, it means that it is a market in which the intermediaries allow interaction between sellers and buyers. An example of this is the video game industry case, where the developers and gamers need an operating system that connects them. These kinds of exchanges have presented an explosive and unknown development, which deserves particular attention to observe what is occurring there. Evidence of this is the profits in e-commerce that raised from US $19.3 billions in 2012 to US $27.7 billions in 2016 [5]. The data shown in Graph 1 illustrates a positive evolution of the Human Development Index (HDI) in Chile and some African countries, which is associated with the amount of output of those economies’ goods and services. In 2018, this situation led the WTO and OECD to implement initiatives with the purpose of measure the transactions facilitated and performed by digital media,
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considering that new technologies allow the execution of electronic digital transactions with buyers and sellers that can be inside or outside of the territory where the order is placed. At the same time, those goods and services could be delivered physically or digitally, trough “digital orders” that represent cross-border purchases and sales, by means of computer networks and digital exchanges based on online platforms, such as Airbnb or Cabify, among others, which increment every day in a particular stage of “Sharing Economy” [7], taking benefit of underutilized sources. If it is observed the economic growth and development of the main African and Chilean economies, it can be evidenced how the international trade has impacted them by increasing the exportation of goods and services since the end of the last century in some countries. Moreover, it can be seen an important growth from 2003 onward.
3 Chilean Macroeconomics and Its Trade Relations Since the beginning of the 1990s decade, Chile has strategically inserted and actively participated in the international economy, achieving successful growth at an average rate of 5% between 1985 and 2000 and 4% between 2001 and 2016, in addition to a high level of development as a country, never seen before, and that has allowed it to reach the category of “Emerging Country” today. This achievement of the Chilean economy has been possible due to its fiscal policy based on structural balance rules, a gross public debt equivalent to 21% of GDP, average inflation close to 3% and within the target range (2–4%) that has been accomplished by the monetary policy articulated from an autonomous Central Bank with explicit and transparent rules. The country has successfully positioned itself at a high level of competitiveness and ease of doing business, with a low level of risk (A+ according to Standard and Poor’s credit rating) and ranked as the world’s top 10 average, in terms of economic freedom in the last ten years. The success of the internationalization process was based on a commercial opening directed at three fundamental pillars, among which are: one of unilateral type, where the tariff reduction in two stages stands out ((1) 1991 = 15% and (2) 2003 = 6%). Another pillar is the opening of the economy to the services and investment sector. Subsequently, an initial opening of a bilateral type of integration with the countries of the Latin American region, through economic complementation agreements within the legal and regulatory framework of the Latin American Integration Association (LAIA), and since the late 1990s it expanded its international insertion in the remaining regions of the world through International Economic Agreements. Finally, it capitalizes on its participation in the global economy through a strategy of multilateral participation; subscribing and being a member of different and influential organizations including the General Agreement on Trade and Tariffs (GATT-1949), the World Intellectual Property Organization (WIPO-1975), the Montevideo Treaty (1980) and the LAIA, the Asia Pacific Economic Cooperation Forum (APEC-1994),
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the World Trade Organization (WTO-1995), and since 2010 the Organization for Economic Cooperation and Development (OECD). In such a way, the Chilean economy is inserted in international trade, participating in a group of economies that represent 64% of the global population, which in turn aid in 87% of the world’s GDP. Likewise, Chile covers with its exportable products 94% of the markets with which it has a Trade Agreement, and the opening coefficient of foreign trade reaches 57% of the GDP. In the last decade, Chile has been an active country in the plurilateral field, participating in the search for new rules for international trade, where policies of opening, strengthening, and stimulating foreign direct and reciprocal investment are promoted, attracting knowledge, more technology, and thus becoming a “platform country” for the region. For this reason, Chile is part of the Pacific Alliance, the Trans-Pacific Economic Cooperation Agreement (TPP-11), the “Chile-China Memorandum of Understanding 2019–2022,” among other countries, which seek to impact the dynamism of trade in the twenty-first century positively.
4 Africa and Its Commercial Opening The most significant growth and development are being driven by countries with “market economy” models, with South Africa clearly leading the way by 2014, accounting for 25% of all African GDP, with a leading stock exchange on the continent and the sixteenth largest in the world. However, the natural resources boom [8] between 2003 and 2013 robustly benefited countries with a substantial endowment of extractive resources, so Nigeria became the leader with the largest economy of the continent, but with highs and lows caused by problems in government management. In terms of relative size, mainly driven by hydrocarbon prices, Angola, the Democratic Republic of the Congo, and Algeria followed, but with high internal political instability accompanied by variations in these commodities’ prices. Below are statistical graphs that show the evolution of some economic indicators of the World, Africa, and Chile: As can be seen in Graph 2, in recent decades there has been a trend toward balance regarding the growth of the regions of Chile and Africa in relation to the rest of the World. Indeed, Africa has maintained a trend of continuous economic growth (with slight downward variations) between 2010 and 2017. As can be seen in Graph 4, exports in Africa remained above those registered by the World between 1998 and 2012. This period coincided with the end of certain armed conflicts, inaugurating a context of political stability in many countries in the region. Regarding imports, Africa registered an increase between 2006 and 2012 in relation to the rest of the World, which shows that between those years there was an increment in the consumption capacity of the continent’s population. Since the 1970s, Africa has evidenced a process of increase in its import rates of goods and services. Although there was a fall in the years 1974–1976 (as a result of the oil crisis), there was an upward trend that only decreased in 1980, increasing
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its upward curve until it met the import levels of Chile in 2000. In this sense, both Africa and Chile reached their historic peaks in their import levels in 2006. As demonstrated in the previous graphs, GDP growth (Graph 2) has been similar in the last decade among the countries and areas researched. In particular, Chile’s per capita GDP has grown significantly since 2002 (Graph 3), along with exports of goods and services measured as a percentage of GDP, has grown since the 1960s, although there has been a marked decline in the last decade (Graph 4). In turn, Graph 5 shows that imports have shown similar variability for all countries or regions analyzed since 1960. Along with the above, Graph 6 also shows similar behavior in international GDP Per Capita (US$ at Current Prices) 20000
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tourism between the world, Africa, and Chile. Finally, Graph 7 shows that Chile has the highest public spending on education compared to the rest of the geographical areas included in this study.
5 Trade Relations Between Africa and Latin America Trade relations between Chile and Africa are in an initial stage. Although the African continent represents just 1% of Chilean exportations since 2013, the annual growth rate is 5.9%. Manufacturing is 50% of those exportations, followed by the fishing
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industry and aquaculture (24%). Regarding individualizing products, it can be noted horse mackerel, fertilizers, potassium nitrates, machinery, and nuts. The most important market is South Africa (46%), followed by Nigeria, Morocco, Mauritania, Ghana, Egypt, Angola, and Ivory Coast. The importance of the market is the main reason to investigate the named countries (among others) in order to develop our research. By means of a panoramic view about what has occurred at the dawn of the twentyfirst century, specifically considering the proliferation of South–South commercial trades, it must be noted that both Brazil in Latin America and South Africa in Africa are two economic powerhouses that lead their regions. In 2001 and 2011, the two countries were part of the emerging and advanced economies, also known by the acronym BRICs, which were as well integrated by Russia, India, and China. All together accounted for 25% of world wealth and 43% of the population. All the countries had common features, such as their geographical size, their endowments of the factor of production, international involvement, and high economic growth, which made them attractive to invest. In 2014, the group of countries was responsible for 50% of global economic growth. During the 1980s in the twentieth century, the Brazilian economy reaches the category of “Middle-income country” [9] and adopts a cooperating actor’s position toward the international community, especially toward Africa since the 1970s relation that has fortified since 2003. On the one hand, this is because of the moral obligation related to the assistance provided by the North countries, and on the other hand, it is
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Graph 7 Public spending on education, total (% of GDP). Made by the authors and based on data from the World Bank/OECD
a response to the historical debt as well as an ethical commitment regarding the four centuries of slavery [10]. The cooperation became a real instrument of exchange through the promotion of aid and sharing efforts, which allowed to reap massive benefits that were spread to the rest of the countries part of the Southern Common Market (MERCOSUR for its initials in Spanish) and other developing countries. In fact, during the period 2002– 2012, Brazil rose more than doubled its diplomatic presence in Africa, from 17 to 37 embassies. Moreover, this country incremented five folded its volume of trade, from US $5000 to US $26,500 per year, which reinforced it as the leading South American exporter to Africa.
6 Methodology To respond to the research hypothesis that the existing economic reality between Chile and African countries opens positive perspectives in the bilateral relations between both parties, the methodology used in this research is related to statistical and Big Data analysis. In particular, polynomial regression models are used. These models were used to shape the variables of economic freedom and ease of doing business. Likewise, the coefficient of determination was used in proportion to the
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total variance of the variable explained by a regression, reflecting the goodness of the adjustment of a model to the variable to be explained. In this sense, the indicators for measuring the variables were defined through the coefficient of determination, which ranges from 0 to 1. The closer to 1 the value, the greater the adjustment of the model to the variable we are trying to explain. Furthermore, the HJ-Biplot multivariate cube model was used [11]. Concerning this model, the variables provide information at the level of 9 indicators, which seek to relate the economic indicators of 12 African countries, together with their matrices of imports and exports of goods and services, the Human Development Index, economic freedom, per capita GDP, and the index of ease of doing business.
7 Polynomial Regression Models In the case of the regression models analyzed to measure the stability and future projection of the variability of two of the fundamental indicators (variables) for establishing economic relations between countries, economic freedom, and ease of doing business, it is obtained that both variables do not present significant variations. In both cases, they are modeled by polynomial functions for both Chile and Africa, with a goodness of fit close to one, which guarantees that the model explained is correct and that the derived interpretations are reliable. Economic freedom, modeled in Graph 8, is predictable according to data from the last decade, and although Chile presents better indicators, it is good to highlight
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the upward stability of the African continent in the period analyzed. The HJ-Biplot model analyses will provide more information on the countries analyzed in particular. A similar situation to the one analyzed in the economic freedom variable occurs with the ease of doing business variable (Graph 9), although in this case for the African case, a linear model of positive slope stands out so that the growth of the indicator for the next few years allows for the prediction of greater future growth. Indeed.
8 Analysis of the Model of HJ-Biplot Multivariate Cube The initial results are shown in Graph 10. The variables are represented as vectors, the countries as points, and the lines as the dynamic analysis of the path of the variables in the period 2010–2019 with reference to the year 2019. Planes 1–2 explain approximately 70% of the variability of the data. Axis 1 is characterized by four of the variables analyzed, import and export of goods and services, ease of doing business, and economic freedom. Axis 2 is represented by the other two variables: GDP per capita and Human Development Index. From the dynamic analysis of the African continent’s main economies, meaningful results are obtained: (1) There are no relationships between the variables of axis 1 and axis 2 (almost perpendicular vectors). (2) There is a strong direct relationship between GDP per capita and the Human Development Index, with Algeria, Morocco, and South Africa being the countries with the best results in this indicator. (3) The variable of exports of goods and services does not represent the model. (4) Egypt,
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Graph 10 Biplot-dynamic analysis. Own elaboration
Morocco, and Ivory Coast are the countries with the highest indicators of economic freedom, ease of doing business, and imports of goods and services. (5) The groups of countries are divided into four groups, according to the quadrants in the figure, with Morocco, Egypt, Tanzania, and South Africa standing out as having positive indicators in all variables. (6) The dynamism of the variables representing axis 1, expressed by the path of the lines, is greater than that of axis 2. (7) There is a strong correlation between economic freedom and doing business.
9 Conclusions The results obtained confirm the hypothesis of our research. In this respect, the African continent’s current situation, including its stability and political changes
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toward a modern democracy in most of their countries, is an excellent opportunity to establish bilateral relations with African economies. Finally, it will be listed the main ideas derived from our investigation: 1.
2.
3.
The worldwide economic crisis in 2008 led the emerging countries to focus their attention on the South, and therefore, their cooperation and trade relationships incremented between the countries of this geographical block. In consequence, the trade relations between the developing countries incremented paradigmatically, exceeding the traditional relations that were maintained with the Northern countries. The situation opened a window of opportunity to these countries, and thus, it must be deepened through the South–South cooperation and trade relationships. All the results obtained from the literature review and the multivariate models and methods used show that there are conditions nowadays to build direct relations with many countries of the African continent due to their political and economic stability. Our results indicate the economic sectors in which public policymaking should be implemented to strengthen the first stages of large-scale relations: agricultural development and food security, human rights, energy, education, tourism, and healthcare. HJ-Biplot analyses test and confirm some important aspects: Morocco, Egypt, Tanzania, and South Africa present indicators that provide robust and reliable guarantees to establish bilateral relations in the next years. Imports and exports are the most dynamic variables during the last decade. This fact proves the need for the continent to extend relations to other commercial partners.
In the last decades, the policies of economic restriction impoverished the African continent. Nevertheless, nowadays, Africa has been installing its infrastructural power, and also, it has strengthened the democratic institution, which has been introducing its population in the forms of global consumption. Hence, now is the best time to prioritize the bilateral relations between the African country, Chile, and other Latin American countries.
References 1. The Economist.: The rise of state capitalism. Economist 402 (2012) 2. The Economist.: Africa rising. Econ. (2011) 3. Ricardo, D.: Principios de economía política y tributación. Fondo de Cultura Económica, México D.F (1918) 4. Tirole, J.: Économie du bien commun. Quadrige, Paris (2018) 5. OMC.: Trade and Tariff Data. In: World Trade Organ (2018). https://www.wto.org/. Accessed 30 Sep 2020 6. PNUD.: Human Development Data (1990–2018) (2018) 7. Algar, R.: Collaborative Consumption. Leis. Rep. 16–17 (2007) 8. Altomonte, H., Sánchez, R.: Hacia una nueva gobernanza de los recursos naturales en América Latina y el Caribe. CEPAL, Santiago (2016)
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9. Foxley, A.: La trampa del ingreso medio: el desafío de esta década para América Latina. CIEPLAN, Santiago (2012) 10. Arcos, M.: Brasil: la política exterior de un país con vistas a África. IEES 1–16 (2014) 11. Nieto, A., Galindo, P., Leiva, V., Galindo, P.: A methodology for biplots based on bootstrapping with R. Rev. Colomb. Estadística 37, 367–397 (2014). https://doi.org/10.15446/rce.v37n2spe. 47944
The Role of Values and Attitudes in Consumer Intention to Buy Green Technology Products Marianna Halinen, Pradipta Halder , and Tommi Laukkanen
Abstract Green technology products play a major role in the sustainable development. This study tests if psychological factors such as green consumption values, utilitarian attitudes, and hedonic attitudes predict consumer intention to buy green technology products when gender, age, and income are controlled. We test three different wood-based green technology products, namely bioplastic, biotextile, and biofuel. The survey data were collected by a market research company in Finland and it consists of 451 consumer responses. Stepwise linear regression is used for the analysis. The results suggest that utilitarian attitude is a major driver for consumer intention to buy green technology products, while hedonic attitude does not play a role. In addition, the stepwise model reveals that green consumption values have a highly significant effect on purchase intention, but the effect becomes nonsignificant when attitudes are added to the model. We suggest that the hierarchical relationship and the different level of abstraction between values and attitudes may potentially explain this effect. Our results further suggest that demographic factors do not explain green consumption, apart from income, which positively explains purchase intention of a bioplastic product. Keywords Green technology products · Green consumption values · Utilitarian attitude · Hedonic attitude
M. Halinen Audience First, Haagan pappilantie 2a, 00320 Helsinki, Finland e-mail: [email protected] P. Halder (B) · T. Laukkanen University of Eastern Finland, Yliopistokatu 2, 80101 Joensuu, Finland e-mail: [email protected] T. Laukkanen e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 J. L. Reis et al. (eds.), Marketing and Smart Technologies, Smart Innovation, Systems and Technologies 280, https://doi.org/10.1007/978-981-16-9272-7_12
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1 Introduction European Green Deal, the Europe’s new growth strategy, boosts green technology to make Europe climate neutral by 2050. Consequently, green technology products are playing a fundamental role in the economic transition towards sustainability. Green technology products are those which consider environmental benefits throughout their design and implementation stages. With the increasing call for environmental protection and sustainable development, green technology products have started receiving significant global attention. Finland is in the forefront of developing clean technologies and Finnish industries have strong competence in using natural resources, such as wood, for producing innovative raw materials and products. For example, UPM, a major Finnish forest company, is a leading producer of wood-based biofuel, which is renewable and sustainable. Spinnova, a newly listed startup company in the Nasdaq Helsinki stock exchange, is a world leader in manufacturing wood-based textile fiber that they claim as one of the most sustainable fibers on the market. Similarly, Woodly, another Finnish start-up, is renowned for manufacturing novel carbon–neutral plastics from wood. However, many of these novel wood-based products are still in the early stages of their market penetration in Finland and elsewhere. The consumers of today are increasingly environmentally conscious, and they demand ecologically friendly products [1]. Consequently, the green technology companies and their products have high market expectations, but at the same time face significant uncertainties regarding consumer acceptance. Therefore, effective marketing strategies of green technology products require understanding of consumer preferences and characteristics determining consumer intention to buy the products. Among various psychological factors that influence consumer acceptance of green technology products, this study explicitly focuses on the role of consumer green consumption values and the two dimensions of attitude—hedonic and utilitarian— in explaining consumer purchase intention of three novel wood-based products: bioplastic, biotextile, and biofuel.
2 Theory and Hypotheses 2.1 Green Consumption Values Green consumption refers to a form of pro-social consumer behavior that involves an environmentalist perspective [2]. Green consumption choices significantly differ from general consumption behavior in the sense that while the former refers to buying a product that does not potentially harm the environment, the latter places much importance to general costs and benefits associated with consuming a product [3]. This major difference in the consumption behavior seems to originate from the differences in consumption values related to green products [4]. Therefore, understanding
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consumer green consumption values has become highly relevant for both policymakers and marketers interested in promoting sustainable consumption behaviors in the society [5, 6]. In this context, Haws et al. [7, p. 337] defined green consumption values as “the tendency to express the value of environmental protection through one’s purchases and consumption behaviors” (p. 337). They developed a six-item GREEN scale to measure green consumption values from an initial pool of fifty-eight items to measure how much consumers would value the environment when making consumption decisions. They found that the GREEN had a positive association with careful use of collective, environmental, and personal resources, and it also appeared that consumers with higher green consumption values showed stronger preferences for environmentally friendly products through more favorable evaluations of the nonenvironmental attributes of those products. Haws et al. [7] also observed that the green consumption values were a superior predictor of consumer preferences for green products to all other measures of pro-environmental behaviors. In recent years, several studies have used the GREEN scale to analyze consumers’ green purchase intention and found that green consumption values consistently showed a positive effect on consumers’ green purchase intention [8, 9]. Based on this notion, the study hypothesizes that: H1: Green consumption values positively influence on consumer purchase intention of wood-based (1a) bioplastic, (1b) biotextile, and (1c) biofuel.
2.2 Consumer Attitude Attitude is a central concept in consumer behavior and it as a construct presents a total evaluation of an object [10, 11]. Attitudes are often seen as antecedents of behavior and intention is often used as a proxy for actual behavior [12]. However, consumer attitudes to products are multidimensional [13]. Batra and Ahola [14] suggest that consumers purchase goods and services and perform consumption behaviors for two basic purposes: hedonic gratification and utilitarian reasons. Among these two dimensions of consumer attitudes, the first dimension is called hedonic dimension resulting from sensations derived from the experience of using products while the second dimension is a utilitarian dimension resulting from functions performed by products [15]. Hedonic products often represent wants and are consumed for pleasure, whereas utilitarian products fulfil needs [16]. However, the hedonic and utilitarian dimensions are independent from each other, and consumers evaluate a product whether being hedonic or utilitarian by determining the salient features of the product [17]. Regarding green products, Cheng et al. [18] argue that hedonistically oriented consumers are more likely to engage in pro-environmental consumption as they derive pleasure and motivations from performing sustainable consumption behaviors [19]. Furthermore, Young [20] reports that consumers obtain personal enjoyment from environmentally responsible behaviors and Lin and Huang [21] suggest that consumers’ emotional value (similar to hedonic value) influences their green
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Fig. 1 Conceptual model
product choice behavior. In comparison with hedonic dimension, previous findings regarding the effects of utilitarian attitudes on consumer green purchase behavior are inconclusive. Peattie [22] suggests that consuming green products often includes making a compromise in the form of green premium, poorer technical performance, or time cost to acquire the product, which are likely to add negatively to the utilitarian value of green products. It also appears that consumers with high utilitarian attitudes are short-term oriented and have less environmental involvement as they are more concerned with economic benefits than the long-term environment impacts [23, 24]. In contrast to these findings, Ashley et al. [25] report that consumers’ utilitarian attitudes toward solar powered LED positively influence their purchase intention. Haws et al. [7] argue that green consumers in general are innovative, and they derive more utilitarian value from products they purchase. Therefore, based on these notions we hypothesize that: H2: Utilitarian dimension of consumer attitude positively influences consumer purchase intention of wood-based (2a) bioplastic, (2b) biotextile, and (2c) biofuel. H3: Hedonic dimension of consumer attitude positively influences consumer purchase intention of wood-based (3a) bioplastic, (3b) biotextile, and (3c) biofuel. Figure 1 shows the conceptual model of the study in which three independent variables, green consumption values, utilitarian attitudes, and hedonic attitudes predict three distinct green technology products, that is wood-based bioplastic, biotextile, and biofuel. To account for potentially confounding factors, we control for the effects of gender, age, and income.
3 Data and Methods 3.1 Questionnaire and Data Collection A 6-item GREEN scale from Haws et al. [7] measures the green consumption values and five semantic differential scale items from Voss et al. [15] measure both the utilitarian and hedonic attitudes. We use five-point Likert-scale single item measures (Definitely will not buy = 1–Definitely will buy = 5) “If it were available would you like to buy these products?” [12] to assess purchase intention of three concrete green technology products, namely wood-based bioplastic water bottle, T-shirt made from wood-based biotextile, and wood-based biofuel. As for the control variables,
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Table 1 Measurement validity Constructs
CR
AVE
1.
1. Green consumption values
0.908
0.665
0.816
2.
2. Utilitarian attitude
0.854
0.594
0.617
0.771
3. Hedonic attitude
0.859
0.604
0.598
0.768
3.
0.777
The values in bold are the normalised regression loadings greater than 0.70
we collected information regarding gender, age, and income. A professional market research agency in Finland collected demographically representative data with 461 valid consumer responses.
3.2 Measurement Validity After removing measure items with standardized regression loadings less than 0.70 (one item per scale), the resultant measurement model provides an adequate fit with χ2 = 242.691 (df = 62; p < 0.001), CFI = 0.951, and RMSEA = 0.080. The measurement model provides support for construct validity (CR > 0.85; AVE > 0.5) and discriminant validity as the square roots of AVE exceed the cross-construct correlations [26] (Table 1).
4 Results We run three sequential stepwise linear regression models where Model 1 includes the control variables, Model 2 adds green consumption values to the equation, and finally Model 3 adds utilitarian and hedonic attitudes to the model. We run the same stepwise model across the three green technology products, that is bioplastic, biotextile, and biofuel.
4.1 Wood-Based Bioplastic The results regarding consumer intention to buy water bottles made from woodbased bioplastic suggest that income has a statistically significant positive effect (p = 0.039), while the intention to buy is not affected by gender or age. Model 2 adds green consumption values to the equation showing a highly significant (p < 0.001) positive effect for the green values in predicting intentions to buy bioplastic, with the effects of the control variables remaining unchanged. However, when we add utilitarian and hedonic attitudes to the model (Model 3) we see that the effect of green consumption
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Table 2 Regression results for wood-based bioplastic Variables
Model 1 β
Model 2 p
β
Model 3 p
β
p
Independent variables Green Cons. Values
0.044
0.469
Utilitarian attitude
0.298
0.7. For Cronbach’s alpha, only PEK goes beyond the limits of 0.7–0.9, having a value of 0.915. The next step was to check the heterotrait–monotrait ratio (HTMT) values. All constructs in Table 3 are significantly different from each other. The values in brackets represent the lower limit of 2.5% and the upper limit of 97.5% confidence interval (Table 4). Initially, all constructs had reflective variables. By conducting the study, the variables for Win Expectation, Satisfaction and Time/Money Engagement were changed to formative variables for better performance. Not all variables were significant; therefore, WE2 and SAT3 were removed. Table 2 Internal consistency reliability
Latent variable
Composite reliability ρc
Reliability ρA
Cronbach’s alpha
>0.7
>0.7
0.7–0.9
PFK
0.888
0.843
0.812
PESK
0.947
0.925
0.915
PECK
0.912
0.894
0.856
PEOU
0.848
0.804
0.775
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Table 3 HTMT values Construct
PESK
PECK
PFK
PEOU
PESK PECK
0.251 [0.165;0.335]
PFK
0.197 [0.109;0.288]
0.220 [0.124;0.314]
PEOU
0.102 [0.044;0.191]
0.057 [0.049;0.132]
0.048 [0.042;0132]
Table 4 Formative indicator weights and significance testing results Formative constructs Formative indicators Outer weights Outer loadings BCa [2.5;97.5]% WE
WE1 WE3
0.074
0.129
[−0.176;0.254]
SAT
SAT1
0.922
0.677
[0.386;1.180]
SAT2
0.821
0.458
[0.681;0.915]
TAME1
0.525
0.701
[−0.048;0.802]
TAME2
−0.176
0.059
[−0.570;0.339]
TAME3
0.629
0.769
[0.036;0.879]
TAME4
0.353
0.450
[−0.160;0.690]
TAME
0.993
0.997
[0.946;1.004]
After actions such as changing the variable from reflective to formative and removing insignificant variables, the final version of the model is shown with the values made in SmartPLS 3 using the PLS Algorithm in Fig. 1. The paths PFK → WE, WE → TAME, PESK → WE have similar relationships around 0.200; however, the strongest relationship (0.21) has perceived esports knowledge on win expectation. Less significant are PECK → WE and SAT → WE which have 0.131 and 0.121 path coefficients. The PEOU → WE path is the only one where the hypothesis was not confirmed. The rest of the hypotheses were confirmed, making them influential constructs (Table 5).
4 Discussion During the analysis phase, it became apparent that not all of the formative variables significantly affect the model. Players claim that trading in Ultimate Team mode is not intuitive and believe that they do not have full control over the match’s outcome. Therefore, the variables SAT3 and WE2 have been removed. The variables WE3 and TAME2 had a p-value above 0.05 but remained in the model. In terms of WE3, respondents believe that they have more confidence by playing a highly rated squad
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Fig. 1 The model with weights and loads for paths
Table 5 Path coefficients of the structural model and significance testing results Path
Path coefficient
BCa [2.5;97.5]%
T-statistics
p-value
Hypothesis supported
WE → TAME
0.200
[0.103;0.294]
2.862
0.004
Yes
PESK → WE
0.208
[0.129;0.285]
5.214
0.000
Yes
PECK → WE
0.134
[0.033;0.227]
2.556
0.011
Yes
PFK → WE
0.204
[0.130;0.227]
5.373
0.000
Yes
[−0.159;0.094]
1.346
0.178
No
[0.054;0.210]
3.066
0.002
Yes
PEOU → WE SAT → WE
−0.077 0.125
during a match. The rating of a player’s card is not based on the player’s skills alone but also on nationality reputation, which may overstate the value on the virtual market [23]. Also, underrated cards may perform better on the virtual pitch due to the footballer’s posture matching the current game engine, so it was decided not to remove the variable WE3. The first variable of win expectation, WE1, is significant. Players believe they are more skilled compared to the average player. The path coefficient of win expectation on time and money engagement has a significant effect. Hypothesis H6 was confirmed. The TAME2 variable stayed in the model because it confirmed that players mostly spend 1–2 h per day trading in Ultimate Team mode, which could be related to the SAT3 variable removed, which stated that players are not intuitive when trading. TAME1, TAME3 and TAME4 have values that define them as significant. Players spend 2–3 h a day playing matches in Ultimate Team mode. In doing so, they visit the FIFA Companion App mobile application or the
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browser version, the FUT Web App, up to 7 times a day. More than half of the users have not spent money on the virtual currency—FIFA Points. The other satisfaction variables, SAT1 and SAT2, have an effect on win expectation. This means that playing Ultimate Team is fun and exciting. The path coefficient between satisfaction and win expectation has an appropriate value, so hypothesis H4 was confirmed. All three types of knowledge have a positive impact on win expectations. Perceived esports knowledge has the most significant impact. Knowledge, confidence to use and ability to understand esports knowledge compared to the average fan have a significant impact. The same is true for football knowledge. Economic knowledge used in computer games and the ability and confidence to use economic knowledge also has a positive impact. Hypotheses H1, H2 and H3 were confirmed. The only not supported hypothesis is the H5 hypothesis. It appears that perceived ease of use in Ultimate Team mode does not have a positive effect on win expectation. This is related to the fact that the most common response on the Likert scale for the PEOU variables was 4. The survey mostly involved young people, this threshold for entry into the game may have been undemanding for them. This study has some limitations. Despite the availability of female players in FIFA, only six women out of 643 responses spoke in the survey causes a lack of gender diversity. Likewise, the result of nearly 40% of those under the age of 18 may have influenced the outcome of the survey. For the younger respondents, the latest installments of the FIFA series may have been the first games they have come across, having no comparison with older installments and not having the opportunity to follow the series’ development. Younger players may also have an advantage in terms of usage, not having the habits of the older series. Likewise, the trading aspect may have been overlooked by them wanting to enjoy the game by playing matches. When it comes to micropayments, they may be limited due to the lack of their income.
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Can Gamification Define Consumers’ Response Toward Brands? Examining the Impact of Gamified Health and Fitness Applications on Purchase Intention Abhishek Yadav Abstract The ultimate goal of any brand is to get positive responses from customers both emotionally and behaviorally for its marketing activities. This study examined how gamified interactions on health and fitness applications impacted consumers’ purchase intentions and assessed the role of positive emotions and brand engagement in developing this relationship. Data were collected from users of health and fitness apps through a self-administered questionnaire and analyzed using partial least square structural equation modeling technique. The findings suggest a strong indirect relationship between gamification and purchase intention. The study also found positive emotions and brand engagement to be significant sequential mediators of the gamification-purchase intention relationship. Keywords Health and fitness application · Gamification · Purchase intention · Positive emotion · Brand engagement
1 Introduction Gamification as a concept got popularized by the end of the last decade with its first documentation in the literature came in the form of “Funware” [1]. In little over a decade since its formalized inception, the literature on usage of gamification in various online and offline contexts has exploded with effective implementation in domains such as business [e.g., 2] and environmental sustainability [e.g., 3]. Practitioners’ adoption of gamification mechanics is even higher, focusing on desired behavior initiation and retention [4]. Contrary to challenging games focusing on providing a pure gaming experience with rules and game engines, gamification tries to create experiences comparable to a game by combining game experience design and game mechanics. Companies have readily accepted gamification as a means for induction and retention of desired behaviors [4]. This behavioral modification can
A. Yadav (B) Indian Institute of Management, Kashipur, India e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 J. L. Reis et al. (eds.), Marketing and Smart Technologies, Smart Innovation, Systems and Technologies 280, https://doi.org/10.1007/978-981-16-9272-7_16
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lead to customers’ changed outlook toward offerings of companies that employ gamification for customer engagement. In the practitioner world, gamification is extensively used in marketing communication by industry leaders like Google, Amazon, and Nike to make engagement with customers more interactive [5]. Due to this increased interest in gamification over the last decade, it is expected that the market for gamified services is expected to grow exponentially to more than $30.7 billion by 2025 from $9.1 billion in 2020 CAGR of 27.4% [6]. Gamification has become a vital component of health-related interventions over the past decade. It is evident from the fact that in the case of health initiatives at workplaces, more than 60% included gamified mechanics [7, 8]. In addition to this, they also argued that when it comes to mobile applications related to health and fitness, 64% of those apps used some form of gamification mechanics. Availability of cutting-edge features like GPS, G-sensors, accelerometers, and other compatible sensors has significantly impacted general and gamified health interventions [9], thus accentuating gamification’s growth trajectory usage in the health sector. Companies have also readily accepted gamification as a means for induction and retention of desired behaviors [4]. However, gamified mechanics in health and fitness mobile applications have increased even though there is almost no in-depth inquiry about its actual functionality and effectiveness [7, 8]. This paper aims to determine the impact of usage of health and fitness apps on purchase intention while checking the impact of emotions induced due to usage of the app on this relationship. To address this objective, we are trying to answer the following questions through this study: RQ1—Does the inclusion of gamified mechanics in health and fitness apps impact customers’ purchase intentions? RQ2—What is the impact of positive emotions induced due to usage of health and fitness apps on their engagement? RQ3—Do positive emotions generated due to gamified interactions leading to more engagement impact purchase intentions. The findings of the study establish the significance of gamified interactions in defining consumers’ attitudes and behavior. The study also outlines the importance of having such health and fitness apps for relevant brands and how positive emotiongenerating gamified elements while designing and developing such health and fitness apps can positively impact consumers’ purchase intentions. This study contributes to the extent of literature on applying gamification in multiple fields by linking gamification experience to purchase intention of consumers. The rest of the article is structured as follows: First, a brief review of existing literature on gamification and its implementation in the health and fitness domain is provided, followed by development of a conceptual model. Next, the methodology section discusses the adopted measures. Following this, the results section discusses the findings of structural equation modeling analysis. At the end of the article, we present the conclusions, implications, and limitations.
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2 Theoretical Foundation 2.1 Gamification Gamification can be defined as “the use of game design elements in non-game contexts,” i.e., using game mechanics in aspects that are not just for entertainment [10]. Subsequently, Huotari and Hamari [11] defined gamification in the context of value created by the process as “a process of enhancing a service with affordances for gameful experiences in order to support user’s overall value creation” [11]. The concept of gamification has been successfully implemented and tested by academia and the practitioner world. Academia prominently implemented this in education [12], marketing [13], and consumer products [14]. One of the core strategies of gamification is to increase consumer engagement with the help of some form of reward (badges, points, and leader board) [15]. They found that setting challenges for getting these rewards and making this progress visible to other users to promote competition are significant components of this strategy [15]. Other gamification tools, for example, representation of self as an ‘avatar’ or onboarding tutorials, are also used to enhance persuasiveness [16]. Therefore, gamification helps ensure more extended engagement in boring or demotivating tasks and more pleasant feelings for the consumer [17]. Usage of gamified mobile apps by both the practitioner world and academia for influencing consumers’ behaviors has become a highly favored strategy [18, 19]. Along with this, gamified systems can also persuade consumers to be a part of value co-creation [20].
2.2 Gamification in Health and Wellness A worldwide increase in health and wellness challenges like tobacco, diabetes, physical stagnation, and obesity has led to an increased focus on well-being, and the inclusion of gamified mechanics in communication can help deal with these challenges. The underlying idea is to use “motivational affordances” [1, 21], a feature of games used for entertainment purposes to be used in health and fitness applications to increase the motivational quotient. According to the literature on intrinsic motivation, these apps use a large variety of motivational tools and features, such as instant feedback of progress achieved by an individual and immediate success, goal setting, and social feedback [22]. Since its emergence, researchers worldwide have pointed out the implementation of gamified mechanics in health as a promising new approach [e.g., 19, 23]. Large multi-national companies like Nike, Google, and Xiaomi and small health and fitness app developers widely use gamified mechanics for increasing engagement with consumers. Conceptually, gamification in health is an amalgamation of serious games, personal informatics, and persuasive technology [16, 24]. Out of these, personal informatics implementation in gamified applications has been an
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important tool to sustain engagement [25]. Gamification has also been used extensively in physical fitness interventions and for encouragement toward healthy behaviors [26]. Similarly, recent research in the health sector has expanded on video game properties like fantasy, narrative, and interactivity and found that these properties can lead to higher compatibility with internally induced motivation [27].
3 Hypotheses Development 3.1 Gamification-Purchase Intention Factors such as consumers’ beliefs and attitudes are significant predictors of their purchase behavior, and these factors construct their intention to purchase [28]. Gamification is very efficient in manipulating social and individual factors that positively impact consumers’ behavior and play a vital role in motivating customers’ intentions [14, 29]. Similarly, Shang and Lin [30] affirmed gamified mechanics’ significant positive impact on consumers’ purchase intention. Along with this, Wen et al. [31] also established that gamification designs in mobile applications will positively impact customers’ purchase intentions. Gamification’s motivational effects (both intrinsic and extrinsic) also lead to consumers’ intention to purchase that product [32]. Therefore, we can assume that gamified interaction in a fitness app will lead to consumers’ intentions to purchase the associated brand. H1: Gamification leads to purchase intention.
3.2 Gamification-Positive Emotions “Emotions are a subset of the broader class of affective phenomena” [33], and ‘affect’ includes moods and feelings, as well in addition to emotions. There are two basic categories of emotions- positive and negative emotions, and these are further categorized into primary and secondary emotions [34]. Bagozzi et al. [35] state that emotions are a critical antecedent in determining the customers’ behavior. Reinforcing this argument, Carlson, and Wang [36], in their paper, stated human emotions as the most reliable predictors of human behavior. When it comes to valance of these emotions, broaden and build the theory of positive emotions states that positive emotions help in broadening the mind at the time of interaction which enables better recall [33] which is not the case with negative emotions that have little or no effect [35]. Generation of positive emotions is a vital component of gamified experience [37] and authors have identified it as the primary goal of gamified applications [38, 39]. Therefore, we postulate that gamified interactions will help in generating positive emotions in the individuals. H2: Gamification leads to the induction of positive emotions.
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3.3 Positive Emotions-Engagement Engagement with the brand results from behavioral, cognitive, and emotional investment of customers who interact with it [40]. He also identified emotions as one of the three dimensions of consumer engagement along with passion and involvement. Staudinger [41] postulated that positive emotions alter people’s motivation, problemsolving skills, and attitude. Due to the induction of positive emotions, customers tend to make favorable judgments, and their feedback will also be positive [42]. The inclusion of positive emotions in advertisements has also positively impacted engagement as these advertisements increase desired ‘downstream communication’ effects’ probability and customers’ attention [43]. In terms of gamified services, game mechanics usage can lead to various psychological outcomes such as enjoyment, motivation, and engagement [44, 45]. Berger et al. [46] showed a positive relationship between cognitive and emotional dimensions of brand engagement and interactive and challenging gamified interactions with the help of “flow theory.” Thus, we can propose that positive emotions developed due to gamified apps’ usage will lead to better engagement of customers. H3: Positive emotions lead to brand engagement.
3.4 Engagement-Purchase Intention Gamification mechanics’ implementation by companies in its communication with consumers reinforces ties between them by keeping the consumers engaged and this further leads to enhanced loyalty of customers and increase their purchases. Prior research has significantly focused on the positive relationship between brandcustomer engagement and customers’ purchasing intentions and loyalty [40, 47–50]. So et al. [51] confirm that customers’ engagement level is directly proportional to their loyalty and brand’s success. The interactive experiences with a brand are known as “behavioral customer engagement” and due to these interactive experiences with the app, customers form a deep connection with it. Prentice et al. [49] argue that customers feel encouraged to purchase products of the brand due to this connection. Behavioral engagement also positively affects customers’ loyalty and their recurring purchase behaviors [51–53]. Thus, we can strongly argue that enhanced consumer engagement with applications due to gamified mechanics will translate into purchase intentions. H4: Brand engagement leads to purchase intention (Fig. 1).
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Fig. 1 Conceptual model
4 Methodology 4.1 Data Collection and Sample Size We have adopted a survey method for this study’s research needs, and based on a convenience sampling technique, we delivered the questionnaires to students at a top-tier b-school and gym members in a metropolitan area to get a holistic understanding of this construct as fitness app users can indulge in fitness activities both inside and outside defined exercise settings. We delivered the questionnaires using both online and offline channels. As the focus is on understanding the behavior of fitness application users, the questionnaire is organized into two parts separated by a closed dichotomous question enquiring about if the responder has used any health and fitness application or not. Only the respondents who answered yes were allowed to continue with the questionnaire. It helps in the identification of fitness app users for analysis. We have used survey questions from already established scales. The research instrument was sent out to 667 individuals using both online and offline channels and received 392 responses. Out of these responses, we removed 161 responses as they were not fitness app users. Out of the remaining respondents, we removed the responders who were not attentive while answering the questionnaire. We identified these responders using two negatively coded questions in the questionnaire, and finally, we imported 213 responses for the statistical analysis. The final sample included 32% female respondents and 68% male respondents. We have used structured equation modeling to test the research hypotheses using Smart PLS software. Respondents were informed about the study’s purpose and academic nature, and we assured them of confidentiality regarding their identity.
4.2 Measurement Development We have adopted validated scales of the existed literature of health and fitness app context based on a 5-point Likert scale (1—Strongly Disagree, 5—Strongly Agree) to measure all the constructs. We have measured positive emotions with four items
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adapted from I-PANAS-SF’s positive effect dimension [54]. Chandon et al. [55] and Schlosser et al.’s [56] scales were adapted to develop a three-item scale to measure the ‘Purchase intention’ construct. The brand engagement was measured using three items developed from a widely accepted scale [57]. Gamification was measured by adapting Wakefield et al.’s [58] scale and Rodrigues et al.’s [59] adaptation of this scale in gamification (Appendix 1)
5 Results 5.1 Structural Model Partial least square path modeling Wold [60] introduced the partial least square method (PLS) for high-dimensional data analysis in a low structure environment. PLS provides robust results when the study is exploratory the sample size is small or when data are not normally distributed [61]. PLS also helps in easing the process of doing serial mediation to find specific indirect effects. For this article, we have used the PLS algorithm and PLS bootstrapping for model analysis. We found that all loadings were above the minimum threshold of 0.7. It means that all the items are significantly impacting the construct. Hypotheses testing and inner model evaluation We employ path coefficients and associated p values to analyze the statistical significance of relationships between items. After that, bootstrapping was done with ten thousand cycles to get t-statistics for the paths. Table 1 shows the path coefficients of latent variables, t-statistics, and respective p values. Therefore, H1 is supported. However, in the case of purchase intentions, it was found that gamification (β = 0.074; t = 0.869; p = 0.385) has no significant direct effect on it. Therefore, H2 is not supported. It was also found that gamification (β = 0.482; t = 7.751; p = 0.000) significantly and positively impact positive emotions thus supporting H3. Impact Table 1 Results of hypothesis testing Effect
Path coefficient (Beta)
STDEV
t-values
p-values
Gamification—positive emotions
0.482
0.062
7.751
0.000
Gamification—purchase intention
0.074
0.085
0.869
0.385
Positive emotions—brand engagement
0.446
0.062
7.172
0.000
Brand engagement—purchase intention
0.566
0.081
7.034
0.000
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of positive emotions (β = 0.446; t = 7.172; p = 0.000) on engagement is also found to be positive and significant thus H4 is supported. Subsequently, impact of Engagement—Purchase intention—β = 0.566; t = 7.034; p = 0.000) is also found to be significant and positive on and purchase intention. Sequential mediation analyses helped us to identify any indirect effect of gamification on purchase intention. The analyses show that emotions and engagement together are statistically significant mediators of gamification and purchase intention (β = 0.122). One remarkable result of these analyses is the impact of gamification on purchase intention. Results show that even though the relationship between gamification and purchase intention is not directly significant, it becomes significant due to sequential mediation of emotions and engagement.
6 Conclusion This study aimed to identify the impact of gamification on psychological and behavioral outcomes of experiencing gamified mechanics in health and fitness apps. Results show the significant positive impact of gamified systems’ usage on brand-related outcomes such as intention of buying products of that brand in the future. The study also highlighted the importance of positive emotions and resulting brand engagement in defining the relationship between gamification and behavioral outcomes. The study also focused on the impact of health and fitness app-based brand engagement and behavioral outcome of purchase intention and found it a significant factor in generating such outcomes. However, gamification’s direct impact is not strong as initially we assumed and existed literature has suggested. Still, the generation of positive emotions and brand engagement compensated for this weak relationship, and the indirect effect of gamification on purchase intention was significant in the closing stages of the research. This study outlined the need to include gamified mechanics for sustainable brand building and strongly emphasize the concept of using branded health and fitness apps as a tool for the same.
Appendix 1
Constructs
Items
Gamification
(a) Using this app is enjoyable (b) The app is informative (c) This app is interactive (d) I enjoy the time I spend on the app and I feel very comfortable using it (e) This app is friendly (continued)
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(continued) Constructs
Items
Positive emotions
Think about how you felt while using the app (a) Inspired (b) Determined (c) Attentive (d) Active
Brand engagement
(a) I feel very positive when I use the app (b) Using products of this brand makes me happy (c) I feel good while using the app
Purchase intention
(a) I am likely to purchase this brand’s product (b) I have high intentions to purchase products of this brand (c) I will purchase this brand’s product
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17. Turan, Z., Avinc, Z., Kara, K., Goktas, Y.: Gamification and education: achievements, cognitive loads, and views of students. Int. J. Emerg. Technol. Learn. (IJET) 11(07), 64–69 (2016) 18. Deterding, S., Sicart, M., Nacke, L., O’Hara, K., Dixon, D.: Gamification using game-design elements in non-gaming contexts. In: CHI’11 Extended Abstracts on Human Factors in Computing Systems, pp. 2425–2428 (2011) 19. King, D., Greaves, F., Exeter, C., Darzi, A.: ‘Gamification’: influencing health behaviours with games. SAGE Publications Sage UK: London, England 106(3), 76–78 (2013) 20. Kuo, M.-S., Chuang, T.-Y.: How gamification motivates visits and engagement for online academic dissemination—an empirical study. Comput. Hum. Behav. 55, 16–27 (2016) 21. Zhang, P.: Technical opinion motivational affordances: reasons for ICT design and use. Commun. ACM 51(11), 145–147 (2008) 22. Rigby, S., Ryan, R.M.: Glued to games: How video games draw us in and hold us spellbound: How video games draw us in and hold us spellbound. AbC-CLIo (2011) 23. Pereira, P., Duarte, E., Rebelo, F., Noriega, P.: A review of gamification for health-related contexts. In: International Conference of Design, User Experience, and Usability, pp. 742–753 (2014) 24. Munson, S., Poole, E., Perry, D.B., Peyton, T.: Gamification and health. The Gameful World: Approaches, Issues and Applications, 597–624 (2015) 25. Morschheuser, B.S., Rivera-Pelayo, V., Mazarakis, A., Zacharias, V.: Interaction and reflection with quantified self and gamification: an experimental study. J. Literacy Technol. 15(2), 136– 156 (2014) 26. Johnson, D., Deterding, S., Kuhn, K.-A., Staneva, A., Stoyanov, S., Hides, L.: Gamification for health and wellbeing: a systematic review of the literature. Internet Interv. 6, 89–106 (2016) 27. Lister, C., West, J. H., Cannon, B., Sax, T., Brodegard, D.: Just a fad? Gamification in health and fitness apps. JMIR Serious Games 2(2), e9 (2014) 28. Fishbein, M., Ajzen, I.: Belief, Attitude, Intention and Behavior: An Introduction to Theory and Research, Addison-Wesley, Reading, MA (1975) 29. Jackson, J.: Game-based teaching: what educators can learn from videogames. Teach. Educ. 20(3), 291–304 (2009) 30. Shang, S.S.C., Lin, K.Y.: An understanding of the impact of gamification on purchase intentions (2013) 31. Wen, D.M.-H., Chang, D.J.-W., Lin, Y.-T., Liang, C.-W., Yang, S.-Y.: Gamification design for increasing customer purchase intention in a mobile marketing campaign app. In: International Conference on HCI in Business, pp. 440–448 (2014) 32. Bittner, J.V., Shipper, J.: Motivational effects and age differences of gamification in product advertising. J. Consum. Mark. 31(5), 391–400 (2014) 33. Fredrickson, B.L.: The role of positive emotions in positive psychology: the broaden-and-build theory of positive emotions. Am. Psychol. 56(3), 218–226 (2001) 34. Oliver, R.L.: Conceptual issues in the structural analysis of consumption emotion, satisfaction, and quality: evidence in a service setting. ACR North Am. Adv. 21, 16–22 (1994) 35. Bagozzi, R.P., Gopinath, M., Nyer, P.U.: The role of emotions in marketing. J. Acad. Mark. Sci. 27(2), 184–206 (1999) 36. Carlson, S.M., Wang, T.S.: Inhibitory control and emotion regulation in preschool children. Cogn. Dev. 22(4), 489–510 (2007) 37. Mullins, J.K., Sabherwal, R.: Gamification: A cognitive-emotional view. J. Bus. Res. 106, 304–314 (2020) https://doi.org/10.1016/j.jbusres.2018.09.023 38. Eppmann, R., Bekk, M., Klein, K.: Gameful experience in gamification: Construction and validation of a gameful experience scale [GAMEX]. J. Interac. Mark. 43, 98–115 (2018) https:// doi.org/10.1016/j.intmar.2018.03.002 39. Rodrigues, L.F., Oliveira, A., Costa, C.J.: Playing seriously–How gamification and social cues influence bank customers to use gamified e-business applications. Comput. Hum. Behav. 63, 392–407 (2016) https://doi.org/10.1016/j.chb.2016.05.063 40. Hollebeek, L.: Exploring customer brand engagement: definition and themes. J. Strateg. Mark. 19(7), 555–573 (2011)
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Fostering Business Education Using Playful and STEAM Pedagogy Nathaly Sigcho and Janio Jadán-Guerrero
Abstract STEAM educates children in science, technology, engineering, art, and mathematics fields with an interdisciplinary approach, leading from an early age to adapt to an ever-changing world. This research proposes the use of recyclable materials that exist at home to create domestic laboratories for the development of scientific thinking that support the resolution of problems in daily life. The research methodology was based on data collection from 9 teachers and 130 eighth-year high school students. For data collection, a questionnaire on logical reasoning was applied, which evaluated the ability of students to respond to everyday situations and teachers were surveyed to find out if they use technological educational resources in classrooms. With the results obtained, it is proposed to develop: “Instruments for domestic laboratories.” The results aroused great interest in teachers and students when conducting a satisfaction survey, in which a high degree of motivation and interaction with the resources developed was obtained. Keywords Business education · STEAM · Gamification · Home labs · Instructables
1 Introduction Nowadays the world faces a new scenario darkened by the leaden sky that is the pandemic. The health crisis has accelerated the implementation of some technologies at home, especially in education. Virtual education becomes more important than ever, but it brings new challenges for teachers. This system forces them to innovate ways for the student to learn by doing, not repeating, being more creative and above all more critical. A system that, beyond specific technical knowledge, must teach, N. Sigcho · J. Jadán-Guerrero (B) Maestría en Educación, Mención Pedagogía en Entornos Digitales (MEPED), Universidad Tecnológica Indoamérica, Bolívar 2035 y Guayaquil, Ambato, Ecuador e-mail: [email protected] J. Jadán-Guerrero Centro de Investigación en Mecatrónica Y Sistemas Interactivos (MIST), Universidad Tecnológica Indoamérica. Av. Machala Y Sabanilla, Quito, Ecuador © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 J. L. Reis et al. (eds.), Marketing and Smart Technologies, Smart Innovation, Systems and Technologies 280, https://doi.org/10.1007/978-981-16-9272-7_17
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above all, to learn. For this, skills such as critical thinking, communication, teamwork and effort, creativity and rigor are essential [1, 2]. Science, mathematics and logic learning from basic general education has a fundamental importance in students’ development, referring mainly to the capacity for abstraction and reasoning depth, essential in any professional field. Today more than ever it is essential to transform our pedagogical practices, recreating and inventing ways to integrate technology in this new virtual modality. But it is also necessary to reflect on the limitations that exist, limited connectivity, didactic strategies and educational intervention models, to create a space for learning experiences at home [3]. The STEAM methodology is a model that allows the integration of different areas of knowledge such as science, technology, engineering, arts and mathematics, generating critical thinking skills in students and the ability to solve problems in a creative and innovative way. STEAM education is primarily based on projectbased learning, as the main teaching approach (learning) to guide students through cooperation and practice, to complete the project topic and solve problems found in life [4]. The objective of this research is to incorporate technological tools with the help of an Instructable in the development of the mathematics teaching–learning process. The Instructable aims to guide step by step the construction of an educational mathematics laboratory at home, using written instructions, photographs and videos that allow to better explain the theoretical content of the subject. Experimenting with home chemistry labs during the COVID-19 pandemic generated encouraging results at the educational institution where the study was conducted, we believe this type of educational innovation could help more children.
2 Background At present, there are great challenges in education, one of them is the integration of technological resources in the teaching and learning process, as well as the development of STEAM skills. The incorporation of STEAM in educational activities affects the motivation of students, generating a wide diversity of jobs that nurtures the knowledge generated by interacting in different areas and favoring the processes through instructions, generating tasks in scientific and technological areas at an early age [4]. Education at all levels has been one of the areas in which, due to the COVID-19 pandemic, has undergone changes in teaching–learning methodology. According to the carried out studies, distance education has presented several learning obstacles and one of them is experimentation due to the lack of laboratories that students use in person. Hands-on lab instruction is the method that really helps to understand theory and fills in the gaps in remote teaching. In this context, some initiatives related to virtual and remote laboratories have been generated, initiatives that promote practical learning and experimentation. For example, to teach chemistry it was suggested to
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use a remote laboratory by sending home all the necessary supplies so that students can set up the laboratory at home [5]. The bibliographic review shows the scarce existence of proposals for remote and virtual laboratories for mathematics teaching [6]. However, in the areas of chemistry and physics, a common virtual laboratory used was PhET, in order to develop online classroom interaction [10, 11]. These gaps are an opportunity to develop digital tools and applications that can be replicated at home to promote children’s hands-on learning [7, 9]. The home labs idea has several implications for math and science educators. First, the design of innovative approaches to distance learning can be put into practice during the COVID-19 pandemic [8].
3 Method For the development of this proposal, the ADDIE methodology (Analysis, Design, Development, Implementation and Evaluation) was used, it was applied at the development and instructional design of practical science at home during the COVID-19 crisis.
3.1 Participants The sample was census type, not probabilistic where 130 children from 11 to 14 years old from an educational institution in Ecuador participated in the study, who voluntarily agreed to be part of the research during the 2020 quarantine. Children belong to five parallels of eighth grade: A, B, C, D and E. In relation to gender, 58% (n = 76) corresponded to women and 42% (n = 54) corresponded to masculine gender. Nine mathematics teachers also participated in the study, five of them from Educational Sciences and the rest from the Technical and Engineering Area.
3.2 Materials and Instruments Data collection was carried out using an online evaluation system through a structured diagnostic test using Microsoft Forms, the first three questions were ethnographic information and 10 multiple-choice questions were related to logical reasoning, which aimed to evaluate the ability answer to everyday situations. In the same way, a survey was conducted to mathematics teachers to find out if they use educational technological resources in classrooms, the survey consists
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of four sections: Sociodemographic data section with five questions, Use of technology section with 12 multiple-choice questions and scale, Pedagogy and Technology section with 3 multiple-choice questions and scale, Learning disabilities section with 4 multiple-choice questions and scale, and Mathematics section with 4 multiple-choice questions. The physical elements to build the educational home Mathematics Labs were composed by the Makey-Makey electronic board, a computer and every day and recyclable household objects. In the digital field it was used the Scratch platform and Blogger to publish the Instructables.
3.3 Procedure The pandemic has also affected the way the data is collected, in a secure way. However, the situation lends itself to the option of integrating online activities. The entire data collection process was carried out remotely following the ADDIE methodology, which is detailed below:
3.3.1
Analysis
In the analysis phase, it was necessary to identify the difficulties that children had regarding logical thinking, for which a basic diagnostic test was applied. It was also necessary to identify the educational strategies and resources that teachers used to teach mathematics in virtual mode.
3.3.2
Design
In the design phase, it was thought about a learning strategy that is practical and easy to build at children’s homes. The best option for teachers and kids was based on Instructables, which is a web-based documentation platform to share with others and where it is explained step by step how to make an educational resource at home.
3.3.3
Development
In this phase, two Instructables were developed on the Scratch platform based on the contents of the math textbook and related to real-life problems.
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3.3.4
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Implementation
In the implementation phase, a blog was built with objective and artistic audiovisual information. It is objective since it projects real situations that can be used in the educational context within technical areas. On the other hand, it is artistic since it aims to awaken emotions so that children feel motivated when carrying out their tasks, both individually and in collaborative work.
3.3.5
Evaluation
To evaluate the Instructables, a user satisfaction questionnaire was carried out to measure the participants’ interaction, satisfaction and motivation [10, 11].
4 Results Prior to the educational resources design, a diagnostic test was performed on eighth grade children. There was obtained a low level regarding the resolution of logical reasoning exercises, that is, they have difficulty solving problems, drawing conclusions and establishing logical causes. Table 1 summarizes the results of the diagnostic test. In addition, a survey was conducted to teachers, in which the results showed a low use of strategies and technological resources to teach mathematics. This implies that the teaching–learning process is traditional and focused only on its content.
5 Instructables Design for Home Labs 5.1 Curriculum Contents The Instructables’ design was based on the Eighth Grade Basic General Education Mathematics textbook, Ministry of Education of Ecuador. Table 2 provides a summary of all the content of the rational number unit. Visualized with this information, two Instructables were designed: Fractions knowledge and their real representation and decimal numbers and their daily life usefulness.
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Table 1 Results of diagnostic test No Question
Correct answer (%) Wrong answer (%)
1
A child consumes 500 g of bread per day. What 40.77 will be the daily consumption in kilos of the dining room composed of 126 children?
59.23
2
If I have three apples and two are taken from me, how many apples do I have left?
33.85
66.15
3
How many quarters are six halves?
23.08
76.92
4
Which group would continue the series: 2Z3, 4Y5, 6X7
82.31
17.69
5
Find out the missing number in the graph
37.69
62.31
6
How many triangles are in the figure?
36.15
63.85
7
Five friends decide to go to the theater with 87.69 $68. If each ticket costs $17. How many will be able to see the movie?
12.31
8
A mother is 40 years old and her son is 10. How 32.31 many years must elapse before the mother’s age is triple the age of her son?
67.69
9
What numbers should be in the series shown in the graph
73.85
26.15
10
At the farmer’s market a pound of lemons costs 58.46 $4, how much does half a pound cost?
41.54
Table 2 8th grade basic general education mathematics curriculum contents Curricular content
Unit
Skills
Algebra and functions Rational numbers Recognize the set of rational numbers Q and identify their elements Represent and recognize rational numbers as a decimal number and/or as a fraction. Establish order relationships in a set of rational numbers using the number line and mathematical symbology (=, < , ≤ , > , ≥) Operate on Q (addition) solving numerical exercises
Indicator Exemplify real situations where whole numbers are used Establishes order relationships using the number line; Applies the algebraic properties of integers in solving expressions with combined operations, correctly using the priority of operations Judges the need for the use of technology
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5.2 Instructable 1. Understanding Fractions and Their Real Representation This Instructable was designed with attractive, fun and dynamic exercises, which allow to obtain a better understanding of the proposed problem. To make a fractions’ representation, the Scratch platform, the Makey-Makey electronic board, a soda bottle and water are used. The curricular content considers the following topics: • Fractions’ Definition • Fractions’ Graphical representation • Fractions’ Real representation Figure 1 is an example of fractions placing the water in the three liter bottle, the bottle will be painted on the screen, in the first mark representing 1/3, then by placing more water until the second mark. The bottle representing 2/3 will be displayed on the screen. Finally, when placing the next water measure, the entire bottle is painted. Thus, obtaining the graphic representation of what a fraction is and how we can find many of these situations in our daily life. Figure 2 is an example of the visual interface in which a welcome and introduction dialogue is presented between the two members of the game. Both indicate about the definition of fractions, their terms and graphic representations.
Fig. 1 Instructable 1. Understanding fractions and their real representation with the Makey-Makey electronic board, a soda bottle and water
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Fig. 2 Instructable 1: developed Interface programmed in Scratch platform
5.3 Instructable 2. Decimal Numbers and Their Usefulness in Daily Life Children have difficulty representing, operating and ordering rational numbers. This Instructable intends for the child to use decimal numbers so that they will be able to manage money, presenting to them day-to-day problems is useful in our context, such as when they go to the store and request a product. The curricular content considers the following topics: • Decimal numbers definition • Decimal numbers identification • Shopping Figure 3 is an example of the visual interface in which decimal numbers are explained, identifying the whole part and the decimal, presented in an everyday context for learning. The results obtained in the evaluation of the designed resources allowed it to see that children showed greater concentration, visual and auditory perception as well as motor skills when manipulating objects, attention and concentration when focusing on objects and not on technology. Finally, in the satisfaction evaluation, a great acceptance, both teachers’ and students’ is evidenced by integrating digital tools with recyclable materials that are available to everyone.
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Fig. 3 The instructable 2 interface related with coins use to teach decimal numbers
6 Conclusions Instructables development is one of the project-based learning strategies that strengthen critical thinking, problem solving, innovation and creativity. In the present research, Scratch has been used to create Instructables that develop STEAM skills. The difficulties that have arisen during the COVID-19 crisis without an access to laboratories, could help instill a spirit of innovation in teachers and give students more time and reasons to apply these tools, building their own laboratory at home and working as a team to test things. It can be seized as an opportunity to make deep changes in our approach to practical education, changes that will align our teaching laboratories with those in which we conduct our research [3]. In the preliminary investigation, it was observed that the diagnostic evaluation average was 6.06 points out of 10 for the eighth grade students at Chambo High School; score that shows the difficulty in solving logical reasoning exercises. This research proposal aroused great interest in teachers and students when conducting a satisfaction survey, in which a high degree of motivation and interaction with the resources developed was obtained. In the future, it is proposed to develop instructables in other areas of knowledge, which allow to strengthen STEAM skills in students, with experiences in a creative way that favor the development of logical thinking, and at the same time learn to use the technological tools available in their daily life.
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References 1. Santos, V., Villanueva, I., Rivera, E., Vega, E. Percepción docente sobre la educación a distancia en tiempos de COVID- 19. CienciAmérica, [S.l.], vol. 9, no. 3, pp. 126–141, dic. 2020. ISSN 1390–9592, (2020). https://doi.org/10.33210/ca.v9i3.352 2. Caruana, D.-J., Salzmann, C.G., Sella, A.: Practical science at home in a pandemic world. Nat. Chem. 12, 780–783 (2020). https://doi.org/10.1038/s41557-020-0543-z 3. Andrews, J.L., De Los Rios, J.P., Rayaluru, M., Lee, S., Mai, L., Schusser, A., Mak, C.: Experimenting with at-home general chemistry laboratories during the COVID-19 pandemic. J. Chem. Educ. 97(7), 1887–1894 (2020). https://doi.org/10.1021/acs.jchemed.0c00483 4. Varela-Aldás, J., Buele, J., Jadan-Guerrero, J., Andaluz, V.H. Teaching STEM competencies through an educational mobile robot. In: Zaphiris P., Ioannou A. (eds.), Learning and Collaboration Technologies. Human and Technology Ecosystems. Lecture Notes in Computer Science, vol. 12206. Springer, Cham (2020) https://doi.org/10.1007/978-3-030-50506-6_38 5. Kelley, E.: Reflections on three different high school chemistry lab formats during COVID19 remote learning. J. Chem. Educ. 97(9), 2606–2616 (2020). https://doi.org/10.1021/acs.jch emed.0c00814 6. Cóndor-Herrera, O., Jadán-Guerrero, J., Ramos-Galarza, C.: Virtual learning objects’ of math educative process. In: Karwowski, W., Ahram, T., Etinger, D., Tankovi´c, N., Taiar, R. (eds,). Human Systems Engineering and Design III. IHSED 2020. Advances in Intelligent Systems and Computing, vol. 1269. Springer, Cham (2021). https://doi.org/10.1007/978-3-030-582821_31 7. Aldarayseh, A.: The impact of COVID-19 pandemic on modes of teaching science in UAE schools. J. Educ. Pract. 11(20), 110 (2020). https://doi.org/10.7176/JEP/11-20-138. Pao-Nan, C.: Skill development and knowledge acquisition cultivated by maker education: evidence from Arduino-based educational robotics. EURASIA J. Math. Sci. Technol. Educ. 14(10), em1600 (2018). ISSN: 1305–8223. https://doi.org/10.29333/ejmste/93483 9. Andújar, J.M., Mateo, T.J.: Diseño de Laboratorios Virtuales y/o Remotos. Un Caso Práctico, Revista Iberoamericana de Automática e Informática Industrial (RIAI), ISSN: 1697–7912. Vol. 7, Núm. 1, Enero 2010, pp. 64–72, (2010). https://doi.org/10.4995/RIAI.2010.01.06 10. Ahmad, A., Malik, M.M.: Use of digital game based learning and gamification in secondary school science: the effect on student engagement, learning and gender difference. Educ. Inf. Technol. 22(6), 2767–2804 (2017) 11. Bakhanova, E., Garcia, J.A., Raffe, W.L., Voinov, A.: Targeting social learning and engagement: What serious games and gamification can offer to participatory modeling. Environ. Model. Softw. 134, 7–12 (2020)
Machine Learning Applied to Marketing
Technological Development in Preventing Cognitive Frailty, Promoting Active Aging, and the Economics of Aging Ana Nieto-Vieites, Pedro Gaspar, José Victor, Lucía Pérez-Blanco, Alba Felpete-López, and David Facal
Abstract Declining birth rates and increasing life expectancy are bringing with them the aging of the European population, which presents not only challenges but also a significant economic opportunity. This group of consumers fits into the so-called silver economy (SE), linked to aging as an unlocking of new market opportunities. Based on review publications, the aims of these article are to demonstrate the relationship of demographic aging with the emerging SE and relate it to old adult’s health, leisure opportunities, and gerotechnology, affirming its value in many sectors of economic activity. The proliferation of digital technologies poses new challenges to the cognitive abilities of older adults. Life expectancy also implies risks of cognitive frailty. The opportunity to use technology to measure and stimulate the cognitive capabilities seems an important target for research and development in the context of SE. In this line, this article contributes with a gerotechnological product, presenting a cognitive training video game called After the footprint of time, recently developed. More studies are recommended to highlight the growing interest between gerontechnology, marketing, and agebrand concept, in SE context.
A. Nieto-Vieites · L. Pérez-Blanco · A. Felpete-López · D. Facal Department of Developmental Psychology, University of Santiago de Compostela, 15782 Santiago de Compostela, Spain e-mail: [email protected] L. Pérez-Blanco e-mail: [email protected] A. Felpete-López e-mail: [email protected] D. Facal e-mail: [email protected] P. Gaspar UNICES, Universidade da Maia, Maia, Portugal e-mail: [email protected] J. Victor (B) N2i, Instituto Politécnico da Maia, Maia, Portugal e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 J. L. Reis et al. (eds.), Marketing and Smart Technologies, Smart Innovation, Systems and Technologies 280, https://doi.org/10.1007/978-981-16-9272-7_18
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Keywords Cognitive frailty · Gerontechnology · Economic opportunity · Gamification
1 Demographics and Active Aging Aging has been signaled as the most striking political challenge of the twenty-first century and could be converted into a crucial factor in the economic structure of societies, especially in Western ones [1]. Europe’s population is aging because of falling birth rates and longer life expectancies, which will bring several challenges, but also represent an important economic opportunity for Europe’s business with older adults constituting a large and growing segment in different economical areas [2]. In 2015, there were around 199 million people aged 50 and over (39% of the total population in the European Union) and the projections of the European Commission suggest that the number will rise to 222 million by 2025 and will represent 43% of its total population. Henkers [3] pointed out that in the European Union the proportion of the adults over 60 years old will reach 30% of the total population, while the old-age dependency ratio will increase from 4:1 to 2:1 in 2050. Aging and age-related challenges such as social protection and increased health needs are high on the EU policy agenda, and the implications of aging can be seen as a component of sustainable and inclusive growth [1]. For Tkalec [1], understanding aging as a source and/or generator of economic growth is the result of the change in the position and role of the old adults in the economy. The paradigm will then have changed from elderly care to active citizenship [4]. It is interesting to compare that in the four decades prior to the 1980s and most of the 1980s, employment policies aimed to get older people out of the labor market as quickly as possible, guaranteeing them income and security through the development of pensions systems. From the late 1980s, there has been an effort to reintegrate older people into socio-economic life [5]. From an economic point of view, aging may unlock new opportunities in an emerging market, with adults over 60 years old being a target with growing demand [1]. This group of consumers fits into the concept of the so-called silver economy (SE). For the World Health Organization (WHO), active aging is the process of optimizing opportunities for health, participation and security to improve the quality of life through lifespan, including factors such as culture, gender, health, social system, behavior, psychological factors, physical environment, social environment, and economic factors [6]. Although there is still a lack of a more universal definition for active aging, Tkalec [1] highlights that active aging and related themes have been present in the EU discourse since the 1990s, from the European Year of the Old People and Solidarity Between Generations in 1993. The definition proposed by the Organization for Economic Co-operation and Development (OECD) highlights the ability of old adults to maintain productive lives in society through lifespan [7].
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2 The Potential of Aging Economy Population aging will produce fundamental changes in future societies with consequences on population needs and consumption patterns [8]. SE is seen as an economic set of activities linked to the production of goods and services for the old population [9]. With its initial roots in Japan during the 1970s, the SE concept has reached greater consensus. Understanding the interaction between active aging and the demands and consumption in SE seems to be a development path in European countries. The European Commission defines SE as the economic opportunities related to aging and the specific needs of the population over 50, comprising a large part of the general consumer economy, but with considerable differences in priorities and consumption patterns. Thus, the SE encompasses a single cross section of economic activities related to the production, consumption, and trade of goods and services relevant to older adults, in both the public and private sectors, and including their direct and indirect effects on the global economy [2]. OECD understands SE as an environment in which those over 60 interact, help drive the market as consumers, and lead healthy, active, and productive lives [10]. Healthcare expenses, active social life, labor market needs and retirement before or at legal age represent a sufficient combination to exploit the potential of SE [1]. Zsarnoczky [11] also points to SE as an older adults group that is one of the most important in terms of purchasing power in the contemporary economic environment. This scenario is further reinforced in smaller economies [12]. The active aging framework, theoretically, could sustain the enormous importance of SE. However, the argument is still not empirically fully convincing because countries have not explored uniformly at the exploitation of its enormous potential. Prettner [13] presented a positive look at our aging population, which creates social and economic opportunities and challenges. Heinze [14] highlighted five aspects that support such a statement: (a) The old adults are private consumers with great relevance; (b) the old adults are a heterogeneous group and, therefore, have different consumption habits, generating economic activity and consequent growth in different sectors; (c) old adults require increasing involvement in the discussion about quality of life and have become more active and involved in socioeconomic activities; (d) old adults to preserve and enhance independent living; (e) the SE’s future relies on the desire not to institutionalize and the age in place. The European Commission [2] through extensive stakeholder consultation observed a spectrum of opportunities: connected healthcare, integrated care, robotics, senior tourism, age-friendly environmental solutions and smart home, applications for healthy active aging promotion, lifelong learning education, autonomous automobiles, and entrepreneurship for seniors [2].
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3 Active Aging and Old Entrepreneurship In terms of the impact on the employability universe, aging can develop job loss trends such as the reverse ability to generate more opportunities [12]. Although most of the authors remain on the side of the demand for services by the old adults, the potential is greater if we look at the old adults not only as targets for consumption opportunities, but as a creative source that can become a true generative and entrepreneurial force and undertaking, producing, and generating wealth by go beyond the usual volunteering and care tasks. Transforming age-related declines from an insoluble challenge into a socio-economic opportunity with the active participation of the old adults seems a constructive path for aging countries like those of the European Union. In more fragile economies, the sustainability of pension systems also seems to show signs of difficulty implying the permanence in the labor market for more years, requiring this scenario the maintenance of physical and cognitive health. Technologies may promote the role of older workers in tasks with less physical and more cognitive requirements [15]. Apart from the resources that older people can still contribute, the aging process has a potential in the creation of business and employment opportunities for the younger ones. SE is not only intended for the old adults, but also for the younger generations who can get involved in it, also preparing the younger generations for old age [16]. Volunteer activities enrich the lives of older adults, making them active and involved citizens and, consequently, contribute to their quality of life [17].
4 Limitations to Silver Economy and Inequality Pauhofova [8] studied consumption profiles in older populations in different EU countries and warned of the difference in opportunities between states, pointing out Germany, Austria, France, Nordic countries, Belgium, Netherlands, and Luxembourg as those with SE’s greatest potential for growth. In other countries, the lower income of the old adults will still be an obstacle to the further development of the SE. In several regions of the EU, the budget available for older adults is spent on basic needs such as food, housing, and transport [2]. The global pandemic will also reinforce the problems in public budgets, wage stagnation, high unemployment, and stagnation of old adults, highlighting the socioeconomic frailty of old adults in different European regions. Migration and the capacity of countries to receive and integrate migrants who will work as caregivers of older people are also pointed out as a relevant factor in SE developments [18]. Migrant caregivers combined with technology adapted to such physical and cognitive care will be more viable in some regions than in others [19]. Another barrier may be the lack of interest from business companies in the development of SE in some peripheral regions, such as these rural regions,
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in addition to the companies’ focus on producing goods and services mainly for wealthy old adults [18]. Ervik [15] had also advanced that one of the challenges for the aging of populations will be the phenomenon of technology and robotics, warning of unequal access for countries, regions and local communities, individuals, and groups.
5 Prevention of Cognitive Frailty in the Context of Active Aging Regarding health and social care, this article also aims to contribute as an alert to the importance of preserving the capacities and independency of old adults. The early diagnosis of cognitive frailty (CF) would play an important role in the identification of health and social markers in the SE context, while prevention in this field will make it possible to maximize the quality of life and the potential for active aging of the elderly population. The main objective of the research in gerontology and psychogerontology is not just to increase life expectation, but also to narrow the gap between life expectation and life satisfaction, including physical, cognitive and psychosocial well-being [20]. The average life expectancy is increasing around the world, but it also involves higher risks of frailty [21]. Accordingly, physical frailty and CF are two important targets for secondary prevention [20]. Physical and cognitive frailty shares biological and psychosocial mechanism that can lead to adverse health outcomes and dependency [22, 23]. Accordingly, frailty should not only be studied as the physical and cognitive domains endorsed separately, but integrating them in the study of lifestyles and developmental trajectories through the aging process [22, 24, 25]. CF was used for the first time in 2006 to indicate a global vulnerable state in mild cognitive impairment (MCI). From a more consensual point of view, in 2013 an international group of researchers from the International Academy of Nutrition and Development (IANA) and the International Association of Gerontology and Geriatrics (IAGG), convened in Toulouse, France establishes CF as the situation of an old person with MCI (C.D.R. = 0.5) and physical frailty (frailty phenotype criteria > 2), in the absence of dementia [26]. A biopsychosocial model has emerged as a more suitable to provide a better assessment of fragility, integrating the physical, cognitive, nutritional, psychological, social, and economic domains [27]. The prevalence of CF in Portugal and Spain has been recently informed [28, 29]. In a sample of middle-aged and old adults from Galicia, NW of Spain and from Valencia, SE of Spain, [28] established a prevalence of 21.8% (95% CI 17.4–26.9) in when both frail and pre-frail conditions were included, and a prevalence of 3.2% (95% CI 1.7– 5.9) if only frail individuals were considered. Socio-demographic, socio-educative and affective factors significantly predicted CF, including age, educational level, and psychological well-being. In a Portuguese sample, Gaspar [28] found a prevalence of 33.4% (95% CI 27.2–39.2) when both frail and pre-frail conditions were
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included, and a prevalence of 18.5% (95% CI 14.0–23.6) if only frail individuals were considered. These investigations reveal a CF prevalence that justifies preventive interventions promoting healthy lifestyles to interrupt or diminish age-related physical and cognitive impairments. The fact that CF combines both cognitive impairment and physical frailty has brought attention to age-related mobility issues such as falls and slow gait. CF is linked with lower level of performance in walking, balance, chair stands and with a worse objective mobility. In this regard, it is relevant to adequately assess motor performance related to frailty. Common approaches for assessing frailty may not be suitable for older adults who are living in remote areas because they need considerable resources and most of them are subjective. For this reason, wearable sensors have been proposed as a possible alternative to measure mobility in daily life. Razjouyan [30] demonstrated the feasibility and effectiveness of using portable remote device monitoring activity to identify people with CF. Other studies in CF have tried to develop effective and beneficial interventions to reduce cognitive frailty and/or prevent negative health outcomes, including physical activity [31] and dual-task interventions [32].
6 Technology, Gerontechnology, and Health New technologies are expected to play an important role in meeting the challenges of aging populations, supporting the development of gerontechnology as a key component of SE [16]. The approach to analyzing population aging and its impacts on the economy has evolved, and there is a growing interest in the development and use of gerontechnology-related products and services [18, 33]. The integration of technological development and social innovation is expected to attract a greater recognition and attention to the SE, using communication, automation, and robotics technologies [34]. Creative technology research associated with products and services dedicated to healthy and frail older people, to health and well-being, housing and daily living, mobility and transport, communication, work and leisure, are objectives to be met by gerontechnology [35]. The result would be physically and cognitively simpler technological developments, more user- and age-friendly, but which are attractive enough not to promote stigma among users, through a universal and user-centered designs. Enste [36] and Moody [37] have highlighted different sectors including healthcare, housing adaptations, assisted living services, robotics, mobility, leisure, fitness, and well-being, or insurance and financial services. Among those already described the technological research industry in health and healthcare appears as an important factor in the expansion of SE. Active aging draws attention to the need for policies to reduce health and social costs associated with non-communicable diseases [6]. Many of these diseases can be prevented or by promoting healthy lifestyles and preventive health, requiring the use of applied technologies in products and services suitable for the old adults and aging societies [18].
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7 Cognitive Frailty and Gerontechnology National healthcare services in Europe are expected to invest in connected healthcare and that the implementation of these comprehensive digital systems will also drive the market for new healthcare-related applications [2]. It seems that these on-going technological processes will demand more cognitive abilities and that they will not exclude older people, whether they are still involved in work or already retired. Narrowing the path between preventive health and the creation of technologybased products and services with the old adults as a target audience, a cognitive training video game specifically designed for older people has been recently developed with the aim of enhancing the adherence and the playful aspects of cognitive training [38] that could constitute a huge product diffusion and acceptance. The proliferation of technology poses new challenges to the cognitive abilities of old adults. The opportunity to use technology to measure and stimulated these capabilities seems an important objective for research and development in the context of SE. This contribution has the ambition to enable the reduction of the negative impacts of population aging based on scientific achievements and technical progress that has given rise to the concept of gerontology, considered a crucial factor of the SE, by adapting technology to aging to improve the daily activities of older adults, seeking sustainable development, and combining research, design, production, and marketing gamification [39]. The video game developed receives the name of “On the trail of time,” it is an immersive game in which the activities are integrated within a congruent narrative line. Its design was carried out under the assumptions of entertaining, enjoyment, and cognitive training. Specifically, the video game was designed to train different types of memory (including episodic, working, prospective, procedural, and binding memory) and executive functions (including planning, monitoring, attentional control, and cognitive flexibility). “On the trail of time” follows an action-adventure format, with the absence of violence, three levels of difficulty, and first-person player participation. The game has been developed for tablets using an Android environment as a “side scrolling” game and a “point and click” style, where the avatar moves to the marked point. The environments and characters present a quality and colorful design, using 3D images. Depending on the level of difficulty in which the user is playing at each moment of the game, the tasks increase or decrease the distractors or the elements to be remembered. The video game provides clues when the older player is having difficulty completing a task. Figure 1 illustrates the third scenario of the video game. Figure 2 shows one of the thirty activities that make up the video game. The video game was implemented in a small sample of participants with subjective memory or MCI complaints [38]. A user interaction study was carried out that showed a high acceptance of the video game by older adults with a positive assessment of fun, usability, and accessibility. Analyzing the effectiveness of cognitive training through video games, the preliminary results indicate improvement trends in postintervention measures. In the future, it will be relevant to study the effect of the videogame in specific populations at risk of cognitive impairment or dependence,
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Fig. 1 Illustration of the third scenario of the video game
Fig. 2 Illustration of an activity that is part of the game
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such as the CF situation described above. In the context of SE, the contribution of this video game as a tool aimed at improving the cognitive capacity of old adults could represent a key practice in innovation and gerontechnology, highlighting the relevance of applied research in the aging process and integrating marketing and gamification instruments in this applied research.
8 Conclusions The aging of the population implies new challenges but also new opportunities for economic development. Among them, the need to develop products and services to prevent cognitive decline and dependency, and to address emerging frail situations such as CF stands out. This paper presents a technological product developed to train cognitive functions and to prevent pathological cognitive aging. These technological developments must consider the aging process and be user-friendly. More research is required to validate the effects of these types of products on the detection and prevention of MCI and CF.
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Mobile Marketing and Wearable Technologies
Does E-Servicescape and Perceived Value Matter for Generation Z in Online Apps? Anisa Larasati , Darjat Sudrajat, Aditya Patriazka, Leo Andri Yulius Caesar, and Agung Sudjatmoko
Abstract Modern technology nowadays can change motorcycle taxi service from a traditional form of transportation to a very modern and digitalized business with sophisticated app. It also shifts the importance of physical environment into online environment. Thus, it is important for the company to put their attention to eservicescape, which include how the website makes the consumer feel. With Generation Z as respondents, this research proves that e-servicescape increases customer satisfaction and it is mediated by perceived value. Lastly, implication for companies is discussed. Keywords E-Servicescape · Perceived value · Customer satisfaction · Online app · Motorcycle taxi service
1 Introduction Imagine when visiting an online store or app, what are the things that makes you pursue further by purchasing their products or services, and later be satisfy with it? This research proposes that e-servicescape is an important aspect that influence customers’ satisfaction. In this digital era, there are more businesses turned online. This will then make consumers order products and services through the company’s website or app. Consumers may even visit the company’s online store before visiting the physical store, which means that this online store act as the first place for consumers to interact with the company. It might as well be the image of the company. Thus, the company needs to make a good impression through their online store. One way to do it is through e-servicescape. E-servicescape is an online environment offered by service providers which include aesthetic appeal, online layout and functionality, and financial security [1]. The previous research showed that a positive e-servicescape increases trust [1–4] A. Larasati (B) · D. Sudrajat · A. Patriazka · L. A. Y. Caesar · A. Sudjatmoko Bina Nusantara University, Jakarta, Indonesia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 J. L. Reis et al. (eds.), Marketing and Smart Technologies, Smart Innovation, Systems and Technologies 280, https://doi.org/10.1007/978-981-16-9272-7_19
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and commitment [4], which then increases positive attitude towards website [2], positive attitude towards brand [2], e-WOM intention [2] and purchase intention [1, 2, 5]. As e-servicescape is a part of service delivery, consumers will then evaluate their satisfaction with the service. Therefore, this research aims to extend the previous research by examining the effect of e-servicescape to customers’ satisfaction through perceived value. There is abundant research on e-servicescape in variety of service providers, such as lodging [4], various online shopping sites [1], hospital [6], clothing [2], banking [7], marketplace [8], food delivery [3], education [9], tourism [10], hotel [11] and agriculture [12]. The more recent service provider that turned online is motorcycle taxi service. As Java Island are the densest cities in Indonesia [13] with Jakarta as top 10 worst traffics in the world [14], motorcycle taxi service becomes very popular to help people to move faster between places. Traditionally, there is undesignated place for consumers to get this motorcycle taxi service. So, in unfamiliar or remote places, consumers may not know where to get motorcycle taxi service. Ever since this service is going online through mobile app, it becomes popular and growing significantly. Thus, it is interesting to examine their service, especially their e-servicescape, which is something new that has never existed before. Currently, there are two providers for this online motorcycle taxi service in Indonesia, namely GOJEK and Grab. Both service providers grow their businesses into other services as well. This research focuses, however, on motorcycle taxi service as transportation mode and this research will take the general approach by not defining the service providers. Consumers may need to learn and adjust their behaviour to adapt with this online motorcycle taxi service. Among all generations, Generation Z is the most agile to this new technology, because they are growing with digital era. Thus, Generation Z will be the focus of this research, as they are more familiar with the online app. In addition, as Generation Z is those who were born between 1997 and 2002 [15], this Generation become the largest population in Indonesia with 27.9% [16]. So, it will be more relevant to examine this group. Taken all together, this research tries to answer the following question, whether e-servicescape in an online motorcycle taxi service could influence customers’ satisfaction of Generation Z, either directly or indirectly through perceived value. Answering the research question, this research contributes findings in eservicescape and studies of consumer behaviour, especially about Generation Z. They will be the largest consumer group in the future, and this research adds more literature and evidences for academic world. Furthermore, this research also presents contribution for business world by providing insights related to Generation Z that will be the main consumer group in the future.
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2 Literature Review 2.1 E-Servicescape Booms and Bitner define servicescape as the environment where service is produced, there is interaction between seller and customer while facilitating performance and service communication [17]. Servicescape refers to the nonhuman factor where service is performed. With the availability of internet, services are also performed online. This situation gave birth to e-servicescape where customers can enjoy servicescape through digital media. Harris and Goode defined e-servicescape as online environment where service is performed [1]. Furthermore, there are three indicators to e-servicescape which are aesthetic appeal, layout and functionality, and financial security [1, 2, 5]. Aesthetic appeal refers to visual attractiveness of the service media, layout and functionality refers to structure of the servicescape whether it is easy to navigate or not, and financial security refers to customers’ perception on security of the system. This research used indicators from previous researches, these indicators are aesthetic appeal, layout and functionality, and financial security. Many of the previous research on e-servicescape used S–O–R framework, but with different variables. Most of them use trust [1–3, 5] as organism and purchase intention [1, 2, 5–7] or repurchase intention [3] as response. Besides, attitude towards brand [2], attitude towards brand [2], commitment [4], perceived quality [6] and flow experience [18] could act as organism as well. For response, stickiness [5], reward behaviour [5] and e-WOM intention [2, 7] could be another outcome. In addition, some research adds moderator variable such as online purchasing experience [2], gender [2, 5], parasocial interaction experience [4] and regulatory focus [18]. This research, however, will use perceived value as organism and customer satisfaction as response.
2.2 Perceived Value Tsiotsou defined perceived value as customer’s perception on quality of product or service [19]. Quality of product or service plays important role in how customers perceive the value that they receive. Another view by Kotler and Armstrong defined perceived value as the difference between customer’s received value and customer’s cost [20]. This means that customers perceived value very much depend on how much customers’ perception on what they receive versus what they sacrificed to achieve it. Zehir and Narcikara also defined customer’s value perception as what they receive versus what they give [21]. These findings provide clear definition on perceived value as customers’ judgement or perception on the quality of what they receive compared to what they sacrificed to get the good or service. Akdeniz AR found several strong relationships between perceived value and purchase intention [22]. This research used indicators inspired by previous researches; these indicators
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are the consistency of service quality, whether the quality meet their expectation, whether the cost is equal to the benefit that they get, whether the cost is equal to the quality that they get, whether the cost is equal to the attractiveness that they get, their satisfaction towards the service and whether the service is suitable with their needs.
2.3 Customer Satisfaction Kotler, et al. defined customer satisfaction as feeling that surfaces from evaluation process when customer compares what is received versus what is expected [23]. Before consumption, customer already has expectation on the good or service, and this expectation can be formed by several factors. After consumption, customer will evaluate what was received and whether it met expectation or not, or even exceed their expectation. When what was received equal or exceed expectation, customer is satisfied. Ravald and Grönroos stated the importance of understanding customers’ needs and expectations in different stages of relationship [24]. Customers’ relationship with service provider has several stages, and in each stages, the needs and expectations vary from one another. Akhter uses six attributes to measure customer satisfaction on service that covers core service provider, service offering, service location, service information and service facilitation [25]. Heriyana et al. also identified several indicators that can be used in measuring satisfaction on service while showing differences between indicators used in previous researches [26]. There are various indicators used in previous researches, especially when measuring customer satisfaction on service. This research adapted several indicators from previous researches and modified them to meet research objectives. Indicators used in this research are service satisfaction, payment transaction satisfaction, facility service satisfaction, overall service satisfaction and their satisfaction from time to time.
2.4 Research Model Teng, Ni and Chen found that aesthetic appeal in e-servicescape is crucial factor for online customers [27]. Another research by Hakim and Deswindi found that e-servicescape can affect customers’ perceived value [6]. Customers perception on the service that they received can be affected by how good e-servicescape is, better e-servicescape will increase customers’ perceived value. Tankovic and Benazic also found that e-servicescape has positive effect on perceived value [28]. These findings from previous researches showed clear relationship between e-servicescape and perceived value. Ryu and Han found that there is relationship between customer perceived value and customer satisfaction [29]. When customer perceived that what they receive is equal or better than their cost, customer is satisfied. Javed and Cheema found that there is strong and positive relationship between perceived value and customer
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Fig. 1 Research model
satisfaction [30]. These researches indicated relationship between perceived value and customer satisfaction. Kechagia found that there is significant relationship between e-servicescape and customer satisfaction [31]. Another research by Kageyama also found that factors in e-servicescape positively influence customer satisfaction [32]. Hanafi, Widyawati and Widowati also found significant relationship between online servicescape or e-servicescape and customer satisfaction [33]. These researches showed strong relationship between e-servicescape and customer relationship. Two hypotheses were tested in this research: Hypothesis 1: There is a positive relationship between e-servicescape and customer satisfaction Hypothesis 2: There is a positive relationship between e-servicescape and customer satisfaction mediated by perceived value The research model for this research is shown in Fig. 1. Hypothesis 1 is shown in black line to show a direct effect from e-servicescape and customer satisfaction. Hypothesis 2 is shown in blue line to show the mediation effect of perceived value.
3 Method One hundred twenty-five Generation Z respondents (45.6% woman; mean age = 21.01) were participated in this study. They were given an online questionnaire that consist of 15-item questions to measure the three variables included in this research. Specifically, there were 3-item questions for e-servicescape (the attractiveness of online app; the tidiness and orderliness of menu and features of online app; and the safety of payment in online app) [1], 7-item questions for perceived value (the consistency of service quality; whether the quality meet their expectation; whether the cost is equal to the benefit that they get; whether the cost is equal to the quality that they get; whether the cost is equal to the attractiveness that they get; their satisfaction towards the service; and whether the service is suitable with their needs) [22] and 5-item questions for customer satisfaction (service satisfaction; payment transaction satisfaction; facility service satisfaction; overall service satisfaction; and their
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satisfaction from time to time) [25]. All items were using 5-point Likert scale (1 = strongly disagree, 5 = strongly agree). The questionnaire is in Indonesian language using translation–back-translation method.
4 Results 4.1 Data Quality Testing For validity testing, the results showed that R value for all items (>0.6) were higher than R table (0.15). This proves that all items used in this study were valid. Reliability test showed that the Cronbach alpha for all variable was >0.7, which proves that all items were reliable.
4.2 Hypothesis Testing To test the hypotheses, regression analysis was run. The results showed a significant positive effect of e-servicescape to customer satisfaction (β = 1.717, p = 0.000), with financial security (β = 0.326, p = 0.000) and aesthetic (β = 0.207, p < 0.008) as the two strongest indicators. Thus, H1 is supported. For mediation analysis, Baron and Kenny method was used [34]. The first regression, as H1, is significant (β = 1.717, p = 0.000). The second regression showed that there was a significant and positive effect of e-servicescape to perceived value (β = 1.779, p = 0.000). The third regression showed that there was a significant and positive effect of perceived value to customer satisfaction (β = 1.123, p = 0.000). In the last regression, when independent and mediator variable was run simultaneously to predict the dependent variable, the results showed that both predictors were significant with positive effect (β e-servicescape = 0.257, pe-servicescape = 0.000; β perceived value = 0.600, pperceived value = 0.000). From the results, it could be seen that the effect of e-servicescape is weaker when perceived value is included in the model (0.257) compared to when e-servicescape predicting customer satisfaction alone (1.717). In addition, a 5,000-resample bootstrap [35, model 4] confirmed that the indirect effect of perceived value was significant (95% CI = 0.1975 to 0.4667). Sobel test also showed that the mediating effect of perceived value was significant (z = 5.88, p = 0.000). The results showed a mediation effect of perceived value, which supports H2.
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5 General Discussion This research successfully proved that e-servicescape has significant and positive effect on customer satisfaction, either directly or indirectly through perceived value. This result shows importance of e-servicescape in digital service industry like online motorcycle taxi service. Although customers do not experience servicescape as in real-life experience, e-servicescape provides equivalent substitute, and more importantly, it affects customer satisfaction. From statistical analysis, relationship between e-servicescape and customer satisfaction was proved to be significant with aesthetic appeal and financial security as most significant indicators. Aesthetic appeal provides equivalent experience for customers as in physical servicescape. Customers can enjoy the colours, pictures, font format and design of the digital application as substitute to physical servicescape. Digital experience provided by aesthetic appeal of e-servicescape also helps customer in experiencing how a service is performed. Financial security is also a significant factor which shows customers’ need for security in their transactions. When customer performed digital transaction, it is expected that their payment and account is secure. Perceived value was proved as mediating variable between e-servicescape and customer satisfaction. With partial mediation effect, perceived value plays important role in increasing customer satisfaction. E-servicescape is how customer experiences service through digital media as a substitute of physical servicescape. Customers perceive the value they received through experiencing e-servicescape and it will affect their satisfaction on service. Results of this research can provide addition to current research regarding eservicescape, perceived value and customer satisfaction. This research proved that eservicescape has a direct significant relationship with customer satisfaction, empowering results of previous researches. Furthermore, this research also provides additional finding in identifying perceived value as mediating variable between eservicescape and customer satisfaction. This finding can be explored further in future research by performing research on different population, or exploring deeper into perceived value’s relationship with e-servicescape or customer satisfaction. Future research could examine sentiment analysis from online reviews [36]. It could give a better understanding on customers’ perceived value and satisfaction. Digital application provider companies should understand that e-servicescape plays important role in ensuring their customers’ satisfaction. This research highlighted two significant indicators in this relationship which are aesthetic appeal and financial security. Aesthetic appeal represent how these digital application companies want to be seen and perceived by their customers. Most customers do not experience physical servicescape when using digital application such as online motorcycle taxi application, so it is important for the company to provide pleasing aesthetic appeal as a substitute of physical servicescape. Financial security is of course important for customers. Online motorcycle taxi application provider must always prevent fraud
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or security breach to maintain their customers’ trust and satisfaction. In digital era, security is a concern for all customers. Mediating role of perceived value must also be considered by digital application provider companies because it plays an important role between e-servicescape and customer satisfaction. By understanding that e-servicescape is important when customers’ perceive the value that they receive, companies should realize that customers are also evaluating value based on e-servicescape that they experienced. Furthermore, this perceived value also affects customer satisfaction. So, companies must understand the big picture of how their e-servicescape designs affect customers’ perception on the value that customers’ received and it leads to customer satisfaction. To ensure customer satisfaction, companies can emphasize importance of e-servicescape and customers’ perceived value. By focusing on Generation Z, this research also provides specific contribution in studies about generation. This research proves that e-servicescape is important for Generation Z and can substitute physical servicescape for digital service. This finding provides another contribution for studies about service industry and consumer behaviour, providing specific insights about Generation Z. Companies can gain benefits from this research by understanding importance of e-servicescape for Generation Z. In the future, Generation Z will be their dominant customers and companies can understand more about them through findings of this research. Companies are suggested to maintain and improve the appeal of their eservicescape.
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Omnichannel and Marketing Communication
How Are the Vision, Mission, and Values Disclosed on the Websites of Large Companies? João M. S. Carvalho
Abstract It is important that companies disclose their vision, mission, and values in their websites, in order to seek to have a positive impact on the behaviour and attitudes of stakeholders. We analysed a sample of 120 websites of the largest companies in the 40 most developed countries in the world. We conclude that most companies, explicitly or implicitly, continue to use these management and strategic planning tools. However, many of them will not be making the best use of such instruments. Theoretical and practical implications are drawn from this study. Keywords Vision · Mission · Values · Digital disclosure · Websites
1 Introduction All authors who have investigated and developed theories about strategic planning are unanimous in referring to the importance of vision, mission, and organizational values, as a fundamental basis for the strategic planning of organizations [e.g. 1–3]. Since the 1970s of the last century, organizations have developed their strategic plans on the basis of their owners or managers’ vision. This vision led to the establishment of a mission for the organization, and the choice of values that best represent the organizational culture that is intended to be developed. Today, with the new digital forms of communication with the public and, in particular, with the customers, probably all organizations have a website where the main organizational facts and the ways to maintain a close relationship with the market are present. Consequently, it is expected that the organizations’ websites disclose: what is their vision, their mission, and their values. We decided to verify whether this is true or not. For that purpose, we choose the three largest organizations in the 40 more developed countries in the world. Our starting question was as follows: do the websites of large companies present the vision, mission, and organizational values? J. M. S. Carvalho (B) REMIT/Universidade Portucalense, R. Antonio Bernardino de Almeida, 541, 4200-072 Porto, Portugal © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 J. L. Reis et al. (eds.), Marketing and Smart Technologies, Smart Innovation, Systems and Technologies 280, https://doi.org/10.1007/978-981-16-9272-7_20
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The objectives of the study were as follows: (1) to confirm whether the websites of the chosen organizations reveal those three management tools and (2) to evaluate the quality and probable effectiveness of the form they express and present those management tools. These objectives were developed into six research questions: 1. 2. 3. 4. 5. 6.
Do the chosen organizations present in their websites the mention to their mission, vision, and values? What level of content is disclosed by the vision, mission, and values statements? What type of disclosure has the vision, mission, and values statements? What is the extent of the vision, mission, and values statements? How many values are presented by the companies? What are the most frequent values presented by the companies?
Next, we will present the theoretical framework of these strategic management tools, as well as the study methodology, results, discussion, and conclusions, which allow to make a relevant contribution to the strategic reflection around these concepts and their usefulness in organizational strategic planning.
2 Literature Review The vision, mission, and values statements are truly relevant in the context of strategic planning [1, 4]. The vision statement is created by the founder(s), the owner(s), or the top manager(s) and intends to show the desired market position for the organization in the medium and/or long run. It seeks to answer the following questions [1]: (1) Who we are? What are we? How are we? (2) Who do we want to be? What do we want to be? How do we want to be? In this context, the organizations can present their historical evolution (first line of questions) and the visionary ideas of the leaders for the future (second line of questions). This approach is defended by several authors, namely Chun and Davies; Hirota, Kubo, Miyajima, Paul, and Won; or Kantabutra and Avery [5–7], among others. However, there are authors [e.g. 8] who argued that the vision must be defined in a simple and objective way, in order to be understood and shared by the internal stakeholders. We understand that this approach may also be useful, but we defend that these characteristics and purposes should be represented by the mission statement. The mission is a statement of the most fundamental reason for the organization to exist and justify everyone’s work in its creation and development. It must be a brief, simple, and distinctive proposition, containing the primary objective of the organization’s activities and generating personal enthusiasm, effort, and dedication of everyone in the organization [1, 9]. We find an example of this in the awareness of some managers that a sentence with about seven words is good enough to summarize the mission of an organization, as well as its vision, allowing to express the essential ideas of what is wanted and being easier to memorize [10]. A long mission statement is unlikely to be read and assimilated [11]. We agree with the authors who defend
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that the main role of a mission statement is to motivate the internal stakeholders, giving them a sense of the ultimate purpose of their activity [e.g. 1, 12]. As such, it is important that the mission statement is short enough to be remembered by everyone, thus serving a very relevant purpose for the success of the organization. Indeed, for external stakeholders, there will be no concern to memorize the mission of the organizations they are interested in. A better explanation of what the organization has done, does, and intends to do may be expressed in more detail in the story and vision statements. Nevertheless, the mission also has a relevant role to the external stakeholders as it should give a positive image of the organization [13]. However, there are other authors [e.g. 14, 15] who prefer to prescribe several components for a mission statement, including the product or service, goals for survival, growth, and profitability, company philosophy, public image, or responsibility to other stakeholders. We prefer the approach made by Stone [16], who presented the characteristics of a useful mission statement, of which we highlight the relevance, the ease of understanding, being unique, and motivating the employees. The organization’s values, along with its mission, define its basic ideology [17]. The organizational values are an essential element of organizational culture and leadership, being the pillars of an organization’s purpose, objectives, and decisions [18]. They have to do with the beliefs [19], attitudes, and behaviours that the founders/owners/managers consider to be the most important to succeed in the mission and achieve what is presented in their vision [1]. Thus, the organization must promote these behaviours among internal and external stakeholders, in order to reinforce its identity (how the organization sees itself), its image (how stakeholders see the organization), and its reputation (credibility, fame, stakeholders’ evaluation), which contributes to the achievement of organizational goals and objectives. More, a positive organizational reputation is a strong market competitive advantage [20, 21] and a reliable support for customer loyalty [22]. Despite the importance of these strategic management tools, many managers do not give them due attention, as has been seen in some studies [e.g. 23]. Spear referred that there is a potential for a greater use of these management tools because their statements are crucial for organization identity management [5, 24] and communication [25, 26]. Effective communication of vision, mission, and values is essential to employees’ motivation and interaction with external stakeholders [6, 7, 22, 27]. The importance of vision, mission, and values disclosure may be explained by signaling theory [28], as well as by impression management theory [29]. The organizations want to signal their value to stakeholders in order to attract more sales, more investment, and a more favourable reputation [11, 30]. Thus, organizational managers and/or owners have the ability to shape their communication in ways that influence the response of other stakeholders [31].
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3 Methods We choose a website content analysis to answer the five research questions. This is a common method that has been used by many other authors [e.g. 22–24]. Today, corporate communication over the internet is critical to any kind of organization [23, 32]. As such, we looked for the explicit mention of companies’ mission, vision, and values in the websites. In several cases, we noticed that there is an implicit mention to these concepts in other presentation texts of the organizations, i.e. without individualizing them in the websites’ menus. We also performed a content analysis of vision, mission, and values statements, including their extent and the number of values that are presented by the companies. The sample of 120 organizations was chosen in the 40 most developed countries in the world [33], seeking to study the websites of the three largest companies in each one. It is well known that large companies do not have the resource limitations of smaller companies, making it easier for the former to develop a strategic planning process that normally begins with a clear definition of the vision, mission, and organizational values [1]. The distribution of sample companies by continent is as follows: 87 (72.5%) in Europe; 21 (17.5%) in Asia; and 6 (5%) in both America and Oceania. Their activities by sector and in decreasing order are as follows: banking, finance, and insurance (20%); energy (19.2%); information and communication technologies (9.2%); retailing (7.5%); manufacturers (7.5%); food industry (6.7%); mix of activities (5%); automobile manufacturers (4.2%); construction (3.3%); tourism and transportation (3.3%); Chemicals (1.7%); Logistics (1.7%); Packaging (1.7%); Pharmaceuticals (1.7%); automobile distributor (0.8%); electronic devices (0.8%); health technology (0.8%); human resources consultancy (0.8%); media (0.8%); mining (0.8%); navigation (0.8%); recycling (0.8%); and security (0.8%).
4 Results and Discussion We present the results and their discussion following the research questions. Table 1 shows how many companies have their vision, mission, and values statements presented in their websites. Table 1 Presence of vision, mission, and values statements
Disclosure mode
Vision
Mission
Values
Frequency (%) Explicit
48 (40.0%)
63 (52.5%)
Implicit
38 (31.7%)
32 (26.7%)
47 (39.2%) 54 (45.0%)
Without disclosure
34 (28.3%)
25 (20.8%)
19 (15.8%)
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Most companies have explicit or implicit statements of vision (71.7%), mission (79.2%), and values (84.2%). However, only 20 (16.7%) companies present the three management tools in the same page. This low result was also found in the study of Spear [22]. These figures are not directly comparable with other studies [4, 5, 23, 24] because the population of companies represented by the samples are clearly different. However, there seems to be a high number of large companies that do not use these management tools, as many management researchers defend [e.g. 6, 7, 22]. The analysis of the content of the statements allowed us to differentiate those that have only one main purpose from those that have several purposes (Table 2). There are also some companies (19.2%) that include the vision in the mission and vice versa. We argue that the mission must be concise and effective [e.g. 1, 12, 16], so the existence of more than one great purpose will certainly undermine the effectiveness of the mission’s motivating effect. Many companies (45%) present implicit values in their statements about the story of the company, reports, or guiding principles (Table 3). Only a minority (39.2%) use this management tool in an explicit way. Now, organizational values are fundamental to guide the behaviours that underlie them, allowing a sense of identity specific to each organization [1, 17]. For example, presenting the values without any explanation seems like an exercise with no real basis in the company’s identity. Assessing the type of vision disclosure (Table 4), we can verify that 27.5% of the companies present their vision in a clear statement with that purpose. However, besides 28.3% that do not present their vision in any way, there are 44.2% of the companies that present it in other type of documents, such as the story of the company, implicit in their mission, translated to commitments, or included in the company’s Table 2 Content of vision and mission statements
Table 3 Content of values statements
Disclosure content
Vision
Mission
Frequency (%) Main purpose
42 (35.0%)
61 (50.8%)
Several purposes
24 (20.0%)
31 (25.8%)
Mission included in vision
–
3 (2.5%)
Vision included in mission
20 (16.7%)
–
Without disclosure
34 (28.3%)
25 (20.8%)
Disclosure content
Values Frequency (%)
Explained values
32 (26.7%)
Present but unexplained values
15 (12.5%)
Implicit values
54 (45.0%)
Without disclosure
19 (15.8%)
244 Table 4 Type of disclosure of the vision
Table 5 Type of disclosure of the mission
J. M. S. Carvalho Type of disclosure
Vision
Vision alone
33 (27.5%)
Vision linked to the company’s story
7 (5.8%)
Frequency (%)
Vision implicit in the mission
20 (16.7%)
Vision translated to commitments
14 (11.7%)
Vision included in the strategy
12 (10.0%)
Without disclosure
34 (28.3%)
Type of disclosure
Vision
Mission alone
30 (25.0%)
Mission clearly linked to vision and values
16 (13.3%)
Frequency (%)
Mission closed to vision
17 (14.2%)
Without explicitly disclosure
57 (47.5%)
strategy. The company’s vision is important for internal and external stakeholders to know its path, from what led to its creation to what it is intended to be in the future, guiding efforts so that such goals could be achieved [5–7]. It seems that 71.7% of these companies agree with us. Regarding the mission (Table 5), one can see that only 13.3 of the companies present their mission statements in a way that shows a great consonance with the vision and values; 14.2% with a content closely linked to the vision; and 25% as a singular statement. The number of companies (47.5%) that do not explicitly reveal their mission is impressive. This has also happened in other studies [e.g. 23, 24], which may indicate that the mission is not effectively used by many companies as an image management tool for external stakeholders. In relation to values (Table 6), 34.2% of the companies present their values in a way that include the proposed behaviours to accomplish those values. However, 42.5% of the companies present their values in an implicit way, whether in the corporate principles, in the vision, in the mission, or in the company’s strategy. We argue that this approach will compromise the effectiveness of this management tool to identify the company with some values, as it is diluted among other communication tools and losing prominence. We analysed all the explicit texts and many of the implicit ones, when it was possible to determine a specific text, in order to count the number of words used to express the companies’ vision, mission, and values statements (Table 7). Regarding the values, we present the average number of words used to explain each one. We can notice that the standard deviations are very high, showing a great dispersion of the data. The same was found in the work of Campbell et al. [11].
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Table 6 Type of disclosure of the values Type of disclosure
Vision Frequency (%)
Values alone
7 (5.8%)
Values linked to behaviours
41 (34.2%)
Values not clearly linked to behaviours
2 (1.7%)
Values implicit in the corporate principles
13 (10.8%)
Values implicit in the vision
9 (7.5%)
Values implicit in the mission
3 (2.5%)
Values implicit in the strategy
26 (21.7%)
Without disclosure
19 (15.8%)
Table 7 Number of words Number of words
n
Vision
59
Minimum
Mission
83
4
63
19.16
13.68
Values
40
11
150
41.33
30.07
5
Maximum
Mean
Standard deviation
130
21.44
18.49
Table 8 Distribution of the number of words Number of words (intervals)
Vision
Mission
Frequency (%) 4–7
5 (4.2%)
11 (9.2%)
8–12
12 (10.0%)
23 (19.1%)
13–16
12 (10.0%)
11 (9.2%)
More than 16
91 (75.8%)
75 (62.5%)
In fact, recoding the vision and mission variables at intervals (Table 8), we can see that most companies use more than 16 words, both for the vision (75.8%) and for the mission (62.5%), making it difficult to possible memorisation by workers. The problem, from our point of view, is more related to the mission, as we argue that this statement serves, essentially, to motivate workers; therefore, it must be short and effective. The number of values identified in the websites of 47 companies is, on average, 4.81 (SD = 1.88), with a minimum value of 2 and a maximum value of 9. The distribution shows that 19.1% of the companies use 3 values; 21.3% use 4 values; and 21.3% use 5 values, as the most frequents. These results are in accordance with what is advised in the literature [e.g. 1], considering that a high number of values leads to the dispersion of the attention that must be given to the behaviours that underlie each one of them.
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We present the list of values pointed out by companies in decreasing order of their frequency: integrity (7.14%); responsibility (6.46%); value creation (5.44%); safety (4.08%); support each other (4.08%); commitment/passion (4.08%); sustainability (3.74%); collaboration (3.4%); courage (3.4%); customer focus (3.06%); innovation (3.06%); respect (3.06%); quality (2.72%); care (2.38%); excellence (2.38%); teamwork (2.38%); trust (2.38%); inclusion (2.04%); meritocracy (2.04%); purpose (2.04%); agility (1.7%); efficiency (1.7%); accountability (1.36%); compliance (1.36%); engagement (1.36%); honesty (1.36%); reliability (1.36%); creativity (1.02%); diversity (1.02%); leadership (1.02%); openness (1.02%); result driven (1.02%); rightness (1.02%); transparency (1.02%); delivery (0.68%); entrepreneurship (0.68%); fairness (0.68%); health (0.68%); pride (0.68%); professionalism (0.68%); simplicity (0.68%); stability (0.68%); and with 0.34% (one case), it appear accessibility, ambition, citizenship, consistency, digital, dynamism, education, equity, ethics, example, expertise, exploration, heart, humanity, humbleness, inspire, opportunity, partnership, privacy, progress, prudent, solidarity, and tenacity. We think that there is a wide variety of values, but it remains to be seen whether companies are recognized by them. Finally, we verify that all companies have a specific entry for their sustainable behaviours, demonstrating the importance that these issues have for external stakeholders today.
5 Conclusion In this study, we analysed the websites of the three largest companies in each of the 40 most developed countries in the world, trying to see how they reveal their visions, missions, and values. It is possible to conclude that most companies have explicit or implicit statements of vision, mission, and values, but only 20 present the three management tools in the same page. The values statements in almost half of the cases are presented implicitly in other documents such as the story of the company, reports, or guiding principles. Only a minority use this management tool in an explicit way. The same happens with vision disclosure: only a quarter of the companies present their vision in a clear statement, and almost a half present it in the story of the company, implicit in their mission, translated to commitments, or included in the company’s strategy. Regarding the mission, almost a half of the companies do not explicitly reveal their mission. In relation to values, only a third of the companies present their values in a way that include the proposed behaviours to accomplish those values. We can also conclude that most companies use more than 16 words to express their mission, making it difficult for workers to memorize it. Finally, the average number of values used by the companies is around five, which is considered normal and adjusted to be effective. These conclusions allow us to draw several theoretical and practical implications, namely:
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2.
3.
4.
5.
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The disclosure of vision, mission, and values statements exist on many websites of large organizations, showing that these tools are still considered important in the scope of management and strategic planning. As the theories of signalling and impression management point out, this disclosure is crucial to the reputation of organizations and to achieve attitudes and behaviours favourable to them. As such, all companies that do not use these tools or do not disclose them are missing out on a real possibility of increasing their impact on stakeholders, both internal and external. The existence of many mission and vision statements in a few words indicates that many companies have already realized that the effectiveness of these phrases is directly related to the ability that people have to remember them. The existence of many companies revealing and explaining the values that govern them, and the way these values influence the behaviour of their workers indicates that the positive impact that these statements may have on the organizational culture is known. It will be essential, for an effective digital communication policy for companies, that websites be increasingly objective in revealing what is important to stakeholders. Thus, as in many cases, it should be avoided that this information is spread over several pages or documents.
There are some limitations in this study, namely the question of the sample, which essentially represents only large companies, despite being those that have the resources to make better use of all digital and strategic planning tools. We also do not know, by reading the websites, what will be the use of these tools in relation to stakeholders. Future studies may deepen these analyses, namely through interviews with managers or business owners.
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Marketing of Loneliness in the Omnichannel Communication Space of the City Alexandra Ponomareva
and Maxim Ponomarev
Abstract The article represents the socioeconomic problem of loneliness of a modern person in the city. Economic loneliness is seen as a trend in modern socioeconomic systems. An ambivalent approach to the phenomenon of economic loneliness allowed the authors to formulate the tasks of the marketing of the loneliness for the state, municipal and business services and goods based on the smart city: to neutralize the negative consequences of economic loneliness of city dwellers and to develop positive practices of economic loneliness, which serve as drivers of the loneliness industry. The reasons for economic loneliness and modern social practices of loneliness are presented. The authors use an interdisciplinary approach to describe the essence of loneliness, develop its classification from the marketing point of view, and further focus on the marketing aspects of its research. The authors rely on the statement that the living environment of a modern inhabitant of a megacity is formed by the smart city management system, which creates a special, new space for omnichannel socioeconomic and sociopsychological connections and communications, combining offline and online reality. Omnichannel is proposed as the main principle for loneliness marketing, which allows to neutralize the negative aspects of the sociopsychological and socioeconomic phenomenon “loneliness” and to offer products for lonely urban consumers. A portrait of a lonely city resident has been designed as an object for loneliness marketing. A consumer segmentation system for the lonely inhabitats has been developed, tools for loneliness marketing are proposed for state, municipal and business goods and services based on existing marketing practices. Keywords Loneliness economy · Loneliness marketing · Omnichannel space · City marketing A. Ponomareva (B) Rostov State University of Economics, B. Sadovaya, 69, 344002 Rostov on Don, Russia A. Ponomareva · M. Ponomarev South Federal University, Universitetsky, 93, 344010 Rostov on Don, Russia M. Ponomarev Russian Academy of National Economy and Public Administration, Pushkinskaya Street, 70, 344011 Rostov-on-Don, Russia © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 J. L. Reis et al. (eds.), Marketing and Smart Technologies, Smart Innovation, Systems and Technologies 280, https://doi.org/10.1007/978-981-16-9272-7_21
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1 Economic Loneliness in a Megacity 1.1 Economic Loneliness as a Modern Trend The problem of loneliness has been sufficiently discussed in the social and psychological aspects [1–3], but has not yet received a proper systemic description in economics and marketing. At the same time, in the context of the coronavirus pandemic, quarantine and self-isolation [4, 5], the trends associated with the formation of a special direction in the economy—the “loneliness economy”—began to develop rapidly. The term “loneliness economy” appeared in 2018 in China in a report containing the results of a large-scale joint study of the dating site Momo and the Xiaozhu apartment rental service, whose services are designed for single consumers [6]. The discussion at the World Economic Forum in Davos in 2020, based on a large-scale IPSOS study, showed that loneliness is not a marginal manifestation in certain social groups, as it was written about in 2015 [7], but a global socioeconomic trend [4, 5]. Economic loneliness is assessed ambivalently: on the one hand, as a problem (losses from loneliness are 3 and 7 billion US dollars annually in the UK and the USA, respectively) [8], on the other hand, as an opportunity for the formation and development of new markets, new products, the whole loneliness industry in general.
1.2 Reasons for the Economic Loneliness of a City Dweller According to various sources, the reasons for the loneliness of a city dweller are geographic mobility, personality specifics, peculiarities of work culture that do not leave free time and space for the development of social connections, digital technology, in general, social media, the “smart city” system, in particular, they create weak social and business ties and ultimately form a feeling of loneliness, the economic and infrastructural possibility of isolated living of urban residents, the dominance of the ideology of individualism in large cities, the great attractiveness of behavioral models focused on individual practices development of urban space in various aspects (business, cultural, sports, entertainment, etc.), compared with collective practices, devaluation of social connections—friendly, family-related, neighborhood, lack of resources—financial, temporal, spatial, ensuring the formation and development of social connections of a city dweller, the loss of preferred ones as a result of death, divorce, separation, etc. [8–11]. The loneliness economies of different countries are formed by both universal and specific factors [12]. For example, young Chinese scholars Chimin Ch., Yitong Zh. believe that one of the main reasons for the formation of the modern Chinese loneliness economy is the policy of “one family— one child”, which led to gender imbalance and family loneliness [13, 14] in the country, in general, and in large cities, in particular.
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1.3 The Specifics of the Loneliness of a City Dweller and Modern Practices of Loneliness The habitat of a modern metropolitan resident is formed by the smart city management system, which creates a special, new space for omnichannel socioeconomic and sociopsychological ties and communications, combining offline and online reality. One of the reasons for the formation of a city dweller’s loneliness is the dominance of online connections and communications in the omnichannel space of a metropolis, perceived by an individual as less reliable, short-lived, “fake.” Where do we find the manifestation of the loneliness economy in modern socioeconomic systems? What figures and facts confirm its existence, predetermine the importance of changing the management paradigm in the socioeconomic conditions of the economy of loneliness? Euromonitor International estimates that currently one fifth of the world’s households are run by single people; such households in the USA are 36.3 million, in China—31.6 million, in Japan—18.2 million, in India— 17.4 million, in Germany—15.5 million, in Russia—12.9 million [6]. In Sweden, almost half of households are single people, data from the American Association of Retired Persons (AARP) indicate that there are more than 42.6 million people in the 45+ age group of single Americans, the number of hikikomori (people living in complete social isolation) there are about half a million people in Japan, the number of single British people is estimated differently within the framework of various research methods—from 1.1 to 9 million people [15]. The latter emphasizes the importance of creating a scientifically grounded basis for describing the phenomenon of “lonely person” and developing scientific approaches to the study of the problems of loneliness. The proportion of people who feel lonely at a young age is steadily growing: about 60% of American students and about 40% of British students have faced the problem of loneliness in its various aspects [8]. Russian studies provide rather ambiguous, contradictory data that are difficult to interpret. On the one hand, as we have already shown, Russia ranks 6th in the world in terms of the number of households run by single people [6], on the other hand, according to the All-Russian Center for the Study of Public Opinion (ARCSPO), only 6% of respondents said that they feel lonely [11]. Obviously, more research is needed here to explain this contradiction. The practice of loneliness is becoming more widespread in the socioeconomic omnichannel space of the city, forming a new hierarchy of values, within which self-development, self-expression, money, career are more important than family, children, friends, belonging to a social group [14]. Based on the values of the economy of loneliness, new needs, a new way and lifestyle of the inhabitants of megalopolises are formed, which, in turn, creates a demand for new products, forms new markets that synthesize the online and offline realities of urban space. Examples of products for singles are special homes, in which singles have separate housing for separate living and a public space in which, if desired, singles can establish social connections [16].
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Examples of goods and services for singles are special bars, gyms, gaming applications, karaoke booths, dating sites, rental sites, sex devices, psychologist services, care services for single people, shared accommodation services, cars, renting friends, family, drinking companions, services “Husband or wife for an hour,” etc. The fastgrowing markets for products and services for single citizens create favorable conditions for dynamic business development. Examples of such a dynamically developing business are the Chinese food chain “SyabuSya-bu,” offering services for those who want to eat alone, karaoke booths for one in China, supplied to the market at once by several Chinese competing companies—U-sing, Wow mini, KTV, Minik [17], a market for animals and products for them, more than 4 thousand Japanese kodokashi companies that clean up apartments after the death of elderly, lonely people. According to unofficial estimates, such companies receive more than 30 thousand orders annually, each of which costs approximately $5000. Such a high cost of services is due to the fact that, on average, it takes from 2 to 6 months from the day of death to the day the body of a lonely elderly person to be found—so housing needs special treatment [17]. Insurance companies sell compulsory insurance policies to landlords who rent out apartments to single, elderly people [17].
2 Marketing of Loneliness in Urban Space 2.1 Omnichannel and Marketing Segmentation of Loneliness in an Urban Space As the analysis of products for single people shows, a business in this situation can choose a developmental marketing strategy, satisfying the existing demand for goods and services for single people, or it can take a visionary position, forming the values of individualism and isolation, needs and demand, based on the offer of innovative and creative products that form a new attractive lifestyle of a lonely city dweller with a predominance of omnichannel communications [18]. In general, taking into account the quantitative parameters of the category of lonely city dwellers, we can conclude that an industry of loneliness is currently being formed, uniting a variety of products, services and their manufacturers, retailers operating in different markets, creating an inhomogeneous synthetic economic environment, that combines online and offline space, permeated with omnichannel marketing communications. Immersion in the study of the loneliness problem in a theoretical aspect based on scientific literature, the study of cases in which the practices of loneliness are presented [9, 10, 17, 19–23], inevitably leads to the idea of a differentiated approach to product management in the loneliness economy, in marketing it means segmentation. First, an important feature of segmentation is the attitude of the urban consumer toward loneliness. The cultural traditions of many countries predetermine, rather, a
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negative assessment of the phenomenon of “loneliness.” Medical and sociopsychological studies prove the harm of loneliness for human health, mental state, social status, and a negative impact on life expectancy is observed [8, 19]. Thus, we can single out the first group of consumers for whom loneliness is a negative state, a negative phenomenon, a problem. Consequently, for this group of urban consumers, an important feature of the urban environment and products offered in various markets is their ability to solve the problem of loneliness—radically (using the product, the consumer ceases to be lonely, for example, the city expat club, which allows immigrants to get social connections, or people suffering from social loneliness, city playgrounds for collective sports) or partially (the product neutralizes the negative consequences of loneliness, for example, the services of a consulting agency for the self-employed, suffering from economic loneliness) [24]. The second group of urban dwellers is consumers who follow the ideology of individualism, for whom loneliness is a positive concept and voluntary conscious practice [25], forms a positive scenario for the development of their lives. Obviously, this kind of townspeople positively assess their status as a lonely person in one aspect or another and tend to consume products that develop their loneliness. Examples of marketing products include travel products for people traveling alone, city cafes for dining alone (not in couples, not with families, not with friendly companies, not with work colleagues), elements of urban space that allow you to achieve privacy—for work and leisure. The temporal characteristic of loneliness is also important: Loneliness can be both temporary (the loneliness of a divorced person who seeks to remarry) and permanent (loneliness of the elderly as a social long-term problem, the solution of which is possible by combining the efforts of the state, municipalities, NGOs, volunteers). Age segmentation of lonely urban residents is also, of course, important in marketing, since the essence, causes of loneliness, as well as tools for overcoming it in the form of products and brands, elements of the urban environment that can be offered on the market, have significant differences for adolescents, students, youth, middle-aged people and elderly consumers. Thereby, we can say that marketing of loneliness in the omnichannel socioeconomic space of a city is a tool aimed at the urban environment managing, as well as products (goods, services, ideas, personalities, events, places, activities, territories) for lonely citizens: (a) consumers who feel lonely and want to overcome loneliness or neutralize its negative socioeconomic, sociopsychological consequences; (b) consumers who want to be lonely and develop their loneliness through positive practices. Consequently, products within the marketing of loneliness can be divided into two large groups: (a) overcoming loneliness as a problem; (b) developing loneliness as a conscious choice and way of life of a urban dweller. A special role in the marketing of loneliness is, in fact, the promotion of the idea of an economically independent way of life for a city dweller, “economic loneliness”: The scientist Jianguo Liu (Michigan State University) showed that lonely people consume 38% more food, 42% more packaging material, 55% more electricity and 61% more gas per person than a standard full family of parents with two children per capita [26], which is certainly interesting for brands and companies. Regardless of the segment with which enterprises work, the omnichannel marketing environment of a smart city
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is a prerequisite for the development of products and brands for lonely inhabitants of megalopolises. Studying the practices of loneliness in the city from the point of view of case-based marketing allowed us to develop the following segmentation, which, of course, is not final and will develop as the problem of loneliness itself develops and is studied. Loneliness manifests itself in various aspects: – social (at urban dweller with no social connections, for example, an immigrant who has no acquaintances in the city), – physical (a person in solitary confinement, a Japanese hikikomori who has not left the apartment for years), – psychological (loneliness is considered by psychologists as a strong emotion, experience, a person can feel lonely in his own family, work collective—“loneliness in the crowd”), – cultural (meditation practices in oriental cultures), – family (urban dwellers who do not have families, unmarried people, people who are not in a civil marriage, do not have a permanent partner for a sufficiently long time), – legal (citizens who do not have relatives with documentary evidence of the degree of kinship), – spiritual (hermitage as a spiritual practice), – scientific (a scientist who conducts research, writes a dissertation), – technological (remote work and distance education), – medical (quarantine and self-isolation during the coronavirus period), – economic (one-man household, self-employed, self-sufficient).
2.2 Portrait of a Lonely Urban Dweller as a Consumer It should be noted that many of the presented special cases of urban loneliness tend to be both forced and voluntary [27]. Our hypothesis is that urban dwellers striving for economic loneliness have a sufficient level of adaptation to social, psychological, cultural, family, spiritual and other types of loneliness. What is important are the constitutive features urban dwellers, showing the signs of economic loneliness. Hypothetically, we will refer to them: (a)
main features: – independent formation of income, – separate single accommodation, – all expenses (rent, payment for housing and communal services, food, transport, clothing, etc.) are paid only from their own income, including using Smart City elements and tools for sharing the economy;
(b)
additional signs: – self-employment and/or work using remote technologies,
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– independently, alone, leisure activities (travel, classes, sports and other physical activities, walking, reading, computer games, going to the cinema, theaters, cafes, restaurants, sports events, etc.), – sole planning of income/expenses of the urban household, – online and offline purchases, – the predominantly digitalized nature of all transactions of the city dweller based on smart city technologies [28], – omnichannel nature of socioeconomic ties, relations and communications of urban residents.
2.3 Tools for the Loneliness Marketing Development in an Urban Environment Based on Omnichannel The classifications that we described earlier represented the form of a matrix with examples of potential consumers and products that satisfy certain needs. The cells with question marks may be filled in in the future (Table 1). The significance of the developed matrix is that it can be used in foresight sessions when designing a strategy for the development of urban space, as well as when developing new products based on the search for new consumer segments and new needs within the framework of developmental and visionary marketing in the loneliness economy. The following table aims to show how omnichannel practices, based on the use of marketing tools, including smart city elements, connect online and offline reality and, thereby, overcome the problem of loneliness (Table 2). The presented table not only systematizes the positive examples of omnichannel urban dwellers’ practices, but also has a heuristic nature, allows you to search and even form unoccupied niches in the markets of the loneliness industry and design new products that meet the needs of lonely citizens. Harmonious development of the individual presupposes free choice and a reasonable combination of the loneliness practices and collective practices in the urban space, the consumption of state and municipal services, as well as commercial goods and services. Omnichannel feature is an important foundation for ensuring freedom of choice. Urban space should provide freedom of choice and opportunities for both a secluded urban space and sites that would stimulate social interaction of city residents.
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Table 1 Matrix of potential consumers according to the types of loneliness Types of Loneliness
Consumer attitude toward loneliness
The imperative of society and the state in relation to loneliness
Positive
Negative
Voluntariness
Non-voluntariness
Physical
Hikkomori
Lost in the city
Polar explorer
Prisoner
Psychological
Introvert
Extrovert
?
Patient of a psycho-neurological clinic, placed there by a court decision
Social
Travel blogger
Illegal migrant
Homeschooled student
Student boycotted by the class
Cultural
Residents of cities whose ideological dominance is individualism, good year practice in Australia
Residents of cities, the ideological dominant of which is collectivism; or partial memory loss person
?
?
Domestic
Convinced bachelor
A person who lost his family in an accident
Child-free person
Widower
Spiritual
Vow of silence
Forced resettlement of wives in India
Hermitage
Pale of settlement
Scientific
Observatory employee
Time trouble at the end of the thesis
Scientific expedition
The practice of “special design bureaus” in the Stalinist camps
Technological
Digital detox
Lack of money to keep in touch with relatives and friends
Refusal of mobile communications in favor of a personal assistant
Internet disconnection during political unrest in some countries
Medical
Sensory deprivation
Quarantine
The course of treatment
Medical fixation of the patient
Economical
Self-employment
Correctional labor works by appointment of the court
Foreign intelligence work
?
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Table 2 Omnichannel practices in urban space and marketing tools for loneliness A kind of loneliness Omnichannel practices
Marketing tools, including using smart city
Physical
Maintaining social, family, friendships, business and other ties through digital communications when it is impossible to overcome physical loneliness
E-mails, electronic libraries, electronic bracelets, geolocation tools, internet receptions, programs for organizing video conferencing and personal communication
Psychological
Psychologist’s consultations, combining online and offline practices
Messengers, online conference platforms, city psychological service for singles in the smart city system
Social
The use of on line tools for Social media, social apps, networking, creating a friendly and crowdfunding tool working relations
Cultural
Meditation using information from Applications, video hosting the internet Karaoke booths Singing in a special individual space, located in an urban environment, with the ability to share it online with society
Domestic
Dating and starting a family through the use of digital tools Single parents raising children and receiving support from the state and municipalities
Websites and applications for dating and family creation Application for interaction with state and municipal structures and receiving support
Spiritual
Hermitage, various spiritual and religious practices
Delivery applications, e-confession, digital church
Scientific
Conducting research using sources, Social networks for scientists, materials and tools placed in the databases, internet publishing digital environment houses, internet magazines, offline and online scientific conferences
Technological
Distance work and education
Platforms for distance work and distance education, digital universities, messengers
Medical
Patients in self-isolation and quarantine
Vaccine electronic databases, QR codes, medical applications, electronic enrollment and electronic queues, delivery applications for food and drugs
Economical
Self-employed
Websites and applications for Internet banking, platforms for telecommuting, services for tax management
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20. “Funeral house”.: Why they die in private boarding houses for the elderly. https://ria.ru/202 00827/pensionery-1576351564.html. Last accessed 08 July 2021 21. Lufkin, B.: From cocktails to karaoke, more Japanese people are going it alone. What’s causing the huge change in the traditionally group-oriented country? https://www.bbc.com/worklife/ article/20200113-the-rise-of-japans-super-solo-culture. Last accessed 08 July 2021 22. Life expectancy according to Rosstat. https://rosinfostat.ru/prodolzhitelnost-zhizni/. Last accessed 16 July 2021 23. Bryl, R.: What are the Kodokash companies doing in Japan. https://funeralportal.ru/library/ 1579/150144.html. Last accessed 16 July 2021 24. Nanos, J.: Single by choice. https://www.bostonmagazine.com/2012/01/03/single-by-cho ice-why-more-of-us-than-ever-before-are-happy-to-never-get-married/. Last accessed 12 July 2021 25. Garau, C., Pavan, V.M.: Evaluating urban quality: indicators and assessment tools for smart sustainable cities. Sustainability 10(3), 575 (2018). https://doi.org/10.3390/su10030575 26. Morrison, E.: What I’m thinking about ... why capitalism wants us to stay single. https://www. theguardian.com/books/booksblog/2012/aug/11/ewan-morrison-capitalism-single?CMP= twt_gu. Last accessed 12 July 2021 27. Borisov, A.: Comparative characteristics of omnichannel and multichannel communication models. Sci. Electron. J. Meridian 12(30), 79 (2019) 28. Aleshnikova, V.: Digital communications for the territory marketing. Voronezh State University Bulletin. Series: Economics and Management, vol. 3, p. 144 (2018)
Financial Marketing at the Border: A View from Customers Hugo Arias-Flores , Freddy Quinde-Sari , Janio Jadan-Guerrero , and Carlos Ramos-Galarza
Abstract Border activities are developed with unconventional rules or are not aligned with large cities in their total context. Thus, the modalities of exchange of currency between borders, is an activity that is carried out personally and without intermediaries, that is, person to person, both on one side and the other, the rules of the sale of currency are governed in some way with the limits that are established in each country, there are more bands in which the money changers move. The exchange is carried out in a public square, in which the marketing is done by shouting to attract customers, in this sense the question arises, how well known or used are the digital media of financial entities on the border? A survey was carried out on the clients of two financial entities on the Colombian-Ecuadorian border, to establish how well known and used digital media are by clients and if the website complies with or maintains any marketing strategy toward the client. The results of the exploratory factor analysis identified two factors: functional and safety. On the other hand, convergent validity is favorable with a mean variance extracted close to 0.5. Evidence that the factorial structure establishes a timely adjustment for the confirmatory factor analysis. The hypothesis has been proven that frontier financial institutions are ready to jump into the third stage of the expanded e-commerce model. H. Arias-Flores (B) · J. Jadan-Guerrero · C. Ramos-Galarza Centro de Investigación en Mecatrónica y Sistemas Interactivos (MIST), Universidad Tecnológica Indoamérica, Machala y Sabanilla, Quito, Ecuador e-mail: [email protected] J. Jadan-Guerrero e-mail: [email protected] C. Ramos-Galarza e-mail: [email protected] F. Quinde-Sari Facultad de Comercio Internacional, Administración y Economía Empresarial, Universidad Politécnica Estatal del Carchi, Antisana y Av. Universitaria, Tulcán, Ecuador e-mail: [email protected] C. Ramos-Galarza Facultad de Psicología, Pontificia Universidad Católica del Ecuador, Av. 12 de Octubre y Roca, Quito, Ecuador © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 J. L. Reis et al. (eds.), Marketing and Smart Technologies, Smart Innovation, Systems and Technologies 280, https://doi.org/10.1007/978-981-16-9272-7_22
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Keywords Marketing · Clients · Financial institutions · Website
1 Introduction Global e-commerce is estimated to increase by 20.7% in 2019. Despite its growth rate, 2019 will see a decline from the previous two years, when e-commerce grew 28.0% in 2017 and 22.9% in 2018. Likewise, retail trade will have an increase of 4.5% in 2019 and a slight acceleration of growth compared to the previous year. At the same time, it represents a marked decline from the previous five years, when global retail sales grew between 5.7 and 7.5% each year, and that will account for 22% of global retail sales by 2023 [1]. This digital transformation challenges the fundamental theories and concepts on which management and marketing have been built [2]. The use of online media is a trend of customers to experiment with brands [3], this means that marketing needs new and better systems of detection of customer evolution. In parallel, digital is creating an explosion of new channels and new related tactics globally. However, the shift toward digital advertising does not mean that traditional channels are neglected, in fact, strategies must be devised to effectively leverage both traditional and digital advertising and reflect how their audiences consume media [4]. This digital transformation in developing countries such as Ecuador and particularly on the Colombo-Ecuadorian border, has not been given much attention. This research seeks to identify how customers identify the digital media used in two Ecuadorian financial institutions, since the activities that take place at the border maintain different rules than large cities. Thus, the modalities of currency exchange between Ecuador and Colombia, is an activity that is carried out personally and without intermediaries, that is, person to person, both on one side and the other, the rules of the sale of currency are governed in some way with the limits that are established in each country, more there are strips in which the money changers move. The exchange takes place in the central park of the city of Tulcán, in which the marketing is done by shouting to attract customers, each of the actors in this market knows each other and at the same time they take care of each other. In this sense, the question arises: How well known or used are the digital media of financial institutions at the border by their customers? It is hypothesized that financial institutions are ready to jump to the third stage of the expanded e-commerce model. The rest of this document is organized as follows: Sect. 2 presents theoretical background; Sect. 3 presents the research method; Sect. 4 presents results and discussion; and Sect. 5 presents conclusions and future work.
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2 Theoretical Background 2.1 The Consumer and Marketing Strategy The role of marketing in the classical literature, establishes that it is fundamental for the existence of the company in all its areas, considering that the organization has two functions: one related to innovation and the second with marketing [5]. The result of the strategy that integrates these two functions, is the only ones that produce income streams, the rest are expenses for the company [6], this has generated disconnections between the marketing strategy and the consumer. Over the past decade, the importance of consumer relationships is emphasized [7], as they make their purchases based on their personal perception of value with the brand. This consumer behavior is included in the circular model of the consumer decision journey, which integrates a four-part process in which the consumer: (1) starts from a list of brands to consider, (2) adds or subtracts brands to the list as he evaluates them, (3) makes a purchase, and (4) generates confidence based on your experience with the product or service [8]. That is to say that when a consumer becomes a customer, the relationship he forms with the brand becomes part of the total value that the brand offers [9] and probably on a next occasion he will go directly to make a purchase directly [3]. For the design and execution of strategies, it should be considered that: (1) customers are different, (2) customers change, (3) competitors react, and (4) resources are limited [10]. This has evolved into online relationship marketing, in which technologies play a fundamental role, as well as online interactions have become unique, fluid, interconnected, omnichannel, personalized and anthropomorphized. Channelmediated decision-making on the Internet brings opportunities and challenges to businesses [11].
2.2 E-Commerce Adoption To understand electronic commerce, it will be defined as the use of networked information and communication technologies, especially Internet technology, in any business activity [12]. This business activity will be the process of selling, buying, transferring, or exchanging goods, services and information through computer networks [13]. Developing countries, according to the study of 292 SMEs in Indonesia, show that they are at an early stage of e-commerce adoption, compared to SMEs in developed countries. Most SMBs use static and interactive email and websites. It is concluded that e-commerce offers many benefits: “Expanding market reach,” “increasing sales,” “improving external communication,” “improving the image of the company,” “improving processing speed” and “increasing employee productivity” [12].
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On the other hand, the study conducted in seven countries of the Association of Southeast Asian Nations, states that each country varies greatly in terms of economic development and cultural factors, which explains the unequal level of adoption of e-commerce in the region. Of the 5870 people surveyed, women, the youngest, the most educated, employees and higher-income users use e-commerce. In this line, individualism, low masculinity, and low avoidance of uncertainty, are cultural factors that mark the profile of users [14].
2.3 Expanded e-Commerce Model Joan Cooper and Lois Burgess presented the expanded model of e-commerce adoption, which illustrates the beginning of organizations on the Internet [15]. This model was developed for the metal industry in Australia, considering other models developed for website evaluation [16]. Three-stage constant, with different levels (see Table 1). It is proposed that when creating the Web sites, companies establish a presence on the Internet and over time they develop according to their experience, to adapt to the development of electronic commerce. Table 1 The extended model of internet commerce Stage/Layer
Companies experience
Stage 1—promotion Layer 1—basic information
Company name, physical address and contact details, area of business
Layer 2—rich information
Annual report, email contact, information on company activities
Stage 2—provision Layer 1—low level interactivity
Basic product catalogue, hyperlinks to further information, online enquiry form
Layer 2—medium interactivity
Higher-level product catalogues, customer support (e.g., FAQs, sitemaps), industry-specific value-added features
Layer 3—high interactivity
Chat room, discussion forum, multimedia, newsletters, or updates by email
Stage 3—processing Layer 1—transactions Source Burgess and Cooper [17]
Secure online transactions, order status and tracking, interaction with corporate servers and databases
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3 Methodology A survey was developed to the clients of two financial institutions on the ColombianEcuadorian border, to establish how well known and used digital media are by customers and if the website complies or maintains any marketing strategy toward the client. Of the total respondents, only 98 clients were aware of the existence of the institutions’ website, 46.94% were clients of institution 1 and 53.06% of institution 2. Of the total number of clients participating in the survey, 48.98% were men and 51.02% were women. An exploratory analysis of the data (EAD) was carried out, using the SPSS statistical program, an exploratory factor analysis (EFA) was carried out, using the methods of Maximum Likelihood Extraction and Promax Rotation; to determine if the data have a normal distribution, the Mardia test was applied, and to know if the values of the Kaiser test, Meyer and Olkin (KMO), as those of the explained variance are adequate, the thresholds proposed by Hair [18], KMO > 0.70 and variance explained ≥ 40% are taken into account. Later, confirmatory factor analysis (CFA) was applied in the AMOS structural equation modeling software to be able to accept or reject the hypothesis raised and support it with the correlation that the results yield, validating the psychometric assumptions: composite reliability (HR), extracted mean variance (AVE) and discriminant validity (VD), for this the values suggested by Hair [19] are taken into account for each assumption: FC > 0.70, AVE ≥ 0.50 and for discriminant validity, the criterion of Fornell and Larcker [20] is used, where he recommends that the values of the main diagonal that are constructed as the square root of the AVE should be greater than the correlations located at the crossings of the different factors analyzed. Finally, the goodness of fit indices were calculated: CMIN/DF (>5 low, >3 acceptable, >1 excellent); CFI (0.08 low, >0.06 acceptable, M. No = 4.65/7) (p = 0.000). H1f is confirmed.
7.5 Customer Experience and Post-purchase Variables Simple linear regressions measuring the effect of customer experience dimensions on satisfaction (H2) show a significant positive effect on satisfaction. Indeed, as anticipated, only the negative affective dimension has a negative effect (b = −0.10) on satisfaction. However, this relationship is not significant (p = 0.924). In descending order of importance, the positive cognitive/affective dimension of the customer experience (H2a/c) explains 21.2% (R2 ) of the variation in satisfaction (b = 0.500; p = 0.000), the behavioral dimension (2e) explains 15.4% (R2 ) of satisfaction (b = 0.396; p = 0.000), the sensory dimension (H2d) explains 11.5% (R2 ) of satisfaction (b = 0.286; p = 0.000) and the social dimension (H2f) explains 10.9% (R2 ) of satisfaction (b = 0.233; p = 0.001). The results of hypotheses H3, also resulting from simple linear regressions, are rather mixed. We note that positive WOM intention is significantly (p < 0.05) and positively influenced by the positive, sensory and behavioral cognitive/affective dimensions of the customer experience as anticipated by H3a/c, H3d and H3e. On the other hand, negative emotions (H3b) and social experience (H3f) during a shopping experience are not influencing factors on positive WOM intention. More precisely, the positive cognitive/affective dimension (H3a/c) explains 8.3% (R2 ) of positive WOM intention (b = 0.299; p = 0.003), the behavioral dimension (H3e) explains 7.5% (R2 ) of positive WOM intention (b = 0.264; p = 0.000) and the sensory dimension (H3d) and explains 6.7% (R2 ) of positive WOM intention (b = 0.210; p = 0.000).
8 Discussion SST is not such an emerging concept in retail but, nevertheless, little marketing literature has addressed its influence on the customer experience [4, 5]. While the phygital environment presents many opportunities for retailers, it also increases the various challenges that they must manage to ensure a fluid in-store omnichannel experience [39]. Along the same lines, the pandemic is forcing the retail sector to
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change its business models and activities in order to respond to consumers who are adopting new social behavior [43]. The first objective of this study is to measure whether the use of in-store SST has an impact on the different customer experience dimensions. The results reveal that four of the five customer experience dimensions are significantly influenced by use of the SST studied. The assessment for the cognitive/affective and sensory dimensions of the customer experience is higher for subjects who used SST. Conversely, use of SST during the shopping session diminishes the social dimension. Contrary to what has been expected, negative emotions are heightened when using SST. However, this customer experience dimension seems to have no significant effect on post-purchase variables such as satisfaction and positive WOM intention. The second objective is to determine the main effects of the customer experience on satisfaction and positive WOM variables in a phygital context. The positive impact of customer experience dimensions on satisfaction is found to be significant for four of the five dimensions studied. Only the anticipated negative effect of the negative affective dimension is not confirmed. On positive WOM intention three (cognitive/affective positive, sensory and behavioral) of the five customer experience dimensions have a significant positive impact although the relationships studied are weak. In the marketing literature, some authors have raised the issue of the absence of human interaction when using SST [9, 27]. However, no identified empirical study has evaluated the effect of SST on the social dimension of the in-store customer experience. Therefore, the results obtained contribute to the literature by demonstrating that SST, such as interactive walls, negatively affects the social experience of the consumer in the store. Considering the fact that the social interactions experienced in stores positively affect consumer satisfaction, marketers should consider SST as a complementary tool to the customer’s shopping journey and not as a substitute for employees. Furthermore, in order to increase social interaction and thereby satisfaction, it would be relevant for marketing managers to integrate in-store SST with social functionalities (e.g., customer ratings or comments, expert opinions, sending email messages, social media sharing, etc.). By demonstrating the positive impact of SST on the customer experience sensory dimension, the results of this study indicate that consumers feel more visually stimulated by looking at images on a screen rather than products on the shelf. Some authors have been interested in the pleasure that SST brings to consumers regarding perceived utility [44] and perceived quality [20] of the SST, but none have focused on the customer experience as such. Therefore, the results observed concerning the effect of the use of a SST on the positive cognitive/affective dimension of the customer experience extend our knowledge in this regard. In addition, the relationship between the positive cognitive/affective dimension of the customer experience and the postpurchase variables studied was also positive. Retailers wishing to increase satisfaction and positive WOM intention of their millennial customers would therefore benefit from capitalizing on this aspect in their strategy toward SST by promoting the right information available at the right time in order to properly support the consumer decision-making process. (e.g., being able to consult the availability of a product in
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inventory via the interactive wall or any other channel without having to wait for a sales advisor for the answer). The behavioral dimension of the customer experience is also found to be significant and positive on the two post-purchase variables studied. However, in our study, the use of SST does not have a significant effect on this dimension. Marketing managers should therefore plan to integrate features that encourage participation (e.g., value co-creation through User-Generated Content (UGC) such as ratings and comments).
8.1 Limits and Future Research Work There are limitations with regard to data collection in this study which are to be noted. First, this is a small non-probability convenience sample. Moreover, the small number of subjects significantly limits the possibility of carrying out more sophisticated confirmatory analyzes (e.g., structural equations modeling). Furthermore, only people aged between 18 and 35 are surveyed, therefore the results observed are specific to this age group and cannot be generalized to the entire population. The customer experience measurement scale used also has some limitations. Indeed, the positive affective dimension of this scale tends to correlate strongly with other dimensions of the customer experience, and this correlation between the dimensions can affect the results of the study. Some limitations presented in the previous section set the stage for future research work focusing on in-store SST. For example, it would be relevant to carry out a study comparing the effects of different SSTs available in stores on the customer experience. In this way, it would be possible to compare the results with those obtained in the present study. In addition to comparing SSTs with each other, it would also be interesting to compare the sectors in which SSTs are present (e.g., retail banking, grocery, hardware, fashion apparel, etc.). Thus, by identifying characteristics important to an industry, functionalities optimized to the needs of consumers could be incorporated into SSTs for the benefit of both consumers and brands. To conclude, we hope that the present study and the results obtained inspire future research into SSTs to enrich the marketing literature on this subject.
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News Frames in the Media and Social Networks: Prejudices and Stereotypes Towards Immigrants in Spain Andrés Tirado-Espín , Ubaldo Cuesta , Luz Martínez-Martínez , Yalitza Ramos-Gil , and Diego Almeida-Galárraga
Abstract This study analyzes the content of the programming that is transmitted in the Spanish media and social networks, considering the relationship with prejudices and stereotypes towards immigrants. A descriptive method is used, through the search for scientific articles during the period of time from 2016 to 2021. A Boolean algorithm was designed, obtaining a total of 64 different combinations, leaving a final sample of 21 articles. Starting from the initial research question, notable aspects are discovered in the construction of mental schemes of the Spanish population regarding the “others” (immigrants). Keywords Prejudices · Stereotypes · Framing · Immigration · Media · Social networks
A. Tirado-Espín (B) · U. Cuesta · L. Martínez-Martínez Universidad Complutense de Madrid, 28040 Madrid, Spain e-mail: [email protected]; [email protected] U. Cuesta e-mail: [email protected] L. Martínez-Martínez e-mail: [email protected] A. Tirado-Espín School of Mathematical and Computational Sciences, Yachay Tech University, Hacienda San José s/n, San Miguel de Urcuquí 100119, Ecuador Y. Ramos-Gil Pontificia Universidad Católica del Ecuador Sede Ibarra, Ibarra 100150, Ecuador e-mail: [email protected] D. Almeida-Galárraga School of Biological Sciences and Engineering, Yachay Tech University, Hacienda San José s/n, San Miguel de Urcuquí 100119, Ecuador e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 J. L. Reis et al. (eds.), Marketing and Smart Technologies, Smart Innovation, Systems and Technologies 280, https://doi.org/10.1007/978-981-16-9272-7_30
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1 Introduction The phenomenon of immigration in Spain is a reality that generates new perceptions and visions of the different sectors of society. According to the National Institute of Statistics (2020), in Spain, the immigrant population represents 11% [1]. The social relations between these two population groups articulate a discourse in which there is a “we” (autochthonous) that is opposed to an “others” (immigrants), giving rise to hate crimes [2, 3]. The information that society receives to a large extent comes from the media, through its audiovisual content messages are presented on various topics that influence perception and the construction of collective imaginaries [4]. In the case of immigration, an adequate treatment of the information is not carried out and the transmissions are framed with adjectives that disqualify them [5]. This type of information reinforces prejudices and stereotypes, they are simplified ideas of reality, resulting in the deterioration of the image of this group [6]. The way in which the mass media present the migratory fact, mainly, is through messages where it is associated with crime, terrorism and violence [3, 7]. On the other hand, it is noted that the European Union (EU) has laws that prohibit discrimination. Despite this, immigrants, descendants of immigrants, and ethnic minority groups continue to face widespread discrimination. The European Union Agency for Human Rights presented a report on this situation, the results indicate that 88% of immigrants have been victims of ethnic discrimination, of which 90% of the harassment was motivated by hatred and 72% of hate violence was not reported. Faced with these scenarios, the need for specific and stronger measures to provide legal protection against discrimination together with effective sanctions is analyzed [8]. Stereotypes as a set of ideas that make up a mental scheme about something or someone, which respond to the culture from which they come [9]. They are very similar to prejudices because they are part of people’s communication, they are acquired, created and transmitted [10]. Whereas, the prejudice is identifying an antipathy on an inflexible generalization, directed towards a person or his group. This judgment takes learned stereotyped ideas, activating discriminatory behaviors [11]. It is important to note that the generation of prejudice is very frequent in people’s relationships and quite difficult to combat. Stereotypes and prejudices act as cognitive elements, which help to define social reality. Although their nature is false, they are capable of forming beliefs and definitions about people or minorities. The funny thing is that the affected population tends to behave in the way they have been mistreated. This behavior is called the “Pygmalion Effect” [2]. Societies are less and less sensitive to groups in vulnerable situations, such as immigrants [10]. The formation of hate speech stimulates intolerance, unleashing discriminatory acts and hate crimes, which violate basic principles such as equal treatment and opportunities [5]. The result of these actions is the violation of people’s dignity for xenophobic reasons [12]. In Spain, the most used metaphor to refer to
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immigrants is “problem”. The media act on the collective imagination building an image of immigrants associated with danger, the consequence is to avoid entering the country and expel those who are already inside [13]. The media present a distorted reality of this group, this concept is called “mass mediatization” [14]. In Spain, some of the audiovisual productions transmitted on the media and social networks have an “ethnocentric” approach, based on stereotypes and prejudices that describe this minority as a threat [15, 16]. The effects that these individuals may suffer are intensified and are evidenced by acts of xenophobia, which has two fundamental dimensions: “racist cognition”, which is a set of prejudices shared by the individuals of the dominant group regarding the immigrants. And, the “discrimination” that is manifested through speeches [17, 18]. Likewise, other authors who analyzed Spanish audiovisual production, especially fiction, agree that it contributes with stereotypes, homogenizes tastes, models behavior, and induces anti-values [19–21]. The transmission of prejudices and stereotypes by ethnic origin has been unmarked against the Arab and African populations in recent years. The attacks in several European cities and the migration crisis have been the driving force behind the activation of discriminatory acts. Arabo-Islamic themes are not very prominent and hardly enter the topics of interest to users on social networks and digital media. However, specific events such as the attacks have been present in the digital spectrum [22, 23]. All these events have been documented and broadcast both through traditional media and through social networks and the internet [24–26]. These are spaces in which messages are articulated that induce hatred and violence against poor immigrants such as “Moors”, “Latinos” or “Africans” [27]. While it is true, the focus of attention has been on the Arab group. Stereotypes and prejudices affect the entire immigrant community, regardless of nationality. For these reasons, the objective of this research is to analyze the scientific production that considers the audiovisual content of the programming that is transmitted in the Spanish media and social networks, and the relationship with prejudices and stereotypes towards immigrants. For this, a systematic review of scientific journals has been carried out during the years 2016 to 2021.
2 Methodology and Sample This is a descriptive study. Initially, a research strategy was designed, defining keywords and Boolean and truncation operators. Regarding the creation of the Boolean algorithm, it consisted in defining four fixed descriptors «prejudice», «stereotype», «immigration» and «Spain»; and six variable descriptors “perception”, “attitude”, “young people”, “media”, “social networks” and “Internet”. To define the exact number of searches, an exponential mathematical operation was carried out. The applied formula is 2ˆN, where the base is 2 and the exponent is the number of
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Fig. 1 Flow diagram of study selection
variable descriptors, in this case 6. The fixed descriptors are present in each of the searches. A total of 64 different combinations (2ˆ6) were obtained. The result obtained is a final sample of 21 scientific articles that analyze the formation of prejudices and stereotypes in the audiovisual content of the Spanish media and social networks. The search was carried out in specialized databases such as Google Scholar Advanced, Scopus and Web of Science, from 2016 to 2021. Below is a diagram with the discrimination criteria to execute this review. Look at the four categories from which the content of the articles was classified (Fig. 1).
3 Results The production of academic literature that analyzes prejudices and stereotypes in the discourse and content of audiovisual productions of the media in Spain. In 2015, two major events were recorded in Europe, the humanitarian crisis resulting from the forced immigration of people from the Middle East and the attacks that were perpetuated in several cities on the continent. One year later, in 2016, 19.04% (n = 4) of manuscripts were observed. The repercussion of this event in the international socio-political context and the interest it aroused in public opinion, gave rise to the contents of the media and social networks [5]. During 2017, production is almost nil, with 4.76% (n = 1). However, in 2018 the specialists turned to present their work on this topic with 42.86% (n = 9). In the following two years, 2019 and 2020, the figure is the same with 14.29% (n = 3). In 2021, the current year, academic literature begins to be published with 4.76 (n = 1) (Fig. 2).
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Fig. 2 Publications between 2016 and 2021
In this following analysis, four categories were identified that allowed a detailed analysis of the articles selected for this sample. The way the media present the contents of their productions makes certain attributes of the themes stand out, suppress, or associate. Consequently, people perceive migration in one way or another. Of the scientific articles reviewed on media discourse framed in prejudices and stereotypes regarding immigration, 14.29% (n = 3) were obtained. Also, the contents that are presented in Spanish audiovisual productions were analyzed, highlighting fiction series and films in which the profile of the characters that embody this minority is studied. The result achieved is 19.04% (n = 4), of which 9.52% (n = 2) verify the effects of these productions on young people. 28.57% of the articles (n = 6) investigated the formation of prejudices and stereotypes in digital media and social networks. On the other hand, in relation to the articles that analyze hate crimes and racism, 38.10% (n = 8) were obtained. It is specified that 19.05% (n = 4) study rebuking specific ethnic groups such as Arabs, Chinese and Latin Americans (Fig. 3). Another analysis that was carried out summarizes the literature found in chronological order. In addition, the object of study, methodology used, results and conclusions obtained are presented (Table 1). It is observed that most of the scientific articles used content analysis as a method with 61.90% (n = 13), the presence of prejudices and stereotypes that use the outgroup to characterize the immigrant population in Spain was identified. Both the descriptive studies and the experimental designs of the investigations, the result was 14.29% (n = 3), individually. Finally, the remaining two articles use another type of method with 9.52% (n = 2). The following analysis identifies that the media contributes to the creation of a stereotyped language of this human group. The treatment of information that journalists carry out to write their stories has a limited vision, they respond to ethnocentric policies, where Western values are above other cultural groups (Articles 1, 2, 4, 5, 6,
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Fig. 3 Publications between 2016 and 2020
9, 10, 11, 15, 16, and 17). To the detriment of this minority, the audiovisual content of fiction, series and films; they have designed an entertainment model based on the discrediting, mockery and ridicule of immigrants, highlighting characteristics that show their poverty and low cultural level. These media spaces have become platforms to justify violence, abuse and discrimination (Articles 3, 8, 12, and 21). In accordance with the foregoing, reference is made to digital media and social networks. These are explosive channels that dynamite the tranquility of a person or their group. In the case of immigrants, these spaces are windows through which the members of the ex-group emit xenophobic and racist discourses. In recent years, discrimination and rejection have focused on the Arab population, giving rise to a form of discrimination, Islamophobia (Articles 7, 13, 14, 19, and 20).
4 Discussion and Conclusions The activation of prejudices and stereotypes to refer to immigrants is due to a wide range of adjectives that disqualify this group. These actions prevent real social cohesion from taking place, as a result, tension is observed between the autochthonous group and other ethnic expressions [6]. From the articles analyzed, it is considered that the attitudes of hatred on the part of the members of the out-group mark a gap, which conditions and justifies the violation of the rights of the individuals of the ingroup [5]. However, the naturalization and institutionalization of these violent forms lead immigrants to assume that they are true. This effect is known as “Pygmalion” [2]. The literature he examined shows that the media have a great responsibility when informing their audiences about the group of immigrants. The way in which Spanish citizens perceive this minority and their intergroup relations depend on the treatment
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Table 1 Scientific articles according to study object Study
Object of study (O) Method (M)
Results/conclusions
Tirado et al. [13]
(O) Media content and social networks (M) Content analysis
• The media and the networks coincide in three frames “administration in the European Union”, “irregular immigration” and “xenophobia”
Niñoles Galvañ and Ortega-Giménez [5]
(O) Radio language indicating • Radio speech: progressive use hate speech of language excluding (M) Content analysis immigrants • Association of immigrants in conflict • Radio influences social perception: xenophobia
Sánchez Castillo and Zarauza (O) Image processing of Valero [25] migration (M) Analysis of audiovisual content TV
• Negative evaluation of the news for the most part • Reinforcement of stereotypes rooted in society
Tirado-Espín et al. [13]
(O) Media agenda, frequency and discourse analysis (M) Descriptive study
• Public opinion places immigrants as a “problem”
Tirado et al. [16]
(O) Speech on China in the press (M) Content analysis
• Negative image of China in the press • Ideological brains and nationalist ideas of the in-group about the out-group
Marcos Ramos and González (O) Violent and health de Garay [21] behaviors of immigrants vs. Autochthonous (M) Content analysis
• Immigrants associated with drugs and violence • Differences between immigrants and nationals • Native Americans scored when it comes to violent behavior
Cantón Correa and Galindo Calvo [24]
• Political organizations and media that promote hatred towards immigrants, especially those of Muslim origin • Social networks are a channel for false news and hoaxes
(O) Islamophobic publications get more diffusion on social networks (M) Content analysis
Romero-Rodríguez et al. [15] (O) Stereotype analysis of • Negative connotations, Latino characters in TV series exaltation of Latin American (M) Methodological people • Series establish triangulation preconceptions of Latino immigrants (continued)
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Table 1 (continued) Study
Object of study (O) Method (M)
Results/conclusions
Santillán Buelna [26]
(O) Treatment of stereotypes, • Positive public opinion in information and sources in the reference to the Mexican press immigrant group (M) Content analysis
Arzú [27]
(O) Manifestations of prejudices and stereotypes of online press users (M) Content analysis
Chakour and Portillo Fernández [4]
(O) Mechanisms to generate • Media use military lexicon to biased discourses in the media refer to immigrants • Media bombing focused on (M) Analysis of linguistic harming, discriminating and manifestations criminalizing immigrants
Abad Villamor and Fernández Romero [19]
(O) Discourse on immigration • Stereotypical representations in the media and TV series of immigration • Asymmetric relationship (M) Content analysis between Spaniards and immigrants • Youth education developed identity
Calvo Barbero and Sánchez-García [23]
(O) Prevalence and value judgments on Islam (M) Content analysis
• Drafting of Islamophobic press releases. Speech of fear and vision of war • Muslim community associated with stereotypes and generalizations
Casáus Arzú [27]
(O) Improve the intervention of professionals who serve minorities (M) Descriptive study
• Racism and xenophobia are not new phenomena • Stereotypes of the public enemy are tied to the supremacy of the West
Martínez-Martínez et al. [20]
(O) Frame effects in young Spanish people (M) Descriptive study
• Regulation of hate speech by information professionals
• Most of the comments present prejudicial ideas towards immigrants, especially those of Arab origin • In-group comments evidence of out-group exclusion strategies
Achutegui Otaulaurruchi [10] (O) Situation of hate crimes in • Attitudes of rejection are Spain generalized (M) Experimental design and • Absence of values in society, affects coexistence semi-structured interview • Media offer generalized information, reinforce prejudices (continued)
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Table 1 (continued) Study
Object of study (O) Method (M)
Results/conclusions
Ruiz-Aranguren and Cantalapiedra González [18]
(O) Newsmaking stream of immigration information (M) Experimental design
• Limited view of the issue by the media • Immigration-crime correlation, criminalization consequence and insecurity
Igartua and Frutos [7]
(O) Link between media and immigration prejudice (M) Quasi-xperimental study
• Immigrant empathy film provoked the identification of outgroup characters and a positive immigrant attitude • Young people with moderate prejudice closer to immigrants
Poncela [11]
(O) Catalan polemic wearing • Discourse media and burqa in public spaces politicians highlight Western (M) Analysis of media values in the face of discourse and political society “otherness” • Spanish laws regulate burqa use in public spaces
Sar [14]
(O) Latin American media with an ethnocentric look (M) Discourse análisis
Ferré Pavia and Simelio Solá [6]
(O) Opinion on immigration • Xenophobic speech in readers and ethical codes • Need to moderate the content (M) Analysis of digital media generated by users content
• Media treat immigration from entertainment • Media contribute racist speeches
given to news items, which can be distorted and far removed from reality [13, 16, 20]. This phenomenon was defined as “mass mediatization” [14]. It is found that the host society is less sensitive to the vulnerability of these human groups [10]. In the period of time analyzed, a greater scientific production stands out in the analysis of Spanish audiovisual content, highlighting the fiction series [15, 19, 21]. These entertainment spaces have integrated the figure of the immigrant without characterizing him, but rather start from generalizations. The characters of immigrants are constructed from prejudices and stereotypes that reinforce hate speech, promoting fast-track discrimination [12]. There is little literature that dates on the behaviors that young Spaniards have towards immigrants. However, the relationships that develop between the two groups are generally asymmetrical. The prejudices they present are moderate, so it is emphasized in an education model that raises awareness on this issue [28]. Another relevant piece of information obtained is the stigmatization within the immigrant group of a specific group, it is people of Arab origin. Social networks have become veritable cauldrons where xenophobic and racist discourses are spread, due
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to the terrorist acts that have taken place in Europe [22]. These behaviors are accepted and shared by the members of the outgroup [17], which is difficult to modify [2]. To close this academic essay, it is indicated that this research can serve as a source of consultation for all people who are interested in learning about the prejudices and stereotypes with which immigrants are represented.
References 1. Instituto Nacional de Estadística, “Cifras de Población (CP) a 1 de enero de 2020 Estadística de Migraciones (EM). Año 2019. Datos provicionales,” 981, 1–11 (2020) [Online]. Available: https://www.ine.es/prensa/cp_e2020_p.pdf 2. Martín Cárdaba, M.A., Brändle, G.: Buscando la inclusión de las minorías en un contexto multicultural. Una revisión teórica del prejuicio y de las estrategias para reducirlo. Pap. Rev. Sociol. 98(1), 79 (2013). https://doi.org/10.5565/rev/papers/v98n1.444 3. Puertas Cartón, N., Samper Seró, C.: El ascenso de García Albiol. Politización del discurso migratorio y aplicación de la teoría del «agenda setting» en las elecciones locales de 2011. Pap. Rev. Sociol. 101(2), 137 (2016). https://doi.org/10.5565/rev/papers.2140 4. Chakour, T., Portillo Fernández, J.: La interpretación inferencial y los espacios mentales en el discurso mediático sobre inmigración en España. Rev. Humanidades 33, 63–86 (2018) [Online]. Available: http://revistas.uned.es/index.php/rdh/article/view/18504/17321 5. Niñoles Galvañ, A., Ortega-Giménez, C.: Discurso del odio en radio: análisis de los editoriales de las cadenas COPE y SER tras la llegada del Aquarius a España. Miguel Hernández Commun. J. 11(1), 117–138 (2020). https://doi.org/10.21134/mhcj.v11i0.317 6. Ferré Pavia, C., Simelio Solá, N.: Comentarios sobre inmigración en tres periódicos en línea españoles: Aproximación a un discurso racista enmascarado. Rev. Q 10(20), 137–156 (2016). https://doi.org/10.18566/revistaq.v10n20.a06 7. Igartua, J., Frutos, F.J.: Socio-Cognitivos De Películas Sobre Inmigración. El Papel Moderador Del Prejuicio Hacia Inmigrantes. Migraciones 40(2016), 33–61 (2016). https://doi.org/ 10.14422/mig.i40.y2016.009 8. Agencia de la Unión Europea de Derechos Humanos, Agencia de la Unión Europea de Derechos Humanos (2017). https://fra.europa.eu/en/news/2017/fight-against-discriminationand-hate-towards-minorities-still-fails-deliver-nearly-10. Accessed 01 June 2020 9. Durán, M., Cabecinhas, R.: Actitudes y estereotipos sociales en la comunicación. Aspectos psicosociales de la comunicación, 43–54 (2014) 10. Achutegui Otaulaurruchi, P.: Victimización de los delitos de odio. Aproximación a sus consecuencias y a las respuestas institucional y social. Rev. Vict. 5, 33–62 (2017). https://doi.org/ 10.12827/RVJV.5.02 11. Fernández Poncela, A.M.: PREJUICIOS Y ESTEREOTIPOS. Refranes, chistes y acertijos, reproductores y transgresores. Antropol. Exp. 11, 317–328 (2011) [Online]. Available: https:// revistaselectronicas.ujaen.es/index.php/rae/article/view/1932 12. van Dijk, T. A.: Cincuenta años de estudios del discurso. Discurso Soc. 9(1–2), 15–32 (2016) [Online]. Available: http://www.dissoc.org/ediciones/v09n01-2/DS9(1-2)VanDijk.pdf 13. Tirado-Espín, A., Cuesta, U., Martínez-Martínez, L., Almeida-Galárraga, D.: Agenda-setting e inmigración: análisis crítico del discurso y frecuencia en los medios: Estudio descriptivo de investigaciones en revistas científicas desde 2015 a 2020. Rev. Ibérica Sist. y Tecnol. Inf. E35, 289–302 (2020) 14. Sar, A.: La construcción mediática de los inmigrantes en Iberoamérica. Rev. Int. Comun. y Desarro. 1(3), 25–39 (2016). https://doi.org/10.15304/ricd.1.3.2946 15. Romero-Rodríguez, L.M., De-Casas-Moreno, P., Maraver-López, P., Pérez-Rodríguez, M.A.: Representaciones y estereotipos latinoamericanos en las series españolas de prime time (2014– 2017). Converg. Rev. Ciencias Soc., 93 (2018). https://doi.org/10.29101/crcs.v25i78.9162
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16. Tirado-Espín, A., Cuesta, U., Martínez-Martínez, L., Almeida-Galárraga, D.: Framing and Immigration: New Frames in Media and Social Networks, pp. 140–152. Springer (2022) 17. van Dijk, T.A.: Dominación étnica y racismo discursivo en españa y américa latina, Gedisa. Barcelona: 1st edn., Ser. Coleccion libertad y cambio (2009) 18. Ruiz-Aranguren, M., Cantalapiedra González, M.J.: La imagen negativa de la inmigración en los medios: ¿cuestión de estrategia?. Estud. sobre el Mensaje Periodístico 24(1), 361–378 (2018). https://doi.org/10.5209/ESMP.59955 19. Abad Villamor, A.I., Fernández Romero, C.: Inmigrantes en las series de televisión Aída y La que se avecina. Entre la parodia y los prejuicios. Ámbitos. Rev. Int. Comun. 40, 114–121 (2018). https://doi.org/10.12795/Ambitos.2018.i40.16 20. Martínez-Martínez, L., Cuesta, U., Tirado Espín, A.: Las noticias de inmigración en Redes Sociales y sus efectos sobre los jóvenes. Análisis descriptivo de las investigaciones en revistas científicas desde 2012 a 2017. In: Arévalo Salinas, A.I., Vilar Sastre, G., Al Najjar Trujillo, T. (eds.) Comunicación, paz y conflictos, 1st edn, pp. 173–182. Dynkinson (2018) 21. Marcos Ramos, M., González de Garay, B.: The psychosocial portrayals of immigrants in Spanish prime time television fiction (2016–2017). Commun. Soc. 32(4), 1–15 (2019). https:// doi.org/10.15581/003.32.4.1-15 22. Corral, A., Fernández, C.: Las agendas de lo araboislámico en Twitter y El País. In: Sabés, F., Verón, J.J. (eds) INNOVACIÓN Y CAMBIO EN LA COMUNICACIÓN POSTINDUSTRIAL, pp. 13–27. Asociación de Periodistas de Aragón (2015) 23. Calvo Barbero, C., Sánchez-García, P.: Islamofobia en la prensa escrita: de la sección de opinión a la opinión pública. Hist. y Comun. Soc. 23(2), 509–528 (2018). https://doi.org/10. 5209/HICS.62271 24. Cantón Correa, F.J., Galindo Calvo, P.: Posverdad, redes sociales e islamofobia en Europa. Un estudio de caso: el incendio de Notre Dame. Rev. la Asoc. Española Investig. la Comun. 6(12), 35–57 (2019). https://doi.org/10.24137/raeic.6.12.8 25. Sánchez Castillo, S., Zarauza Valero, T.: El desplazamiento de los refugiados ante las cámaras de los informativos de TVE. Tonos Digit. 38, 1–26 (2020) [Online]. Available: http://www.ton osdigital.es/ojs/index.php/tonos/article/view/2386/1146 26. Santillán Buelna, J.R.: Imágenes de México en la ‘La Vanguardia’ y ‘El Periódico de Catalunya’ (2013–2016). Index. Comun. Rev. científica en el ámbito la Comun. Apl., 8(1), 101–121 (2018) [Online]. Available: https://journals.sfu.ca/indexcomunicacion/index.php/indexcomunicacion/ article/view/365 27. Casáus Arzú, M.E.: El racismo y su proyección actual: ¿un fenómeno nuevo o un problema sin resolver? Cuad. Trab. Soc. 31(1), 121–137 (2018). https://doi.org/10.5209/CUTS.55732 28. Igartua, J., Frutos, F.: Procesos de recepción y efectos socio-cognitivos de películas sobre inmigración. El papel moderador del prejuicio hacia inmigrantes. Migr. Publicación del Inst. Univ. Estud. sobre Migr. 40(40), 33–61 (2016). https://doi.org/10.14422/mig.i40.y2016.009
Social Media and Networking
Social Media Choice of Generations Y and Z in the Portuguese Market João M. S. Carvalho
and Sílvia Faria
Abstract The growing acceptance and use of social media are influencing marketing practices and the way brands communicate with customers and look for ideas on new products, services, and offer improvements. The use of social media is crucial in today’s marketing strategy, promoting constant interaction with customers and impacting on their decision-making processes. The purpose of this study is to know what social media platforms are preferred by people from Generations Y and Z and why. By providing specific insights, this study shows differences between Y and Z individuals and outlines that all brands must carefully plan which platforms are most useful for their business, as well as decide what to communicate and share in order to create win–win situations. The results show, in addition to the study of other social media, that Facebook is the preferred platform in all motivational factors for Generation Y and Instagram for Z, which implies that marketers must act in accordance with these preferences depending on their target audiences. Keywords Social media · Generation Y · Generation Z · Preferences · Strategy
1 Introduction and Theoretical Framework Social media have become fundamental for business growth, particularly in times of pandemic. Thus, the way consumers choose social media, and the way they interact with them, is a crucial issue for organizations’ digital marketing. There are many studies about consumers’ engagement with social media marketing content [e.g. 1]. However, there is a lack of empirical research on the reasons and motivations that lead people from different generations to choose and prefer a particular social media, whether in a personal or work context [2].
J. M. S. Carvalho · S. Faria (B) REMIT-Universidade Portucalense, Porto, Portugal e-mail: [email protected] J. M. S. Carvalho e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 J. L. Reis et al. (eds.), Marketing and Smart Technologies, Smart Innovation, Systems and Technologies 280, https://doi.org/10.1007/978-981-16-9272-7_31
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In the literature, one can see studies about consumers’ cognitive, affective and behavioural engagement with social media influenced by their content richness and trustworthiness [e.g. 1; 3–6], which may lead to improved brand loyalty and performance, co-creation of value [e.g. 7–11], and increase in company sales [e.g. 12–13]. In these contexts, it seems that consumers are mainly motivated by the need to obtain and share information [3]. In addition, people can contribute to brand’s reputation, to its improvement and consumption using social media [14, 15]. Other important characteristics of social media content are their capacity to entertain the users [e.g. 16–17], and to create a consuming tribe around particular products, brands, experiences, or ideas [e.g. 18]. People’s choice of social media and their buying behaviour can also be influenced by others’ recommendations (e.g. friends, reference groups, tribes, other people’s opinions, etc.; cf., [19]). Lee and Kim did one of the few studies aimed at analysing the motivations for using certain social media [20]. They developed a 14-item measure that includes the four subscales assessing psychological motivations for using social media websites, such as surveillance, network expansion, intrapersonal motive, and relationship maintenance. Another type of study is related to the use of social media in work contexts that has been growing in the last decades, and it was considerably increased in this period of pandemic crisis. Recent studies [e.g. 2] showed that Finnish millennials and members of former generations have various intrinsic (employees’ personal choice, interest to follow the market, and discussions in their own field) and extrinsic motivations (organizations’ work culture and personal branding) for social media use at work, which had positive and negative effects in their well-being. Another stream of research is concerned with social media patterns, preferences and uses, problematic social media use, psychological well-being, self-esteem, and positive and negative affect [21]. Results showed that seems to be intrapersonal motives (to forget the complications of everyday life, to remember what was done, to spend time, and to record everyday life) that have the greatest predictive impact on problematic social media use. As is generally accepted, teens’ and young adults’ behaviours are very important to estimate present and future offline and online consumption. There is an American study specifically aimed at obtaining data on youth and adolescent adherence to social media [22]. This study was made by interviewing 1058 parents and 743 teens ages 13 to 17. It concluded that these teens adhered preferably to YouTube (85%), Instagram (72%), Snapchat (69%), and Facebook (51%). However, they used Snapchat (35%) more often, followed by YouTube (32%), Instagram (15%9), and Facebook (10%). Today, 95% of them have a smartphone or access to one, 88% have access to a desktop or laptop computer, and 45% say they are online on a near-constant basis. This survey showed also that lower-income teens are more likely to adhere to (70%) and use most often (22%) Facebook than those from higher-income households (36%, 4%). Other differences appeared between boys and girls, being the former who use more YouTube (39% vs. 25%) and the latter who use more Snapchat (42% vs. 29%). The main reasons pointed out by the teens for the use of social media are their capacity to help them keep in touch and interact with family, friends, and new people (40%), the access to news and information (16%), to connect with people who
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share similar interests (15%), to be entertained (9%), to express themselves (7%), to get support from others (5%), and to learn new things in general (4%). Another recent study [23] showed, in a Polish context of selecting a destination for tourist purposes, that Facebook, YouTube, and Instagram are the most used social media for Generation Y. We used several streams of theoretical reasoning for people’s behaviour related to the choice of social media applications, such as social identity theory [24], selfdetermination theory [25], customer engagement theory [3], and theory of planned behaviour [26, 27]. Social identity theory is based on person’s sense of belonging to a group or groups, such as social class, family, close friends, etc. which are an important source of pride and self-esteem. According to self-determination theory, intrinsic motivation is the natural, inherent drive to seek out challenges and new possibilities associated with cognitive and social development. This theory includes people’s needs for autonomy, competency, and relatedness. Customer engagement theory is about people’s cognitive, affective, and behavioural engagement. And the theory of planned behaviour defends that, in order to act, people need to have a positive attitude, think that their significant others want them to perform the behaviour, have sufficient motivation, and realise that they have a perceived behavioural control or self-efficacy [28]. Thus, defining social media as Internet-based applications that allow people’s creation and exchange of content [29], we aimed at knowing what social media platforms are preferred by people from Generations Y and Z (18 to 40 years old), and motivations or causes for their utilization, focusing in the Portuguese context.
2 Methods We had a mixed approach to this research, starting with a qualitative phase, where we performed interviews and analysed the theories that can explain the motivations to prefer and use a social media, followed by a quantitative phase, applying a questionnaire to university students, families, and friends. Procedures: We have started with six interviews with two persons of each target generation for this study: Millennials Y.1 (born between 1981 and 1985, aged 36 and 40 years); Millennials Y.2 (born between 1986 and 1994/6, aged 25 to 35 years); and Generation Z (born between 1997 and 2012/15, aged 18 and 24 years old). These open interviews, as well as the literature analysis, allowed us to determine the appropriate list of proposed answers for the questionnaire. Then, an online survey hosted on Qualtrics was created and sent to university students, requesting their collaboration in the study by responding and passing it to their friends who are at least 18 years old. Questionnaire: At the beginning of the form, all potential participants were informed about the nature of the study and required to provide online informed
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consent in order to partake in the study. Participants were provided with all the necessary information about the ethical aspects of this study (e.g. anonymity, confidentiality, right to discontinue participation, right to withdraw their data after completing the study). The online survey was expected to be completed in 5 min on average. We used closed and multiple-choice questions with the possibility of adding missing types of answers. Sociodemographic and social media use characteristics were assessed with questions asking about participants’ gender, age, activity, preferred social media platforms, and causes and motivations for the preference of certain social media platforms. The respondents choose their three preferred social media platforms and then they answered to the following question: What are reasons and motivations that led you to choose these social media? (You can check all the answers you consider appropriate in each column; see Table 2). There was also a question that allowed the participant to refer other causes and motivations not considered in the previous list of answers. Participants: Survey respondents who are social media users were targeted among university students and their friends and family. Consequently, to participate in the study, respondents needed to be: (1) social media users and fans; (2) aged between 18 and 40, which means that they belong to Generation Y/Millennials, or to Generation Z. This choice was made because individuals of Generation Y are known as digital natives or the net generation [2], and those of Generation Z are individuals who most use the Internet for everything. We used a purposive sample of seven high education institutions distributed in all Portugal regions, being three public and four privates. The final sample of individuals was constituted by 633 persons from Generation Z (mean age = 20.29; SD = 1.72; 74.2% female; 93% students, 5.2% workers, 1.1% unemployed, 0.2% entrepreneurs, and 0.55 with other activity), and 401 from Millennials (mean age = 34.53; SD = 4.27; 61.3% female; and 60.8% workers, 15.2% entrepreneurs, 12.2% students, 5.5% unemployed, and 6.2% with other activity). Data analysis: Data analysis was made using the IBM SPSS 26.0 software.
3 Results and Discussion The results on social media preferences are depicted in Table 1. Facebook is the preferred social media for Generation Y, and Instagram for Generation Z. It is common knowledge that young people change their preferences because, in many cases, they do not want to be exposed where their older family members are [30]. A recent research [31] found that new communication formats via social networks, such as Snapchat and Instagram, seem to bring a more dynamic visual appeal to younger users, unlike traditional publications on Facebook, in the form of Feed. In addition, Facebook’s recent security and privacy issues seem to have impacted their choice of use, as the youngers are increasingly aware of how the information they share is used on the internet.
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Table 1 Social media preferences (%) Generations Social media Y Z Y Z Y Z Y Z n = 401 n = 633 n = 401 n = 633 n = 401 n = 633 n = 401 n = 633 1st preference
2nd preference
3rd preference
Total
Facebook
48.9
4.9
24.2
18.8
15.0
20.7
88.1
44.4
Instagram
25.9
69.2
30.4
20.5
19.2
6.0
75.5
95.7
LinkedIn
10.0
0.3
16.0
0.9
16.2
3.3
42.2
4.5
WhatsApp
12.0
8.8
11.5
15.2
7.7
14.1
31.2
38.1
Twitter
1.5
9.0
1.7
23.5
6.2
19.4
9.4
51.9
YouTube
0.2
3.0
3.2
5.4
2.5
7.0
5.9
15.4
Tik Tok
0.0
1.7
1.2
8.2
2.2
12.0
3.4
21.9
Messenger
0.5
0.6
1.0
1.6
1.7
3.3
3.2
5.5
Pinterest
0.0
0.2
0.5
1.3
1.5
2.2
2.0
3.7
Reddit
0.5
0.2
0.0
0.0
0.0
1.1
0.5
1.3
Discord
0.0
1.6
0.0
0.8
0.2
0.6
0.2
3.0
Snapchat
0.0
0.0
0.0
0.6
0.2
1.9
0.2
2.5
Othera
0.4
0.6
1.7
1.0
4.1
2.4
6.2
4.0
a With
marginal percentages: Pixelfed, Twitch, 9gag, Olhares, Steam, Patreon, Spotify, Telegram, Colibri-Zoom, Signal, Skype, Noticias, Blog, Goodreads, Yahoo Answers, We Heart it, People, Tumblr, Depop, Tinder, Strava, Clubhouse, Research Gate, Nonio, We chat, and Couchsurfing
Among the most popular social media are WhatsApp, Messenger, and Instagram, which are transversal to generations; LinkedIn, which is mainly used by Generation Y; and Twitter, YouTube, and Tik Tok, which are more used by Generation Z. There are marginal percentages for “Other”, combining specific platforms for games, sports, shopping, dating, music, reading and the possibility of learning between people, as well as conducting meetings or classes instantly and with reduced or zero costs. It is noticeably clear that Facebook is the best in all factors for Generation Y, and the same happens in relation to Instagram for Generation Z in Portugal (Table 2) with statistical significance (t tests). This means that all the theories presented (social identity theory, selfdetermination theory, customer engagement theory, theory of planned behaviour) as being able to explain the chosen motivational factors are at the base of the options of both generations, but with different focuses: for Generation Y it is Facebook, and for Generation Z it is Instagram. Thus, the choice of the main social media is dependent on the individual’s age. Other reasons for the use of social media by Generation Z were: being part of specific groups (6); having international friends (3); getting inspiration for unknown activities or areas (2); entertainment (12); professional reasons (4); see content of influencers (1); looking for a job (2); security and data storage outside the phone (1); following trends and fashions (1); shopping (2); watch food videos (1).
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Other motives for the use of social media by Generation Y were: professional reasons (21); cybersecurity (1); entertainment (4); the first social network they tried (1); family group (1); private group (1); important for business (2); get international news (1); access to events (1); inspiration (3); gesture sharing (2); and research (1). Table 2 Reasons for social media preferences—1st group
Reasons for Generations social media Y Z Y Z Y Z Y Z preferences n = 353 n = 281 n = 303 n = 606 n = 169 n = 29 n = 14 n = 139 Facebook
Instagram
LinkedIn
Tik Tok
% of respondents in each Generation 1
55.8c
2
52.1c
41.6
62.4c
34.9b
13.8
0.0
20.9c
45.5
78.7c
3
42.2c
37.3
27.6
28.6
28.8
18.5
32.7
55.1c
29.0a
4
35.4c
13.8
7.1
18.7
8.2
28.4
57.9c
23.7a
10.3
7.1
5
54.1c
10.1
46.9
71.6c
46.2b
6
55.5c
17.2
42.9
38.1
32.7
45.5
75.1c
7
21.8c
47.3
41.4
21.4
28.8
7.8
10.6
34.2c
9.5
3.4
0.0
6.5b
8
62.9c
34.9
44.6
80.0c
30.8b
10.3
0.0
21.6c
9
50.7c
21.4
37.6
61.6c
27.2b
6.9
7.1
9.4
10
44.2c
22.8
35.6
67.3c
29.6
20.7
14.3
23.7
11
44.5c
18.5
33.0
56.4c
30.8
24.1
0.0
18.0c
12
48.2c
20.6
37.3
68.2c
31.4
17.2
0.0
18.0c
13
55.0c
46.2
73.1c
40.8a
24.1
21.4
32.4
14
64.3c
37.3
54.1
80.5c
52.7
37.9
28.6
36.7
15
47.6c
27.0
35.3
65.3c
33.7b
17.2
7.1
23.7a
16
44.8c
37.6
70.1c
33.7
20.7
14.3
24.5
17
49.6c
30.2
40.3
67.2c
34.9
27.6
14.3
29.5
18
48.7c
20.6
34.7
65.3c
27.8b
10.3
21.4
17.3
19
36.3c
18.5
32.7
62.9c
21.9a
10.3
0.0
22.3c
20
42.5c
24.9
30.7
67.0c
23.1a
10.3
0.0
18.0c
21
60.3c
47.9
82.5c
26.6
20.7
42.9
47.5
22
31.2c
24.8
58.4c
20.1b
3.4
7.1
11.5
23
36.5c
27.7
62.9c
21.9c
3.4
0.0
13.7c
24
28.9c
18.8
31.2c
21.3b
6.9
0.0
5.8b
22.1 28.8
31.3
28.5
28.8
38.1 11.7 19.6 9.6
(continued)
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Table 2 (continued)
Reasons for Generations social media Y Z Y Z Y Z Y Z preferences n = 353 n = 281 n = 303 n = 606 n = 169 n = 29 n = 14 n = 139 Facebook
Instagram
LinkedIn
Tik Tok
% of respondents in each Generation 25
14.7c
5.0
9.6
11.9
10.1
6.9
7.1
7.9
a p < 0.05; b p < 0.01; c p < 0.001
List of the reasons for social media preferences: 1. Friends’ influence; 2. Type of available functionalities; 3. Sense of tribe or belonging to that community; 4. Where I can have more privacy; 5. Application friendliness; 6. Where I can get specific information about certain goods, services, ideas, or experiences; 7. Where I started playing with my friends; 8. Where is my group of friends; 9. Where is my family; 10. Where I can know new people; 11. Where I can be significant to the community; 12. Where I know that I can manage better my profile or my image; 13. Where I can produce and share my content; 14. Where I can follow certain contents or news; 15. Where I can learn something about my colleagues; 16. Where I can discover the pressing issues of our society; 17. Where I can provide information about my interests to others; 18. Where I can express my feelings and thoughts to others; 19. Where I can forget the complications of everyday life; 20. To remember what I did; 21. To spend time; 22. To record my everyday life; 23. To provide updates on my current life to friends/acquaintances; 24. The platform chose by the school, university, or company; 25. Other reasons
It seems that LinkedIn has a great impact on Generation Y, being more important to this generation than to the other based on 14 factors with differences statistically significant. Social identity theory explains six of them, being the dominant one, followed by the theory of planned behaviour (4 factors), self-determination theory (3 factors), and customer engagement theory with only one factor. This result was expected as LinkedIn is presented as a professional social media, which is naturally more attended by people that have already an identity in the work market, and are more likely to use this platform in order to plan and determine their future professional behaviours. On the other hand, Tik Tok has more success among Generation Z, namely based on ten factors. This is a more entertaining platform that attracts younger people around the world. However, it can be noted that they have a distribution similar to that of Generation Y, in terms of the types of theories explaining their choices: social identity theory (5 factors); theory of planned behaviour (2 factors); self-determination theory (2 factors); and customer engagement theory (1 factor). Nevertheless, people from Generation Y considered Tik Tok as a friendly application where they can share and find interesting content and news, being a good social media to spend time. Generation Z also seems to be more interested in Twitter than Generation Y, namely based on 14 factors or motivations (Table 3). These factors are distributed by social identity (5 factors) and self-determination (5 factors). They do not see this social media from a point of view of customer
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engagement (zero factors), but it is somehow important for their planned behaviour (3 factors). Probably, Generation Z prefers more to publish small texts, as well as follow what people they like are doing at any moment. WhatsApp is a more transversal social media and presents three specific and different motivations for both generations: the Y relate more this social media with their social identity (3 factors); and some of the Z individuals, as well as happens with Instagram, Twitter, and Tik Tok, with customer engagement theory (2 factors Table 3 Reasons for social media preferences—2nd group Reasons for social Generations media preferences Y Z Y Z Y Z Y Z n = 38 n = 329 n = 125 n = 241 n = 13 n = 35 n = 24 n = 97 Twitter
WhatsApp
Messenger
YouTube
% of respondents in each Generation 18.4
29.5
48.0b
33.6
46.2a
14.3
20.8
28.9
2
15.8
41.6c
52.0
48.1
30.8
48.6
37.5
46.4
3
7.9
23.7b
35.2a
25.7
15.4
20.0
12.5
26.8a
4
15.8
18.2
29.6
22.4
15.4
11.4
12.5
15.5
5
31.6
44.7
52.8
45.2
23.1
34.3
29.2
42.3
6
28.9
38.3
36.0
32.4
15.4
20.0
33.3
54.6a
2.6
7.9a
9.6
8.3
15.4
11.4
0.0
4.1a
8
23.7
43.5b
57.6
57.7
61.5a
34.3
25.0
30.9
9
10.5
17.3
46.4b
30.3
46.2
25.7
4.2
11.3
10
15.8
39.2b
24.8
32.8
23.1
17.1
25.0
24.7
11
15.8
25.5
22.4
24.5
15.4
14.3
20.8
23.7
12
10.5
29.5c
24.8
27.4
23.1
14.3
12.5
19.6 26.8
1
7
13
26.3
35.9
39.2
36.1
46.2
22.9
45.8a
14
44.7
49.2
33.6
43.6a
15.4
20.0
54.2
61.9
15
10.5
37.7c
25.6
40.2b
23.1
28.6
20.8
30.9
16
23.7
35.6
25.6
34.4a
15.4
14.3
29.2
37.1
17
15.8
39.5c
27.2
33.2
30.8
22.9
20.8
24.7
18
23.7
28.6
33.6
31.5
23.1
17.1
20.8
21.6
15.8
33.7b
21.6
26.6
15.4
17.1
16.7
36.1a
20
10.5
26.4b
24.0
26.1
15.4
14.3
20.8
21.6
21
26.3
58.1c
43.2
44.0
23.1
37.1
41.7
66.0a
22
10.5
23.7a
17.6
21.2
15.4
11.4
16.7
11.3
23
7.9
30.1c
23.2
30.3
30.8
17.1
12.5
16.5
24
7.9
7.9
13.6
14.1
15.4
20.0
4.2
19
2.1 (continued)
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Table 3 (continued) Reasons for social Generations media preferences Y Z Y Z Y Z Y Z n = 38 n = 329 n = 125 n = 241 n = 13 n = 35 n = 24 n = 97 Twitter
WhatsApp
Messenger
YouTube
7.7
8.3
% of respondents in each Generation 25
0.0
4.6c
12.8
7.9
2.9
5.2
ap
< 0.05; b p < 0.01; c p < 0.001 List of the reasons for social media preferences: 1. Friends’ influence; 2. Type of available functionalities; 3. Sense of tribe or belonging to that community; 4. Where I can have more privacy; 5. Application friendliness; 6. Where I can get specific information about certain goods, services, ideas, or experiences; 7. Where I started playing with my friends; 8. Where is my group of friends; 9. Where is my family; 10. Where I can know new people; 11. Where I can be significant to the community; 12. Where I know that I can manage better my profile or my image; 13. Where I can produce and share my content; 14. Where I can follow certain contents or news; 15. Where I can learn something about my colleagues; 16. Where I can discover the pressing issues of our society; 17. Where I can provide information about my interests to others; 18. Where I can express my feelings and thoughts to others; 19. Where I can forget the complications of everyday life; 20. To remember what I did; 21. To spend time; 22. To record my everyday life; 23. To provide updates on my current life to friends/acquaintances; 24. The platform chose by the school, university, or company; 25. Other reasons.
that consider this social media as one of the places where they can follow contents, news, and colleagues), and social identity (1 factor). Messenger is also chosen by the two generations, with only two more relevant motivations for Generation Y related to social identity theory. Finally, YouTube presented five main motivations for the fans of Generation Z: social identity and planned behaviour with two factors each, and one in customer engagement, showing that this platform is used to get information, probably education, and to have a good time of entertainment. Affirm these individuals, namely through the planned production of content, which is very common. On the other hand, Generation Y use this social media more than Generation Z to produce and share content. We did not analyse in detail Snapchat because we only got one fan in Generation Y and 16 in Z, as well as happened with Discord (one Y and 19 Z), Reddit (two Y and 15 Z), and Pinterest (8 Y and 23 Z). Table 4 shows the first six motivations by social media and generation, which can help marketers when they have to decide which social media they should choose to implement marketing communication. The types of motivations for choosing social media are not quite different between generations, however, their order of importance has statistically significant differences that must be taken into account by professionals.
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Table 4 Motivation profile of the most social media preferred by Generation Y and Z Gen. Y
Motivations
Facebook
14 (64.3%); 8 (62.9%); 21 Instagram (60.3%); 1 (55.8%); 6 (55.5%); 13 (55%)
Gen. Z
Motivations 21 (82.5%); 14 (80.5%); 8 (80%); 2 (78.7%); 6 (75.1%); 13 (73.1%)
LinkedIn
14 (52.7%); 6 (47.3%); 5 (46.2%); Tik Tok 13 (40.8%); 2 (37.3%); 17 (34.9%)
21 (47.5%); 5 (38.1%); 14 (36.7%); 13 (32.4%); 17 (29.5%); 6 (28.8%)
WhatsApp 8 (57.6%); 5 (52.8%); 2 (52%); 1 (48%); 9 (46.4%); 21 (43.2%)
WhatsApp 8 (57.7%); 2 (48.1%); 5 (45.2%); 21 (44%); 14 (43.6%); 15 (40.2%)
Messenger 8 (61.5%); 1 (46.2%); 9 (46.2%); 13 (46.2%); 17 (30.8%); 23 (30.8%)
Messenger 2 (48.6%); 21 (37.1%); 5 (34.3%); 8 (34.3%); 15 (28.6%); 9 (25.7%)
YouTube
14 (54.2%); 13 (45.8%); 21 (41.7%); 2 (37.5%); 6 (33.3%); 16 (29.2%)
YouTube
Twitter
14 (44.7%); 5 (31.6%); 6 (28.9%); Twitter 21 (26.3%); 13 (26.3%); 18 (23.7%)
21 (66%); 14 (61.9%); 6 (54.6%); 2 (46.4%); 5 (42.3%); 16 (37.1%) 21 (58.1%); 14 (49.2%); 5 (44.7%); 8 (43.5%); 2 (41.6%); 17 (39.5%)
1. Friends’ influence; 2. Type of available functionalities; 3. Sense of tribe or belonging to that community; 4. Where I can have more privacy; 5. Application friendliness; 6. Where I can get specific information about certain goods, services, ideas, or experiences; 7. Where I started playing with my friends; 8. Where is my group of friends; 9. Where is my family; 10. Where I can know new people; 11. Where I can be significant to the community; 12. Where I know that I can manage better my profile or my image; 13. Where I can produce and share my content; 14. Where I can follow certain contents or news; 15. Where I can learn something about my colleagues; 16. Where I can discover the pressing issues of our society; 17. Where I can provide information about my interests to others; 18. Where I can express my feelings and thoughts to others; 19. Where I can forget the complications of everyday life; 20. To remember what I did; 21. To spend time; 22. To record my everyday life; 23. To provide updates on my current life to friends/acquaintances; 24. The platform chose by the school, university, or company; 25. Other reasons.
4 Conclusion There is a great lack of studies related to the social media preferences among generations, namely in Portugal. The results of this study are especially important to managers and marketers because it is needed good information about the social media preferences of the Generations Y and Z, as they are the present and future of all businesses. Advertising and selling online are crucial for the businesses’ sustainability in modern world, namely for these generations that are favourable to do business online. This study presents Generations Y and Z’s profiles for their social media preferences. One can conclude that there are several relevant statistical differences between the motivations of both generations. Generation Y prefers, in decreasing order, Facebook, Instagram, LinkedIn, WhatsApp, Twitter, YouTube, Tik Tok, Messenger,
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Pinterest, Reddit, Discord, and Snapchat. On the other hand, the ranking for Generation Z is Instagram, Twitter, Facebook, WhatsApp, Tik Tok, YouTube, Messenger, LinkedIn, Pinterest, Discord, Snapchat, and Reddit. For both Facebook and Instagram, there are main motivations for both generations, although the order of priorities is different. In resume, assessing all social media chosen by the respondents, the main six motivations for Generation Y are, by decreasing order: (1) finding and following certain contents or news; (2) application friendliness; (3) where is the group of friends; (4) spending time; (5) where one can get specific information about certain goods, services, ideas, or experiences; and (6) where one can produce and share their contents. For Generation Z, the motivations are: (1) spending time; (2) finding and following certain contents or news; (3) where is the group of friends; (4) type of available functionalities; (5) application friendliness; and (6) where one can get specific information about certain goods, services, ideas, or experiences. It seems that Generation Y values more producing and sharing their contents, and Generation Z the type of available functionalities because they are the only two motivations that are different in the first six ones. As expected, it seems that the older generation is a bit more conservative, and likes more to produce and share their own content, and the younger generation is privileged more to have many and interesting functionalities to explore in the chosen social media. The reasons that support the preference for the social network indicate, essentially, the common interests per generation of consumers. They provide insights to brands on where to share, what, and how to do it (apps, functions, images, words, memes, etc.), depending on their target. At the same time, it contributes to helping marketers to characterize market segments, essentially from a generational and behavioural perspective, contributing to the understanding of trends and, consequently, serving as a source of ideas for new products and services, as well as for the improvement of those already existing in the marketplace. Another contribution is the verification of the actual use of social networks by young individuals, which makes them an essential element to be included in the marketing strategy of any company. This study presents some limitations, such as being restricted to one country and, although we have arranged a good sample, it was difficult to increase its number because most people have been overrun with inquiries since all researchers want to study them during the pandemic period. We think it will be useful to enlarge our sample in the future and to study these motivations for social media preferences in many other countries.
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Impact of Social Media Influencers on the Portuguese Tourism and Travel Industry in a Covid-19 Era Lara Madureira and Bráulio Alturas
Abstract The way society communicates with each other has gone through huge changes during the years. This has led to a revolution on the process of gather and exchange information by the consumers regarding brands, products, and services. Nowadays, any person can express their opinion on their social media accounts and share it with whoever he/she wants on a global scale. It is here that Social Media Influencers (SMIs) appear, anyone with a considerably large audience on social media has the ability to influence many others to take an action. Currently, the Tourism and Travel (T&T) industry is facing unprecedented challenges due to the Covid19 pandemic; being one of the biggest sectors worldwide, driving socioeconomic development and job creation is vital for this industry to recover as faster as possible. Many actions are being done to make that happen and one possible great tool is SMI. Shortly, this research aims to understand if SMIs can boost the T&T industry by showing that a destination and its tourism services/products are safe in this time of fear of travelling due to the pandemic. Keywords Social media · Social media influencers · Travel and tourism · Travel planning · Covid-19
1 Introduction Year after year, both the number of internet users and the number of social media users are significantly growing. In 2021, the number of internet users reached 59.5% of the total population (4.66 billion users, with a growth of 7% from the last year) and 53.6% of the society has an active social media account (4.20 billion of active social media users, with a 13.2% increase versus 2020). Not only the number of users L. Madureira · B. Alturas (B) Instituto Universitário de Lisboa (ISCTE-IUL), ISTAR-Iscte, Av. das Forças Armadas, 1649-026 Lisbon, Portugal e-mail: [email protected] L. Madureira e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 J. L. Reis et al. (eds.), Marketing and Smart Technologies, Smart Innovation, Systems and Technologies 280, https://doi.org/10.1007/978-981-16-9272-7_32
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is growing, but also the time these users spend online; in 2021, the average amount of time that an internet user spends daily is six hours and 54 min. From those hours online, in average, two hours and 25 min are spent on social media networks [1]. Thus, nowadays, the internet and, more specifically, social media networks make it easier to express an opinion about something and share it with who you want on a global scale in a matter of seconds. People with a considerably large audience on social media can influence many others to take an action. To attend the consumers’ needs, numerous sectors are diving into the online world, and, more specific, into social media networks; Travel and Tourism (T&T) industry is not an exception. T&T is considered one of the biggest sectors worldwide, driving socioeconomic development and job creation (accounts globally for 10.3% of the global GDP, totaling $8.9 trillion) [2]. Presently, the society is leaving a never seen reality; the outbreak of COVID-19 has hit all countries around the world at different times, in different ways, and in varying degrees. Globally, the response to control the pandemic was made through national lockdowns, a wide-ranging enforce of travel restrictions and shutdown of borders making T&T one of the hardest-hit sectors. Thus, T&T is facing unprecedented challenges, with the unprecedented projected losses for 2020 of $2.7 trillion and 100.8 million job losses. Nonetheless, it is a sector with the major losses, and T&T will be an important sector in driving the recovery of the global economy post-COVID-19 by generating new jobs and driving people back to destinations [3]. Currently, the society is living in a time where fear does not allow many people to travel and plan holidays away from their homes. The first step to boost T&T sector is managing this fear and stigma, associated with the infodemic. Along these lines, the key to boost T&T sector is by rebuilding confidence of the public that they can travel safely once the restrictions are lifted, and it is allowed to. In order to do that many governments around the world are developing and implementing initiatives to restart tourism and promote domestic demand [4]. One of these initiatives is digital promotion with the use of social media networks. Shortly, the present study aims to understand in which degree Social Media Influencers can stimulate people to travel by showing people through their social media accounts how and where is safe to travel in this uncertain pandemic times (this being our research question). Additionally, analyze if people trust them and follow their advices and suggestions, and this regarding places, products, services, or activities related to travelling. More in detail, the study aims to comprehend the following aspects, divided by four objectives: • Objective 1: Comprehend how frequent Portuguese people travel and understand their travel patterns pre-Covid-19 and now, in a Covid-19 era. • Objective 2: Apprehend the Portuguese tourists’ planning process and the changes occurred due to Covid-19. • Objective 3: Understand how much people use social media and if they use them for traveling planning.
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• Objective 4: Comprehend how people perceive SMIs and to which degree they can be a valuable tool for tourism industry.
2 Literature Review 2.1 Social Media and Social Media Influencers The Internet is at once a worldwide broadcasting capability, a mechanism for dissemination of information, as well as an intermediate for collaboration and interaction between individuals without regard for geographic location [5]. Therefore, Web 2.0, and the resulting digital revolution, provided the conditions for individuals to connect, communicate, and interact across social media platforms. Users have the power to cocreate potentially engaging and therefore strongly influential content [6]. Nowadays, with social media networks, the communication between people and the exchanging of information is effortless process. Even though there is not a consensus and formal definition of the term “Social Media,” there are numerous definitions from different scholars, and many complement each other. Berthon et al. [7] says Social media “is the product of Internetbased applications that build on the technological foundations of Web 2.0”. Kaplan and Haenlein [8] highlighted the functionality of social media as an information tool, defining as “a group of Internet-based applications that build on the ideological and technological foundations of Web 2.0, and that allow the creation and exchange of user-generated content”. Mangold and Faulds [9] added that social media have become a major factor in influencing various aspects of consumer behavior including awareness, information acquisition, opinions, attitudes, purchase behavior, and postpurchase communication and evaluation. Accordingly, “Social Media” can be generally understood as Internet-based applications that carry consumer-generated content which encompasses “media impressions created by consumers, typically informed by relevant experience, and archived or shared online for easy access by other impressionable consumers” [10]. In 2021, there are 4.20 billion of active social media users (accounting for 53.6% of the total population and with an increase of 13.2% compared to 2020). The age group with more social media users is from 25 to 34, followed by the 18–24 years old age group, and both groups together account for 57.4% of the total of social media users [1]. Regarding the most use social media platforms worldwide, Facebook is leading the social media platforms for years, with 2.740 million active users in 2021. In second place is YouTube, with 2.291 million active users and after are placed the chat social platforms WhatsApp and Facebook Messenger with 2000 million and 1300 million active users, respectively. In fifth place is Instagram with 1221 million active users [1]. Although Instagram is in fifth place relatively to the number of users, Instagram was ranked the most important influencer marketing channel [11]. Instagram is a free photo and video sharing app. People can upload photos or videos to the network and share them with their followers or with a select group of friends.
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They can also view, comment, and like posts shared by their friends on Instagram [12]. YouTube ranks second as the most important influencer marketing channel [11]. The popularity of social media networks led to the emergence of Social Media Influencers. Nevertheless, the terms “influencer” and “opinion leader” are no phenomenon of nowadays, people have been influenced by others for many years now. For years, opinion leaders have been generally defined by different authors as individuals who influence other people in their immediate environment. These individuals can be found in different areas of interest such as beauty, sports, travel, or politics, between others. With the rise of social media platforms, these opinion leaders are more and more present on social media. With a quick navigation through Social Networks, the increase in the relevance of influencers for brands becomes noticeable. Through partnerships with them, whether offering products/services or even a monetary value, these influencers share with their followers their opinion about a particular product/service [13]. Consequently, with this change of environment was born a new term for these key opinion leaders, Social Media Influencer (SMI). Through social media, SMIs engage in a personal relation with their followers displaying to them their personal and everyday lives. Doing this, SMI have the ability to affect attitudes and behaviors of others, such as help potential customers make a purchase decision [14]. Thusly, a SMI can be defined as an individual with the ability of inspiring or guiding the actions of others, someone who can generate interest in something, e.g., a location, by posting about it on social media [15]. Hence, SMIs can be spokespersons of a tourist destination. They contribute to elevate the image of the place, increasing the likelihood of people visiting a particular destination [6].
2.2 Travel and Tourism Industry Travel and Tourism (T&T) can be well-defined as “the activity of travelers on trips outside their usual environment with a duration of less than one year,” involving all the economic activity related to such trips [2]. T&T is now one of the biggest sectors worldwide, driving socioeconomic development, prosperity, and job creation [2]. The sector accounts for 10.3% of the global GDP (totalizing $8.9 trillion) and 330 million jobs in 2019. Furthermore, in 2019, the T&T sector had a GDP growth of 3.5%, a higher rate that the global economy (2.5%) for the ninth consecutive year [2]. Even though countries usually focus on international tourism, in 2019, domestic travel generated most of T&T expenses, accounting for 71.3% of total global spending. Thus, domestic tourism must be considered as much powerful as the international tourism, even more now, with the outbreak of the pandemic. The “domestic tourism will likely be a key driver in the sector’s initial recovery from Covid-19” [2]. The Covid-19 pandemic led to national lockdowns and a wide-ranging enforce of travel restrictions and shutdown of borders. As a result, T&T was one of the hardesthit sectors with the emergence of the COVID-19 pandemic. International tourist
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arrivals have abruptly declined in the first quarter of 2020 (−22%), with possible scenarios for the year pointing to an annual decrease among 60% and 80% when compared with 2019 figures depending on the pace of easing travel restrictions [16]. These numbers translate the greatest Tourism crisis on record [17]. Even though T&T is suffering these massive losses with the outbreak of the pandemic, the sector will be the key sector in driving the recovery of the global economy post-COVID-19 by generating new jobs and driving back to destinations. The sector will have a positive economic domino effect on suppliers across the entire supply chain [16]. With still many travel restrictions in place around the world, consumers are considering destinations closer to home in the early stages of travel normalization. Thus, destinations worldwide are prioritizing domestic travel in order to “boost the restart and recovery of the sector in times of the COVID-19 pandemic” [4]. To meet this goal, many governments around the world are developing and implementing initiatives to restart tourism and promote domestic demand. There are a diversity of initiatives for instance financial incentives, marketing and promotion, product development, partnerships, marketing intelligence and capacity building, and training [4]. These are the first steps to restore confidence and reactivate T&T economy.
2.3 Travel and Tourism in Portugal In Portugal, the importance of T&T sector is even bigger that in the global scale. It represents 16.5% of total economy (34.6 billion EUR), with a GDP growth of 4.2% (vs. 1.6% of real economy GDP growth). It accounts for 18.6% of total employment, and it also embodies 23.4% of total exports, with 21.6 billion euros in visitor spend. Contrary to the global trend, Portugal, in 2019, had only 30% of domestic spending, and the remaining 70% were with international spending [16]. The trend of growth of tourism in Portugal was still visible in the first two months of 2020, with growth rates compared to the same months in the previous year of 8% and 15%, respectively [18]. Then, the Covid-19 emerged, and the picture changed due to the lockdowns and travel restrictions. In 2020, tourism establishments registered a decrease of 61.3% in guests compared to 2019 (10.5 million guests). Since 1993, a number as low as this was not registered. Also, in 2020, the tourism revenues reached 7753 million euros, a break of 57.6% compared to 2019, where the number was 18,291 million euros [19]. The recovery of Portuguese T&T sector to the pandemic will be gradual, focusing first on the Portuguese’s tourists and closer markets [18]. In order to get travelers to feel safe travelling and reinforce their confidence on tourism, Turismo de Portugal created the “Clean and Safe” label. The big aim is for consumers to have greater security and confidence in the use of accommodation establishments, in the various tourist services and tourist attractions [20]. A previous study showed that 36% of tourists visited Portugal on the recommendation of friends or relatives and 22% made their decision based on information available on the Internet [21].
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3 Methodology This research study aims to explore the relationship between Social Media Influencers and their followers, more concretely how SMI can be a tool in helping the recovery to the T&T industry in these times of the COVID-19 pandemic. To achieve this aim, it was applied quantitative analysis. Frequently, when doing quantitative research, data are collected using questionnaires [22, 23], as they “gather information about the characteristics, actions, or opinions of a large group of people” [24]. Accordingly, data were collected through an online survey. The online survey was made in the platform Qualtrics, an online survey provider, and the questionnaire was available online, with free access, from April 22 to April 29, 2021. The answers collected constitute a convenience sample, as the survey was shared on the various social media channels and communication tools by the author of the dissertation, e.g., LinkedIn, Facebook, Instagram, and WhatsApp. Additionally, the snowball sampling method was used as respondents share the survey further to other potential participants [25]. Furthermore, the survey was shared in Portuguese because the aim is to have Portuguese residents’ respondents and, for this reason, not limited someone participating due to language issues. The questionnaire starts with a concise introduction, and after, it divides in five blocks, namely: (a) travelling journey information; (b) travelling planning process; (c) social media use; (d) SMIs-related questions; and (e) sociodemographic information. More in detail, the first part of the questionnaire is related to the participant’s travel journey information, it questioned frequency and company of travelling and also the sense of security while travelling, in Portugal and outside Portugal and before and after the pandemic. The second block asks about the travel planning process, where it is examined, how people book their trips, and the importance of several information sources and if with the emergence of the COVID-19 pandemic, they do a more detailed research before travelling. The third section enquires about the use of social media; it includes how much time people spend on each social media platform and if they use them of travelling planning. Lastly, the fourth segment is related to the SMI; it investigates if people follow SMI, what are the reasons to follow a SMI, how they evaluate the information received by a SMI, and if they can affect people’ attitudes toward products, services, or places. As noticeable, the questionnaire was designed to answer the main research question, and subsequently, the four objectives outlined in the Introduction chapter. The data from the survey were imported from Qualtrics, and then analyzed with the help of the statistic program SPSS and Excel. First, it analyzed the number of valid responses and the missing values. Afterward, it involves a descriptive analysis, constructing frequency distributions, measure of location (mean and mode), and dispersion (standard deviation). In addition, involves a deeper analysis of the data by doing an exploratory factor analysis and a correlation analysis using Pearson’s correlation to test the strength of the relationship between the variables.
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4 Analysis and Discussion of Results 4.1 Sociodemographic Profile The survey had 268 participants, but from those, 68 answers were considered invalid, as they did not respond to enough questions to have relevant answers for the study. All participants are Portuguese residents from the diverse Portuguese districts. Out all of the respondents, 42.1% are residents in Lisbon, followed by 15.8% from Leiria and 6.1% from Porto. More than half of the respondents are women (62.3%), most of the participants are single (72.4%), and the majority of the respondents are young adults (1000e until 2000e is the most popular response to the net household income question (31.1%).
4.2 Travel Journey To start, the study analyzes different aspects of the travelling journey of the respondents. The results show a noticeable difference in the number of trips made yearly before and after the outbreak of the Covid-19 pandemic. Before the pandemic, the number of trips made yearly by the respondents differ a lot, but after the outbreak of the pandemic, the case is not the same; most of respondents only made one trip (62.7%) and 21.5% made two trips. These data confirm a strong decrease in the number of trips made by people due to the outbreak of the Covid-19 pandemic. Another relevant change is that the Portuguese residents are travelling more inside the country since the emergence of Covid-19 pandemic. To the statement “In pandemic times, I travel mostly inside Portuguese borders,” most of the respondents agree with it (57.9% “Strongly agree” and 20.6% “Agree,” what totals 78.5% of the respondents). Regarding the sense of security while travelling nowadays, in Covid-19 era, Portuguese feel safer travelling inside borders that oversea. Only 22.3% of the respondents feel safe to travel abroad (18.4% answered “Safe” and 3.9% answered “Very safe”), and almost half of the participants feel unsafe to travel abroad (46.4%). Inside borders, the insecurity is much lower; only 8.3% feel unsafe to travel, and the larger part of respondents feel safe to do it (72.2%). Lastly, in this section, people responded that most of the times they travel with family and friends, and most of them never travel alone (63.2%).
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4.3 Travel Planning Process Concerning the travel planning process, it was asked in the questionnaire “How do you normally book your trips?”, the majority of respondents say they book alone (52.2%), and the next higher value is “through friends and family” (29.4%). Only 2.2% still book through a physical travel agency. Regarding the importance of several information sources when planning a trip, “previous own experience” and “friends and family” take the lead, and after those, “travel websites” are the tool that people give more importance when planning a trip, followed by Travel Review Sites. In contraposition, the sources that the respondents considered less importance are “Travel Agencies” and “Social Media Influencers.” Moreover, it was asked about the changes that may occur in the travel planning process due to the Covid-19 pandemic. People agree that they prefer to take less risks, plan their trip with more detail by doing a deeper research than usual, and trying to understand beforehand if the tourist destination is safe and provides safe tourist services.
4.4 Social Media and Social Media Influencers Regarding the use of different social media platforms, the most used by the respondents are Instagram, WhatsApp, and YouTube. For all three platforms, the most common response from the users was that they spend per day “one hour or more” in these platforms. Furthermore, most of the respondents agree that they spend more time on social media each day due to the pandemic (73.7%). These top three networks are the also the most used to plan trips by the respondents. The last block of the questionnaire is related to SMIs. The first step is understanding if people follow SMIs on their social media account; thus, to this question, 69.3% of the respondents answered that they follow SMIs on their social media. To deeply understand what type of person follows SMIs, a few cross-table analyses were carried out. From the female respondents, 82.2% said they follow SMIs, a much higher value than when looking to the male respondents (45.5%). Regarding age, it can be observed that most of the respondents in the age groups of 45 years old do not follow SMIs. Moreover, most of the respondents answered that they do not use Instagram or only use, in average, 5 min a day, do not follow SMIs (77.8%, 60.0%, respectively). Most of the respondents who answered that they use Instagram, in average, 45 min and one hour or more, follow SMIs (79.4%, 86.2%, respectively). To respondents that said they follow SMIs, several other questions related to SMIs were made, and to the ones who said “No,” the questionnaire moved on to the sociodemographic questions. Primarily, it was asked why respondents follow SMIs; results show that the bigger reasons of why they follow SMIs are because they are a good “Entertainment” and “Inspiration.” Another compelling reason is
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to receive “Feedback of brands, products, or services.” According to the results, “Discounts/Promotional Campaigns” and “Friends follow them too” have low or not importance at all for most of the respondents. Another relevant aspect to study is how the information provided by SMIs is perceived. In the questionnaire, this point was divided into two, information in general and information related to travelling, to understand if there is a difference between the two. Most respondents agree that the information received from SMI is helpful (67.1% regarding information in general and 78.1% concerning information related to travel) and interesting (80.1% regarding information in general and 79.6% concerning information related to travel). The aspect that the respondents have more doubts is impartiality; in both cases, the mean does not reach the neutral value; therefore, it is a fact that respondents do not think the information received from SMI is impartial. The study also shows that there is no big difference between the information received by SMI in general and information related to travel; however, travel-related information has better values than the information in general in all aspects in analysis. After understanding how information shared by SMIs is perceived, it is also interesting to understand how and to which degree that information affects people. This question was, once again, been divided in two, information in general and travelrelated information, to comprehend if there is a difference between the two. To do that, three statements were done; these are the following: (1) SMIs opinions and recommendations are relevant; (2) SMIs create/increase the desire to purchase a product or a service; (3) Some of my attitudes and purchases are motivated by SMI. According to the results, the majority of the respondents agree with the two first statements made, for both information in general and travel-related information. The statement with less agreement is the third; nevertheless, the mean is higher than the neutral value; hence, part of the respondents still agrees that their purchases are motivated by SMIs. To highlight that, the statement where people most agree is the first one (81.7% regarding information in general and 77.8% concerning information related to travel). Once again, there is a very small difference between the information received by SMI in general and information related to travel. The next topic approached is what type of information does users’ value the most when looking for travel-related information through SMIs. The results demonstrate that the aspects the respondents value the most to know are the security, climate, attractions, activities, expenses, and accommodation. It is significant to highlight the respondents place “Security” as the information they value the most to know (38% say it is “important” and 36% say is “very important,” the two options represent 74% of the respondents). Lastly, the respondents were asked to express their level of agreement with a statement related to the likelihood of SMIs boosting the T&T industry. The statement is as follows: “In these times of pandemic, if a SMI travels to a destination and shares their trip through their social networks, showing that it is safe, would this increase the desire to visit this destination?”. According to the results, 62.1% agree with this statement (42.4% of the respondents “Agree” and 19.9% “Strongly agree” with the statement), and only 14.3% of the respondents disagree with this statement. Thusly, for most of the respondents, SMIs increase the desire to visit a destination.
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After, a correlation analysis was carried out using Person’s correlation to further understand the relationship between variables in the questionnaire (Table 1). A few relations stand out from the others. The most significant correlation was between the variables “Influence of SMIs in consumers’ travel-related decisions” and “SMI contents are attractive” with a positive correlation of 0.662. Furthermore, these two variables present a good correlation with most of the other variables and, therefore, a strong positive relationship with most of the other variables. For instance, SMI contents being attractive and the influence of SMIs in consumers’ travel-related decisions have a positive correlation with the purchases (r = 0.522; r = 0.583). Other significant relationship is between “Trust in SMIs” and the “Influence of SMIs in consumers’ travel-related decisions” (r = 0.511), meaning that one is positively correlated with the other.
5 Conclusion This study has gone through several phases in the pursuit of the clarification of the role that Social Media Influencers can have on boosting T&T industry in today reality, the Covid-19 pandemic. As observed, T&T is one of the biggest sectors worldwide, and it had a huge negative impact with the emergence of Covid-19 virus worldwide, and its recovery is essential for the global economy to prosper. In order to understand, how SMI can affect people’s travel decisions, the research started by studying the travel journey of the respondents pre-Covid-19 and now, in a Covid-19 era. The results of the survey support the United Nations Word Tourism Organization reports on the impact of Covid-19 pandemic on people travels. Most people did less trips in 2020; within those trips, most were made domestically, and less outside Portugal. Moreover, people feel safer travelling inside the country than outside. As follows, the study confirms what was said in the literature review that the recovery for the Portuguese T&T sector to the pandemic will be focusing primarily on the Portuguese’s tourists and closer markets. Regarding the planning process of a trip, the present study discloses that most people now (in a COVID-19 era) do a deeper research than normal trying to understand if the destination and the tourist services are safe. But, according to the results, most of the respondents do not consider SMI as the most important source of information; on the contrary, they are considered as less important information source from the ones presented. People consider travel sites and travel review sites as the most important information sources, next to their own experience and opinions from friends and family. However, even though SMIs are not considered as one of the most valued travel information sources, SMIs are a form of entertainment and inspiration and provide helpful and interesting information to their followers. The study also verifies that for the majority of the respondents, SMIs opinions and recommendations are relevant, and they create/increase the desire to try products/services, meaning that they are stimulated by SMIs. Moreover, the study shows that when people look for travel
0.402b 0.577b 0.244b 0.511b 0.281b 0.363b 0.251b 0.290b
0.264b 0.383b 0.596b 0.547b 0.570b 0.621b 0.554b 0.355b 0.403b
3. Purchases
4. SMI contents are attractive
5. Comprehensive travel information
6. Influence of SMIs in consumers’ travel related decisions
7. Destination and products/services comparison
8. SMI experience while travelling
9. SMIs are funny
10. Destination sight
b Correlation
is significant at the 0.05 level (two-tailed) is significant at the 0.01 level (two-tailed) (For this study, correlations greater than 0.500 were shown in bold)
a Correlation
1
1
2
2. Trust in SMI
1
1. Valued information related to travel
Table 1 Correlation analysis using Pearson’s correlation
0.259a
0.546b
0.396b
0.387b
0.583b
0.472b
0.522b
1
3
0.324b
0.464b
0.494b
0.440b
0.662b
0.364b
1
4
0.360b
0.358b
0.483b
0.484b
0.392b
1
5
0.338b
0.482b
0.488b
0.447b
1
6
0.539b
0.211a
0.475b
1
7
0.405b
0.270b
1
8
0.206
1
9
1
10
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information through SMIs, the information they most value to know is about security. Along these lines and adding the fact that 62.1% agree with the statement, “In these times of pandemic, if a SMI travels to a destination and shares their trip through their social networks, showing that it is safe, would this increase the desire to visit this destination?”, it is possible to affirm that Social Media Influencers can stimulate T&T industry in these times of Covid-19 pandemic. Hence, the study achieved its main goal, answering to all four outlined objectives. Acknowledgements This work was undertaken at ISTAR-Information Sciences and Technologies and Architecture Research Center from Iscte-Instituto Universitário de Lisboa (University Institute of Lisbon), Portugal, and it was partially funded by the Portuguese Foundation for Science and Technology (Project “FCT UIDB/04466/2020”).
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15. Merriam-Webster.: Influencer|Definition of Influencer by Merriam-Webster. Merriam-Webster (2020). https://www.merriam-webster.com/dictionary/influencer 16. United Nations World Tourism Organization: How are countries supporting tourism recovery? UNWTO Briefing Note—Tourism and COVID-19, Issue 1—How Are Countries Supporting Tourism Recovery? 2, 1–28 (2020a) 17. United Nations World Tourism Organization: International travel plunges 70% in the first eight months of 2020. World Tourism Barometer 18(6) (2020b). https://www.e-unwto.org/doi/epdf/ 10.18111/wtobarometereng.2020.18.1.6 18. IPDT-Turismo e Consultoria: Turismo’20: Anuário de Tendências (2020). https://www.ipdt. pt/publicacoes-turismo/ 19. Turismo de Portugal: Turismo em Números|dezembro 2020 (com receitas turísticas) (2021a). https://travelbi.turismodeportugal.pt/pt-pt/Paginas/turismo-em-numeros-2020.aspx 20. Visit Portugal. (n.d.). COVID-19|Measures implemented in Portugal. Retrieved April 18, 2021, from https://www.visitportugal.com/en/content/covid-19-measures-implemented-portugal 21. Parreira, C., Fernandes, A.L., Alturas, B.: Digital tourism marketing: case study of the campaign can’t skip Portugal. In: Smart Innovation, Systems and Technologies, pp. 759–768 (2021) 22. Muijs, D.: Doing Quantitative Research in Education. SAGE Publications, London (2004) 23. Walliman, N.: Research Methods: The Basics (2011) 24. Pinsonneault, A., Kraemer, K.: Survey research methodology in management information systems: an assessment. J. Manag. Inf. Syst. 10(2), 75–105 (1993) 25. Saunders, M., Lewis, P., Thornhill, A.: Research Methods for Business Students. Pearson Education (2009)
The Impact of Social Media Communication on Personal Brand Management Evelin Machado and Sandra Miranda
Abstract In contemporary societies, forms of communication have become, in many ways, predominantly online. The rise of social media has reshaped the culture of communication and created new virtual environments offering multiple opportunities for individuals to create profiles on different platforms, to communicate both personally and professionally. Although there is research on the phenomenon of Branding in social media, it is observed that the people-related perspective presents gaps in conceptual alignment and scientific depth and therefore holds immense room for progression. Thus, the objective of this article is, through a theoretical revision, to investigate and discuss the influence of communication practices and dynamics in the process of Personal Brand Management in social media, in order to contribute to overcome some of the gaps in scientific knowledge and enable the use of this knowledge by society in general. Keyword Communication · Social media · Personal brand
1 Personal Brand Although for a long time it was held hostage by consultants and self-help literature— which compromised its scientific maturity, Personal Branding is, today, a multidisciplinary construction with perspectives from different areas of knowledge, such as sociology, psychology, economics, but especially communication and marketing. The adoption of new digital-based information technologies has changed the way we, as citizens, receive all kinds of information that are necessary for our life in society and our coexistence with each other [1]. In the literature, there are two major drivers for Personal Brand:
E. Machado (B) Iscte—Instituto Universitário de Lisboa, CIES-Iscte, Lisbon, Portugal S. Miranda Escola Superior de Comunicação Social, IPL; CIES-Iscte, Lisbon, Portugal e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 J. L. Reis et al. (eds.), Marketing and Smart Technologies, Smart Innovation, Systems and Technologies 280, https://doi.org/10.1007/978-981-16-9272-7_33
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• Definitions of Self-Presentation [2–4] include words like impression, reputation, image, identity, associating Personal Brand with how third parties see an individual. • Marketing definitions [5–7] use words such as product, added value, differentiation, comparing the Personal Branding process to that of the product by means of marketing principles. From both stands out the premise that humans can indeed be a brand [2, 5, 8– 12] supported, in practice, by public figures, such as artists, athletes and politicians who have always needed to take care of their Personal Brand, due to the need to position themselves before their audiences. However, the adoption of new digitalbased information technologies and the expanded use of social media has changed the way we, as citizens, receive all kinds of information that is necessary for our life in society and our coexistence with each other. This need has reached even the people considered to be ordinary, who have also identified the need to communicate their identity to their network of relationships in a more careful and consistent way. Although the terminology and context vary among authors, it can be summarized and understood that the Personal Brand management process is built through three main pillars: brand identity, brand positioning and brand image [11, 13, 14]. Brand identity refers to what the brand stands for, what it offers, commonly explained as the brand promise, values, and personality [14]. Brand positioning refers to the value and uniqueness of the brand relative to its competitors [15], while brand image is commonly explained as the perceptions and associations of the brand in the minds of consumers. Brand image is often linked to reputation, as it is what consumers think and say about the brand. Due to the complexity of the working world, and the volatility of the marketing environment (dubbed by the literature reviewed as the post-Fordism or sharing economy era), no matter how strong personal, corporate or consumer product brands are, it is increasingly difficult to maintain brand competitive advantage [16]. Thus, it is a pacific assertion that, in addition to the skills market having become more competitive, the successive periods of confinement we are experiencing, arising from the unique event of the COVID-19 pandemic, are directly impacting society and the world, changing habits in a scope directly related to the ways of working, in a paradigm shift that will unfold in the coming years. In this scenario, this study necessary in the sense of subsidizing the Personal Brand management of individuals who need to position themselves in a market in deep transformation, in the sense of having a greater awareness of their identity and of the instruments that can subsidize their communication, in the relationships that make up the dynamics of society.
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1.1 Personal Branding and Its Adaptation to the New Paradigms of Social Media Communication Although much research has been done on the phenomenon of branding in social media [17–20], branding in the context of people has only recently begun to be addressed having observed an increase in the quantity and quality of scientific publications on the topic. However, there are still gaps concerning conceptual alignment and depth in the approach, which hinders the advancement of investigations. In the literature reviewed, it was found that many authors argue that one of the main characteristics of Web 2.0 is the possibility of any user to access the networks and produce content, in a collaborative, democratic and hierarchy-free way, targeting a mass audience, that is, a huge amount of geographically dispersed people. The intrinsic value of Web 2.0 is thus in its users who create their content collaboratively, in a new form of communication, self-directed and self-selected, but that can reach global audiences, the mass-self communication [21]. Online social networking sites have been widely adopted since their emergence in the late 1990s. Social networking sites are a type of social media that Boyd and Ellison [22] define as: Web-based services that allow individuals to: (1) build an audience or semi-public profile within a limited system,(2) articulate a list of other users with whom they share a connection; (3) view and scroll through their list of connections and those made by others within the system (p. 211). The primary characteristic of social media is to promote communication between people, through technology, to generate relationships in the most varied aspects, in the personal and professional context. Online social networks work through digital platforms, reaching nowadays a multitude of types, for example: Facebook, Instagram, You Tube, LinkedIn, Twitter, Tinder, Tik Tok, Club House, among many others, with the most varied objectives, having in common the purpose of communication and connection between people, besides the production and sharing content through texts, images, audios, videos indexed and accessible via the Internet. In the professional context, social media can function as a kind of “shop window” for individuals to communicate their distinctive factors and position their Personal Brand in the job market, differentiating themselves from competitors in their industry. As the role of social media in individual career management increases, digital storytelling has also become a powerful mechanism for signaling one’s value in the job market [23]. But regardless of what type of media to use to communicate a Personal Brand, it is of fundamental importance to emphasize that it is the channel where the communication occurs and this attribute will define the success of the individual’s positioning, not the tool itself, in this case the type of technology used. There is widespread agreement that the main motivator for Personal Branding is the ease of access to technology, especially Web 2.0 tools such as social media and blogs [12, 24]. “If
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before personal reputation was considered crucial for celebrities and politicians, online tools have allowed personal reputation to become an important marketing task for ordinary people” [25, p. 45].
1.2 Communicational Dynamics Used in the Communication of the Personal Brand in Social Media In the most recent citations about Personal Brand, it is quite common to find already the communication attributes associated with social media, such as narrative, content, imagery to characterize the said term. Based on the definition provided by Ottovordemgentschenfelde [26], Personal Brand is a set of an individual’s characteristics (attributes, values, beliefs, etc.) used in narrative and differentiated imagery to establish a competitive advantage in the mind of the target audience. It is not uncommon to find people who position themselves on different social media, in a totally different way, through communication elements such as: photograph, message, goal, and network. The underlying objective of this adaptation or focus can be considered unique, which is to generate favorable impressions with the intention of being present in that network, according to its intrinsic characteristics, which can be, professional, social, entertainment, relationship, etc. The definitions of Personal Brand are consistent in the intentionality positive of the topic. Authors agree that its main goal is to establish favorable impressions [27], to be attractive [28] and valuable, trustworthy, or desirable De la Morena [29]. Through social media, people communicate their positioning and convey their brand image. This perceived image (others’ perception) may be different from the projected image (self-perception) and will contribute to building a person’s reputation, which is the way they are remembered, which may be favorable or unfavorable with the relationships they maintain. Gandini [10] described Personal Brand as reputation acquisition, so it is important to understand the concept both as what we intend to project to the target audience (the desired self), and the reaction of that audience (the perceived identity). The desired self and the perceived identity will have all the brand image characteristics, derived from marketing science: attributes, attitudes, benefits [30] and personality [31], which Manai and Holmlund [32] call “core brand,” composed of core identity (education, personality, values, experience, etc.), extended identity (skills, attitudes, cultural aspects, among others.) and value proposition (functional, emotional, self-expressive and relationship benefits). Lorgnier and O’Rourke [33] identified specific skills needed for Personal Branding: technological, metacognitive, creative and critical. Therefore, we can assume that individuals with superior digital skills, who are able to discover their own competitive differentiation points and creatively transform them into compelling narratives and images, while doing so in a strategic and socially appropriate manner, have a greater chance of professional and personal success.
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Studies outline that branding is a set of practices that revolve around a social media [34, 35]. In the literature reviewed, it is observed that the most recent definitions regarding Personal Brand usually focus more on the content aspect regarding communication. However, this attribute is only part of the process. It is necessary to be discerning not to reduce the concept of Personal Brand to being present in the social media, which can be considered one of the tools or instruments to perform the communication of a certain brand but does not represent it by itself. The narratives of user profiles are built based on a set of personal information that aim to make it possible to be known based on their personality, and many seek to influence the way they want to be perceived by others, always with the intention of passing on a positive impression about their profile. Labrecque et al. [11] explain “elements within personal web pages and social network profiles, such as personal information, photographs, design, and layout are choices similar to the closet and props of the theatrical metaphor” (p. 38). With the evolution of the functionalities of the different types of social media, it is possible to find those that best suit the communication objectives of a certain profile. But regardless of the type of media to be adopted, there are some strategies that must be considered previously. According to Arruda [36], the Personal Brand communication must be clear, consistent, and constant. Regarding social media, he suggests that the content should be vivid, interactive, imagetic, or in video, seeking to propitiate emotions and, consequently, generate engagement with the public. After defining which strategy to use, it is important to build the message, the form of narrative that will subsidize the content to be published. Castrillon [37] stated that to increase the reputation of a brand, the first step is to establish strategy and the message. Then, the brand must show why it can be trusted and build brand reputation in the long run. The definition of a careful strategy, in the appropriate types of social media, through a cohesive narrative, aimed at a well-defined audience, through the followup of communication actions are important steps for the success of the Personal Brand management. Several definitions used in the reviewed literature specifically point out that Personal Brand activities are targeted, i.e., directed to a defined audience [11, 38] and programmatic, i.e., conceived as a series of coordinated activities [5, 32]. As Deuze [39, p. 145] summarizes, “the governing principle of media life is mediated self-creation in the context of an always available global connectivity.” Social Media have reached a dimension in life in society that a large part of individuals have made them as the main sources of information, knowledge, entertainment, but above all, as a means of communication with others, through their numerous platforms. In this global and online universe, people establish the most diverse types of relationships, but, above all, they influence each other, by means of opinion and information, quickly and often a masse. We assume that the media are central to human experience, operating in a substantive way in the flow of meanings of societies and, as such, in the formats of (re)construction of meaning of social agents [40–42].
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1.3 The Competitive Advantage of Personal Branding in Today’s Job Market The personal development industry has progressed worldwide and encourages individuals to market and brand themselves. This industry is based on the logic of applying the same marketing and branding, principles originally developed for products and corporations, to individuals (Schwabel 2009, [43]). In this context, it is possible to consider that people can also be positioned according to their differentiating points to reach their target in a target market. According to Castrillon [37], the average person changes job every two to three years, and by 2020, self-employed and contract workers will make up 43% of the US workforce. He stated that workers need to be able to “clearly communicate who they are and what they do to stand out to potential clients and employers” [37]. This paradigm shift in the professional landscape implies changes in society in general, where one seeks to identify which dynamics and practices are most appropriate for people considered ordinary to position themselves in the most appropriate, consistent, and authentic way, before their audiences, to generate a reputation of credibility, even promoting their employability. The current job market has peculiar characteristics that will require from professionals some adaptation as to how to disclose themselves, either as a potential candidate for an employer, or as a company of themselves in search of clients. Thus, the Personal Brand becomes essential to communicate this set of technical and behavioral competencies to a certain public, predominantly in a virtual way, through the social media, because not being present in these channels can result in invisibility to the market. The demand has already been vocalized to identify the skills needed for effective Personal Branding [32], develop the content of that training [33] and provide guidance on the decision to engage in a Personal Brand or remain digitally invisible [44].
2 Conclusions This article sought to investigate the influence of communication practices and dynamics in the process of managing the Personal Brand in the social media, to contribute and overcome some of the gaps in scientific knowledge. Through the review of the literature concerning the topics under study, it was possible to verify that the effective use of social media has become essential for common individuals to communicate their Personal Brand and position themselves personally and professionally in society today. The thread that allows this positioning is linked, synthetically, to two major forces: Communication, which will be responsible for the conception of the brand’s identity, positioning, and image; and Marketing, which will be responsible for the dissemination strategies through the most appropriate channels defined in the brand’s strategic
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planning. Thus, the premise that people can also be object of management as a brand is true, in the context of Marketing and Branding—already successfully recognized in the scope of products and services. In the scenario of the challenges imposed on the current job market, in face of the profound transformation resulting from the Covid-19 pandemic, through the evolution of new forms of online work, the Personal Brand needs to adapt. This paradigm shift in the professional scenario implies changes in society in general, where it is paramount to use appropriate communication dynamics and practices, for people considered ordinary to position themselves in an appropriate, consistent and authentic way, before their audiences, to generate a reputation of credibility. So, in the professional context, social media can work as a kind of “showcase,” for individuals to communicate their distinctive factors and position their Personal Brand, differentiating themselves from competitors in their segment of activity. In summary, we can see that the older bibliographic references dealt with more emphasis on the Personal Branding process, whereas the more recent ones cover the various types and characteristics of social media, the importance of the content of narratives emphasizing that communication needs to be clear, consistent and constant, through interesting and interactive content, respecting the strategy according to the audience to be worked. It is concluded that the Personal Brand, currently, counts on a great force that is the social media, to communicate distinctive factors of common people and thus generate connections and relationships in the most different personal and professional aspects, which cover life in society.
2.1 Clues for Future Research In the literature review, we identified issues related to the veracity of the Personal Brand (Hughes, 2007), portability of Personal Brands [2] and their sustainability [7]. Some questions arising from these quotes may be: would it be valid to have more than one Personal Brand, for example, one professional and one social? Would it be possible for an individual to port his or her Personal Brand when changing jobs or areas of activity? Is using social media for different audiences (personal and professional) simultaneously the best alternative? Will there be new ways for individuals to act, personally and professionally, to create an impression of themselves from the interactions that take place in the digital environment? This global scenario requires adaptations in communicational forms, where individuals need to be able to work virtually, to relate to multifunctional teams and, many times, multicultural teams, and, consequently, to generate impressions about their competencies, proficiency, and results, in an almost entirely virtual way, through the available technologies.
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Considering that the theoretical basis is of fundamental importance for the evolution of the production of scientific knowledge, these structural changes in communicational forms with online platforms represent an important paradigm for new scientific and empirical studies. The speed of the transformations currently occurs in a scope quite different from previous decades, signaling an opportunity for researchers to take the time to analyze their impacts and outputs.
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Social Media Co-creation Strategy for SMEs: Key Stakeholders Perspectives in Egypt Fashion Industry Kesmat AbdelAziz and Nor Hasliza Md Saad
Abstract This paper presents an in-depth examination of how fashion SMEs in Egypt could exploit social media for co-creation and customer engagement. This paper investigates the strategy from different stakeholders’ perspectives while concentrating on the customer as the focus of the brands’ social media strategy. This paper employed a qualitative approach through interviews with consultants and marketing managers as well as with influencers and fashion designers. Besides, focus groups were carried out with customers. Five themes were concluded for a successful social media co-creation strategy. The results will help academic researchers in providing a foundational framework for customer engagement for value co-creation. Besides, incorporating the influencers dimension in the co-creation strategy has not been examined in the literature, hence providing a complete scenario. Keywords Social media · Co-creation · Fashion · SMEs
1 Introduction Firms began to recognize that customer participation, especially in new product development and innovation strategies, has become a critical strategic issue for successful competitive advantage development [1]. Thus, firms interact with users and integrate their feedback and suggestions into the development of new products/services to co-create and co-innovate with their customers. Hence, co-creation is the interaction between a firm and its customers to produce value jointly [2]. The stakeholders’ participation in the firms’ innovative process, as well as the increasing cost and competition, encouraged firms to invest in social media [3]. Social media offers more opportunity for service/product innovation and co-creation which has K. AbdelAziz (B) School of Management, Arab Academy for Science and Technology and Maritime Transport, Heliopolis, Cairo, Egypt e-mail: [email protected] K. AbdelAziz · N. H. M. Saad School of Management, Universiti Sains Malaysia, Penang, Malaysia © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 J. L. Reis et al. (eds.), Marketing and Smart Technologies, Smart Innovation, Systems and Technologies 280, https://doi.org/10.1007/978-981-16-9272-7_34
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been acknowledged by academics and practitioners in today’s competitive environment as well as its necessity for firms’ success and competitiveness [1]. Therefore, business leaders try to adopt social media for an engaging environment which enables customers to communicate and interact [3]. This paper focused on Instagram which is according to Marketing Hub in 2019, is the fastest growing social network in 2019 and offers a fertile environment for fashion industries because it is based on visual content and images [4]. Firms present products and ideas to customers for which they can make a choice or co-innovate by contest and asking for customers’ input. Therefore, social media experts devise co-creation strategy with customers’ data to encourage participation and innovation. Co-creation then provides firms, store owners, and brands with more customer collaboration and enhanced innovative products for customer satisfaction and loyalty. Customers, besides being offered better products and experiences, play a role in co-creation. Customers provide valuable input for the company to develop new products. Besides, satisfied customers can be introduced to new customers resulting in peer endorsements [5]. Customers also can help in different forms of product development from idea generation to testing, design, and feedback. Another stakeholder in co-creation strategy is influencer marketing. Influencers act as facilitators and enhancers of co-creation [5]. Influencers are the facilitators through which brands could reach current and potential customers [5]. Therefore, the roles of stakeholders interplay for the success of co-creation strategy. Most studies in the literature focused on the companies’ perspective and the way companies perceive co-creation with few researches investigating the factors from the customers’ point of view which may influence co-creation [6, 7]. Therefore, this paper employed a customer-centric investigation qualitatively to address this research gap and investigate co-creation from all involved stakeholders’ perspectives in terms of what factors influence customer co-creation intention on social media for the entrepreneurial designer fashion SMEs. The application of co-creation represents a challenge for firms in the fashion industry. Designer fashion SMEs, especially in the first stages of development, face difficulty in accessing customer information as well as their needs and wants.
2 Literature Review 2.1 Co-creation Customer co-creation refers to a product development approach where customers are actively involved and participating in the design of a new offering [8–10]. However, the management perspective is dominating the literature of co-creation with minimal exploration of the co-creating customers and their impact on the brand as well as other involved stakeholders. In fact, the service-dominant logic (SDL) approach to co-creation reshapes the role of the customer in creating value for the brand [2]. SDL implies that customers work along firms to co-create value together. Therefore,
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to create value, a beneficiary needs to integrate resources from different parties including themselves (such as knowledge, skills, time, effort, and usage). SDL states that customers are always co-creators of value and that all stakeholders involved integrate resources [2]. In online collaborative environments, value is co-created through a common experience where all members create value for each other through community activities [2]. This emphasizes the use of social media for examining all stakeholders involved for successful co-creation process. There is a shift toward a customer-centric mindset from a regular organization/firm-centric approach. This has been evident through co-creation as customers became more informed, networked, empowered, and active. This shift was clear in the fashion industry to be able to visualize what the customers want, and design garments that are closer to their prospective customers. Social media platforms enable customers and users to become the followers of a particular brand wherein they can like, comment on, and share the promotional messages that appear on their social media platforms, as well as seeing who else has already behaved similarly toward the advertised message. Therefore, social media platforms also paved the way for greater customer engagement opportunities to stimulate more favorable results to the company such as encouraging positive word-of-mouth, the intention to re-purchase, obtaining customers’ active loyalty [11–13], customer generated advertising [14], and co-creation [15].
2.2 Designer Fashion Enterprises in Egypt This paper explores fashion SMEs, characterized as non-established new entrants to the fashion industry. The apparel sector in Egypt plays an extremely vital role in Egypt’s economy. Textiles, apparel, and home textiles Export Council of Egypt stated in June 2019 in Khoyout magazine that “Egypt has more than 2500 apparel factories and it is the first sector in terms of labor force, which recorded 1.5 million workers. Apparel exports reached $1.604 billion for 2018 compared to $1.459 billion in 2017, achieving a rise of 10% of which 50% of the apparel production was exported to the U.S. and 30% to Europe.” According to Fibre2Fashion, Apparel sector in Egypt accounts for 3% of GDP and 27% of the industrial output. 25% of the total industry is focused on textile production. Private sector owns 90% of the garmenting side of the industry. In 2016; the textile sector was selected by Ministry of Trade and Industry as one of the five industries considered to be the backbone of Egyptian economy. In agreement with the “Sustainable Development Strategy (SDS): Egypt Vision 2030” industry stakeholders are working to achieve three main targets, deepen the industry, rationalize imports, and increase exports within the textile sector. Besides, Minister of the public sector in Egypt stated that the government began to implement a strategy to restructure textile companies under the cotton and textile industries to regain the market of textile locally and globally. As part of the Egyptian vision 2025, Egypt also plans to establish a new integrated city for textile industries and to boost the sector with EGP
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12 million. The fashion scene is growing consistently; an emerging designer or brand is seen announcing their launch daily. Some of the Egyptian designers who started as start-ups and SMEs are now being seen globally such as Kojak taking his bold taste to the runway at season 10 of Fashion Forward Dubai. As for the accessories, there exists an Egyptian local brand, Okhetin. They have managed to accessorize Beyoncé and Egypt’s first lady. Despite the SMEs importance to their national economies and industries, and the increasing attention within the news media and fashion market, little academic research exists on the development of these SMEs.
2.3 Social Media Influencers The term “Influencer” has not got prominence in social media and marketing management from a long time ago [16]. Along with social media, the number of influencers grew significantly and today not only influencers are celebrities, but also popular people that are considered closer to the customers [16, 17]. Influencers are people who affect someone else’s behavior passively or intentionally. Companies give them free products or pay them money to promote their offerings to their followers’ network. The influencer marketing has been emerged due to the emergence of social media. It is now more influential to choose an influencer rather than a celebrity [18]. The difference between a celebrity and an influencers is that a celebrity has achieved a certain reputation among people through their career—being an actress, football player, singer, etc. Influencers are getting famous with the products they use and their presence in social media space. This gives the influencer more credibility for the customer and thus is more influential.
3 Research Methodology Grounded theory was utilized for these papers to explore the key partners involved in a successful co-creation strategy for fashion SMEs in Egypt. Grounded theory has previously been used in management and marketing research because of its ability to capture the complexity of activities and interactions, it also has the flexibly to fit to the practice under investigation and offer a theoretical explanation within new areas of the field [19]. Due to the relatively limited empirical evidence on the development of social media messages and their impact on users’ attitudes and behavioral intentions manifested as co-creation, an exploratory qualitative research design was adopted. For the data collection, this paper examined all stakeholders in the process of successful social media marketing strategy implementation for co-creation. Therefore, different methods were deployed to gather the required information from each participant efficiently. The stakeholders included are experts in social media and entrepreneurship, designers, customers, brands, and influencers.
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Table 1 Study informants’ profile Informants
Informant position
Nature of business
Inf1
Fashion designer
Retail industry
Inf2
Fashion designer
Retail industry
Inf3
Digital marketing manager
Management consultancy
Inf4
Social media specialist
Social media agency
Inf5
Social media influencer
Service (solution provider)
Inf6
Online store owner
Retail industry
Inf7
Designer
Retail industry and home decorations
Inf8
Head of entrepreneurship center
Research institution and incubation services
Inf9
Online store owner
Retail industry
Inf10
Social media manager
Social media and public relations agency
3.1 Interviews Semi-structured interviews were done with consultants and managers with expertise in social media marketing as well as with influencers and fashion designers. Table 1 shows the profile of informants, their positions, and nature of their business field. All interviews were recorded and transcribed verbatim to ensure reliability [20]. The interviews number were not established in advance; however, interviews were done until theoretical saturation was achieved and according to the limitations faced by the researcher. Analysis of the interviews’ data was done to discover the themes which appeared in the data and observe similarities and differences as well as examine if new concepts or patterns appeared. Interviews were conducted with the different partners operating on social media to highlight and understand the fundamentals of social media usage in business and to clarify how social media help in co-creation. Other interviews were held with fashion designers to investigate the current situation of social media usage and social media tools exploitation in the industry of fashion retail and online fashion boutique owners. Besides, interviews aimed to discover customer engagement and how innovation opportunities are captured.
3.2 Focus Group Focus groups were conducted with customers of online fashion boutiques on Instagram. According to [21], a focus group is a form of an in-depth interview that can offer insights into a particular topic, otherwise unavailable through the means of quantitative research methods. The discussion is moderated and led by a trained facilitator/moderator, who provides a “guided interaction” between respondents [21]. Through the literature review, co-creation was discussed as clear and readily measured variable, but it has been rarely found in Middle Eastern countries and
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specifically Egypt. Therefore, there was a need to explore what Egyptians think of social marketing strategies and customer engagement as well as co-creation with their favorite brands. It was believed that a focus group with less than eight participants becomes dominated by a few respondents while having more than twelve people tends to diminish the opportunity for some respondents to participate [22]. Therefore, this paper conducted two cross-sectional focus groups discussions with online boutique customers, where each group consisted of eight respondents and took around one to one and a half hour maximum. The participants were selected based on their experience as customers of online stores on Instagram and previously purchased and interacted with the brands they follow. The participants were total of 16 (10 females and 6 males). Participants were graduate, undergraduate students as well as employed and housewives. The participants’ identities were kept confidential. The nature of the focus group was exploratory adopting semi-structured interview questions. Focus group integrity was maintained through various procedures. For example, the researcher explained the research and its objectives to the participants, a peer researcher briefed the participants with the process of the interview, a detailed description of the previous literature was provided, and the researcher remained open to contrary evidence.
4 Findings Following the perspective of different stakeholders in the online marketing and retail communities, core themes emerged and were identified considering patterns which influence the effectiveness of online business process for better customer engagement and co-creation intention. Theme 1: Social Media as a Source of Innovation Interaction on social media was expressed as a major source of innovative ideas, especially for small- and medium-sized enterprises (SMEs) which require cost-effective ways of idea generation and originality. Two subthemes emerged as the foundations for exploiting social media as a source of innovation through the interaction with the business’s customers: (a) Feedback and (b) Storytelling. Most of the informants expressed feedback as a vital dimension to be studied when using social media. Firms should review customers’ comments, messages, and special requests and then filter them out for new trends and problem spotting. For this reason, companies seek to create a community where customers feel they belong to. Hence, they will be able to give feedback and suggest new ideas. One of the fashion designers interviewed stated that she added new lines of products based on customers’ input and suggestions which later succeeded. She stated: “I created swimming turbans and embedded-turban scarf based on my customers input and ideas. I may change the pattern and material from the feedback and dialog.” Another informant stated: “I hear my customers through their comments and messages. Sometimes they suggest a color or a design alterations, so I execute an idea if it matches the brand strategy.”
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Therefore, feedback is mainly about hearing your customer and understanding his/her needs. Besides, it is important to make your customers feel heard and appreciated so that they continue offering their feedback. Regarding that dimension, customers in focus groups stressed on how their feedback handling affects the way they perceive the brand later to decide if they wish to continue dealing with the brand or even switch brands. For customers, feedback handling means that they are respected and being heard, which also allows them to feel important to the brand, and that their feedback is valuable. Hence, they will be encouraged to provide valuable input to the brand in terms of customer experience, feedback, user-generated content, and messages. One participant commented for example: “I once interacted and wrote a feedback and they put it in a story and thanked me. I felt really special and that they appreciate my feedback so I decided I would send a feedback every time I purchase from them.” Storytelling through Instagram stories was viewed as another major factor in the successful online process. Instagram introduced more engaging features as well for stories to be used by the brands such as questions, creative touches, and music. Informants explained how stories are highlighted being at the top of the feed and enable the followers to take a quick sneak peek on every update. Customers also stated that one of the main motivators to open a post is an attractive story. Regarding how to use Instagram stories to achieve storytelling and attract customers, experts through interviews were requested to provide us with alternative ways to use Instagram stories. One expert said that Instagram stories should be used to attract customers and make the brand page more popular and successful. Experts suggested “how to” videos and sharing user generated content in stories such as customers feedback and pictures. Besides, offers and deals through time sensitive stories may increase interaction and sales. A designer stated: “I post mostly pictures and stories. Stories on Instagram help in engagement and minimize the pictures on my page. Short period ads also can be done through stories because it only stays for 24 h. Stories also give you numbers of how many people have viewed your story and the reaction to it.” One store owner and designer explained that she offers a weekly story for deals which are only for a limited time, and it works perfectly. Informants explained that stories which include the owner, team, or employees increase the credibility of the page and relate the customers more to the brand to establish connection. Finally, the grid of images on the store page should be matching and attractive to exploit the media-rich features of Instagram while maintaining harmony. A respondent elaborated: “we care about the page grid. We aim for a clear neat grid with matching color theme, so it is eye comforting and attractive when a customer opens our page. We don’t want it to be crowded.” Theme 2: Uniqueness Expert participants stressed on the importance of product and value uniqueness. Each brand should possess a special uniqueness in its offerings. This comes from a thorough analysis of the competitors and the environment to be able to build on the unique value the brand possesses. Besides, for a brand to compete and expand, the brand should begin with a niche, make a difference, ensure existence, and then
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go to mainstream. An expert in entrepreneurship stated: “If you can’t analyze the environment well and decide on the uniqueness of your product, you will always stay as a SME. We say it is from niche to mainstream, but if you aren’t unique, you will remain a niche.” The uniqueness of the brand should also be reflected in its posts as well. Posts should position the brand as unique expert in its field while previewing the product value and brand positioning. An expert noted: “The value added of the content is important. It is not about just being an announcement of the product, but position you as an expert or include a product value and positioning (What is so unique about the product).” Theme 3: Content Importance Content is essential for running a successful online business on Instagram especially that Instagram offers a variety of tools for content posting like pictures, videos, GIFs, and stories. The page grid of images should be attractive and consistent with the brand image. Consistency is critical and brands need to be able to regularly produce and post content that the audience will like and engage with. Therefore, brands should always relate to their customers. High-quality content allows the brand to attract influencers as well to be integrated in their portfolio. One designer stated: “You should always consider your audience and what they like. The pictures and the colors should be attractive to stand out between posts. The authentic factors by posting real pictures that really show how the product will look like and not just edited photos.” Customers focus mainly on media rather than reading so posts should be attractive in terms of media used as well as high in quality. People, when scrolling on Instagram, often scroll right past photographs that do not intrigue them. An online store owner stated: “People unfortunately don’t read so I try to depend on pictures and videos. Especially in store pictures because it gives more credibility to the customer of how the product really looks like. We use models that aren’t popular instead of just hanging the products.” In case of fashion products, people tend to associate credibility with pictures of real people rather than celebrity since it is more relatable. A store owner stated: “when customers see the product on a regular person, they can relate to them and imagine themselves wearing the product and hence purchase it.” Brands should plan and schedule content to be posted. Finding the brand niche and really dedicating the efforts to just that niche will pay off. Deciding the who, what, why, and when about the brand’s customers as well as the content they like best is essential for planning content posting. Customers noted that content is one of the major factors which attracts them or pushes them away from the brand. When a brand offers informative and unique content, it automatically attracts the customers and let them stay attached with the brand. Every piece of content should offer something new and be informative. A social media expert explained: “We have to look for the posting time and day; then how informative the content is. Content must be informative through the image and text to convey the desired message. And of course, take a clear attractive picture yet natural and less text.”
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Theme 4: Customer Engagement is the Key Instagram is a great social media platform which offers opportunity for the brand to interact with its customers and build strong customer relationships. In a study by Forrester Research, Instagram was shown to generate the highest customer engagement level of all the social networks. An expert stated: “People on Instagram expect more from brands than just product pictures—they want to know about your brand’s mission, the people behind the name, and how your products are manufactured.” A brand owner and designer explained that the page should be responsive as much as the brand can. Responding to the customer’s concerns will show that the brand cares for its customers and that it is just as important as selling its product. A social media expert illustrated: “When you sell on Instagram, your aim is not only selling products, but to connect with your customers and build an online community around your brand so customers become more loyal, interactive and provide valuable input.” In addition to that, brands should stay interactive through posts and stories which trigger customers’ actions such as questions, polls, and opinion requests. Besides, using question stickers like “ask me anything” or “what do you think of” questions open the door for the customer to know the brand more and at the same time, the brand could ask about the customers’ likes and dislikes and what they wish the brand could offer later as a source of innovation. An expert in entrepreneurship noted: “Posts must include triggers to create a customer action (for example trigger likes, comments or write a post and include apply now, join now and so on). There is something called content ratio; 30% of the content should be direct sales, 30% product information and 30% engagement. But it depends on the product in the end.” Most respondents in focus groups stated that when they encounter a responsive brand on Instagram and feel that there is a dialog between the brand and its customers as well as user generated content, they become unconsciously motivated to purchase and interact with the brand to become a part of a community which they feel is related to them. However, they believed that this was missing in most brands’ pages. Implementing an engagement strategy on social media mandates the brand to focus on engagement metrics such as comments, likes, and shares. In addition to that, click through rates and costs per clicks on paid campaigns should be measured. The social media specialist explained: “Social media metrices are very important to estimate the return on investment (ROI) of your social media strategy. you should measure the overall social media spending such as the time, money and resources invested in your social media campaigns. Besides, the money you spent in creating the content strategy like video-making, photo shoots and so on.” So, simply to calculate the return on investment, a simple formula can be used: Return on investment as percentage =
Return on Investment × 100 cost of Investment
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Theme 5: Influencers are Powerful Social media influencers are becoming more powerful and influential. Brands are continuously monitoring the influencers in their industry for collaboration. According to a survey by Nielsen, 92% of customers trust an influencer more than an advertisement or traditional celebrity endorsement. Influencers can spread a brand’s message to the intended audience in an authentic, natural way as a similar customer. Influencers tend to establish a personal relationship with the followers, they become a brand themselves. They provide stories all the time and they become something like a family member or a friend to the followers. An influencer and a fashion customer argued: “one of the influencers I follow is a mother, so she even posts about her daily challenges and how to stay fit and fashionable when you have kids and so on, therefore she is very informative as well and credible.” Social media and entrepreneurship experts explained that identifying and targeting the right audience is crucial for a successful marketing strategy. Influencer marketing allows brands to move forward quickly toward that goal. One of the most important parts in influencer marketing strategy is to make sure you select the right influencer that matches your niche, and their public persona is like your brand image and identity, and hence, a brand can guarantee to reach their target customers. It was clear from the respondents’ comments that influencers are becoming more important and there are various ways to be able to exploit their benefits. A social media expert explained: “It is sad but true. The biggest power of influencers is in the trust and loyalty of the followers. An influencer’s feedback is perceived as a genuine testimonial which could be used to strengthen the brand reputation and credibility.” Customers, on the other side, are very much influenced in their decisions by influencers and take some brand-related decisions accordingly. However, they believed that the influencer should be an expert or at least show expertise in the field he/she is in. A customer declared: “I will definitely follow an influencer’s advice if I know he/she is an expert or offers expert opinions and tutorials so I could trust his/her recommendations.” Influencers as a factor influencing customers’ decisions were mentioned multiple times in the focus groups when asking questions regarding, who or what influences your decision to purchase from a particular store and what is being regarded when purchasing from an online store.
5 Discussion Combining all the findings of the five themes with the relevant literature will provide a synthesis of the factors and the stakeholders involved in a successful social media strategy implementation for co-creation. The findings clarify the importance of social media as a source of innovation. This could be done through interactivity and storytelling. Interactivity is the communication that takes place over social media platforms. Through interactivity, brands could be able to co-create, reach out to customers, and spread information about the brand [23]. Due to the widespread
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usage of social media, online brand communities are becoming famous. Brands use online communities to communicate with customers, gain insights about users and increasing the awareness for their products. Another important dimension is the uniqueness of the brand’s offerings and products. Customers, according to the theory of uniqueness, are motivated to see themselves different from others through selfidentification [24]. Besides, offering unique products and stories may affect more customers for the brand page. The customers’ perception of the web site/brand page creativity and attractiveness affects online shopping intensions and value co-creation [25, 26]. Barreto and Martinez [27] examined that the willingness of online cocreation participation through the dimension of website quality and noted that interactivity, design, and usefulness of information were actually antecedents of co-creation willingness participation. “Customer engagement is the key” is the fourth theme which denotes that customer engagement is an important dimension to consider for co-creation. The concept of customer engagement in value co-creation is based on the idea of open innovation [28], and the service-dominant logic of marketing [2]. In open innovation model, the firm creates and commercializes all ideas developed outside and inside the company in a way that all boundaries are removed [28]. Finally, brands should realize the effect of influencers on the companies’ target audience and therefore using influencers in their marketing strategy contributes to brand building [4]. It has been proven that influencers contribute to more reach, sales, awareness, and engagement toward the brand that is being promoted through influencers [29]. Besides, brands could increase their trust and credibility by choosing the right influencers with loyal followers [29]. One last factor is the influencers’ posts’ resonance count which is the number of activities an influencer generates by publishing content, and therefore, the more the influencer creates content people like or crave, and engage with, the more the influencer would be more famous and then resonates more with its followers. Hence, institutions can recognize this influencer as an asset which could be utilized by brands to reach their target customers. The co-creation on social media for fashion industry can be summarized as a scenario from a customer-centric perspective (Fig. 1). The scenario could be divided into seven phases to be perceived as strategy dimensions. The first phase is to listen to customer, and it begins with the customer starting his journey looking for a certain fashion item so he or she accesses the social media for product or brand search. The social media allows the customers to enter data about them to be able to search for products and use the platform. This data could be used by social media experts for analyzing existing customers and targeting potential ones. The second phase is to target customers and strategize where brands pinpoint their target segments and devise marketing strategies to target customers. Therefore, a plan for content and marketing could be devised mutually by the fashion designer, store owner, and social media experts. This plan should encompass all marketing and advertising activities as well as the schedule for content strategy. This devised plan could incorporate influencers which can post sponsored content to market a brand and increase its awareness. Customers then engage with influencers’ content and are directed to the official brand’s page, where customers could view the brand’s content and engage with the brand. Content strategy should
Fig. 1 Co-creation on social media customer-centric scenario for fashion industry
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encompass three main factors for its successfulness: content should trigger engagement, encourage feedback, and motivate product suggestions. The third dimension is “delivering” where brands deliver existing products to customers who could later evaluate the brand’s offerings and engage with the brand resulting in a purchase transaction and experiencing the existing products by customers. The fourth dimension is to interact with customers where customers have the opportunity to communicate their feedback on existing products offering product suggestions. The fifth dimension is co-creating with customers through co-ideation, co-design, and receiving the feedback. Followed by the sixth dimension which is to satisfy customer needs where the brand accepts the co-created ideas matching the brand strategy and brand identity, hence, offering new products that are enhanced and co-created. The final dimension is post purchase service to customers by providing a product that satisfies their needs which is co-created as well as customer service. Finally, the cycle is restarted by listening to the customers and engaging.
6 Implications This paper contributed to the body of knowledge in terms of understanding the perspective of different stakeholders involved in planning and implementing a successful Instagram business strategy which results in co-creation. It contributes to the literature by discussing the five themes which influence the social media strategy success for co-creation. This paper adopted multiple perspectives examination of the topic involving all stakeholders. It also provides a scenario for the co-creation process on social media for the fashion industry from a customer-centric perspective to ensure its efficiency and successfulness. This study adopted a qualitative research technique and conducted in-depth interviews and focus groups to explore in details the area under investigation. The results of this study will help academic researchers in providing a foundational framework regarding customer engagement for value cocreation. Another contribution of this study is examining the influencers’ factor in the co-creation intention which is scarce in the literature. Finally, this study provides an empirical guidance to researchers and academics on how to use online social communities to create value and encourage customers to engage in value co-creation, as well as help firms and brands to accurately grasp customers’ demands, engagement, and adapt to the changing environment while staying competitive. Practically, this paper may help organizational leaders in setting strategies that solve problems of low customer engagement and participation potential in value cocreation, thus, providing hints on how to stimulate the co-creation behaviors through customer engagement. Regarding the influencers, brands and platform managers can employ the correct professionals and social figures to encourage learning and influence. This paper then identifies social media characteristics which are thought to enable co-creation experiences. Hence, the study provides a framework of the general factors and settings which increase the opportunity and applicability of co-creation on
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social media. Additionally, it provides a practical framework for the implementation of social media-enabled co-creation experiences in the retail industry.
7 Limitations and Future Work Although this study offered some insights of the topic regarding the determinants of a successful social media strategy for co-creation from different stakeholders’ perspective on social media, it does have some limitations. Further research could test the themes in multiple industries to reach a comprehensive framework for a successful strategy tactics. Another future work would be examining each theme separately across multiple industries for a detailed tactical plan of implementation and deployment.
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How Digital Media Influence Hotel’s Image? Effective Communication Strategies for Its Promotion Ana Campante, Rui Costa , and Márcio Martins
Abstract Over time, the media have gained a special prominence in the daily life of society by changing the functioning of various sectors. Tourism is one of the sectors that has changed most with the evolution of the media, and many researchers are studying the effects that these changes have produced. In a sector such as tourism where communication plays an extremely important role, a study is conducted to analyse the influence that the media can have on the hotel industry. Thus, this research intends to study the influence that the media can have on the accommodation having as a starting point a specific case which is a hotel located in Aveiro, the Hotel das Salinas (HdS). The aim of this research is to identify the extent to which the various types of media influence the promotion of HdS to consumers and to what extent can the results obtained provide data to allow improvements in the promotion strategy of the Hotel on its performance. To this end, was adopted a quantitative methodology based on the application of a questionnaire. With the completion of this research, it is concluded that digital media are influencing the guests of HdS and the respondents also noted that the hotel communication strategy is being effective contributing to a positive image about the hotel. Keywords Digital media · Communication strategy · Hotel’s image
1 Introduction Many studies have been carried out with the purpose of better understanding the influence, of social media in the promotion of a tourist destination or product or even A. Campante · R. Costa (B) Department of Economics, Management, Industrial Engineering and Tourism, University of Aveiro, Aveiro, Portugal e-mail: [email protected] R. Costa · M. Martins GOVCOPP, Aveiro, Portugal M. Martins Instituto Politécnico de Bragança, Bragança, Portugal © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 J. L. Reis et al. (eds.), Marketing and Smart Technologies, Smart Innovation, Systems and Technologies 280, https://doi.org/10.1007/978-981-16-9272-7_35
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a hotel [1–5]. This subject has been widely studied so that companies or organisations’ marketers can improve their performance, and this is of fundamental importance, given the growing relevance of the research developed in this area. The rivalry between traditional media and digital media is increasingly notorious, so it is important to compare these media and analyse the influence that this duality has not only in society but also in tourism [1]. With the growing increase in the number of accommodation units appearing in Portugal, with 4530 establishments having been created since 1962 of which 1117 were hotels, [6] it is important to develop studies to understand how the use of the media can be maximised in an accommodation’s marketing strategy so that these media integrate its competitive advantages. On the business side, it is also curious that, in 2019, about 96% of the accommodation units (e.g. hotels and camping parks) existing in Portugal had a website or homepage [7], which may indicate that accommodation businesses feel that having a webpage is an advantage for their promotion. However, the way these pages are used and how the consumer receives the transmitted information should be carefully considered, and therefore, it is important to listen to the guests to understand what they consult and value when deciding about the accommodation they stay in when they travel. In the literature, the studies carried out are mostly based on one type of media, the social media [2–5], and, in this sense, this research has the added value of aiming to add to the existing knowledge information about the influence of the different types of media in hotels’ promotion. HdS, located in the city of Aveiro, will be our case study, and this research will contribute to the identification of the best promotional strategies to compete with its competitors. This paper is organised in five sections: After the introduction, Sect. 2 reviews the literature addressing the main topics under analysis. Section 3 is dedicated to the methodology used in the collection and treatment of information. Section 4 analyses and discusses the results obtained. Finally, the main conclusions are presented in Sect. 5, highlighting their theoretical, methodological, managerial, and marketing contributions to the destination.
2 Literature Review 2.1 Influence of the Media in Image Creation in Tourism and Hospitality The image that a brand occupies in the consumer’s mind can be defined as an encapsulation of the cognitive, sensory and emotional associations of the consumer in relation to tangible and intangible attributes and benefits that result from experiences (e.g. through advertising messages) direct or indirect with the brand [8, p. 30]. It is
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possible to foresee that communication, through the media, can play a relevant role in shaping the image of a product or a brand, for example, being able to influence it. One of the key concepts in this chapter is that of the influence of media which, according to Zhang and Bai [9], can exert and be understood through the concept of dissemination effect which for the referred authors encompasses three aspects: cognition, attitude, and behaviour. According to McQuail [10, p. 71], the media “are seen as effective instruments of power with the potential to exert influence in various ways”, and this power can manifest itself through various aspects such as their ability to “attract and direct the attention of the public, to influence behaviour” [10, p. 72] or even to persuade them as regards their opinions and beliefs. For Stojanovic et al. [11], in recent years there has been a revolution in the way communication takes place largely because of the facilities that technology has made possible. Due to this fact, Lian et al. [12] consider that the evolution of technologies, particularly the internet, has allowed the distinction of public opinion into two types, traditional public opinion and internet public opinion, because not only the degree of influence of each one but also their respective scope is different. In the era of the “before” digital media, the consumer had a reduced number of tools that allowed him to access all the information he wanted about a particular product or service which conditioned his research and decision-making process [13]. Thus, with the emergence of digital media, namely social media, consumers now have more resources to carry out their research, and, according to Varkaris and Neuhofer [13], such a development has influenced how the decision-making process occurs, particularly in tourism and hospitality largely due to access to content shared by other consumers about their experiences. In the hospitality sector, the means of communication are equally important since, in the case of hotels, it is impossible to experience their service before buying (they are an intangible service) and this adds greater weight to communication, i.e. consumers will value much more, for example, what is said by former customers and the credibility of the information transmitted by them or even by the hotel will be very important in decision-making [14]. An example of this was a study conducted by Samson [2] whose objective was to understand the influence that social media have on travel decision-making and where it was concluded that most people changed their decisions after researching information on various platforms such as blogs, websites, YouTube, among others, because this research gave them more confidence in their decision-making. This aspect reinforced that the use of digital media as a marketing tool in the tourism industry is a viable path for companies because it contributes not only to the reduction of uncertainty associated with the sector, but also reduces costs, due to the fact there is a greater proximity with the consumer and the information provided tends to be more real [2, 15]. Thus, following the expansion of the internet there was a change in the way information in tourism is distributed as can be seen by the fact that many organisations operating in the tourism sector, such as hotels, have begun to include it in their marketing strategies thanks to its growing popularity [16].
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Something that no manager should forget is that the tourism and hospitality industry is very competitive, and to be successful in this area it is necessary that companies arm themselves with competitive advantages which for Litvin et al. [17] may involve the use of online interpersonal influence which thus supports the opinion that the internet is a powerful asset in the marketing strategy of companies operating in this sector.
2.2 Impact of Media Promotion on the Construction of a Hotel’s Image In the case of hospitality, it appears that the feedback created by the consumer is a very relevant aspect in the management of the hotel’s operations, since they can receive in time valuable information that allows them to improve their performance and their relationship with consumers which, thanks to technology, can be more personalised [14]. To take advantage of the digital media, hotels should be aware of what is happening, for example, in the main social media because then, they can act quickly when faced with situations of negative comments, which is crucial for not losing the guests’ trust [3, 13]. One of the examples of investment in digital media in the hotel industry is the case of Hotel ICON, which decided to put aside traditional media and support its launch strategy mainly in digital media. Its strategy included the creation of a website whose main objective was to establish communication with guests and encourage their loyalty and the use of banners as a form of advertising, which not only allowed it to reach its potential customers more accurately but also proved to be more economical when compared to traditional media [3]. Due to the characteristics that the media present, these can be used in the promotion strategies of tourism companies since they not only want to advertise their products, but also want consumers to be seduced and motivated to buy services and/or tourism products, i.e. they want to cause a positive impact on those who can obtain a favourable return. According to Natal [18], the use of information and communication technologies has proven to be an important factor in the competitiveness of tourism businesses and its evolution over time has been at the origin of many of the changes occurring in the tourism sector. In the case of promoting a hotel unit, the means of communication are necessarily present, so it is in the choice of the types of means used and how they are used that there is a greater or lesser positive impact on current and potential guests. The construction of the image of a hotel in the consumers’ mind is influenced not only by the marketing strategy that is implemented but also by the consumers’ motivations and the whole environment that surrounds them. It should also be considered that the image formation is a dynamic process so, mainly everything that happens before and during the stay in the hotel contributes to its formation [19].
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When promoting a hotel, it is important to analyse how it communicates with its audience. For example, in the case of digital media, it is possible for the hotel to respond to feedback from its guests in real time, which can help in building its image with them [20]. However, it is always necessary to be moderate in the conclusions that are drawn because, depending on how the media are used in the promotion strategies, a positive impact may result.
3 Methodology The main objective of this research is to analyse the influence of digital media in hotel’s image and identify the best strategies for its promotion, using as case study, Hotel das Salinas located in Aveiro, Portugal. A quantitative methodology was adopted, having been applied a questionnaire to all guests of HdS. The questionnaire consists of 16 questions, directly related to the research objective, and is divided into three parts: the first focuses on collecting the guests’ socio-demographic data; the second on the trip characteristics; and the third on the media and strategies adopted for the promotion of its image. The respondents were selected through a non-probability convenience sampling. It should be noted that the questionnaire was applied between April and May 2021, the administration method used was personal and was distributed in Portuguese, English, Spanish and French. Data collected through the questionnaire were analysed using the Statistical Package for the Social Sciences (SPSS) software, version 25.
4 Results Sociodemographic Data In a sample of 142 respondents, in relation to gender, there is no great discrepancy in this aspect, since 54.9% were female and 45.1% were male. In relation to the age, there is some dispersion of data across the various age groups, but it can be affirmed that 47.9% of the respondents are aged between 46 and 65 years, of which 26.1% are aged between 56 and 65 years and 21.8% are aged between 46 and 55 years. We can also see that 19% are less than 35 years old, 17.6% are between 36 and 45 years old and that 15.5% are over 66 years old. Regarding nationality, the following countries are in the top three with the highest percentages: Portugal (29.6%), Spain (19.0%) and Brazil (13.4%). From a continental perspective, the respondents are mainly from Europe (71.1%), followed by America (24%), Asia (2.8%), and Oceania (0.7%). Regarding academic qualifications, it can be said that the vast majority have higher education qualifications: 34.7% have a B.Sc., 21.3% a master’s and 13.5% has a Ph.D. The percentage of secondary education is also significant (13.5%), followed by technical specialisation courses (9.2%). With less relevance are the levels of education related to basic education (7.8%).
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Considering the average monthly income, it was found that most respondents are between 1000 and 2000 euros (37.8%) and there is also a considerable number of respondents who have an income of over 3000 euros per month (35.4%). With an average monthly income between 2000 and 3000 euros, 16.5% of respondents are in the group and 10.3% earn less than 1000 euros. Characteristics of the Trip In relation to what is the main motivation of the guests when staying in the city of Aveiro, the vast majority answered that their main motivation is leisure (70.4%) followed by business (14.1%) and participation in events (11.3%). With a lower percentage were the academic purposes as motivation for lodging with 3.5% and the visit to relatives and/or friends with 0.7%. Considering the travel group the data obtained reveal that the two largest percentages indicate that 33.8% of guests travel with a couple and 29.6% travel with their family. Followed by the individual traveller (12%), the traveller with friends (11.3%), the organised group traveller (7%), and, lastly, the business traveller (6.3%). Accommodation at Hotel das Salinas Regarding the accommodation at HdS, it was intended to characterise it about several aspects such as frequency and number of nights of stay. Thus, it was found that most of the guests surveyed, about 85.2%, are staying at HdS for the first time compared to the remaining 7.7% who have stayed more than four times, 5.6% have stayed twice and 1.5% have stayed between three to four times. Regarding the number of nights that the respondent stays, it was found that most guests, 64.1%, stay only one night in HdS followed by 22.5% who stay two nights in the hotel. With lower values are the three-night stay (6.4%), the stay of more than four nights (4.2%), and the four-night stay (2.8%). Regarding the way in which guests became aware of the HdS, 50.7% of respondents became aware of the HdS through the existing booking platforms such as, Booking.com, Expedia and Agoda, followed by friends and family (16.9%). Other sources through which respondents learned about the hotel are travel agencies (8.5%), Google search engine (7%) and traditional media (1.4%). Media and Promotion Strategy A very important element of any company is its promotion strategy, and therefore, we tried to understand which elements in a promotion strategy are most valued by guests when making their decision regarding the hotel where they will stay. With this, it can be said that the most chosen aspects were the dissemination in digital media (74.8%), having their own website (43.2%) and being present in review websites (38.8%). When guests decide to choose the hotel to stay, there are also two more important aspects: the fact that the hotel offers discounts (20.1%) and their feedback (24.5%). Finally, the least valued aspects were publicity in traditional media (5%) and the fact that the hotel is present at fairs and events (1.4%) (Fig. 1). Concerning HdS, what are the elements that were presented in the promotion strategy that guests most valued when making their decision to stay at the hotel? In
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Dissemination in traditional media Dissemination in digital media Having your own website Creating discounts Be present at trade fairs and events Reply to feedbacks Be present on review sites
437
5% 74,80% 43,20% 20,10% 1,40% 24,50% 38,80%
Fig. 1 The most valued aspects of the promotion strategy when deciding to choose a hotel
this case, the aspects that had more relevance in the decision-making process were the dissemination in digital media (76.2%), having their own website (30.2%) and being present in review websites (27.8%). When the respondents made the decision to stay in the HdS, they also valued the fact that it responded to feedback (19.8%) and that it offered discounts (12.7%). On the other hand, the aspects that were least valued in the choice of the HdS were the promotion in traditional media (4%) and the presence in fairs and events (0.8%) (Fig. 2). Table 1 shows the overall results regarding the importance of the aspects that are part of the promotion strategy for HdS (specifically). In a more detailed analysis of each item, it is possible to understand the degree of importance that each one has for respondents regarding the promotion strategy of HdS. Therefore, the dissemination in traditional media is an aspect that 33.6% of respondents consider important about the promotion strategy of HdS, of which, 15.5% say it has a very high degree of importance. With an opposite opinion, are 1 2 3 4 5 6 7
Dissemination in traditional media Dissemination in digital media Having your own website Creating discounts Be present at trade fairs and events Reply to feedbacks Be present on review sites
4,0% 76,2% 30,2% 12,7% 0,8% 19,8% 27,8%
Fig. 2 The most valued aspects of the promotion strategy when deciding to choose HdS
Table 1 Importance in the promotion strategy Dissemination in traditional media (%)
1
2
3
4
5
24.1
42.3
18.1
8.6
6.9
Dissemination in digital media (%)
2.4
1.6
15
33.1
48
Having your own website (%)
0.8
0.8
22.2
41.8
34.4
Creating discounts (%)
2.4
9.7
38.7
31.5
17.7
20.9
44.3
23.5
8.7
2.6
Reply to feedbacks (%)
1.7
10.8
25
35
27.5
Be present on review sites (%)
4.2
8.4
21
38.7
27.7
Be present at trade fairs and events (%)
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66.4% of respondents because they believe that the dissemination in traditional media is an aspect that in the promotion strategy of the HdS is not so important. Different results were found regarding dissemination in the digital media, as 96.1% of the respondents consider this to be an important aspect in the promotion strategy of HdS, and of these, 81.1% are of the opinion that this item has a very high degree of importance. Regarding the fact that the HdS has its own website, 98.4% of respondents consider that this is an important aspect in its promotion strategy and 76.2% are of the opinion that this element is very important in the strategy. For 87.9% of respondents, the discounts are an important aspect in the promotion strategy of HdS and, of these, 49.2% consider that this aspect has a very high degree of importance. Hotel das Salinas being present at fairs and events is for 34.8% of respondents an important element for its promotion strategy, and for 11.3% this is an aspect with a very high degree of importance; however, 65.2% of respondents are of the opposite opinion since they attribute to the presence at fairs and events little or no importance. Regarding the response of HdS to the feedback received, it was found that 87.5% of respondents consider that this is an important element in the promotion strategy of the HdS, of which 62.5% believe that this aspect has a very high level of importance. Finally, in what concerns the detailed analysis is the fact that HdS is present in site reviews, which for 87.4% of respondents is an important element in the promotion strategy of HdS. Based on the detailed analysis previously carried out, it can be concluded that, in general, the aspects related to the promotion strategy of HdS to which respondents attach more importance are the dissemination in digital media (81.1%), having its own website (76.2%) and being present in site reviews (66.4%). On the other hand, the aspects that respondents considered to be little or not so important in the promotion strategy of the HdS are the dissemination in traditional media (66.4%) and being present at fairs and events (65.2%). Effectiveness of the Communication Strategy and Its Impact on Hotel’s Image Still related to the communication strategy of HdS, the guests were asked about the degree of effectiveness that they attribute to it, so that 95.3% consider that the communication strategy of the HdS is effective and, of these, 66.7% say that it has a higher degree of effectiveness. However, there are 4.7% of respondents who have the opposite opinion, as they believe that the HdS communication strategy is not very effective or not effective at all (Fig. 3). Another question asked to the guests was aimed at understanding the degree of impact that the use of the media in promoting the HdS has on the image that guests have of it. Accordingly, the results obtained indicate that 89.1% of the surveyed guests consider that the use of the media to promote the HdS has an impact on their image of the hotel, and 68.8% of them say that the degree of impact of using the media to promote the HdS is high. However, 10.9% of the respondents are of the opinion that the use of the media to promote HdS has little or no impact on the image that guests have of the hotel (Fig. 4).
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Fig. 3 Effectiveness of Hotel das Salinas’ communication strategy
50,0% 40,0% 30,0% 20,0% 10,0% 0,0% No impact Lile impact
Impact
High impact Very High impact
Fig. 4 Impact of the media on the image of Hotel das Salinas
Finally, we sought to know to what extent they considered that the impact of the communication strategy of HdS on its image is positive, so in Table 2 it is possible to observe, in a global way, the results obtained regarding this aspect. In the question asked to the guests on this subject, we used a Likert scale with five points with the Table 2 Degree of agreement with the aspects related to the positive impact on the Hotel’s image in the promotion strategy 1 (%) 2 (%) 3 (%) 4 (%) 5 (%) Encourages booking
0.8
–
18.6
62.1
18.5
Encourages rebooking at another time
0.8
2.5
26.8
48.8
21.1
Contributes to word-of-mouth referrals to friends, family, 0.8 and acquaintances
–
19.5
48.8
30.9
Increases the number of days you stay
4.9
52.9
31.4
8.3
2.5
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following designation: 1—I totally disagree (TD); 2—I disagree (D); 3—I neither agree nor disagree (NAND); 4—I agree (A); 5—I totally agree (TA). In a more detailed analysis about the possible positive impact of the communication strategy of HdS in its image, it is possible to know the degree of agreement that respondents have about each potential effect. Regarding the aspect that has to do with encouraging the reservation, it was found that 80.6% of respondents agree that the impact of the communication strategy of HdS in its image is positive as it encourages the reservation, and of these 18.5% have a very high degree of agreement with this aspect. On the other hand, 18.6% of respondents neither agree nor disagree with this aspect and 0.8% totally disagree that the impact of the communication strategy of HdS in its image can encourage the reservation. The fact that the impact of the HdS communication strategy as on the image of the HdS may lead to repeat bookings on another occasion is something that 69.9% of the guests agree with, and of these, 21.1% totally agree. With an intermediate position are 26.8% of the respondents who neither agree nor disagree and with a high degree of disagreement there are 3.3% of the respondents. In what concerns the contribution for “word-of-mouth” recommendation to friends, family and acquaintances, the results show that 79.7% of the guests agree that this aspect can be a consequence of the positive impact of the HdS communication strategy on its image and 30.9% of them totally agree with this aspect. However, there are 19.5% of respondents who neither agree nor disagree and 0.8% who totally disagree that this may occur. Lastly, in terms of detailed analysis, is the case of the increase in the number of days of stay because of the positive impact of the HdS communication strategy on its image, with which 39.7% of the guests agreed, and of these, 8.3% showed a very high level of agreement regarding this matter. On the opposite side are 52.9% of the respondents as they state that they neither agree nor disagree that the impact of the HdS communication strategy on its image may manifest itself in an increase in the number of days of stay and, there are also 7.4% of respondents that have a high level of disagreement about this aspect. In summary and taking into consideration the detailed analysis previously carried out, it can be concluded that in general, the two aspects with which the respondents most agree that can result from the positive impact of the HdS communication strategy on the image of the HdS are the incentive to book (80.6%) and the contribution to “word-of-mouth” recommendations to friends, family, and acquaintances (79.7%). On the other hand, the two aspects with which the guests least agree that can result from the impact of the HdS communication strategy on the image of the HdS are the increase in the number of days of stay (7.4%) and the repetition of the reservation on another occasion (3.3%).
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5 Conclusion In relation to the socio-demographic data of the respondents, it is concluded that these are mostly made up of female guests (54.9%), presents a greater representation in age groups ranging from 36 to 65 years (65.5%). In the case of nationality, the majority of respondents are Portuguese (29.6%) so it was possible to ascertain that, with regard to the continents, Europe is the one where most guests of HdS come from. Regarding academic qualifications, it was concluded that most guests have a degree related to higher education (69.5%) and, of these, the academic degree that has the highest percentage is B.Sc. (34.7%). Other data that could be ascertained is that most of the guests receive, on average, a monthly income of over 1000 euros (89.7%). In what concerns the characteristics of the trip, we conclude that most of the interviewed guests have leisure as the main motivation for their stay in the city of Aveiro (70.4%) and they travelled mostly as a couple (33.8%) and as a family (29.6%). Regarding the accommodation at HdS, there are several data that can be concluded, namely, that most of the guests are staying at HdS for the first time (85.2%) and still, more than half intend to stay one night (64.1%). Regarding the way in which guests learned about HdS, the means of communication that most (50.7%) of the respondents chose were the online booking platforms, such as, for example, Booking.com, Expedia and Agoda. Another important data that was obtained is that the guests surveyed stated that the media that mostly led them to choose HdS as the place to stay, were the review websites (33.6%), the hotel website (26.7%) and social networks (13.7%), i.e. the digital media, in line with information collected in the literature review that digital media are gaining strength and influencing consumer choices, particularly in the hospitality industry. In the context of the decision-making process that the guest takes regarding the hotel where they will stay, it is concluded that for this process the elements present in a hotel promotion strategy, which the guest most values are, in general, the dissemination in digital media, the fact that the hotel has its own website and being present in review websites, while those that they least values are the dissemination in traditional media and the fact of being present at fairs and events. In the specific case of HdS, the results obtained are very similar, as most guests stated that when they made their decision to stay at HdS, the aspects present in the promotion strategy of this hotel that they most valued were the promotion in the digital media, the fact that the hotel has its own website and that it is present in review websites, and the ones that they valued the least were the promotion in traditional media and the presence in fairs and events. About the importance that guests attribute to the various elements that are present in the promotion strategy of the HdS, it appears that the results obtained for the elements considered most and least important are equal to the most and least valued when deciding to stay at the hotel. Once again it is possible to notice the relevance that the digital side has in the decision-making process of the respondents when compared to the traditional side,
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because the disclosure in the traditional media and the face-to-face contact in fairs and events are aspects little valued. Regarding the opinion of guests on the impact and effectiveness of the communication strategy of HdS, we conclude that most respondents (93.1%) say that the communication strategy of HdS has a positive impact on its image, and furthermore, 95.3% of respondents believe that the communication strategy of the hotel is effective. Considering the means of communication, namely its use in the promotion of the HdS, most guests consider that it has a significant impact on their image. Regarding the positive impact of the communication strategy of the HdS on its image, the two major benefits resulting from the positive impact of the communication strategy are the incentive to book and the contribution for word-of-mouth recommendation to friends, family, and acquaintances. Another important data that could indicate something that could be done with a possible improvement action is the fact that the interviewed guests considered that the increase in the number of days of stay and the repetition of the reservation on another occasion are not a result of the impact of the HdS communication strategy.
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12. Lian, Y., Dong, X., Liu, Y.: Topological evolution of the internet public opinion. Physica A 486, 567–578 (2017). https://doi.org/10.1016/j.physa.2017.05.034 13. Varkaris, E., Neuhofer, B.: The influence of social media on the consumers’ hotel decision journey. J. Hosp. Tourism Technol. 8(1), 101–118 (2017). https://doi.org/10.1108/MRR-092015-0216 14. Torres, E.N., Singh, D.: Towards a model of electronic word-of-mouth and its impact on the hotel industry. Int. J. Hosp. Tour. Adm. 17(4), 472–489 (2016). https://doi.org/10.1080/152 56480.2016.1226155 15. Gururaja, R.: Impact of social media on tourism and hospitality. Sastech Tech. J. RUAS 2(1), 24–26 (2015). Retrieved from http://www.msruas.ac.in/pdf_files/Publications/MCJour nals/March2015/4_RashmiGururaj.pdf 16. Buhalis, D., Law, R.: Progress in information technology and tourism management: 20 years on and 10 years after the Internet—The state of eTourism research. Tour. Manage. 29(4), 609–623 (2008). https://doi.org/10.1016/j.tourman.2008.01.005 17. Litvin, S.W., Goldsmith, R.E., Pan, B.: Electronic word-of-mouth in hospitality and tourism management. Tour. Manage. 29(3), 458–468 (2008). https://doi.org/10.1016/j.tourman.2007. 05.011 18. Natal, N.: As tecnologias da informação e comunicação e as redes sociais no turismo – caso da Ilha de Porto Santo (2019) 19. dos Santos, H.N.: Influência dos meios de comunicação na imagem percebida pelos hóspedes: o caso da rede de hotéis fantastic – Brasil (2013) 20. Zhang, Z., Li, H., Meng, F., Li, Y.: The effect of management response similarity on online hotel booking Field evidence from Expedia. Int. J. Contemp. Hosp. Manag. 31(151082), 2739–2758 (2019). https://doi.org/10.1108/IJCHM-09-2018-0740
Digital Presence of Companies: Consumer Social Interaction and the Purchase Decision Maria I. B. Ribeiro , António J. G. Fernandes , Isabel M. Lopes , and José A. M. Victor
Abstract This research aimed to verify the importance, in the purchase decision, of comments, recommendations, ratings and opinions about products/services available online. Also, aimed to analyze whether the frequency of use of the Internet and social networks, in the search for information, as well how the importance of this information in the purchase decision process is independent of gender. To this end, a quantitative and cross-sectional study was developed based on a non-probabilistic sample of 1068 Portuguese consumers. The analysis of the results showed that most consumers, before making a purchase, frequently seek information about products/services and companies, as they consider the recommendations, ratings and opinions issued by other consumers about a particular product/service to be relevant. The most reliable sources were specialized websites, company websites, blogs/review sites and Google ratings. The quality and variety of products/services offered by the company and the opinion of other consumers about companies and the products/services offered were the most searched online information by respondents. On the other hand, the results showed that gender is a differentiator factor of the frequency of use of the Internet and social networks concerning the information about products/services, as well as regarding the importance of this information in the purchase decision process. Consumers, due to the ease of access, are increasingly using online tools to obtain and M. I. B. Ribeiro · A. J. G. Fernandes Instituto Politécnico de Bragança, Centro de Investigação de Montanha (CIMO), Campus Santa Apolónia, 5300-253 Bragança, Portugal e-mail: [email protected] A. J. G. Fernandes e-mail: [email protected] I. M. Lopes (B) UNIAG, Instituto Politécnico de Bragança, Campus de Santa Apolónia, Bragança, Portugal e-mail: [email protected] Centro ALGORITMI da Universidade Do Minho, Guimarães, Portugal J. A. M. Victor Instituto Politécnico da Maia—IPMaia, Maia, Portugal e-mail: [email protected] Universidade da Maia—ISMAI, Maia, Portugal © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 J. L. Reis et al. (eds.), Marketing and Smart Technologies, Smart Innovation, Systems and Technologies 280, https://doi.org/10.1007/978-981-16-9272-7_36
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share information about products and services, before, during and after purchasing a particular product/service. It is up to companies to adjust communication strategies in order to satisfactorily respond to the consumer’s needs. Keywords Consumer behavior · Digital companies · Internet
1 Introduction The Internet, social networks, mobile devices, among other technologies are currently part of the daily routine of most consumers around the world [1] assuming a fundamental role in business and public communication [2]. The Internet and the use of social networks redefined lifestyle and culture [3]. People spend more and more time online searching and looking for information about products and services and communicating with other consumers to learn about their experiences [4]. The Internet allows consumers to receive pre- and post-purchase information. The growing number of purchase channels also influenced consumer behavior [5, 6]. Modern consumers are increasingly using online tools, namely blogs, Facebook, YouTube, among others, to share their opinions about the products and services they consume [7]. In this context, consumer behavior has changed significantly, especially due to technological innovation and the adoption of portable devices, directly contributing to the way in which social commerce is interacted with, in decision-making and in online shopping [1]. The Internet and virtual communities have transformed consumers, societies and corporations with broad access to information, better social networks, improved communication skills [8] and changed the way consumers and marketers communicate. Consumers went from being mere spectators to being participants [9]. Organizations have responded to this shift in consumer behavior by making digital and social media essential and integral components of business marketing plans [10]. The messages, based on the Internet, started to influence different aspects of consumer behavior, such as acquiring information, opinions, purchasing behavior and evaluation [11]. The Internet tends to be the main source of regular information for most customers, and social networks allow customers to rate products, make recommendations and make status updates. Customers can easily share their ideas, opinions and experiences while connecting with their peers online [12]. On the other hand, the interactive nature of social networks established bidirectional communication between individuals and companies [3]. In this context, social networks offer a variety of online forums that include blogs, discussions, chat rooms and product/service ratings, allowing customers to easily voice their opinions and ratings [13]. Members of a given community can, at no cost, submit their opinions on a particular product, topic or community and these online reviews have a significant effect on customers’ purchase intentions [14, 15]. Currently, consumer complaints can be
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instantaneous and communicated to millions of people (negative electronic word-ofmouth) with consequences that can be harmful for the companies [16, 17] resulting in reputational damage and decreased sales. The customer’s social interaction has a great influence on the purchase decision, based on the recognition of the problem, search for relevant information, evaluation of alternatives, final purchase decision and post-purchase satisfaction [12]. Furthermore, using Social Media, consumers have the power to influence other consumers [18] through ratings. When consumers need information about a product or service, they turn to Social Media (for example: eWOM) to get the information faster and use it to corroborate the information received. Credibility and speed are the two characteristics associated with the eWOM most capable of influencing consumer behavior and most frequently used to obtain information before, during and after the purchase of a particular product [7, 19]. The use of Social Media influences consumer satisfaction in the various stages of the purchase decision process, namely in the search for information and evaluation of alternatives. The satisfaction is amplified as the consumer progresses through the process toward the final purchase decision and post-purchase evaluation [15]. There is a positive correlation between the number of hours that consumers spend online, actively using the social network and the level of influence of the social network in the purchase decision [12]. On the other hand, a study showed that customers who spend more time on social networks and search engines are less tolerant concerning bad services and excessive prices. Furthermore, with the increased use of Social Media, consumers tend to try new products more often or buy products without physically seeing them [3]. The speed of contact on social networks makes it possible to detect movements of dissatisfaction or enthusiasm for the brand almost instantly, allowing companies to adjust communication and dissemination strategies capable of minimizing any failures, as well as taking advantage of opportunities, which are why they are considered an essential tool for marketing and brand communication [20]. The immense information available for free on social networks is an opportunity for companies to improve the offer of their products as well as the relationship with customers, thus increasing profitability and profits [15]. The aim of this research was to know how the experiences and recommendations of consumers are important and have an effect on the purchase decision of other consumers, their peers; and to verify whether gender is different with regard to the frequency of use of the Internet to obtain information about products and services, as well as the importance of this information in the purchase decision process. This paper is organized as follows: (1) development of the literature review on the subject and presentation of the research objectives; (2) description of the methodology used in this research; (3) presentation of the results and discussion; (4) presentation of the conclusions, limitations and future researches.
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2 Methods A quantitative and cross-sectional study was developed based on responses to a questionnaire adapted from Hauschild [21] and applied online through Google forms, from a link shared in emails and social networks, from October 2020 to January 2021.
2.1 Sample As it was impossible to study the entire target population, a non-probabilistic sample was taken, for convenience, as the probability of each element in the universe being selected for the sample is not known. This is the appropriate method when a certain type of random sampling is not easily usable. 1068 completed inquiries were considered out of a total of 1852 received.
2.2 Instrument of Data Collection The questionnaire consisted of two sections. The first section included five questions about the respondent’s profile, namely district of residence, age, gender, educational qualifications and professional occupation. The second section consisted of eight questions about (1) the number of weekly hours of Internet use; (2) the frequency of use of the Internet and social networks; (3) the importance attributed by the consumer to the comments, recommendations and opinions left on social networks about a product/service; (4) the importance consumers attach to accessing online information about companies and products/services; (5) the importance that the consumer attaches to the comments and ratings of other consumers accessible through the various online instruments or social networks; (6) the most searched information on the Internet by the consumer; (7) the attraction of online content when browsing the Internet; (8) the frequency of searches on companies’ online content; and (9) the degree of agreement of respondents in relation to statements about purchasing behavior.
2.3 Data and Statistical Treatment The collected data were edited and analyzed using the IBM SPSS Statistics version 27.0 software. The statistical analysis involved the calculation of descriptive statistics, namely the calculation of absolute and relative frequencies for qualitative variables and the calculation of measures of central tendency (mean) and dispersion (standard deviation (SD), maximum and minimum) for the variables of quantitative
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nature [22, 23]. To compare two independent samples, the t-Student parametric test was used for a significance level of 5%.
2.4 Ethics When invited to participate in the study, respondents were informed about the objectives and scope of the study and that the data collected would be treated anonymously, with confidentiality guaranteed. On the other hand, they were informed that the dissemination of results, in the academic and scientific media, would be done in an aggregated way, anonymously and without identifying the participants. The respondents who make up the sample did so voluntarily, after their informed consent.
3 Results and Discussion Respondents were aged between 18 and 67 years, with a mean of 24.9 (SD = 9.6) years old. The majority was young people aged between 18 and 22 years (64.4%), female (68.0%), with educational qualifications at secondary level or equivalent (58.7%) and were continuing their studies (57.9%), as shown in Table 1. Respondents were overwhelmingly from the North of Portugal, namely Bragança (31.8%), Braga (21.3%), Porto (19.8%) and Vila Real (5.8%), as shown in Fig. 1. Table 1 Respondents profile (n = 1068) Variables
Categories
Frequencies n
%
Gender
Female Male
726 342
68.0 32.0
Age classes
18–22 Years old >22 Years old
688 380
64.4 35.6
Educational qualifications
1st incomplete cycle (less than 4 years) 1st cycle (4 years) 2nd cycle (6 years) 3rd cycle (9 years) Secondary education or equivalent (12 years) Higher education
5 3 11 38 627 384
0.5 0.3 1.0 3.6 58.7 36.0
Professional occupation
Active Student Worker student Unemployed Retired
375 618 4 67 4
35.1 57.9 0.4 6.3 0.4
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Missing Região Autónoma da Madeira Viseu Vila Real Viana do Castelo Setúbal Santarém Porto Portalegre Lisboa Leiria Guarda Faro Évora Coimbra Castelo Branco Bragança Braga Beja Aveiro
1.5% 3.1% 2.2% 5.8% 1.5% 0.5% 0.1% 19.8% 0.1% 3.5% 0.5% 2.1% 0.7% 0.1% 1.6% 1.5% 31.8% 21.3% 0.1% 2.2%
Fig. 1 Distribution of respondents by district of residence, Portugal
As shown in Fig. 2, most respondents spend more than 10 h a week surfing the Internet (56.5%). The Internet tends to be the main source of information [12]. A study on the Portuguese population’s online habits revealed that the Portuguese spend, on average, two hours a day on the Internet and that they make, on average, 72 visits [24]. The Portuguese are spending more and more time on social networks, with the average use of these platforms being 96 min a day and it is among young people that this habit is more entrenched [20]. Respondents frequently or very frequently seek information about products/services (61.7%) and companies (websites, social media pages, blogs, etc.)
>20 hours/week 22.6%
15-20 hours/week 14.0%
10-15 hours/week 19.9% Fig. 2 Hours, on average, of Internet usage per week
< 5 hours/week 13.0%
5-10 hours/week 30.5%
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(54.3%), as shown in Fig. 3. The same results were obtained in a study in which, according to the authors, it is an increasingly frequent habit for consumers to obtain information about products or services before proceeding with their purchase, using the Internet for this purpose [25]. Before making a purchase, consumers consult information shared by others about what they think about a particular product [25]. It seems that social network users trust the opinions and recommendations of friends, family, experts and even strangers [26]. Respondents consider it important (53.8%) or very important (28.8%), the information regarding recommendations and opinions issued by consumers, about a particular product/service, on social networks (78.5%), as shown in Fig. 4. Similar results were found in a study carried out in Brazil [21]. The sources considered important or very important, by the majority of respondents, to consult the comments and evaluations of products and services are, according to Fig. 5, specialized websites (70.4%), webpages/company websites Are you in the habit of giving your opinions or making recommendations about any product/service on social media?
23.4%
Are you in the habit of researching the recommendations and opinions posted on social networks about any product/service?
15.9%
31.8%
33.1%
Are you in the habit of buying from companies 8.8% 21.7% you follow on the internet? Do you follow companies on the internet (website, social media page, blog, etc)?
25.7% 14.6%
32.0%
How often do you use the internet to find out about products/services?
8.2% Never
27.4%
Rarely
15.1%
24.4%
35.1%
35.1%
12.6% 29.7%
4.3%
36.3% Sometimes
10.0%
19.2%
25.4% Often
Very often
Fig. 3 Frequency of use of the Internet and social networks to obtain information about products and services
Online information about companies and products/services
Recommendations and opinions about products/services Nothing important
Little important
14.6%
14.8%
Indifferent
53.8%
60.2%
Important
28.1%
18.3%
Very important
Fig. 4 Importance of using the Internet and social media to obtain information about products and services
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10.8% 26.0%
45.3%
. 7.6% 17.5% 11.1%
44.3%
24.3%
Company page/website (Amazon, Galaxy Shop, Ebay, Pinterest, Booking, …)
8.4% 17.2%
Twitter
16.9% 13.3%
Nothing important
Little important
26.1%
42.9%
14.9%
48.7%
20.8%
29.8%
Instagram 11.6% 22.2% Facebook 8.5%14.0%
11.6%
32.6%
29.0%
31.3%
20.7%
44.0%
Indifferent
7.4% 5.9% 12.8%
Important
Very important
Fig. 5 Importance of online tools used to obtain information about products/services
(69.5%), blogs/review sites (57.8%) and Google ratings (56.8%). The two tools most used by respondents were also the most valued in Brazil [21]. A growing number of consumers visit websites to find information to help them make purchasing decisions [26]. Consumers find websites a reliable and valuable source for searching products and services, and also for interacting, communicating, sharing opinions and experiences with other consumers. On the other hand, websites are also a place where companies can communicate and build a stronger and closer relationship with their customers [4]. In order to identify the type of content most attracts respondents when browsing the Internet, seven questions were asked. Figure 6 shows that informative content (49.4%) and information about new products/new services (42.6%) are topics that
Company emails/newsletter Informational content
14.7%
22.2%
11.9%
34.3%
33.6%
Reports from famous people 17.9% 23.7% about products/companies Consumer reports about 9.1% 20.5% products/companies New products/new services Company promotions Company ads
12.5% 12.0%
22.3% 33.8%
17.2%
38.6%
32.2% 33.2%
34.6% Never
Rarely
6.3%
25.3%
39.2%
23.8%
15.6%
34.9%
21.5%
6.5%
6.5% 10.4%
26.1% 29.1%
Sometimes
Often
Fig. 6 Frequency of attraction of online content when browsing the Internet
7.2% 9.9%
2.6%
Very often
Digital Presence of Companies: Consumer Social Interaction … The variety of products/services the company offer The company's history The opinion of other consumers about the company and the products/services offered The quality of products/services offered by the company
14.4%
The company's reputation
13.4% Never
Rarely
28.8%
41.7%
20.4% 33.7% 31.6%
Sometimes
12.8% 20.9%
42.1%
26.2%
The conduct of the company
33.7%
35.3%
13.1%
6.6%
21.8%
45.4%
6.4% 23.6%
8.1%
453
33.9% 35.0% Often
12.5% 14.3% Very often
Fig. 7 Frequency of demand for online content about companies
arouse greater curiosity and, therefore, are more frequently viewed by a significant part of respondents (> 40%). On the other hand, the quality of the products/services offered by the company (70.5%), the variety of products/services that the company offers (67.2%) and the opinion of other consumers about the company and the products/services offered (63.0%) are online information about companies most demanded by respondents (Fig. 7). Often, the quality of products or services is verified by consumers through the opinion of other consumers. Regarding purchasing behavior, ten statements were considered to which the respondents indicated their level of agreement using a Likert-type scale with response options ranging from 1 (I totally disagree) to 5 (I totally agree). The statements were intended to measure the degree of confidence of respondents in the information found on the Internet and to verify whether this same information is taken into account in the decision to purchase physically or online. As can be seen in Fig. 8, the statements with the highest level of agreement (agree and totally agree), were in descending order, “The internet gives me more information about the products/services I want to buy than traditional means” (71.8%), “I consider it is very important to research a product/service on the internet before making a purchase” (71.5%), “I look for information on various websites online before making a purchase decision” (71.4%), “I really trust the recommendations that my friends/acquaintances post on their online sites” (61.8%), “I prefer to obtain information about products/services and companies in physical stores” (46.5%), “I place more importance on comments and ratings left online than on information provided by the company itself” (40.4%), “The information I find on the internet is trustworthy most of the time” (40.0%), “I trust recommendations off the internet more than those posted online” (38.5%), “Recommendations and reviews about products/services and companies have no bearing on my purchasing decisions” (36.0%) and “I don’t trust the information I find on the internet” (20.3%).
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Recommendations and reviews about products/services and companies have no bearing on my purchasing decisions I prefer to obtain information about products/services and companies in physical stores
20.6%
12.6%
28.8%
36.9%
27.3%
34.0%
8.7%
12.5%
I don't trust the information I find on the internet
24.8%
I look for information on various websites online before making a purchase decision
5.3% 20.0%
47.4%
24.0%
5.6%20.2%
45.8%
25.7%
I consider it very important to research a product/service on the internet before making a purchase I trust recommendations off the internet more than those posted online I really trust the recommendations that my friends/acquaintances post on their online sites I place more importance on comments and ratings left online than on information provided by the company itself The information I find on the internet is trustworthy most of the time
11.3%
44.9%
45.3%
8.5% 26.9%
16.1%
17.2%
16.3%
30.0%
8.5%
46.5%
37.5%
39.2%
The internet gives me more information about the products/services I want to buy than traditional 5.5% 19.4% 50.8% means I totally disagree I disagree I do not agree nor disagree I agree
15.3%
32.8%
7.6%
35.5%
4.5%
21.0% I totally agree
Fig. 8 Level of agreement of respondents regarding purchasing behavior
According to the literature, men and women have different behaviors with regard to the use of the Internet and social networks [27]. Therefore, it was also the objective of this study to verify whether gender is a differentiator factor of the frequency of Internet use to obtain information about products and services, and of the importance of this information in the purchase decision process. As shown in Table 2, compared to men, women are the ones who most frequently use the Internet to obtain information about products and services (p = 0.000 < 0.05); they follow companies on the Internet by visiting their websites and pages online (p = 0.000 < 0.05); they research comments, recommendations and opinions published on social networks about products and services (p = 0.001 < 0.05); and they give their opinions or make recommendations about products and services (p = 0.027 < 0.05). Finally, it is women who give more importance to access to online information about products and services (p = 0.010 < 0.05) and who most value this information when purchasing the product/service (p = 0.001 < 0.05).
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Table 2 Frequency of use of the Internet and social networks in the search for information about companies, products/services according to gender Variable
Gender
Mean
SD
p
How often do you use the Internet to find out about products/services?
Female
3.81
0.958
0.000a
Male
3.56
0.908
Do you follow companies on the Internet (website, social media page, blog, etc.)?
Female
3.63
0.917
Male
3.35
0.975
Are you in the habit of buying from companies you follow on the Internet?
Female
3.07
0.998
Male
3.00
0.903
Are you in the habit of researching the recommendations and opinions posted on social networks about any product/service?
Female
3.45
0.925
Male
3.22
0.985
Are you in the habit of giving your opinions or making recommendations about any product/service on social media?
Female
2.39
0.912
Male
2.55
0.939
What is the weight in the purchase decision of comments, recommendations and opinions left on social media about a product/service?
Female
3.93
0.781
Male
3.79
0.864
How important is access to online information about companies and products/services in the purchase decision?
Female
4.12
0.747
Male
3.95
0.795
a There
0.000a 0.350 0.001a
0.027a
0.010a
0.001a
are statistically significant differences for a significance level of 5%
4 Conclusions, Limitations and Future Researches This research aimed to know how the experiences, ratings, comments, opinions and recommendations of consumers about products and services available online are important and have an effect on the purchase decision of other consumers; and, to verify whether the frequency of use of the Internet and social networks to obtain this information, as well as to ascertain whether the effect of this information on the purchase decision is equal or not for men and women. In this context, a quantitative and cross-sectional study was developed that involved the collection of primary data, in a non-random way. A total of 1068 responses from Portuguese consumers were obtained. Consumers were aged between 18 and 64, the majority was female, had secondary education or equivalent qualifications and was a student. Most respondents spend more than 10 h a week surfing the Internet, often looking for information about companies, products/services. Consumers consider that information regarding recommendations and opinions issued, on social networks, by other consumers about a particular product/service is very important and has a considerable weight in their decision to purchase products/services. This information is mainly consulted on specialized websites, webpages/company websites, blogs/review sites and Google ratings, as they are considered the most reliable and valuable sources for researching products and services, and also for interacting, communicating, sharing opinions and experiences with other consumers. Women are also the ones
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who attribute most importance to accessing information about products and services online and who most value this information when purchasing the product/service. With regard to the frequency of use of the Internet to obtain information about products and services, as well as the importance and weight of this information in the consumer’s purchase decision process, it is women more than men who use the Internet to be informed about products and services, follow companies on the Internet, search comments, recommendations and opinions published on social networks about products and services and give their opinions or make recommendations about products and services. In this study, non-probabilistic sampling was chosen. Despite being easier to operationalize, it has as a limitation the fact that the results cannot be generalized to the entire population with statistical precision. For future researches, it is suggested to study a specific product, company or online tool using a probabilistic sample in order to obtain more concrete results and with greater statistical precision. Acknowledgements The authors are grateful to the Foundation for Science and Technology (FCT, Portugal) for financial support by national funds FCT/MCTES to CIMO (UIDB/00690/2020). UNIAG, R&D unit funded by the FCT—Portuguese Foundation for the Development of Science and Technology, Ministry of Science, Technology and Higher Education, Project No. UIDB/04752/2020.
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10. Stephen, A.T.: The role of digital and social media marketing in consumer behaviour. Curr. Opin. Psychol. 10, 17–21 (2016) 11. Ioanas, E., Stoica, I.: Social media and its impact on consumers behaviour. Int. J. Econ. Pract. Theor. 4(2), 295–303 (2014) 12. Nolcheska, V.: The influence of social networks on consumer behaviour. Balkan Near East. J. Soc. Sci. 3(4), 75–87 (2017) 13. Mangold, W.G., Faulds, D.J.: Social media: the new hybrid element of the promotion mix. Bus. Horiz. 52, 357–365 (2009) 14. Zhang, K.z., Zhao, S.J., Cheung, C.M., Lee, M.K.: Examining the influence of online reviews on consumers’ decision-making: a heuristic-systematic model. Decis. Support. Syst. 67, 78–89 (2014) 15. Voramontri, D., Klieb, L.: Impact of social media on consumer behaviour. Int. J. Inform. Decis. Sci. 11(3), 209–233 (2019) 16. Ismagilova, E., Dwivedi, Y., Rana, N.: Unanticipated consequences of interactive marketing: systematic literature review and directions for future research. In: Martínez-López, F., D’Alessandro, S. (eds.) Advances in Digital Marketing and eCommerce, pp. 91–98 (2020) 17. Javornik, A., Filieri, R., Gumann, R.: “Don’t forget that others are watching, too!” the effect of conversational human voice and reply length on observers’ perceptions of complaint handling in social media. J. Interact. Mark. 50, 100–119 (2020) 18. Chivandi, A., Samuel, M.O., Muchie, M.: Social Media, Consumer Behavior, and Service Marketing (2019). https://doi.org/10.5772/intechopen.85406 19. Yang, F.X.: Effects of restaurant satisfaction and knowledge sharing motivation one WOM intentions: the moderating role of technology acceptance factors. J. Hosp. Tour. Res 41, 93–127 (2017) 20. Marktest Consulting: Os Portugueses e as Redes Sociais. Grupo Marktest, Lisboa (2020) 21. Hauschild, T.: A influência da presença digital das empresas nas decisões de compra dos consumidores. Universidade do Vale do Taquari - UNIVATES, Brasil, Trabalho de fim de curso de Administração de Empresas (2017) 22. Marôco, J.: Análise Estatística com o SPSS Statistics. Report Number, Pero Pinheiro (2021) 23. Pestana, M., Gageiro, J.: Análise de Dados para Ciências Sociais: A complementaridade do SPSS. Edições Sílabo, Lisboa (2014) 24. PSE: Net Behaviour—Comportamento da População Portuguesa na Internet. PSE, Lisboa (2019) 25. Simonson, I., Rosen, E.: What marketers misunderstand about online reviews. Harv. Bus. Rev. 92(1/2), 23–25 (2014) 26. Lueg, J.E., Ponder, N., Beatty, S.E., Capella, M.L.: Teenagers’ use of alternative shopping channels: a consumer socialization perspective. J. Retail. 82, 137–153 (2006) 27. Karatsoli, M., Nathanail, E.: Examining gender differences of social media use for activity planning and travel choices. Eur. Transp. Res. Rev. 12(44), 2–9 (2020)
Chicha Music as an Advertising Resource to Arouse Emotions in the Consumer Ana-Kelly Duran-Palomino , Francisco Arbaiza , and Eliana Gallardo-Echenique
Abstract This study aims to analyze the emotions aroused by tropical Andean music—popularly known as chicha—present in the advertising of a well-known beverage brand in university students. The power music exerts in advertising is already commonly known as well as how it can intensify the effect of the message and trigger an emotional reaction in the consumer. This Peruvian musical genre is usually closely related to Peruvian identity and attributes of its population such as racial and cultural intermixing, creativity and self-improvement. In recent years, this sound resource has been established in the commercial communication of Peruvian brands aimed at the modern neo-Limenian; many of them descendants of migrants, proud of their origin and culture. This study is qualitative with a phenomenological approach. Through 16 interviews, the study shows how the presence of this musical genre can arouse positive emotions in the sample. In addition, the choice of music has to be coherent with the narrative structure of the advertising message to ensure optimal emotions. Keywords Chicha music · Advertising music · Consumer · Phenomenological approach
1 Introduction Music has existed since time immemorial as an art form preserved to the present day, whose sounds produce positive or negative effects and emotions to man [1–5]. Due to its power to evoke emotions and persuade, it is present in advertising and A.-K. Duran-Palomino · F. Arbaiza · E. Gallardo-Echenique (B) School of Communications, Universidad Peruana de Ciencias Aplicadas, Prolongación Primavera 2390, Lima 15023, Peru e-mail: [email protected] A.-K. Duran-Palomino e-mail: [email protected] F. Arbaiza e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 J. L. Reis et al. (eds.), Marketing and Smart Technologies, Smart Innovation, Systems and Technologies 280, https://doi.org/10.1007/978-981-16-9272-7_37
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new audiovisual technologies [6–9]. Specifically, music as an advertising resource has been used for decades, and several studies [10, 11] state that its use together with audiovisual media can positively influence the product and allows greater awareness, affection and attitude. This blend has created a close relationship between music and advertising because they complement and enhance each other; hence, the importance of investigating this relationship [12, 13]. Internationally, several studies have analyzed music and advertising. Most of it focuses on finding out the effectiveness and effects produced by music on an audience, as well as on proposing new strategies to achieve positive emotions to the brand and to increase the probabilities of purchase [10, 11, 14–21]. Several studies [16, 17, 19] explain that the use of a music suiting the tone of communication, the plot of the ad and the affinities to the target audience, has more chances of going viral, improving its efficiency, and obtaining affective responses. In Peru, some studies [12, 13, 22] have shown that the use of music enhances the advertising message, in a type of symbiosis, and achieves a better brand awareness along with added value. Pinto [22] analyzed the use of chicha tropical music in advertising addressed at neoLimenians, whose main result explains that it could not create a bond because this music is related to their ancestors but not to the present generation. Although there are studies on music and advertising, there are few who focus on particular Peruvian music, such as tropical chicha music, and who try to adapt it to a young audience affected by technology and current changes as is the neo-Limenian. Therefore, the research question of this work is: What emotions does chicha music arouse as an advertising resource in the students of a public university regarding the spot “¡El Perú tiene Sabor De Oro!”?
1.1 Chicha Music in Advertising Andean tropical music, popularly known as chicha music, started as a cultural phenomenon product of the fusion of various musical genres such as huayno, rock, cumbia, and Cuban rhythms [23–25]. Since the fifties, Peru experienced great migratory waves in the main cities of the coast, which allowed various cultural mixtures [23–25]. Although it peaked in Lima, the capital of Peru, the city of Huancayo had a leading role for its development, as, in the middle of last century, many people migrated to the capital where tropical bands also emerged, influenced by other musical genres such as rock and cumbia [24, 26]. Many young people belonging to marginal urban sectors of the most important cities began to see music not as a hobby but as a source of livelihood [24–26]. Andean tropical music emerged to meet the needs of this new sector, which was not rural, but was not fully accepted by society; therefore, the term chicha was coined for any cultural production that did not fit with the ideas of traditional Lima and has been pejoratively related to huachafería (affectation) and informality [23–26]. With the cultural changes that Peruvians have experienced, various authors [27, 28] agree that a new public called neo-Limenians has emerged. These are young
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people, the children of third generation immigrants belonging to the modern city, usually middle class whose hybrid identification allows them to recognize what is traditional from the Andean or Amazonian region with modern Lima. They are proud of their roots when listening to chicha music as a symbol of advancement and progress compared to their ancestors who used to hide their roots. Most Limenians are descended from migrants from the provinces because in 2010, 80% of Limenians were migrants or had migrant parents or grandparents [28, 29]. Since last decade, the trend of the use of chicha music in advertising falls mainly on the categories of telephony and banks, because they adopted music as part of their concept when targeting the entrepreneur with small or medium-sized companies [30].
2 Methodology The research is positioned in the phenomenological paradigm [31, 32] to analyze the phenomenon of chicha music in the spot ¡Perú tiene Sabor de Oro! The method is qualitative because it focuses on explaining the attitudes and emotions of human behavior [32]. The spot was released on Facebook in the summer of 2020. The spot begins with an amplifier being connected while throughout the spot, the song “Ojitos Hechiceros” is played along with symbols of the chicha culture, a culture of AndeanPeruvian origin [22]. Throughout the video, the narrator relates that friends, family, food, neighborhood, and music have a “Golden Flavor” (Sabor de Oro) which makes them feel more Peruvian [33]. The spot is aimed at a young audience and keeps the concept of sharing golden moments with loved ones, highlighting family, the pride of being Peruvian, gastronomy and the neighborhood [34]. Sabor de Oro is a modern soda present on the Peruvian family with no warning octagons (advertising regulation measure) [35, 36]. The participants were students from the School of Fishery of Universidad Nacional Agraria la Molina (UNALM) (see Table 1). This age range was chosen because 53.6% of young Peruvian students drink soda usually at least once a day [37]. As UNALM is a public university, their students mostly belong to the socio-economic level targeted by Sabor de Oro [38]. No participants related to the areas of marketing, advertising, psychology, social communication or related to the study product have been included [39]. Convenience sampling was used to select participants who were easy to reach because of its availability, accessibility and proximity [40, 41]. The sample consisted of 16 students that was determined when thematic saturation was reached. It refers to the time when new significant information is no longer collected [42]. The data collection techniques were semi-structured interviews that give some freedom to the researcher together with the interviewee to express their ideas and deepen their answers [42, 43]. The guide prepared had 15 questions, including the following categories: emotions, Peruvian culture, chicha culture, chicha music, advertising resources, emotions and Sabor de Oro spot. This guide was validated in the field with the first two interviewees who understood all the questions. Thematic analysis was applied to analyze the interviews, which consists of the identification and
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Table 1 Information about the interviewees No
University program
Semester
Sex
Age
P01
Meteorological engineering and climate risk management
Seventh
Male
22
P02
Fisheries engineering
Ninth
Female
24
P03
Fisheries engineering
Tenth
Female
24
P04
Fisheries engineering
Eighth
Male
22
P05
Fisheries engineering
Ninth
Female
24
P06
Business management engineering
Seventh
Male
23
P07
Food industry engineering
Eighth
Male
22
P08
Meteorological engineering and climate risk management
Sixth
Male
21
P09
Food industry engineering
Sixth
Female
21
P10
Business management engineering
Seventh
Male
23
P11
Agricultural engineering
Eighth
Female
23
P12
Business management engineering
Tenth
Female
25
P13
Business management engineering
Sixth
Female
23
P14
Agricultural engineering
Eighth
Female
22
P15
Environmental engineering
Tenth
Male
24
P16
Agricultural engineering
Fifth
Female
21
understanding of the data that allowed to identify emerging categories and themes [44, 45] that are reflected in the section on results. The interviews were conducted and recorded through the digital videoconferencing channel Zoom. Participants were contacted through an instant messaging application. The interviews lasted between 35 and 40 min. Participants voluntarily agreed to participate in the study. Their information was kept confidential.
3 Results and Discussion 3.1 Emotional Effects of Advertising Music The emotional responses and reactions of the participants were mainly of joy, happiness, affection, fun and nostalgia. These characteristics allowed an emotional connection, although not deep, that produced positive emotions; that is to say, that are valued as profitable and based on a temporary well-being. The characteristics of the chicha song “Ojitos Hechiceros”, such as its uniqueness, recognition, entertainment, fun, interest and ability to capture attention, achieved positive reactions toward the spot presented. Music as an advertising resource is mainly used to evoke positive emotions directly and, with it, facilitate awareness of the brand and the advertising message [14, 15]. To Palencia-Lefler [16], when the music used in advertising is recognized,
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memorable and spectacular, these positive qualities are also transferred to the advertisement. The use of a specific and particular musical genre in an advertisement influences the consumer to identify the brand just by listening to the music and relating it to favorable emotions [11, 15, 17]. It has given me a lot of joy because as soon as I heard the song, (...) I started to smile, and I felt like dancing. (P11) The music according to the rhythm of the song the matches the message, it is cheerful, catchy, as it invites you to enjoy, it encourages you. (P12)
The participants remained interested in the message of the spot and expressed that because of the music they felt an atmosphere of good spirits and naturalness that was enhanced with the other visual elements of the chicha culture in the spot. The target audience has great chances of getting positive responses when the advertising spot presents relationship, coherence and familiarity with the music played; achieving a better experience, greater attention to the message and increased purchase intention [11, 17, 18]. In the participants whose experience with chicha music involved their childhood and family, emotions such as nostalgia appeared, because it evoked memories, where the music became a connector. The old songs that have existed for several years generate nostalgic thoughts in the receivers and, when used as an advertising resource, have a great influence in generating positive responses in large proportions [17]. I love the sound, I love that it has that variety of colors characteristic of chicha, I think it makes you feel a situation of familiarity, of community, feeling that everyone is united, together, and enjoy the food. (P02) It makes you feel a nostalgia for wanting to go back to the past. So, I think that’s mainly what hooks me (...) in a good way. (P13)
Moreover, each participant experienced emotions in a particular way, such as joy, interest and enthusiasm. Music is polysemic, in other words, it is able to produce various meanings for the receiver; therefore, the emotional plane also varies depending on their interpretation of the advertising message and the music in the spot [12, 17]. Similarly, when an advertisement with music has high personal meaning or is recognized by the recipient from previous beneficial experiences, positive emotions will likely be generated; otherwise, when the advertisement with music has low personal meaning, the emotions become neutral or negative [11, 17]. I would classify it as neutral, because (...) it’s not that I dislike the announcement, but it’s not that I like it so much. (P12).
3.2 The Use of Chicha Music as an Advertising Resource The students indicated that the melody, rhythm and instrumentalization of chicha music in the spot allowed them to pay attention and be entertained; they have also
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highlighted characteristics such as how catchy the beginning is. However, although the emotions identified tend to be positive, the participants expressed that the lyrics of the song, being romantic, do not correlate with the message, which is focused on friendship and family and this can make it difficult to pay attention as expected. The benefits of using music as an advertising resource depend on a number of factors, essentially, whether it is compatible and appropriate with advertising; in addition, if the music fits the style, tone, and values of the brand, it can generate great impact on the message [10, 19]. Various studies [10, 11, 16, 17] have investigated what components of the music are needed to ensure an ideal congruence with the advertising to produce positive effects: the main ones would be the tonality, melody and lyrics of the song, if any. When music displays an element that is not congruent or compatible with the advertising in which it is present, its effectiveness and benefits can be affected [14, 17]. The spot did seem completely positive, but I put the music neutral because it is not related to the message that the spot wants to give, (...) it says something about love relationships and that has nothing to do with it. (P06)
The interviewees stated that the lyrics could have been removed leaving only the instrumental music without affecting emotions. The problem lies in the disconnection between the lyrics and the advertising message, because, although it may not necessarily have distracted them completely, it does hinder the flow of the message. The lyrics of a song have an important role because when they are relevant, aligned and coherent with the advertising message they have a great positive impact on its understanding and assimilation. However, when the lyrics communicate a message different to the main message or are dissonant, this can generate adverse emotions, affect the emotional experience, generate confusion and interrupt a correct understanding of the message to be sent [14, 17, 20]. Maybe they could have just used the melody; not the lyrics, because it is more of romance (...), what impacts more is the beginning of the song. (P05) People would have recognized that song without the need for the lyrics anyway. (P05)
The choice of the song “Ojitos hechiceros” was appreciated by the participants mainly for the melody; however, they agreed that the lyrics might not have been the most appropriate, because the song is romantic, dedicated to a physical quality (the eyes) of the significant other, while the spot has an approach that highlights family, friendship, and community. Various studies [13, 17, 20] agree that music subconsciously influences the listener; therefore, the way the receiver will listen to the music in advertising must be carefully considered in order to justify the choice of the musical genre and the specific song, is justified, not choosing a song solely because of its popularity. Essentially there has to be a relation between what is heard and what is seen. The music, as well as its components, need to be not only attractive but must match the objective of communication, the personality of the brand and its value; it is important to clarify that, although it can influence positively, this change is not drastic and more components of advertising have an influence [11, 14].
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That the song is sticky, it is, (...), but I’m going to realize that the song talks about one thing and the spot tells me about another. So, what do I do? Do I listen to the song or watch the spot? (P04) The lyrics is full of loving compliments and I can’t find a relationship with what they want to convey. If the spot presented someone who wanted to conquer a person yes, but in itself, the video is to spend time with family, with friends. (P06)
3.3 Chicha Music, from Pejorative Term to Advertising Resource Some participants had a negative perception of chicha music and culture; it was related to vandalism, people with bad habits, alcoholism, beer consumption, violence, crime, the cunning and that it is too old to be music for young people. Various studies [15, 16] explain that the perception of music is mainly linked to values obtained culturally and these values affect the perception of advertising where this music is played. Although prejudice toward chicha culture has decreased considerably over the decades, the term chicha still has negative connotations [22, 23, 28]. Fortunately, the perception of the general public has also changed and this culture along with its music has become a symbol of identification, and alongside, managed to establish as an advertising resource [22, 23]. Now the spots try to integrate the community and they’re trying to use this kind of chicha culture so that people can feel more identified and I think it is happening more and more. (P02)
The emotions of the participants were mostly positive toward the music and the cultural elements in the spot. When the other advertising elements (other than music) provide a thriving and positive message, a change in perception and initial emotional response is generated [17]. Neo-Limenians have grown up in a modernized environment where chicha culture and music have gradually been accepted, due to their migrant ancestors and their increasing appearance in mass media. Therefore, they are more likely to change their perception of it positively; however, this link with chicha music is not fully connected [22, 28]. The success of chicha music in advertising lies in the fact that its perception has changed: it now represents multiculturalism, the end of dichotomies, the entrepreneur who emerges from below, popular humor, the indigenous [28, 46]. Peruvian society is ready to receive advertising messages that break with prejudices, stereotypes and allow more inclusive advertising enabling a sense of identification and pride to the target audience, as happened in the Pan American Games—Lima 2019, which used this genre in its communication, as well as in its opening ceremony [46, 47]. It transports me to a pleasant, relaxed atmosphere, like hanging out with your friends. It makes you feel good, it doesn’t relate me to my prejudices, on the contrary, it’s positive. (P09)
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Let’s not get carried away by prejudices, at first, I believed that this only meant big parties with beer, where they can only get drunk, but after watching the spot, I realize that, although it is not complete (...), it shows that the chicha culture can unite you with your friends and so on, it can give you pleasant moments. (P06).
4 Conclusions What emotions does chicha music arouse as an advertising resource in the students of a public university regarding the spot “¡El Perú tiene Sabor De Oro!”? The research findings show that the participants conceptually ignore what chicha music implies in-depth or have negative prejudices either inherited or by experiences with their social environment; however they expressed that the music in the advertisement determines their mood and emotions such as joy, the desire to dance and long for social gatherings with their near ones; that is to say, it arouses a positive attitude when exposed to advertising pieces using this musical genre or some elements of the chicha culture. These results coincide with previous studies [10, 12–17, 19, 20] that ensure that music if used correctly according to the message and advertising tone generates positive responses that develop an emotional bond with the consumer. Similarly, the lyrics of the song in the spot prevented the message to be understood fluently, which caused a coherence disorder. This coincides with studies explaining that cheerful and catchy rhythms enhance emotions. However, we must be thorough if the song has lyrics, since it can prevent the message from being understood correctly which may generate negative reactions [14–16]. In addition, Pinto [22] expresses that chicha music generates identification and affinity in the neo-Limenians. However, it does not generate a strong link with them. Future work is needed to understand the prejudice on chicha music as an advertising resource and how these affect the brand.
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Employer Branding on Social Media to Engage Generation Z Meredhit Carbajal-Cribillero , Gabriela Javier-Niño , Mathias Mäckelmann , and Eliana Gallardo-Echenique
Abstract Organizations compete to attract and retain top talent and differentiate themselves from their competitors; they work on employer branding strategies. This study analyzed how organizations should communicate their employer brand in social media to attract Generation Z talent. This is a qualitative research with a phenomenology design. The research technique used was the semi-structured interview. Twenty university students and graduates of business or engineering schools were interviewed; they participated on a voluntary basis. This study reveals that participants apply to an organization for the following reasons: salary, work environment, reputation, benefits, and career path. Regarding social media, the interviewees’ favorites are LinkedIn and Instagram. In relation to social media content, companies should keep in mind that Generation Z not only wants to see job offers but also to learn more about them, specifically their characteristics, as this will increase their desire to become a part of them, and in some cases, may even be decisive in accepting an offer. Keywords Employer branding · Employer attractiveness · Social media · Generation Z
M. Carbajal-Cribillero · G. Javier-Niño · M. Mäckelmann · E. Gallardo-Echenique (B) School of Communications, Universidad Peruana de Ciencias Aplicadas, Prolongación Primavera 2390, Lima 15023, Peru e-mail: [email protected] M. Carbajal-Cribillero e-mail: [email protected] G. Javier-Niño e-mail: [email protected] M. Mäckelmann e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 J. L. Reis et al. (eds.), Marketing and Smart Technologies, Smart Innovation, Systems and Technologies 280, https://doi.org/10.1007/978-981-16-9272-7_38
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1 Introduction Approximately, 59% of the global workforce is formed by young people, and 24% of them belong to Generation Z [1], which consists of people born between 1995 and 2012 [2, 3]. This generation is also known as iGeneration or centennials, and they are highly educated, technological, innovative, and creative [3]. In addition, they are more tolerant, more aware of social issues and work ethics, are more sensitive to multiculturalism and social diversity, and in general, are very concerned about improving life on the planet [4]. They have grown up with instant global connectivity, enabled by portable devices that provide them access to multiple platforms, which they use on a daily basis [1]. Likewise, they communicate mainly through virtual conversations, which explains their preference for and use of social media platforms (Facebook, Instagram, Spotify, and YouTube) [5]. Depending on the generation, people have different preferences about the characteristics of an organization as an employer [6]. For example, graduates in recent years look for employers to have characteristics that fit their lifestyle [7]. In Peru, Generation Z values the following: quality of life, career path, being socially responsible or working for a purpose, salary, benefits, prestige, and reputation [8]. Moreover, more than half of them are informed about job offers mainly through family, friends, and social networks [8]. Employer attractiveness is an important element, and it is defined as the benefits potential employees see in working for a specific organization [9–12]. Berthon et al. [11] developed a scale that assesses employer attractiveness, which was categorized into five dimensions: interesting value, social value (psychological benefits), economic value (economic benefits), developmental value, and application value (operational benefits). The interesting value is related to an exciting work environment, innovative work practices, and the use of employee creativity to produce innovative, high-quality products and services. The social value consists of a fun and happy work environment with positive relationships. The economic value estimates an above-average salary, compensation package, job security, and promotion opportunities. The developmental value encompasses recognition, self-worth, and confidence, along with career-enhancing experience and future job opportunities. The application value facilitates the opportunity for an employee to apply what they have learned and teach others in a caring, customer-oriented environment [11]. Organizations compete to attract and retain top talent and differentiate themselves from their competitors; they work on employer branding strategies [13, 14]. Employer branding is a long-term strategy that manages the perceptions of current and potential employees; this is how an organization develops its identity as an employer [15]. Peruvian companies are interested in employer branding [16]. Some of the mediumsized and large companies have been managing it since 2006; however, a few use social media to communicate their characteristics and benefits. Employer branding has been studied since 1996 [17]; however, in Peru, research began in 2016 and little information has been known since then. Studies reveal that this management
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is undergoing an initial phase, although organizations recognize its importance and goals [16]. Faced with a very challenging and creative field, organizations require innovation and investment in digital transformation and knowledge of recruitment techniques and media [18], such as social media, which offer the possibility of improving the image and attracting highly qualified specialists [19]. Therefore, the question guiding this study is as follows: How should an organization communicate its employer brand in social media to attract Generation Z talent?
2 Methodology This study was developed and conducted virtually during the COVID-19 pandemic, a period of social isolation. This is a qualitative research with a phenomenology design as interviewees show and offers their opinions based on their tastes, needs, and experiences, which allow the researcher to understand their essence and their way of seeing life, the meanings that surround them, and how they define them [20]. The research technique was a semi-structured virtual interview to obtain information about the participants’ perceptions, opinions, feelings, beliefs, and values regarding the study subject-matter. This technique allows the conversation to be flexible and to add questions that complement the study, as well as to provide data for future research [21]. Twenty representatives of Generation Z who voluntarily participated in this study were interviewed. An interview guide was developed with 24 questions based on categories such as social media, social media content, and employer attractiveness. The guide was reviewed by experts in the field and then validated with the first interviewees. The type of sample used was convenience sampling, which is a nonprobability sampling technique [22]. Theoretical saturation was used to determine the number of interviewees since at a certain point the responses had a similar pattern and it was not necessary to include more participants [23]. Four inclusion criteria were considered: (a) year of birth, between 1995 and 2010 (Generation Z) [24]; (b) residents of Lima; (c) university students and graduates of business or engineering faculties, as these are the most demanded university careers in Peru and can be developed in various areas and sectors [25]; and work experience. Participants were contacted through social media to request their availability and schedule a date and time of the interview. The agenda was sent to the participants via email with the link to access the Google Meet video call. The duration of the interviews was approximately 45 min. The conversation was recorded, with prior authorization, for subsequent transcription [26]. Responses were grouped according to the study categories, and then the data were analyzed to understand, interpret, and reflect on the participants’ experiences [21, 26].
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3 Results and Discussion People have needs, aspirations, and desires based on their current stage of life. Based on this, their responsibilities and decisions vary, such as the choice of an employer [10]. This study shows that participants apply to an organization mainly for salary, work environment, reputation, benefits, or career path. This finding matches those of other studies [7, 8] according to which young people also look for an organization with a good corporate reputation and a culture that aligns with their values and allows them to grow professionally. Organizational culture and reputation are important factors in employer branding as they have a positive impact on familiarity with the company [14, 15, 27]. Young people consider the commuting time to and from work; thus, location is also a key element. Factors mentioned by young people should be considered as part of the employee value proposition (EVP) for this group [12, 15, 27]. The EVP is the backbone of the work experience and it comprises characteristics (values, ideologies, and policies) and/or benefits (economic, functional, or psychological) offered to the employee. It is the reason why people decide to stay in an organization or accept a new job. It should be aligned with the corporate strategy and is the key message of the employer brand [9, 12, 15, 28]. These factors were analyzed and compared with the five dimensions of employer attractiveness proposed by Berthon et al. [11], with the understanding that organizations can categorize their attributes on this scale, which is part of the employer attractiveness. In terms of economic value, salary is not an essential element for the interviewees, as they are in the learning stage. However, they do consider job stability, since it is directly related to their short- or medium-term plans, such as growth in the organization, paying for their university studies, or continuing their training with specializations. Along the same line, as part of the benefits, the most significant ones are educational agreements and training, linked to their interest in professional development. Other benefits are related to food, such as supermarket cards, discounts in restaurants, free vending machines, and the promotion of a healthy lifestyle; flexibility in clothing and schedules, such as days off, especially on birthdays and weekends; and the possibility of working from home. Employees would like to receive bonuses for meeting goals and incentives such as greeting cards. Finally, if the company is located at a considerable distance, they would prefer to have mobility options. Regarding the social value, participants stated that their ideal work environment is one with horizontal treatment, effective communication, an organizational culture where working hours are respected so that they can continue studying, integration activities, areas to relax, good lighting so that they feel motivated, and the possibility of working from home. Considering that most of them are trainees or are just starting their working life, their relationship with colleagues and bosses is very important. In terms of relationships with their colleagues, they would maintain open communication and be close, even calling them friends, who would give them confidence and openness in case of doubt. It is critical for employees to have respect, trust, sincerity, support, guidance, flexibility, and to be given autonomy in their relationships with their bosses [8]. As per previous studies, a boss should have the following
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attributes: (a) be a leader; (b) inspire respect and trust; (c) guide and support, but also provide autonomy and feedback; and (d) have soft skills (i.e., values and good communication). In terms of the developmental value, for the interviewees, professional growth (career path) in a company means not only promotion but also horizontal career growth that allows them to have more access to different areas and gain more experience in the business processes. In addition, having more responsibilities, participating in different projects and events, as well as expanding knowledge, skills, and attitudes are important. Furthermore, the experience in the organization and courses related to their career will allow them to access future opportunities within or outside of the company. They also value its prestige as it is an asset when exploring other opportunities. No factors related to the interesting value or application value were mentioned; however, their responses focused on professional growth. Regarding the interesting value, most participants believe that their creativity is valued and considered for improvement, as they consider that the generation of new ideas can contribute to the organization. Moreover, being heard motivates them to continue their professional development, and being recognized by their bosses and colleagues gives them another reason for working. In line with the research in Chile, future employees offer more importance to the interesting value than to economic benefits. In addition, they value an independent, self-sufficient lifestyle, working in a team and in organizations that look beyond economic profitability [29]. Regarding the application value, the interviewees consider that working for a company that offers them the opportunity to share their knowledge is beneficial for both parties. Young people contribute to the team’s tasks, learn, reinforce their knowledge, and apply it. Conversing with others helps them to become known in the organization and gain a different perspective. This is how they demonstrate that they like their job and what they do. They also believe that a learning culture can be created in which the entire organization is prepared to teach new members and that this responsibility does not fall solely on one person or on the human resources (HR) team. Sivertsen et al. [29] recommend that organizations focus their strategy on innovation value, application value, and psychological value, as the latter is directly related to the intention to apply to an organization. Interviewees consider that all organizations should conduct corporate social responsibility activities and communicate with them, as they believe this improves their image and can be a motivational factor to apply to the organization. They also believe that, just as they care for society, they will also care for their employees and will be committed to the rest of their stakeholders. This finding is consistent with a study of business students in the Czech Republic, aged 21–25 years, which revealed that they prioritize social value attributes followed by the interesting value, economic value, and developmental value [30]. Regarding social media, the topics that interviewees expect to find are benefits, mission, vision, values, work environment, recognition, history, testimonials of workers and leaders, and the desired soft skills profile, which help them grow professionally and adapt to the need of organizations. Regarding publications, interviewees prefer a dynamic format such
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as infographics, images, and short videos. The text should be brief and include the main information in the first two lines. In case a lot of information needs to be communicated, they prefer a link to be included. Slogans, hashtags, and colors are elements that attract their attention. As for videos, the first 10 s are a key to keep their interest. Editing also plays a key role, as does the quality, type of music, speaker’s voice, and narration. According to interviewees, they check social media and news to see if the company has received any recognitions (awards, certification) or has been involved in any scandals, and thus, corporate reputation is a critical component in the employer brand strategy. Location can be compensated with benefits, such as mobility or the possibility of working from home. This finding, in line with other studies [8, 31], shows the features of Generation Z regarding their ideal work environment: the desire to work from home and to have a flexible schedule. In relation to the social media used by students, the most mentioned were Facebook and Instagram, and to a lesser extent, LinkedIn, YouTube, Twitter, and WhatsApp. However, when they want to apply to a company, LinkedIn is the most widely accepted social media because they believe it is a complete, reliable platform that publishes job offers and news of an organization. LinkedIn is a social networking platform specifically designed to connect job seekers [32]. In addition, they can identify HR professionals and other employees to learn more about the company, its organizational culture, and work environment. However, some seek information about the organization from comments made by their customers on the web, Facebook, and Instagram. In a study of students in Austria and Hungary [32], 63% of respondents had received a job offer via Facebook. In addition, young people have an image of their possible work experience [15]. Regarding the social media content, the information on these platforms helps them make the decision to apply [33]. Thus, the employer branding strategy should start with the employees to generate pride in their internal public (current employees) and reputation in the external public (potential employees) [15, 27], as it is a holistic process that requires constant attention and participation of all employees [14]. If organizations started using social media to communicate their employer brand, most interviewees believe that, while Facebook is not a professional network, it could work because it is a massive media channel; however, the information could be lost among the variety of content. Alternatively, Instagram is more widely accepted, as they consider it is the social network they use the most. The platform is instantaneous; the format of photos and videos is much more dynamic and visual. It is suggested that organizations should publish their job ads on social media, as it is increasingly common for large and small companies to use Facebook for recruitment. Not having a presence or proper management on social media can have negative consequences. For example, a study conducted in India [9] found that potential employees may overlook employer characteristics due to the lack of complete information about the company and other aspects of the position. Therefore, companies, when advertising a job opening, should consider that potential applicants will give importance to their characteristics, and thus, their job ads should focus on various dimensions of employer brand building to enhance the process and generate intent to apply for a job opening [10]. If the organization does not deliver on a promise, the employee can
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express its displeasure on social media, which would negatively impact reputation. Furthermore, if the company does not provide applicants with realistic information about the position, the employee may resign and then express their dissatisfaction. For these reasons, organizations should effectively leverage social media to promote positive messages associated with the employer brand [14].
4 Conclusions How should an organization communicate its employer brand in social media to attract Generation Z talent? Companies must identify the right content, channels, targeting, and tools for them. Employer branding uses proven marketing strategies to perfectly position your organization. This study determined the reasons why interviewees would apply to an organization would be focusing on three values: economic, social, and developmental. This information should be replicated in the EVP, as it is part of employer’s brand strategy and key message. Regarding social media, interviewees’ favorites are LinkedIn and Instagram. The former, because they consider it to be the ideal channel for employer brand, and it is complete and reliable in terms of news about an organization and job offers. In addition, it allows prospective candidates to know about employees in a particular company and contact them to find out more about the company. Precisely, through this direct communication method, current employees share their work experience. Although LinkedIn is the premier professional network, organizations can use Instagram to share information and expand their audience, particularly Generation Z, as it is the network they use the most. The interviewees consider that information is better adapted to this format because it is instantaneous, dynamic, and visual. In relation to social media content, companies should consider that Generation Z not only wants to see job offers but also wants to learn more about them, specifically their characteristics, as these are what will strengthen their desire to belong to the organization, and in some cases, may even be decisive in accepting an offer. Young people expect that the EVP, culture, work environment, recognition, history, testimonials from workers, realistic information about the position, and soft skills they expect from the employees will be communicated. Interviewees favor more dynamic formats such as infographics, images, photos of activities, and short videos. The latter should be short and use the first 10 s to gain attention. The quality of the graphic pieces and their editing also have an influence, as do the type of music, the speaker’s voice, and narration. In addition, they pay close attention to the comments on the publications and prefer to see testimonials from collaborators and leaders. Moreover, texts should be brief, with simple language, but not informal, and the main information should be included in the first two lines. They also highlight the importance of slogans and hashtags as the main element to attract their attention after the image. In order to have proper employer branding, the responsibility should be shared between HR, marketing, and internal/corporate
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communication, to merge their knowledge and techniques [12, 34]. Moreover, organizations should focus their employer branding actions according to their internal or external audiences [27]. This study highlights the importance of including Employer Brand in the syllabus of the Corporate Communications careers to adopt a practical case study approach, to build the leadership, communication, and innovation skills required of today’s modern leaders to impact at an individual, organizational and societal level. In the future, it is recommended to analyze the following: (a) the impact of employer branding on attracting new talent through quantitative methods that show the relationship of employer branding in social media and applications to the organization; (b) employer branding considering the employee participation as a source of recommendation; (c) and the impact of investment in employer branding and the tangible and intangible return, according to business or regional sectors. This study has two limitations: (a) the sample was nonprobabilistic, i.e., convenience sampling; therefore, it is not necessarily representative of Generation Z; and (b) the study was conducted during a period of social isolation due to COVID-19, and thus, the interviews were not conducted in a traditional face-to-face setting, and conversations may have been forced by technology limitations [35].
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Generation Y: Social Norm, eWoM and Use of Social Networks Cesáreo Reyes Moreno, Eduardo Parra López, and Zamira del Rosario Acosta Rubio
Abstract This paper aims to explore the factors that influence Generation Y’s social networks acceptance via eWoM and social norms. The data collected in the survey used were analysed using a structural equation model, specifically, using the PLS technique. As practical conclusions, it is concluded that individual acceptance of a social network is influenced by the social environment. Keywords Generation Y · eWoM · Social networks · Social norm
1 Introduction Tourism has significant direct and indirect effects at an economic and social level and is the most important leisure activity [1]. Consumer access and use of the digital social communication present a challenge to the tourist industry since people now have the means and opportunity to post positive or negative consumption-related experiences [2]. Tourism destination images are created through online information and comments [3] stressing the relevance of social influence on electronic word of mouth (eWOM) as a reliable source of information about specific services [4]. Social networks are the most relevant tool in this digital social communication. The advantages of this channel, content creation, interrelation and immediacy, increase its capacity of influence, attracting interest and directing the attention of individuals. Therefore, it is necessary to delve into the background of the preferred medium for the flow of the online conversation. Several studies have tried to analyse the influence capacity of eWoM as a digital channel [5] although without reaching widely accepted conclusions. To try to cover this knowledge gap, this research studies the acceptance of the use of social networks. First, the conceptual background of social norms, eWoM and acceptance of the use of the Internet technologies are considered. Secondly, the research method used and results are described. From a large sample and using structural equations (PLS), a new model is generated that includes variables related to the social norm, the C. R. Moreno (B) · E. P. López · Z. del Rosario Acosta Rubio Universidad de La Laguna, San Cristóbal de la Laguna, Spain © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 J. L. Reis et al. (eds.), Marketing and Smart Technologies, Smart Innovation, Systems and Technologies 280, https://doi.org/10.1007/978-981-16-9272-7_39
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eWoM and the acceptance of the use of the Internet and social networks. Finally, some conclusion are developed in a generational context about the influence of some variables on the acceptance of social networks among young people.
2 Literature Review 2.1 The Social Norm Social norms, a type of regularity of conduct at the macro level [6], are the basis of human coexistence [7], assuming a way of interacting socially [8]. Social norms participate in almost every aspect of the interaction of individuals [9], influencing behaviour in social settings [10] to regulate externalities [11], structure relationships [12] and provide greater efficiency to each individual [13]. Norms have effects on individual behaviour [14], especially in young people, thanks to the proximity that they experience with their peers within their social group [15, 16], especially in the online environment [17–19]. This accelerates the mechanism of imitation of behaviours and reinforces the intensity to adopt them. This is possible through the interaction and social influence of other members of the group [20–23], with greater intensity if those others are present in their daily life [24], as occurs in these online environments where intercommunication is constant. As a core element of the social norm, there is social influence [25], its compliance being an element of identification with that community [12]. The social norm has effects on the generation of eWoM [26–28]. In the first place, it is desired to connect socially [29] and abundant comments are made to keep up with other members of the social group [27, 28, 30]. Also, the desire for social participation leads to complementing the existing eWoM with more useful and informative opinions [31]. Finally, individuals will avoid contradicting the positive, majority eWoM and will seek to strengthen the social bond or bond with others or belonging to the group [26, 32, 33].
2.2 eWoM The social Internet has increased the importance of interaction between people [20], promoting interpersonal persuasion by knowing the detailed characteristics of goods and services [34–36] and transmitting comments on their experiences and beliefs about the purchased products [36, 37]. This online communication of social exchange called eWoM [2] is perceived as a source of truthful information [33, 38, 39] when detailing the favourable and unfavourable aspects of each good or service [40].
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There is no unanimity in the choice of the dimensions with which to study the eWoM [41]. As in other investigations [42, 43], the valence, the quantity and the quality will be studied in this work. In the virtual environment, the quantity of online comments is pointed out as a determinant in the effect of eWoM [43]. This quantity of comments makes the product more visible [34, 44], influences the disposition and behaviour [45] in persuasion ability [46], the attraction of the digital field [47], the attitude towards a product [40], its popularity [40, 48, 49], their purchase intention [35, 40, 50] and the rationalization of the consumption decision [40]. In the online environment, it is possible to distinguish between the positive WoM [16, 51, 52] that supposes pleasant or vivid recreation of an experience [53] from the negative. The positive eWoM has favourable effects on the judgment of the receiver and also negative effects [35, 54]. Although there is no single format in which consumers can write their comments and recommendations about a product, it has been confirmed that well-argued comments on reliable data increase receiver confidence [55]. The quality of online comments could be explained as being made up of four dimensions related to the quality of the information: relevance, understanding, sufficiency and objectivity [40]. To analyse the influence of the social norm on the eWoM valence, quantity and quality, taking into account the above, the following hypotheses are proposed: H1: The social norm has effects on the tourist services eWoM valence. H2: The social norm has effects on the tourist services eWoM quantity. H3: The social norm has effects on the tourist services eWoM quality.
2.3 Acceptance of the Use of the Internet and Social Networks The Internet and the Web are essentially information technologies [56], and as such, they can be explained by their adoption through the TAM model. They have been able to determine the influence of perceptions of utility and ease of use referred to the Internet [57–59]. In the research by [60] it is appreciated in their model of acceptance of Internet use that both the perceptions of utility and ease of use referred to have effects on the use of technology. Other authors also find the antecedent of enjoyment as a variable that influences the construct [59]. It has been possible to study the social influence through the eWoM in the acceptance of the Internet by increasing the interest in participating in said technology [61, 62], which would allow it to be in contact and up to date with the comments that are given on matters that may interest them, as well as with the acceptance of other technologies associated with the Internet [63].
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In order to analyse the influence of the valence, the quantity and the quality of the eWoM of tourist services on the acceptance of the Internet, taking into account the aforementioned, the following hypotheses are proposed: H4: Tourist services eWoM valence has effects on the acceptance of the Internet. H5: Tourist services eWoM quantity has effects on the acceptance of the Internet. H6: Tourist services eWoM quality has effects on the acceptance of the Internet. As for the definition of the adoption of Internet technology, the TAM model will be used for social networks. This indicates that the acceptance of the use of social networks is explained by this model, in which both the perception of ease of use and usefulness partially justify the intention of use [64]. Similarly to other authors such as Lin and Lu [65], the capacity of the network to be used and to have a critical mass of users [64, 65] are relevant elements in the construct. Various studies carried out indicate that the acceptance of social networks is positively influenced by the perception of ease of use [66]. Also, that both the perception of utility and the perception of ease of use are antecedents of the intention to use social networks [64]. Both perceptions increasing as the individual becomes aware of its advantages over time, through Internet information, being accepted to a greater degree [62]. To analyse the relationship between the acceptance of the Internet and the acceptance of social networks, the following hypothesis is considered, taking into account the above: H7: Acceptance of the Internet generates acceptance of social networks.
3 Methodology This research aims to study the members of Generation Y [67, 68], with common traits differentiated from previous generations [69]: they want to accept the norms of their peers [16, 70] with the desire to obtain approval by fitting into the group [71], have greater knowledge and use of technology [72–74], rely on technology as a tool to share their emotions and to interact with others [75], they have a great capacity for online social interaction in social networks [72, 76–78] and are concerned about how they are perceived through their shopping habits [79] that they show as a valence of belonging the group [70, 79], and socialization [74]. Within the target population, regarding the typology of people to be studied in the research [80], it has been chosen, like previous studies dealing with Generation Y [69, 73, 81, 82], for conducting the survey among university students. This group supposes a wide selection of potential consumers and users, which, although it is not absolutely representative of the entire range of young people. It does represent a technologically advanced public and the most active in social networks with 91.2% of use, almost coinciding in their use by age with 90.6% [83].
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Given the impossibility of asking the entire target population, a dual nonprobabilistic sampling technique has been used. First, a suitable sample of individuals who wish to participate in this research was assessed. Subsequently, their collaboration was requested to identify other individuals with similar characteristics and make them participate in the research, as a snowball sample [80, 84, 85]. The final sample was composed of 346 individuals, which meant that it complied with the requirement and validity conditions of the statistical method used in this research [86, 87]. The questionnaire had 14 closed and structured questions with five-point Likerttype scale, to study 6 items using proposals in the literature developed by experts in the field [88]. Additionally, subjects were asked for their demographic characteristics. The data required for the research were collected in May 2019 and were analysed using a structural equation model, with the PLS technique This technique is frequently used by social science researchers as a methodological tool [89–91] and is an effective and powerful way to analyse models of multivariate structures with latent variables [92]. All PLS analyses were carried out using SmartPLS 3.2.
4 Results 4.1 Descriptive Analysis As can be seen in Table 1, the subjects scored high in most of the items, with a mean of 71.80%. The items with the highest score are those related to the acceptance of social networks (90.98%), while those with the lowest score are those related to the quantity of eWoM, with 54.39% and 55.43%.
4.2 Identification of Latent Variables To confirm the identification of the latent variables that correspond to each group of items, an exploratory study was carried out similarly to that used in other studies [93, 94]. After this analysis, a structure of six latent variables has been established, each one with two items, except for the valence variable, which has four (Table 1). The use of two items has been considered acceptable since the latent variable has a high correlation, greater than 0.70, in all cases except one (Table 1) [95, 96].
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Table 1 Measurement model: basic descriptions %
λ
CR
AVE
72.31
0.751
0.759
0.612
AI2
The next time I need to know the characteristics and 78.67 news of tourist destinations, I will do it in online stores rather than through traditional channels
0.813
AR1
I find social media easy to use and refer to frequently
90.98
0.826
0.796
0.662
AR2
When choosing a tourist service, I think better an option about which there are abundant comments on social networks
77.92
0.801
CL1
It is likely that I hired a tourist service looking at the 57.75 detail and explanation of the comments on social networks, without worrying about whether they are true
0.784
0.830
0.711
CL2
It is very likely that you hired a tourist service with detailed and well-informed comments on social networks although they may seem somewhat exaggerated
66.88
0.899
CN1
I will hire a tourist service with a large number of 54.39 recommendations on social networks without checking if they are true or not
0.892
0.895
0.810
CN2
I would hire a tourist service with detailed comments on social networks without worrying about whether they are exaggerated or uncertain
55.43
0.908
NS1
When I collect information and ask for advice on social 77.17 networks to buy a tourist service, I am more likely to hire if it is approved by most of my contacts
0.869
0.885
0.793
NS2
It is very likely that I will buy tourist services on the 84.22 Internet if I have received advice and opinions from the people I consult, to choose the best alternative available
0.912
SI1
I will hire a tourist service if there are many positive recommendations and evaluations on social networks, even if they do not detail their advantages
78.96
0.721
0.823
0.540
SI2
Most likely I would hire a tourist service with many good reviews on social networks, even if they may be false or exaggerated
79.48
0.796
SI3
If there is an abundance of negative comments, even if they were unclear or confusing, about a tourist service, they may prevent you from hiring that service
72.49
0.779
SI4
I would probably not hire a tourist service that has many bad reviews on social networks, even if they are not concrete
58.61
0.633
Item AI1
It is very likely that in the future I will hire a tourist service on the Internet, although it seems more complicated than doing it in a physical store because I am aware of the usefulness of the Internet
Generation Y: Social Norm, eWoM and Use of Social Networks
485
Table 2 Disciminant validity: Fornell Larcker criteria Variable
AI
AI
0.783
AR
CL
CN
NS
AR
0.383
0.813
CL
0.277
0.295
0.843
CN
0.208
0.249
0.641
0.900
NS
0.327
0.547
0.329
0.263
0.891
SI
0.325
0.514
0.378
0.307
0.524
SI
0.735
4.3 Identification of Latent Variables Following Hair, Hult, Ringle and Sarstedt [97], it is accepted that the indicators in Table 1 are part of their corresponding constructs. This is a consequence of the individual confidence study, which shows that the observable variables (items) reach the minimum required level of λ ≥ 0.70, except for the SI4 variable, which reaches 0.633. It is shown that the model has internal consistency, according to the composite reliability study (CR), an indicator used in the field of structural equations, similar to Cronbach’s Alpha, and that it reaches values greater than 0.70 (Table 1). In addition, it is confirmed that the indicators of observed variables are measuring their corresponding latent variable [98]. The values of the extracted variance (AVE) are greater than 0.50 (Table 1). These data allow evaluating the convergent validity of the model, providing information on the quantity of variance that a construct obtains from its indicators in relation to the quantity of variance due to the measurement error. In this case, the result indicates that more than 50% of the result of the variance of the construct comes from its indicators [97]. For the analysis of discriminant validity, it must be verified that the square root of the mean of the extracted variance (AVE) is greater than the shared variance between the construct and other constructs of the model [99]. This means that each construct is significantly different from the rest. It is verified that the values of the diagonal of Table 2 are greater than the values that are not found in said diagonal [100].
4.4 Structural Model Analysis By studying the structural model, it is intended to verify the consistency of the causal relationships according to the data used, that is, to evaluate the weight and magnitude of the relationships between the different variables [97]. For this, the following analyses will be carried out throughout this section: predictive evaluation of the model (R2 values or explained variance; effect size f 2 ; Q2
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indicator; goodness of fit test (GoF), collinearity, analysis of the algebraic sign, magnitude and statistical significance of the structural path coefficients. After the analysis, the multicollinearity between the constructs is ruled out after calculating the variance inflation factor (VIF) [101] in the external model. This index is in all cases below the values that indicate a potential multicollinearity problem [101, 102]. Next, the indicator R2 or coefficient of determination will be used that indicates the quantity of variance of a dependent construct that is explained by the variables of that endogenous construct of the model [103, 104]. In the analysis of our model (Table 3), all the values reach the established minimum, minus the quantity of eWoM [105]. When studying the Q2 indicator formalized by Geisser [106] and Stone [107] and recommended by Chin [100] (Table 3), all the values reach the established minimum [104], which indicates that it has predictive potential (Fig. 1). When studying Cohen’s f 2 indicator [86], in case there is a significant effect of a specific antecedent variable in a dependent construct [104] (Table 4), a moderate relationship is found between Quality eWoM and Acceptance of the Internet and most prominent between the Social Norm and the eWoM valence. Finally, the GoF indicator [108] is studied, which tries to focus on the predictive capacity of the general model. It is calculated as the geometric mean of the average communality index and the average of R2 [109]. This indicator ranges from 0 to 1 and 0.360 is considered a Table 3 Analysis of values R2 , Q2 y GoF
Fig. 1 Model
Variable
AVE
R2
Q2
Internet acceptance
0.612
0.134
0.070
Acceptance of Social N
0.662
0.147
0.085
eWoM quality
0.711
0.108
0.069
eWoM quantity
0.810
0.069
0.052
Social norm
0.793
eWoM valence
0.540
0.275
0.138
GoF
0.367
0.000
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Table 4 Effects, significance and confirmation of hypotheses f2
Path
p values
Conf
eWoM valence
0.379
0.524
0.000
Yes
Social Norm →
eWoM quantity
0.074
0.263
0.000
Yes
Social Norm →
eWoM quality
0.121
0.329
0.000
Yes
→
Internet acceptance
0.064
0.255
0.000
Yes
eWoM quantity
→
Internet acceptance
0.001
0.023
0.760
Yes
H6
eWoM quality
→
Internet acceptance
0.018
0.166
0.037
Yes
H7
Internet acceptance
→
Acceptance of social networks
0.172
0.383
0.000
Yes
Hypotheses
Variable
H1
Social Norm →
H2 H3 H4
eWoM valence
H5
minimum acceptable value [110]. In the analysis of our model (Table 3), a value of 0.367 is reached. Deepening the study of the magnitudes of causal relationships, we proceed to analyse the path coefficients (weights of the standardized regression) whose optimal value would be 0.3 or higher [111]. The higher the value, the greater the predictive capacity, tending to a weakness in the relationship the closer it is to zero [112]. It is observed that the causal relationship between quantity of eWoM and Internet Acceptance is not so significant (Table 4). The strongest relationship is between the Social Norm and the eWoM valence. For the bootstrapping analysis, the causal relationships obtained have been studied, for which a bootstrapping analysis has been carried out with 500 subsamples [113]. In all the relationships there is a great relationship (P ≤ 0.05) except between the Quantity of the eWoM and Internet Acceptance (Table 4).
5 Discussion and Conclusion 5.1 Discussion The high scores achieved in the items show the great interest of members of Generation Y in the social norm, eWoM, the Internet and social networks. The results obtained indicate a relationship between the social norm variable and the eWoM valence (Table 4). The strength of this relationship is relatively relevant. Thus, disagreement with the majority of the group will be avoided and they will seek to strengthen the social bond, or bond with others, or belonging to the group [26, 32, 33]. Also, the results obtained (Table 4) indicate a moderate effect of the social norm on the quantity of eWoM. The individual wishes to connect socially with others who
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participate [29]. Sometimes, numerous comments from other participants about a particular object are observed [27, 28, 30] and want to be at the same level as other members of the group, social and be reciprocal [114]. The results obtained indicate a relationship between the social norm variable and the quality of the eWoM (Table 4). The strength of this relationship is moderate. This result coincides with what is established in the theoretical framework, in which some authors have found different relationships between the social norm and the desire to belong with the quality of the eWoM [115]. In relation to the determinants of eWoM and their relationship with acceptance, it can be concluded that the results obtained indicate a relationship between the valence variable of eWoM and Internet acceptance (Table 4). The strength of this relationship is moderate. In the same way, the results obtained indicate a relationship between the variable quantity of eWoM and Internet acceptance (Table 4). However, the strength of that relationship is almost non-existent. This result does not coincide with what is pointed out in the theory of the acceptance of technology, since if Generation Y wishes to participate in digital media, use them to inform themselves [116] and interact with others [72, 76, 77, 82]. It would correspond to them to experience a greater acceptance of the use of the Internet, an ideal environment to obtain complementary information to that received. The study of the relationship between eWoM Quality of tourist services and Internet acceptance shows a moderate effect of eWoM quality with Internet acceptance (Table 4). It coincides with some studies that positively relate the quality of eWoM to the adoption of an information system [117]. Thus, as the flow of quality eWoM increases, the greater the perceived usefulness of the medium for the receivers, who will use the Internet more wisely and profitably. The results obtained indicate a moderate relationship between acceptance of the Internet and acceptance of social networks (Table 4). This result coincides with what is indicated in the theoretical framework, since online shopping becomes a social event that encourages the exchange of experiences [118]. Social networks encourage customers of online shopping sites to share their experiences as consumers, using instruments such as comments, labels and reviews [119] or discussion groups, blogs, reviews or recommendations.
5.2 Conclusion The results obtained show that the proposed causal model is useful and can be used for subsequent research that seeks to improve the knowledge of the acceptance of social networks. This is possible through the conjunction of variables that have not previously been studied jointly with PLS and a small sample, avoiding asymmetry, multicollinearity between variables and incomplete specification of the structural model.
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From a theoretical point of view, it has been possible to complement the existing knowledge about Generation Y, and their relationship with social networks. All the hypotheses presented in line with the content of previous research were confirmed (Table 4): relationship of the social norm with the valence, quantity, quality of the eWoM; relationship of the valence, the quantity, the quality of the eWoM with the acceptance of the Internet; and the relationship of Internet acceptance with social networks. As practical conclusions, it can be deduced that social environment influence individual acceptance of a social network. The relevance of eWoM communication among members of Generation Y is also concluded, which allows knowing current tastes and needs and anticipating trends in individuals. Future research should expand the field of study to other individuals, from a geographic scope, of activity or of willingness to answer and pass the survey, that allow conclusions about other non-university students of Generation Y.
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106. Geisser, S.: The predictive sample reuse method with applications. J. Am. Stat. Assoc. 70, 320–328 (1975) 107. Stone, M.: Cross-validatory choice and assessment of statistical predictions. J. R. Stat. Soc. 36, 111–147 (1974) 108. Tenenhaus, M., Amato, S., Vinzi, V.E.: A global goodness-of-fit index for PLS structural equation modelling. In: XLII SIS Scientific Meeting, pp. 739–742 (2004) 109. Vinzi, E., Henseler, J., Wang, W., Chin, W.: Handbook of Partial Least Squares. Springer, Berlin (2010) 110. Wetzels, M., Odekerken-Schröder, G., van Oppen, C.: Using PLS path modeling for assessing hierarchical construct models: guidelines and empirical illustration. MIS Q. 33, 177–195 (2009) 111. Sarstedt, M., Ringle, C.M., Smith, D., Reams, R., Hair, J.F.: Partial least squares structural equation modeling (PLS-SEM): a useful tool for family business researchers. J. Fam. Bus. Strateg. 5, 105–115 (2014). https://doi.org/10.1016/j.jfbs.2014.01.002 112. Roldán, J.L., Cepeda, G.: Modelos de Ecuaciones Estructurales basados en la Varianza: Partial Least Squares (PLS) para Investigadores en Ciencias Sociales (I Edición) (2018) 113. Chin, W.: Issues and opinion on structural equation modeling. Manag. Inf. Syst. Q. 22, 1–14 (1998) 114. Wasko, M., Faraj, S.: ‘It is what one does’: why people participate and help others in electronic communities of practice. J. Strateg. Inf. Syst. 9, 155–173 (2000) 115. Choi, J.H., Scott, J.E.: Electronic word of mouth and knowledge sharing on social network sites: a social capital perspective. J. Theor. Appl. Electron. Commer. Res. 8, 69–82 (2013) 116. Valentine, D.B., Powers, T.L.: Online product search and purchase behavior of Generation Y. Atl. Mark. J. 2, 76–91 (2013) 117. Erkan, I., Evans, C.: The influence of eWOM in social media on consumers’ purchase intentions: an extended approach to information adoption. Comput. Human Behav. 61, 47–55 (2016) 118. Turban, E., Whiteside, J., King, D., Outland, J.: Introduction to Electronic Commerce and Social Commerce. Springer, Cham (2017) 119. Li, C.Y., Ku, Y.C.: The power of a thumbs-up: will e-commerce switch to social commerce? Inf. Manag. 55, 340–357 (2018)
A Virtual Community Model Proposal: The Gentleman’s Club Pedro Malta, Henrique Mamede, Carolina Santos, and Vitor Santos
Abstract In this article, we address the problem of virtual communities, proposing a basket of products’ self-determination model, where the community determines what it is interested to buy and, in some situations, when. In this way, instead of letting a brand or product create the need or desire of the users in the community to buy, it will be the community, through a network effect, to self-influence the user, in order to define what intends to buy reaffirming, also, in this way its identity. This article proposes a conceptual model to be implemented toward a future Case Study research, with a structure within a network capable of influencing itself where members, who share the same interests, can define a basket of products and services and thus reaffirm and evolve their identity. Keywords Digital transformation · Online communities · e-commerce · Business models
1 Introduction The Internet, in general, and the World Wide Web (WWW) revolutionized the way of trade transactions are carried out, while simultaneously introducing new forms of relationship between the customer and the supplier. Today the world is watching P. Malta · V. Santos (B) Nova IMS, Universidade NOVA de Lisboa, Campus de Campolide, 1070-312 Lisbon, Portugal e-mail: [email protected] P. Malta e-mail: [email protected] H. Mamede INESC TEC, Departamento de Ciências E Tecnologia, Universidade Aberta, R. da Escola Politécnica no. 147, 1269-001 Lisbon, Portugal C. Santos National School of Public Health, Universidade NOVA de Lisboa, Avenida Padre Cruz, 1600-560 Lisbon, Portugal e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 J. L. Reis et al. (eds.), Marketing and Smart Technologies, Smart Innovation, Systems and Technologies 280, https://doi.org/10.1007/978-981-16-9272-7_40
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a Digital Transformation in all areas and in all type of business. Adapting rapidly to this current “revolution” is necessary for the successful delivery of products and services to customers. The terms “digital business” and “electronic commerce” are synonymous with the ability and sustainability of information exchange, providing services between companies, or between companies and final consumers [9]. There are advantages of adopting electronic commerce [5] namely four, from the perspective of those who sell [8]. • Channel development translates into the new way of transmitting the goods and services that are produced; • Expansion of the commercial portfolio: achieved by reaching the network itself, which has a worldwide scale; • Cost reduction: can be achieved by simplifying marketing and commercialization, as well as by enriching the value chain; • Facilitation in the establishment and development of partnerships are facilitated by the digital environment itself, with an unprecedented level of communication and reach. For a perspective of an e-commerce new marketing channel [13], it can work with a set of necessary eight basic functions [16]: • • • • • • • •
possession of the product or service; property right; promotion; negotiation; marketing information; financing; payment; risk support.
So, for those who produce, there may be an advantage in being able to focus only on the development and production of goods, leaving to third parties all the worries of ensuring that supply and demand meet. This is the main function of intermediaries, smoothing the flow of goods and services and, thus, assisting the producer in better planning and production control, ensuring only information provision (including marketing one) and distribution. This quickly leads us to abandon the assumption that with this new trade environment, disintermediation could become total, as also mentioned by Douglas Aldrich [2]. The benefits introduced by intermediation in non-digital markets are equivalent to those that we can enumerate for electronic commerce, namely: • retail sale, with the smoothing between the quantities in demand and the quantities on offer; • variety of products, as an intermediary can offer complementary products from different suppliers to those who purchase; • reuse of transactions;
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• search efficiency, with the customer being able to locate in a single intermediary a whole range of products of the most different types. The complex relationship between products and the final consumer, characterized by the intensity of information, may not be something that the latter intend to directly manage. There are also advantages in adopting electronic commerce from the perspective of those who buy, namely convenience and cost reduction. Furthermore, with this new channel it is possible to establish personalized relationships with those who sell, with access to much more information and potentially after-sales service and support, than in a traditional commerce environment. To implement electronic commerce, various models can be named: one of the most common and simplest realizations is the virtual store [1, 12]. In this model, the trader takes his profit from the margins obtained by reselling products. This digital store suffers, however, from the same problems as the physical store, which has to do with its marketing. The logic associated with shopping centers also seems to make some sense in this digital environment. We are facing new forms of intermediation, with digital aggregating spaces or trade portals acquiring their own space and a fundamental role [6]. The rapid success of this business model relays, for the customer, in the advantage of having a single space to have access to the most differentiated products and services, maintaining contact with a single supplier, at the lowest cost with a higher added value. Regarding the supplier, it allows the focus on development and production, leaving the issues of marketing and commercialization in this channel to the aggregator. Despite the countless success stories of digital stores, the emergence of communities has led brands and products to use this medium as a privileged way to promote, subliminal or direct, in order to boost sales. The business model in question is called the Virtual Community model, in which the organization places itself in a central position, between members of the community and suppliers [15]. Fundamental to the success of this model is that members are able to communicate directly with each other. It constitutes a model in which great value can be quickly created not only for the owner of the community but also for its members. This model, once established, is less susceptible to competition by imitation than any other atomic model. For some authors, like Rheingold [10], virtual communities are social aggregations that emerge from the network only by the will of its members to establish and continue interpersonal relationships. However, a virtual community is a multidisciplinary concept, resulting in many definitions, depending on the perspective. Wang, Yu and Fesenmaier [14] identified that the perspectives of the various definitions can be multidisciplinary, sociological, technological, business, or economic. One of the most popular definitions for a virtual community is that presented by Hagel and Armstrong [3, 4], who takes the business perspective by stating that Virtual Communities are groups of people with common interests and needs that come together online. Most are attracted by the opportunity to share a sense of the community with strangers who think the same way, regardless of where they live. But Virtual Communities are more than a social phenomenon. What starts out
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as a group attracted to a set of common interests becomes a group with a critical mass of purchasing power, partly because communities allow members to exchange information on things like price and price quality of a product. In this article, the definition described by Leimeister and Krcmar [7] was used, where is stated that a virtual community consists of people who interact socially on a technical platform. The community is built on common interests, on a common problem or on a common task of its members that is carried out based on implicit and explicit codes of behavior. The technical platform allows and supports community interaction and helps to build trust and common feelings shared among its members. This view adopts technological and social perspectives. When interpreting this definition more deeply, it is noted that it excludes some cases, which could otherwise be mistakenly considered as Virtual Communities. Because one of the requirements of this definition is the person who interacts socially, cases where a company pushes information only to users, it is not considered as the virtual community even though people also interact with the company. In addition, if there are only monetary transactions that take place between users and no social interaction, it will not be considered as the virtual community. This is shown in Fig. 1. In this article, we approach the problem of virtual communities, proposing a model to implement that can support the realization of an experience that, after analyzing the results, aims to be conclusive. Thus, the business model to be implemented is presented, with a description of its characteristics. Virtual Community? No!
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2 The Model Our proposal is to analyze the possibility of reformulating the situation, so that the community itself determines what it is interested in buying and, in some situations, when. In this way, instead of letting a brand or product create the need or desire of the users in the community to buy, it will be the community, through a network effect, to self-influence in order to define what intends to buy, ensuring exemption in relation to brands and products. Community management is limited to proposing several products and dealing with the entire process, from choosing the customer to delivery and payment. Such a community will make it possible to obtain two important things: on the one hand, it is the community itself that defines what it intends to acquire, which can be translated into a specification for potential suppliers and subsequent contractual agreement; on the other hand, after a certain time, it will be possible, using data mining techniques, to create a concept of what the community actually represents. In order to better understand this last observation, look at the example of a club that is dedicated to gentlemen who appreciate the good flavors of cigar and rum. At the end of some iterations of purchase, it is possible to determine the characteristics that define what type of cigars and rum a gentleman appreciates. Is it possible to create a business model based on an online community that defines and determines what to buy and when, instead of being influenced by brands or products that try to use that same community as a vehicle for marketing actions? In order to carry out an experiment in order to seek the answer to this question, we propose in this article a model that allows the experience to be carried out. One might think that the issue can simply be resolved using a model based on auction or even voting, but this does not correspond to reality, because in these examples the effect that is created by the possibility for community members to express freely your opinion or comment is not usual or even possible at all. This is an important difference because the opinion of a particular member of the community can be an influential element and even more so as time goes by and that member eventually acquires a prominent status with the others. The model we propose is a community of members who, being interested in a certain good or group of related goods, associate to determine, in each period of time, a basket of products to be purchased. The community itself starts by proposing a relatively wide basket and then members make choices, based on votes that demonstrate intention to buy, and comments that influence the choice of other members. When a predetermined date is reached, this process stops and the basket of products for that period is automatically defined based on the most chosen. Community management must ensure that there is a total exemption from attempts to infiltrate brands or products that try to subliminally or directly influence the composition of goods in the basket of articles. In the following section, we describe the model to be implemented from different perspectives. First, we describe the concept that supports the community’s creation strategy. Then, we identify the way to obtain financial profitability that will allow you to survive. And finally, the implementation architecture is presented.
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2.1 Concept Given the impossibility of offering a vast number of products, the community’s mission is to become a reference point for Internet commerce for the acquisition of related goods and related to a theme of common interest to all members. As an example, if the community’s theme is childcare, then the goods that will make up the basket of products will all be related to that theme. The community will not limit itself exclusively to guiding the website and managing the Internet relationship with its members. More than the impersonality of this channel, what is expected to be necessary is the creation of a space in which members can get to know and recognize each other. This will be a fundamental point both for the experience and for the maintenance of the community itself, which will ultimately lead to sales. Thus, the creation of a space that provides its members with access to events and items related exclusively to the community theme, which may not be obtainable through this route, may be included in the mission. Returning to the community’s example of childcare, references and experiences about childcare or information about events for babies and their parents can be included. A defined community must have a strategy that guarantees the permanent interest of the community, meeting the observations and comments that the entities are making over time. Thus, community development lines will have to be defined to ensure the achievement of business objectives that, at the same time, allow the community to last over time. Critical business factors must also be identified, and tactics are created to achieve the community’s objectives. A critical success factor is defined as the limited number of areas in which the results, if satisfactory, will ensure successful competitive performance for the organization [11]. Any strategic analysis will be incomplete without identifying the critical success factors.
2.2 Profitability The model must be able to offer recipes that support it. Thus, we anticipate that financial returns can be achieved at three different levels. On the one hand, through quotas that entities/users may have to pay, associated with a temporary regime, which guarantees access to the exclusive community. On the other hand, the community will have to ensure the existence of positive margins in the sales of product baskets, which will be as much better as the purchase negotiations, with an effect of economies of scale. Finally, revenue may also be obtained from advertising, provided that this is not for any type of product directly related to the community topic. In addition to revenues, there will be several costs that are important to analyze and that are always associated with a project of this nature, such as personnel expenses, communication and marketing expenses, payment of services to third parties, etc.
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Content Management
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Fig. 2 Technical architecture of the online community
The presentation of a business plan is therefore of paramount importance in order to be able to analyze the viability of a given community from the outset.
2.3 System Architecture The architecture of the system is typical of that found in other communities. The technical architecture is shown in Fig. 2. In this architecture, we find the Web server, with the responsibility of supporting all interactions with and between members of the community, based on the database server for the generation of pages, integrating the content management server to support the functionalities for creating new content by members, whether in the form of links, blogs or others. To support purchases and their secure payment transactions, an e-commerce server is included. Finally, a management server ensures the possibility of effective administration of the entire architecture, also constituting an element that ensures the management of identities and access control to the community, which are always restricted. The logical architecture of the community support information system is as shown in Fig. 3. This architecture is composed of different layers. The top tier is responsible for all interactions with community members and other web users who try to use the community. Below this, the authentication layer ensures the permanent validation of all activities, with a greater or lesser level of security depending on the transaction in question. It is this layer that is also responsible for ensuring that only valid members can access community content and conduct e-commerce transactions there. The next layer is decomposed into 3 sub-layers, that of content supply, that of content creation and that of commercial transactions.
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Members
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Database Services Fig. 3 Logical architecture of the online community
The content delivery sub-layer is responsible for making the appropriate content available to each member, depending on the requests they make, via browser; the content creation sub-layer is responsible for managing the new content that the authorized member performs; the sub-layer of commercial transactions has the responsibility to support all the functionality necessary to conduct electronic commerce. At the base of this architecture is the database services layer, responsible for the interaction between the others and the community databases. Cross-cutting the entire architecture, the management layer of the information system is placed.
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3 The “Gentleman’s Club” Example The Gentleman’s Club aims to position itself as an elite site on the web, operating under an exclusive membership club and under the proposal of other members, to be a leader in the trade sector for the acquisition of quality goods on the Internet. In a second phase, it intends to become a reference point for virtual commercial stores for the middle/upper classes specialized in the trade of quality goods for individuals with exquisite tastes. The Gentleman’s Club penetration strategy follows the model we propose in Sect. 2. It is proposed to create a space, perhaps to remember the old gatherings, in which people can interact, express their opinions, and determine the basket of products. After the proposal of an initial basket, the members make choices, based on a vote that shows intention to buy, and comments that influence the choice of other members. At the end of a predetermined period, the selection process ends and the basket of products for that period is automatically defined based on the most chosen. It will be this model and the spirit of the members to boost it and keep it alive that will, additionally, make sales possible. In addition to the implementation of this model, other tactics aimed at creating the image of an elitist website must be followed, and therefore appealing to all who aspire to be part of the elite, and aimed at creating an image selling quality products. So, is possible to highlight the following tactics: • Getting the interest of the upper middle-class audience by offering exquisite and interesting products for this segment (ex: Cuban cigars from Top brands, Special wines, olive oils, books, …); • Regional, smoked sweets, weekends, themed dinners; • Targeted advertising campaigns made in reference media of this segment; • Maintain fast and personalized customer service; • Maintain the image of refinement, elitism and exclusivity; • Have reference associates; • Have specialized and recognized consultants for each range of products that do not necessarily have to always be the same and may vary depending on the partnerships that are established: the ability to innovate is fundamental. Critical factors for the success of the Gentleman’s Club are to correctly implement the self-determination model of the basket of products and services, to have an offer of excellence, to provide personalized service, to be efficient, to have a critical mass of registered users and to achieve a media impact in the target segment. It is also a factor of success and establishment of partnerships. In the most important cases, these partnerships correspond to the core business of the Gentleman’s Club. These partnerships are critical and insurmountable. This includes partnerships with stores specializing in wines, tobacco, whiskeys, etc. It will also be necessary to establish other types of partnerships in order to easily implement the Project. The following partnerships are then identified:
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• Partnerships in the area of Infrastructures for the Company—This is not the company’s business and requires collaboration with another company that is capable of facilitating the hardware, software and peripherals necessary for connection and implementation; • Connection and hosting partnership—This is an alliance to offer the Company that is not yet connected to the Internet, the connection to the network. The agreement should be carried out with an ISP that is reliable and that can offer a large bandwidth to avoid problems, as well as a stable and quality service; • Partnership for payment systems—This is an alliance to provide the Company with a payment system through which all economic transactions will be carried out; • Partnership for payment systems—This is an alliance to provide the Company with a payment system through which all economic transactions will be carried out; • Content partnerships—Within the site, different types of content can be included, which should be made available mainly by consultants / specialists, suppliers and adhering partners. In addition to the information provided by the actors mentioned above, it will be convenient to reach an agreement with companies that provide content in this area, such as mass media, news agency and institutions with institutional or legal content. In this sense, is expected that the club visitor profile has the characteristics mentioned above: • • • • •
Individual belonging to the middle and upper classes; With a taste for “the good things”; With financial capacity; Available to invest in quality products; Age between 25 and 65 years.
If the Club also offers entertaining content, preferably interesting for the profile we refer to (weekend activities, holidays, gastronomy, charming activities, etc.) then the following profile should also be added: “With interest in recreational activities and quality entertainment”. The Gentleman’s Club model have three sources of base revenue: • Membership fees: This revenue component is, in principle, null, since the entire share value of the members is converted into credits for the purchase of products. However, in order to proceed with the capitalization of the company, quotas of jewel or permanence may be considered; • Percentage of Sales: The percentage of sales will be the most important source of revenue for the Site. The monthly revenue forecast can be obtained according to two parameters: The conversion rate (ratio between the number of visitors and the number of buyers) and the average purchase value per visit. Thus, considering a daily traffic of 40 visitors per day, a conversion rate of approximately 10% (normal for most virtual stores) and estimating the average purchase value per visit at around 150 euros, we obtain, for a margin of 10% on transactions and a
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predictable value of 40 visitors: 40 * 10% * 10% * 150 euros * 30 days = 1800 euros month; • Advertising: Another important source of revenue is advertising. The estimated advertising revenue depends heavily on the volume of traffic and the number of pages visited. The number of pages visited in each entry depends on several factors, among which they stand out: the type of content offered (more or less specific), the advertising or not of the website on other websites and portals and the animation of the website. However, if we consider, for this type of site, a daily traffic of 40 visitors per day, and a number of pages viewed in each entry equal to 5, we will have about 200 pages visited per day, which makes about 60,000 pages per month. At normal advertising prices this corresponds to a potential revenue of 30 * 40 euros = 1200 euros month. This value can be very different if there is content that encourages repeat visits (for example, a good animation of the site). In this case, the value obtained may be increased substantially.
4 Conclusion With the model transcribed in this article, it is intended to contribute to the debate on digital transformation, electronic commerce and virtual communities by proposing a self-determination model for a basket of products where the community itself determines what it is interested in acquiring. The model is structured in a network capable of influencing itself where members, who share the same interests, can define a basket of products and services and thus reaffirm and evolve their identity. As a future work, we aim to adapt the model for the provision and aggregation of services and the effective development of the Gentleman’s Club Model.
References 1. Afuah, A., Tucci, C.L.: Internet Business Models and Strategies, 2nd edn. McGraw-Hill, USA (2003) 2. Aldrich, D.F.: Mastering the Digital Marketplace. John Wiley & Sons, USA (1999) 3. Hagel, J., III., Armstrong, A.G.: Net Gain: Expanding Markets Through Virtual Communities. Harvard Business School Press, Boston, MA (1997) 4. Hagel, J., III., Singer, M.: Unbundling the Corporation. McKinsey Quarterly 3, 148–161 (2000) 5. Kabir, A.A., Musibau, A.A.: Adoption of electronic commers in emerging nations: a conceptual review of the literature. Int. J. Econ. Commer. Manag. U.K. 6(2) (2018) 6. Kalakota, R., Robinson, M.: e-Business 2.0: Roadmap for Success. John Wiley & Sons, USA (2001) 7. Leimeister, J.M., Krcmar, H.: Revisiting the virtual community business model [Electronic version]. In: Proceedings of the Tenth Americas Conference on Information Systems (AMCIS 2004), New York, pp. 2716–2726 (2004) 8. May, P.: The Business of eCommerce: From Corporate Strategy to Technology. Cambridge University Press, UK (2000) 9. Plant, R.: eCommerce: Formulation of Strategy. Prentice Hall, USA (2000)
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10. Rheingold, H.: The Virtual Community: Finding Connection in a Computerized World. Minerva, London (1995) 11. Rockart, J.F.: Chief Executives Define Their Own Data Needs, pp. 81–92. Harvard Business Review (1979) 12. Timmers, P.: Electronic Commerce—Strategies and Models for Business-to-Business Trading. John Wiley & Sons, England (1999) 13. Yadav, V.K.: Global prospect of e-commerce. Int. J. Soc. Sci. Interdisc. Res. 3(1). ISSN 2277 3630IJSSIR (2014) 14. Wang, Y., Yu, Q., Fesenmaier, D.R.: Defining the virtual tourist community: implications for tourism marketing [Electronic version]. Tour. Manage. 23(4), 407–417 (2002) 15. Weill, P., Vitale, M.R.: Place to Space, Migrating to ebusiness Models. Harvard Business School Press, Boston (2001) 16. Westland, J.C., Clark, T.H.K.: Global Electronic Commerce—Theory and Case Studies. MIT Press, Cambridge, MA (1999)
Use of the Social Network Analysis Methodology to Study the Image of Tourist Destinations Tatiana David-Negre, Juan M. Hernández, Sergio Moreno-Gil, and Antonia Correia
Abstract This paper analyses the image that European tourists have about a destination (Canary Islands), in order to identify keywords that describe the tourist destination through the free elicitation methodology. A Computer-Aided Web Interview (CAWI) was used to conduct the research in 19 European countries, where through the free elicitation methodology, tourists associated words to destinations (Canary Islands). These association words are classified as push and pull factors, and the present study focuses on push factors. The final sample consisted of 30,094 tourist, and 237 words grouped in 23 associations. These association words are classified as push factors. Through the methodology of Social Network Analysis (SNA), the study focuses on detecting motivational push factors that define the Canary Islands as a destination. The network analysis reveals the structural characteristics of the free elicitations words network. This study helps to a better understanding of the image that a tourist has of the Canary Islands and to make a more appropriate promotion of the Canary Islands destination. Keywords Free elicitation · Social network analysis · Destination image
1 Introduction Decide to take a trip and choose the destination to fulfill their motivations is a multidisciplinary act, as the tourist does not consider a single motivation factor, but considers several factors according to the reasons that have made them decide to travel [1]. T. David-Negre (B) · J. M. Hernández · S. Moreno-Gil Institute of Tourism and Sustainable Economic Development (Tides), University of Las Palmas de Gran Canaria (ULPGC), 35017 Las Palmas de Gran Canaria, Las Palmas, Spain e-mail: [email protected] J. M. Hernández Department of Quantitative Methods in Economics, University of Las Palmas de Gran Canaria (ULPGC), 35017 Las Palmas de Gran Canaria, Las Palmas, Spain A. Correia CEFAGE, Faculty of Economics, University of Algarve, Faro, Portugal © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 J. L. Reis et al. (eds.), Marketing and Smart Technologies, Smart Innovation, Systems and Technologies 280, https://doi.org/10.1007/978-981-16-9272-7_41
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[2] identified nine different reasons to select one particular destination, divided into socio-psychological (push) and cultural (pull). The socio-psychological factors, those that push the tourist out of their routine, are seven: escape from a perceived mundane environment, exploration and evaluation of self, relaxation, prestige, regression, enhancement of kinship relationships and facilitation of social interaction. These factors are not related to the attributes of the destination, but are those that awake the desire to go on a holiday. On the other hand, cultural factors are two, novelty and education, and are characterized by being attributes related to the own destination. In this study, the qualitative method “free elicitation” is used first, since it helps to better understand the tourist image [3, 4]. Therefore, the objective of this work is identify those keywords that describe a destination through free elicitation. For this, the methodology of Social Network Analysis and its different algorithms was used. The following is a literature review in relation, followed by a description of the selected sample, a discussion of the methodology used, and a explanation of the centralities used. Subsequently, the results obtained in the analyzed period are presented, and the conclusions of the study are finalized. A new approach is needed to conveniently tackle this complex interconnected network. In this context, the aim of the present study is to identify the image that tourists have about a destination through push factors. Thus, a social network analysis (SNA) in order to properly explain this issue. The present study does not only analyze the push factors in an individualized way, but studies the interconnection between them. Secondly, the relationship between the push factors and the target image is analyzed. All this is done through the methodology of social network analysis.
2 Literature Review 2.1 Purchase Process The purchase process is complex because it does not only depend on the decision made at a certain time. This process is divided into three stages: the prior stage to the purchase decision, the decision stage and the one after the purchase. In this study, we focus on the first stage, the one prior to the purchase decision, which is composed of formation of needs; search for information, learning and perception; motivational influences; internal influences; external influences; preferences and perceived risks. In particular, we are interested in the part of training needs. Motivational influences are considered the beginning of the tourist decision process, whether conscious or unconscious, affect the image formed by the tourist. There are two reasons why people travel. First of all, there is an internal force that pushes people to travel. Once people have decided to travel, people begin to consider destinations and are attracted by external forces [1, 2, 5–12]. The push and pull factors express the tourist’s desire to travel [9, 12].
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Some push factors are escape from a perceived mundane environment, exploration and evaluation of oneself, relaxation, prestige, regression, enhancement of kinship relations and facilitation of social interaction. Among the pull factors are facilities, main attractions and characteristics of the landscapes [2]. Therefore, push factors help us to know whether to travel or not and pull factors help us choose where to travel [1, 7–9]. The present study focuses on subconscious motives. This based on internal (push) and external motivations (pull).
2.2 Image The image is a widely analyzed concept in the tourism industry [13]. Destination image is the general impression that a destination produces in people’s minds [14, 15], and this is an essential part of the promotional strategy of destinations. This image can change and evolve according to the sources of information consulted and the motivations of the tourist. Many destinations are promoted under an umbrella brand, although it is not always a successful source [16]. For the umbrella brand to be satisfactory, it must be cohesive and should benefit all integrated sub-brands [16]. If the synergy is not carried out properly, it will not benefit all the partners [17]. However, each sub-brand can carry out its own promotion strategies without contradicting the umbrella brand, they must support the coherence of the umbrella brand. The promotional message must be consistent [16]. The study considers whether the umbrella brand (Canary Islands) and sub-brands of each destination (each island) are associated with the same push factors.
2.3 Free Elicitation The free word elicitation is a qualitative technique, which helps a better understanding of the image that tourists have of a destination. It also helps to explore new ways of communicating the image attributes [18]. However, the technique of image association of destination has not received much attention in tourism [15]. To studying the image, structured techniques have been mostly used. However, the mixed method has become popular as it helps to better understand the structure of the image and the knowledge of the brand [19]. The most commonly used methods to study target image have traditionally been multidimensional scales or differential studies [15]. Some researchers apply free elicitation to know tourists impressions about a destination [14, 15, 20, 21] others combine different techniques (free elicitation, collage technique, association of image, textual data) to explore the perceptions of tourists [4, 18, 22], to study the brand image of a tourist destination [19].
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3 Methodology 3.1 Data To achieve the proposed objectives, the field work was carried out through a structured questionnaire for tourists who had made a trip abroad during the last two years. The work was carried out through an Internet questionnaire (CAWI), to a representative sample of the 19 main European countries in terms of tourism. The selected sample received a personalized email inviting them to participate in the study. The database includes a series of words acquired through the free elicitation technique that describe the destination. A total of 30,094 questionnaires from tourists from 19 European countries and a total of 237 associations acquired through the free elicitation method were collected.
3.2 Network Analysis The present study combines a qualitative unstructured technique (free elicitation) with a quantitative technique (SNA). The SNA has been used to study the interrelationships between the tourists, destination and associations made by respondents. From the information gathered through the questionnaires, different networks were built connecting tourists and associations. The networks are analyzed both at the macro level and at the micro level [23–25]. At the macro level, the aim is to describe the whole network. At the micro level, the individual characteristics of the nodes are analyzed. The macro level metrics used in this study are described below. An extended definition and applications can be found in [26, 27]: • Network density. It represents the proportion of the total number of links in the network over the total possible links. This metric allows the comparison of networks of different sizes (number of nodes). In real networks, density and size of the network tend to follow an opposite trend [28]. The network density (weighted) indicates the average weight of the network. • Clustering coefficient. It is the number of existing triangles over all possible ones in the network. In the present study, it indicates the degree of cohesion of the image that tourists have of the destination. • Average distance. It measures the average distance between two nodes of the network. The distance is obtained through the shortest path length, understanding it as the minimum number of edges connecting both nodes. • Network centralization. It shows the similarity of the network with a star network. A star network is formed by a node connected to the rest of nodes, and these are not connected each other. The network centralization adopts values between 0 and 1 and indicates the level of centralization of the network around few nodes.
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Centrality measures were used for microanalysis. They are degree, betweenness, closeness and eigenvector centrality [29–31]. These measures show the importance of each node within the whole network. Node degree is the number of direct links that a node has, for example, in the case of the island-word network, the degree of an island is the number of words associated with this island. Alternatively, node betweenness is the number of times that the node is included in the shortest path between other pairs of nodes. High node betweenness indicates that this node connects different groups. Closeness centrality metric is inversely proportional to the total geodesic distance from a node to all other nodes in the network. A word with high closeness can be accessed through few path steps. Node eigenvector centrality is the number of nodes directly connected to a given node but weighted by the centrality of each adjacent node. All centrality metrics are normalized according to its maximum possible value. Additionally, the study applies a grouping method for the weighted island-word network in order to detect clusters or groups of nodes more related among them than with the rest of the network. Specifically, it is use the faction algorithm, which groups rows and columns simultaneously looking for two groups in each category of nodes. This is achieved by maximizing the correlation between the observed data and an idealized network, where all nodes in every group are fully connected, and the connection among nodes belonging to different groups is null [27, 30]. The macro and microanalysis and the application of the faction algorithm were conducted using the UCINET 6.591 software [27, 32].
4 Results The study focus on 9 tourist-word networks, corresponding to association words named for the destination, the whole archipelago of the canary islands (CI), words named for every island (TF, GC, LZ, FT, LG, LP, EH) and the aggregation of words named for the seven islands (7I). The study has also one island-word network (IW), which shows the number of tourists who have mentioned a word for a specific island (Table 1). Through macro analysis, the study examine the global structure of the brand image. The density of the network of words about the seven Canary Islands (7Iw) are much greater than the density of the network of words about Canary Islands (CIw). Specifically, the average number of tourists who name two words simultaneously for 7Iw is 18.965, but for CIw is 5.449. In addition, 83.5% of all possible links between words in the 7Iw network are connected compared to 76.9% in the CIw network. Moreover, the clustering coefficient is higher for 7Iw than for CIw, and the average distance is smaller. Through the micro analysis, the study analyzes the individual characteristics of the associated words. The research detects three most commented words (Relax-Rest, Fashion-Luxury and Leisure-Amusement). Additionally, some words are characteristic of some islands. For example “Sport” to LZ and FT, “Adventure-Discover” to
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Table 1 Sample Description Canary Islands (CI) Tourists-Words network. (Canary Islands). CI: Link indicates that the tourist mentioned the word associated with the Canary Islands Seven Islands (7I)
Tourists-Words network (Seven Islands). 7I: Link indicates the number of times that the tourist mentioned a word about any specific island
Tenerife (TF)
Tourists-Words network (Tenerife). TF: Link indicates that the tourist mentioned the word associated with Tenerife
Gran Canaria (GC)
Tourists-Words network (Gran Canaria). GC: Link indicates that the tourist mentioned the word associated with Gran Canaria
Lanzarote (LZ)
Tourists-Words network (Lanzarote). LZ: Link indicates that the tourist mentioned the word associated with Lanzarote
Fuerteventura (FT)
Tourists-Words network (Fuerteventura). FT: Link indicates that the tourist mentioned the word associated with Fuerteventura
La Gomera (LG)
Tourists-Words network (La Gomera). LG: Link indicates that the tourist mentioned the word associated with La Gomera
La Palma (LP)
Tourists-Words network (La Palma). LP: Link indicates that the tourist mentioned the word associated with La Palma
El Hierro (EH)
Tourists-Words network (El Hierro). EH: Link indicates that the tourist mentioned the word associated with El Hierro
Islands-Words (IW) Islands-Words network (Islands-Words). IW: Link indicates the number of times that a word is associated to an island Total associated words: Adventure—Discover, Canarian Gastronomy, Culture, Different—Exotic, Emotions, Familiarity, Fashion—Luxury, Feelings, Football, Happiness, Hero—Heroic, Hippies, Holidays, Iron—Metal, Leisure—Amusement, Little Known, Mistery—Misterious, New, Party, Pleasant, Price, Relax—Rest, Sport, Tourism, Tradition—History, Wedding – Honeymoon
FT, “Culture” to LG and “Canarian Gastronomy” to LG and EH. Finally, “DifferentExotic” is associated only to the minor islands (LZ-T, FT-T, LG-T, LP-T and EH-T), and the major islands (GC-T and TF-T) are highly associated with “Party”. Following, the study applies the faction algorithm to the Islands-Words network (IW) to detect potential groups of islands and associated words in the sample. The present study prefixes the number of groups as two. The algorithm detects two groups of islands for the island-words network. One group corresponds to the major islands (TF, GC, LZ and FT) and the other to the smaller ones (LP, LG and EH). The major islands are the islands belonging to the densest group. Finally, at the similarity analysis among word-word networks (7Iw and CIw) detects the major dissimilarity is produced in the image that a general tourist has about the Canary Islands when they are asked island by island (7Iw) and when asked about the total of the islands (CIw).
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5 Discussion and Conclusions Through network analysis, a better understanding of the image that a tourist has of the Canary Islands umbrella brand, and the image of each of its islands is reached. It is concluded that tourists have a more coherent image on the aggregate network of the seven islands than on the Canary Islands umbrella brand. However, the image of the umbrella brand is focused in few words. Some words common to all the islands were detected, from which a global image of the seven islands could be formed. On the other hand, some characteristic words of an island or a group of islands were detected, with which to form a specific one for each island separately or for a group of islands. This study has clear implications for the definition of marketing strategies, compatible with the motivating factors that have just been applied to the general and individual perception of a tourist destination.
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Corporate Reputation of Companies on Twitter Seen from a Sustainability Perspective R. E. Loke and I. Zerouk
Abstract Corporate reputation is becoming increasingly important for firms; social media platforms such as Twitter are used to convey their message. In this paper, corporate reputation will be assessed from a sustainability perspective. Using sentiment analysis, the top 100 brands of the Netherlands were scraped and analyzed. The companies were registered in the sustainable industry classification system (SICS) to perform the analysis on an industry level. A semantic search tool called Open Semantic Desktop Search was used to filter through the data to find keywords related to sustainability and corporate reputation. Findings show that companies that tweet more often about corporate reputation and sustainability receive overall a more positive sentiment from the public. Keywords Corporate reputation · Sustainability · Semantic search
1 Introduction In the current society, social media platforms are an extensive part of the communication strategy companies use to reach stakeholders [1]. Therefore, firms try to get engagement through these social media outlets since it benefits them [2]. However, whether social media activities bring an actual benefit to corporate reputation (CR) has not been studied extensively [1]. Currently, a limited number of studies focus on disclosing CR [3]. This paper will focus on the link between social media activities and CR. Research within CR communication is continuously growing within business research and practice [4]. CR is especially relevant since it can help a firm be perceived more positively [5] and achieve competitive advantages [6]. Moreover, there is a scientific consensus that CR is a strategic indicator of expanding a company’s value [7]. Companies that have accrued a good reputation are more likely to successfully introduce innovative products and reach stakeholders [8]. R. E. Loke (B) · I. Zerouk Centre for Market Insights, Amsterdam University of Applied Sciences, Amsterdam, The Netherlands e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 J. L. Reis et al. (eds.), Marketing and Smart Technologies, Smart Innovation, Systems and Technologies 280, https://doi.org/10.1007/978-981-16-9272-7_42
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According to Fombrun et al. [9], multiple variables can be used to measure CR. One of these variables is citizenship which focuses on companies acting like good citizens and signaling that to their stakeholders. Citizenship derives from environmental sustainability and responsible behavior, which also influences CR [9]. Friedman and Miles [10] mention that sustainability is increasingly becoming a determinant of CR since firms are becoming aware of the need of managing a wider range of social and environmental concerns. In agreement, Bartikowski and Walsh [11] explain that citizenship and sustainability directly positively affect reputation. Orlitzky et al. [12] affirm this notion that firms should focus on profit and how the profit is made, and whether it is done sustainably. While firms may invest in their social achievements, it is much more challenging to achieve a better social reputation without proper acknowledgment of this information [13]. By communicating this information to the public, the company is trying to show that they act responsibly and sustainably, enhancing their value [14]. Social media, especially Facebook and Twitter, are used to communicate this message by engaging with their followers [1, 15]. Through social media, people have changed how they interact with firms [16]. Firms had to react to these changes and adapt their strategy. The most common use of social media is to improve a firm’s trustworthiness, brand attitude, and customer commitment [17]. A significant following that actively engages in the firm’s activities is highly valuable [1]. Firms are involved in social media because this form of communication is approximately twenty times more advantageous than marketing campaigns and thirty times more advantageous than media appearances [18]. Firms recognize the importance of social media but often do not understand how their actions impact their CR [19]. Twitter and Facebook are the most used by companies [2]. Twitter is an interactive tool that enables users to interact with each other in real time [3], while Facebook has a friend-to-friend structure in which peers have to confirm relationships with each other [20]. Among these two platforms, Twitter seems to have the highest engagement, which is a huge advantage for companies that want to spread a particular message [21]. However, Twitter limits the number of characters that each tweet can display, making it more difficult for companies and people to express themselves [22]. Nevertheless, Twitter supplies organizations with a reliable tool to distribute information and open dialogue with many stakeholders [15]. The remainder of this paper will focus on Twitter engagement since it has a positive relationship with a CR [22]. The purpose of our research is to give a sustainability perspective of CR on social media. Since most of the research about CR is traditionally done with surveys [23], there is a need for engaging stakeholders through social media such as Twitter [24]. CR is becoming a more popular topic within the academic literature since it is valuable in developing long-term relationships with customers [25]. Therefore, an algorithm-based analysis of Twitter conversations will be used to measure the influence of sustainability and its related CR constructs on stakeholders. The main research question (MRQ) is as follows: To what extent are sustainability and CR-related variables that are measurable on Twitter? The following subquestions will be of relevance: (A) Which sustainability traits are in general relevant
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to measure on Twitter? (B) Which sustainability traits are particularly important to CR? (C) How can sustainability traits best be measured on Twitter? The structure of the paper is as follows. First, in Sect. 2, we derive two sets of working hypotheses that are relevant to be tested according to the current academic literature. Thereafter, we discuss applicable methodology in Sect. 3 and give results in Sect. 4. Finally, in Sect. 5, we discuss the work and give some directions for future work.
2 Literature Review This section will give insight into the different theoretical views there are about CR. Next to that, a conceptual link between sustainability and CR will be established. Two sets of hypotheses will be used to give the paper structure: one for sustainability traits specific to CR and one for general sustainability traits. According to Brown and Dacin [26], understanding a firm’s sustainability is suggested as one of the most prominent types of connections that a stakeholder can have with a company. The more ethical a customer perceives a firm to be, the more they will associate and relate with said firm from a social perspective [27]. Firms that focus on active Twitter interaction about CR are expected to improve how customers perceive the company, generating a larger amount of trust and loyalty [24]. Additionally, according to Wu and colleagues [28], a company can influence a customer’s behavior and their CR perception of a company. Following Wu, specific CR attributes such as civilization can significantly influence customer perception [29]. According to Frynas and Yamahki [30], CR theory can be split into several categories that measure CR: stakeholder theory, institutional theory, legitimacy theory, and resourcebased view. They also mention that the stakeholder theory, which focuses on groups that can either damage or help the firm, is one of the most prominent theories. Additionally, firms acting more socially responsible are becoming the norm in Western countries [31]. A stakeholder can be defined as “any group or individual who can affect or is affected by the achievement of the organization’s objectives.” The stakeholder theory views the organization at the center of various communication with various stakeholders [32]. Building upon this theory, consumers and customers are considered stakeholders concerned about the financial value of consumption and the implementation of CR initiatives [33]. To measure citizenship, a company must act responsibly to protect the environment [9]. A stakeholder will hold a firm in higher esteem and support it more if they participate in citizenship behavior [11]. This is also confirmed by Zelazna et al. [34], who mentions that a company should not only focus on profit but also have a moral responsibility to consider the well-being of society. Furthermore, when a firm expresses good citizenship behavior, it possesses attributes that stakeholders may want to associate with [11]. Fombrun et al. [9] have identified three main attributes that a company must consider as a citizen. To measure these attributes, they use the
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Reptrak system. The Reptrak system is one of the world’s most reliable sources when it comes to CR [35]. The following, first set of four hypotheses will be based on Fombrun et al.’s [9] article, which distinguishes multiple attributes of citizenship. Fombrun et al.’s [9] article will be used since they use the reptrak system, one of the world’s most reliable sources for CR [35]. First, we will state Hypothesis 1 as follows: Citizenship-related tweets receive greater sentiment than non-citizenship-related tweets. Singh et al. mention a clear link between CR with regard to citizenship and sustainability, which has a strong positive effect on financial performance [36]. Furthermore, two components apply to all companies when looking at CR: corporate citizenship and sustainability [37]. This link between citizenship, sustainability, and CR is also confirmed by Cho et al. They mention that these three attributes have a positive relationship with each other [38]. Additionally, sustainability is progressively becoming one of the determinants of CR since companies show that they are conscious of this need to manage environmental issues [10]. Companies that act in this manner often have a past of adhering to the obligation of multiple stakeholders, thus creating a reputational advantage [39]. By using Fombrun et al. [9] attributes, companies prioritize doing the right thing and nurture the goodness of society,this gives the most compelling theoretical insight to conceptualize CR [36]. Now that the link between citizenship and sustainability is established, further research within sustainability confirms the use of Fombrun attributes to measure civilization. Based on Rahman et al. [40], a business that adopts procedures that reduce the counteractive effect on the environment, such as using eco-friendly packaging, recycling goods, conserving energy and water, and increasing pollution control, is considered to have a significant impact on citizenship and therefore CR. Additionally, within the corporate sustainability model of Formentinia et al. [41], attributes such as corporate sustainability, which ensures the stakeholder’s needs and the equity of future generations, seem to have contributed to the corporate gain. Also, the execution of sustainability and CR principles can somehow benefit business activities [42]. Therefore, it is essential to know how customers perceive and value a firm’s sustainable effort [43]. Furthermore, firms should actively attempt integrating environmental concerns into their day-to-day activities since this will help them in the long term [44]. Therefore, Hypothesis 2 is stated as follows: Tweets related to protecting the environment receive a greater sentiment than tweets unrelated to protecting the environment. Another attribute that measures citizenship is whether firms positively influence society [9]. Backhaus et al. [45] introduce the notion that a good and well-thoughtout sustainability policy will significantly influence the company’s attractiveness. Firms that are focused on social responsibility and that act toward environmental protection benefit from an improved CR [46]. Additionally, companies are likely to implement an environmentally conscious strategy that positively influences society to boost their reputation [47]. Brammer and Milington [48] confirm this view, who researched that a positive influence in society will lead to a more positive impression of the company. Therefore, Hypothesis 3 is stated as follows: Tweets related to a
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positive influence on society receive a greater sentiment than tweets unrelated to a positive influence on society. Finally, to measure citizenship, a firm must support good causes to be considered a citizen [9]. Walsh et al. [49] also use this scale to measure the social impact of corporate responsibility. This attribute consists of validity, dimensionality, and consistent reliability [50]. Additionally, a company’s reputation can be diminished by violating multiple regulations, however, the extent to which this might happen will be drastically reduced by supporting good causes [51]—corresponding with Fombrun, Chibuike et al. [52] state that all the attributes mentioned by Fombrun are empirical to measure the social and environmental impact of a firm. Hence, Hypothesis 4 is formulated as follows: Tweets related to supporting a good cause receive a greater sentiment than tweets unrelated to supporting a good cause. Firms nowadays have an increasing interest in sustainability, not only for financial gain but as an aspect of their business [53]. Furthermore, CR goes hand in hand with sustainability [54]. Firms will engage in sustainability to improve social welfare to increase their CR [55]. Firms that undertake sustainable activities want to reinforce their legitimacy and better their reputation [56]. According to Clarkson et al. [57], there is a positive relationship between sustainable performance and the level of outspokenness and deducted that better performers are more open about their activities. However, this signal needs to be genuine, if a false signal is only once revealed, the effect is no longer potent [58]. Moreover, a firm that currently has a bad reputation can utilize sustainability as a tool to increase trustworthiness and to improve its reputation [59]. Sustainability can be considered a communication tool for reputation management, affecting multiple stakeholders [60]. When communicating about sustainability on Twitter, several different strategies can be applied [61]. According to Etter [61], there are three strategies how a firm can apply. Firstly, a company can choose to be very passive and not reply to any questions, which is a broadcasting strategy. Secondly, a company can actively react to questions but not actively approach members, called a reactive strategy. Lastly, a company can actively react to questions and actively approach Twitter users to apply an engagement strategy. In agreement with Burton and Soboleva [62], firms mainly use one-way communicating strategies such as the broadcasting strategy. To measure sustainability on Twitter, Suárez-Rico et al. [3] have identified several attributes related to it. They mention that within sustainability, the following attributes must be available. A company must be consistent in posting, they must communicate about their sustainable activities, and it must be relevant in what they post, specifically, they must tell how it will affect the stakeholders’ life. The combination of these attributes makes sustainability measurable. These attributes are also confirmed by Gangi et al. [63], they use these attributes to measure the impact of sustainability. Therefore, the following, second set of three hypotheses is constructed: Hypothesis 5—Companies that are more consistent in tweeting about sustainability will receive greater sentiment than companies that are not consistent, Hypothesis 6—Tweets related to sustainable activity will receive greater sentiment than tweets unrelated to sustainable activity;
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Hypothesis 7—Tweets that are relevant within sustainability will receive a greater sentiment than tweets that are not relevant within sustainability.
3 Methodology We now will proceed with describing different measuring methods to show how variables that are relevant to sustainability can be quantified systematically from Twitter datastreams. Sentiment analysis is currently expanding within the area of Natural Language Processing [64]. A user’s opinion and sentiment on Twitter are considered an adequate representation of a company’s reputation [65]. O’Connor et al. [66] argue that a sentiment detector based on Twitter data reproduces and accurately measures customers’ trust within a particular company’s reputation. Additionally, Li et al. [22] shows a positive correlation between sentiment on Twitter and CR. However, the informal language commonly used in Twitter sentiment analysis is difficult to execute [67]. Therefore, the most accepted approaches to Twitter sentiment analysis are lexicon-based or machine learning-based [68]. The lexicon approach determines the sentiment or polarity of a piece of text through a dictionary [69] while the machine learning-based method trains a sentiment classifier using various features [70]. The downside of using sentiment analysis is that it does not explicitly target a user’s opinion [69]. A sentence can have positive and negative words which sentiment analysis does not distinguish correctly [69]. On the other hand, an aspect-based sentiment analysis (ABSA) performs a finer-grained analysis [71]. ABSA tries to identify different aspects of the sentence, and for each identified aspect, it estimates the different polarities [72]. Using this method helps the analysis become more accurate than the methods described above [73]. However, the disadvantage of this method is that synonyms are not always considered [74]. Generally, the best performing ABSA relies on manually labeling data, which can be a disadvantage if there is limited time available [75]. When using a lexicon-based approach, the user could use a semantic search to search for specific keywords to split a dataset. A semantic search is a technique in which keywords are matched with a text dataset [76]. An approach taken by most semantic searches over Twitter data is to organize documents and search for keywords [77]. Apache’s Lucene, Indri, and MG4J are some of the most common open-source semantic search engines available [78]. With these tools, a user can use a dataset and filter through it using keywords. Once the user has established the filtered dataset, he/she can export this into a file to analyze it.
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3.1 Sustainable Industry Classification System To measure the effect citizenship and sustainability have on CR, an approach was chosen containing a comprehensive dataset because it considers the strengths of social listening [79]. A better brand may increase its visibility, thus improving its reputation [80]. Since brand reputation affects CR [81], a list of the Dutch top 100 companies with the best-assessed reputation will be used that comes from MT/Sprout. Each year MT/Sprout makes a list of the best companies within the Netherlands in collaboration with Corporate Financial Netherlands; these lists are based on thousands of surveys as well as average profit over 2019, percentage of change profit from 2015–2019, and return on invested capital over 2019 [82]. MT/Sprout has over 40 years of experience knowing which company is currently performing the best [82]. This list will use the sustainable industry classification system (SICS) from the Sustainability Accounting Standards Board (SASB). The SICS contains an industrystandard template that shows which industries have the most impact on sustainability, the purpose of the SASB is to give more guidance to these industries [83]. Firms worldwide have recognized SASB and their industry standard as core components for their strategy in the future [83]. By combining the top 100 brands and the SICS, a better overview will be given, which will show what industry has the most significant impact on sustainability. By making sure each industry given in the SICS contains several firms, the overall influence of sustainability is integrally considered at industrial level.
3.2 Data Collection and Processing The dataset will be generated based on crawling the Twitter profiles of the top 100 brands within the Netherlands according to MT/Sprout. The top 100 was chosen since companies with a higher brand awareness are more likely to invest more measures into CR [84]. Next, the focus will lay on the main English version of the account. For example, “@Heineken,” in this case, would be the Twitter account that tweets explicitly in the English language. This is done because sentiment analysis for the Dutch language is less validated than their English counterparts [85]. This information will be collected using Twitter’s python application programming interface (API) called Tweepy and stored in a database. The main advantage of the use of Tweepy is that it is an easy-to-use interface [86]. On the other side, Tweepy only allows for 3200 tweets per timeline to be scraped [86]. Lexicon-based sentiment analysis will use the dictionary TextBlob to analyze the sentiment and polarity [71]. TextBlob has been chosen as the main sentiment analysis since it provides better results and accuracy than other lexicon-based analyzers [87]. For each company profile, the scraper will collect information such as company name, description, location, and the number of followers. Next to that, the actual content of the tweet, language, date of the post, the status of a tweet, meaning whether it was
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a reply or a retweet, number of likes, and amount of retweets will be added to the dataset. Once the dataset has been accumulated, the preprocessing and cleaning of the data will commence. First, aspects such as URL links will be removed since they do not carry much information [88]. Additionally, stop words such as “the” and “is” will also be removed from tweets. This is done because it is considered that these words play a negative role in the sentiment analysis [68]. Finally, additional characters such as #’s will also be stripped from the tweets together with emojis and whitespaces [89]. Once the data has been preprocessed and cleaned of some sort, the tokenization process will begin. Within this part, the given text will be converted into several tokens. This will help with structuring the data and eliminating unwanted words [90]. Since tweets are usually presented inconveniently, with tokenization, these unwanted characters are separated in which the text will be much easier to read for the sentiment analysis. The python package word_tokenize from nltk did the tokenization. This package was used because it is an important base for python programs that work with human language data [91]. Additionally, nltk is ideally suited for linguistic-related research because of its extensive documentation [92]. In addition, question marks and hyperlinks were removed in the preprocessing since it will increase the accuracy. Next to that a subjectivity and polarity are given to each tweet. The subjectivity indicates whether the text has a positive or negative sentiment, while the polarity indicates how strong a particular opinion is, both using a scale of −1 (weak opinion/negative sentiment) to 1 (strong opinion/positive sentiment) [93]. After the dataset has been accumulated, a semantic search tool is needed to distinguish specific keywords in the dataset [94]. Open Semantic Desktop Search (OSDS) will be used for this purpose. OSDS is an open-source semantic search tool based on apache’s Lucene that allows users to explore large datasets [95]. OSDS is operated through a virtual machine based on Linux [95]. The user must first install the pre-configured virtual machine from the official OSDS website before the tool can be operated [95]. Once the virtual machine is installed, OSDS can be installed with a user-friendly interface that helps the user semantically search his/her dataset [95]. The tool can perform semantic searches and find synonyms, hyponyms, and aliases when using any keywords [95]. A hyponym is a more specific word whose meaning is included in the meaning of another word. For example, when searching for the word “dog,” hits related to animals would also show up if specified. In contrast, a synonym is broader and gives a word that has a similar meaning. Additionally, OSDS is smart enough to search for different variations of the keyword. For example, the processed tweet, “We excited join RFA look forward contributing knowledge working alongside committed leading evolution sustainable renewable fuel industry”, shows up in OSDS when searching for the keyword “sustainability.” In the tweet, the word sustainability is not explicitly mentioned. However,
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OSDS knows that the keyword has multiple variations and gives sustainable back as a hit.
4 Analysis and Results This section will answer and explain the most relevant subset of the hypotheses that have been stated here above. Using OSDS with explicit keyword search that is directed to the sub-questions and hypotheses that have been mentioned in Sects. 1 and 2, which thus includes synonyms and different word variations, multiple datasets were created. The systematic analysis of each dataset results in an overview of tweets that are related to a certain aspect that is relevant to sustainability (Sect. 4.1) or citizenship (Sect. 4.2). This will then be compared to an overview of non-related tweets in the same dataset in order to be able compare the sentiment and validate the respective hypothesis that is at play. The full dataset in which the comparison will be made contains in total 320,000 tweets in which the sentiment was divided over 40% positive, 40% neutral, and 20% negative sentiment. The comparison will be made on an industry level using the SICS framework.
4.1 Sustainability The first hypothesis that was looked at was whether tweets related to sustainable activity receive greater sentiment than tweets unrelated to sustainable activity (hypothesis 6). The keywords chosen for sustainable activities were based on Kurapatskie et al. [96], which identified three key activities. The activities that were searched for in OSDS were “Pollution prevention,” “Clean technology,” and “Community Focus.” When combining the three outcomes into one dataset, it becomes apparent that about 10% of the entire dataset contains aspects about sustainable activities. Furthermore, there is an overall positive sentiment of the 10% sustainable activity-related tweets, with the average subjectivity being 0.63. These sustainable activities range from events to mentions that a new product has been developed. Something noticeable is that the transportation industry in the SICS framework has expressed itself the most about sustainable activities while the healthcare industry expressed itself the least. On average, the sustainable activity-related tweets received a 30% more positive sentiment when compared to non-sustainable activity-related tweets. Therefore, hypothesis 6 has been accepted. When zooming into the relevancy of sustainability-related tweets, every tweet serves a particular purpose. A company wants to either convey a certain message or make a certain announcement. When searching for sustainable-related tweets within OSDS, it returns about 16% of the hits. After analyzing the sustainability-related tweets, the following topics were given by OSDS: events, product development, and announcements. OSDS can tag and annotate tweets in order to categorize them
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based on their content. These topics contained the word sustainability but were not relevant to the concept of sustainability. For example, a tweet could contain the word “sustainabilityGroup” as an announcement of a group that would work together in the future. This tweet does contain the keyword sustainability but is not relevant to sustainability since it is just an announcement. Additionally, when looking at the overall sentiment of these tweets, they did not have a more positive sentiment compared to the average sustainability-related tweets. On average, the relevant, sustainability-related tweets had a subjectivity of 0.45, meaning that most of the tweets had a neutral sentiment. In contrast, the non-relevant tweets had a subjectivity of 0.58. According to Suárez-Rico et al. [3], the final factor in measuring sustainability is the consistency with which firms tweet about it. As mentioned before, firms included in the transportation industry have tweeted most consistently about sustainability. When comparing this industry with other industries, the transportation industry has a more significant positive sentiment. This trend can also be seen in other industries. The second industry that tweets most consistently about sustainability is the renewable resource industry, and the second-worst industry is the finance industry. In this case, the renewable resource industry has a greater positive sentiment than the finance industry. In both cases, the industry that tweeted more consistently about sustainability has an overall more positive sentiment.
4.2 Citizenship In order to measure citizenship, Fombrun et al. [9] have identified the following attributes: (A) A company must act responsibly to protect the environment, (B) a company must have a positive influence on society; (C) companies must support good causes to be considered a citizen. These attributes have been extracted from OSDS using the keywords “protecting environment,” “positive influence society,” and “good causes” because these keywords relate to the first set of hypotheses given in Sect. 2. Again, once the different datasets have been assembled with the various keywords, they are subsequently compared to non-related tweets in the dataset to compare the sentiment and validate the hypotheses. When searching for the keyword “protecting environment,” OSDS returned about 12% of the hits. All of these had some mention of the environment and included synonyms. When comparing the overall sentiment with the respective non-protecting environment dataset, it becomes clear that tweets related to the environment have a more positive sentiment than the non-protecting environment-related tweets. On average, a tweet related to protecting the environment had a polarity of 0.5 and a subjectivity of 0.6, which means that the tweets had a medium strength of opinion but were majorly positive. When focusing on the industry level of the results, the renewable resources industry received the most positive sentiment out of all the industries.
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Following this, the dataset was then tested using a t-test to determine if there is a statistical difference in the mean between the two datasets. When comparing this dataset to the respective non-protecting environment dataset, we found that with a 95% confidence amount, there is no significant difference (p-value = 5.6) between the two means. Therefore, based on the results given above and the results of the t test, the hypothesis of whether protecting the environment-related tweets receive greater sentiment (hypothesis 2) is rejected. The second attribute that a company must have to be considered a citizen is that the company must have a positive influence on society. Within OSDS, the results of using this variable as a keyword were about 7%, with most of the results having a positive sentiment. When comparing the results with non-positive influence-related tweets, it is apparent that there is an overall more positive sentiment. Of all the tweets that relate to a positive influence on society, 65% have given a positive sentiment, while the total non-positive influence on society-related tweets has a positive sentiment of 40%. The average subjectivity of the positive influence on society-related tweets was 0.7, while the non-positive influence on society had a subjectivity of 0.55. This means that hypothesis 3 should be accepted. On an industry level, the renewable resource industry tweeted the most about positively influencing society. The last attribute that Fombrun et al. [9] mention is that a company must support good causes to be considered a citizen. Using OSDS shows that about 9% of the results are related to supporting a good cause. Of these tweets, 70% have a positive sentiment. Comparing this with all the tweets that have been scraped, the good causesrelated tweets receive a more positive sentiment. This means that it is quite likely that hypothesis 4 should be accepted. Technology and communication have the most positive sentiments out of the tweets that relate to supporting a good cause at the industry level. About 80% of all the tweets within technology and communication have a positive sentiment.
5 Discussion and Future Work The increasing need for firms to communicate about their CR efforts has raised questions about its effects on their customers [4]. In this paper, we presented sentiment analysis that was performed on the Twitter posts of the top 100 brands of the Netherlands. Twitter’s official API was used in order to scrape the tweets. OSDS was used to filter through this dataset to search for keywords that relate to citizenship and sustainability. The sentiment of the filtered tweets was then compared to their non-filtered counterpart to determine whether they have a more positive sentiment. The results provide insights into the critical aspects of citizenship and sustainability on Twitter. The importance of citizenship and the link between sustainability has been established in the literature review. Suárez-Rico et al. [3] have identified several attributes that measure sustainability in a social media environment. From these attributes, several hypotheses were constructed. The results show that tweets that contain sustainable activities did
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have a higher positive sentiment. The transportation industry tweeted the most about sustainable activities. This could be due to the industry starting to widely adopt social media to voice its sustainable operations [36]. Within the study of Suárez-Rico et al. [3], they found that companies that use non-sustainable activities such as mining and petroleum are more likely to have a negative sentiment. This aligns with the results of our study, both studies show that companies that mention sustainable activities on social media are more likely to receive a positive sentiment. However, tweets relevant to sustainability did not receive a positive majority sentiment within our study; most of these tweets were neutral. This is an interesting development since tweets that relate to sustainable activity do have a positive sentiment. This shows that companies should tweet more positively about the relatability of sustainability because these tweets contain values that are familiar and relevant for stakeholders [97]. Thus, tweeting about topics relevant to sustainability can add additional value to the brand [98]. Another attribute that was looked at was whether companies that tweeted more consistently about sustainability received a more positive sentiment. This was done on an industry level in which the transportation industry tweeted the most consistent about this topic. This industry also received the highest amount of positive sentiment. Twenty-nine percent of the tweets of the transportation industry were about sustainability. This is probably because sustainability is becoming a critical criterion for companies within the transportation industry [99]. Additionally, sustainability is becoming an increasingly fundamental topic because of the increasing demand for the transportation of goods [100]. We have found that four out of five industries that tweet most consistently about sustainability are polluters. Similarly, Kim et al. [101] mention a robust positive relation between toxic emissions and being focal on their charitable contribution. This is also confirmed by Kunz and Ratliff [102], in which they mention that the industry a company operates in plays a massive role in the amount of online reporting they do of their sustainable activities. These findings also align with Suárez-Rico et al. [3] who mention that the industry that pollutes more is more outspoken on their sustainable behaviors on social media to change the customers’ perspective about them. Fombrun et al. [9] mention that a company must act as a citizen if they want to be corporately responsible. The three attributes were analyzed with the results described in Sect. 4.2 (citizenship). Remarkable is that the renewable resources industry received the most positive sentiment when searching for the keyword related to protecting the environment. This is possibly due to society moving more toward the renewable resources industry for sustainable production methods [103]. The second attribute that was looked at was whether companies that tweet about positively influencing society would have a higher sentiment than tweets that do not contain this topic. Of all the tweets that positively influenced society, 65% included a positive sentiment with an average subjectivity of 0.7. The non-positive influence on society tweets did not only have fewer positive tweets, which was 40%, but the average subjectivity of these tweets was about 0.55. Thus, the group with positive influence on society tweets has a higher subjectivity than the reciprocal group. The renewable resource industry tweeted the most about having a positive influence on
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society. This industry has become more vocal on social media in recent years [104]. One potential explanation of this result might be that with the expansion of renewable resources, the media are becoming more vocal about its influence [105]. Finally, the attribute of supporting good causes was analyzed in which it became apparent that most of the tweets that contain this element have a positive sentiment. This is remarkable because the technology and communication industry has the most positive sentiment when filtering for supporting good causes. According to Porter and Kramer [106], companies that support good causes improve their competitiveness and performance. Surprisingly, a considerable portion of companies do not disclose the acts of supporting good causes [107]. This paper has made some important contributions to CR efforts on social media seen from a sustainable lens. Nonetheless, some limitations need to be considered. Firstly, this paper focuses on tweets from the top brands in the Netherlands, which have been exposed to several CR and sustainability-related attributes. Because of the sustainability aspect, the companies chosen were put in the SICS matrix. While these findings might be generalizable in different industries that are not present in the SICS matrix, future research should validate these assumptions. Secondly, the CR and sustainability-related tweets were compared to non-CR and non-sustainability tweets as a group. While this paper might help give a better understanding of the impact of tweeting about CR and sustainability, it only focuses on the attribute of citizenship. Future studies should further explore the remaining attributes that relate to CR and compare their sustainability messages. Acknowledgements This paper has been inspired on the MSc master project of Ismael Zerouk who was involved via the master Digital Driven Business at HvA. Thanks go to Riccardo Pinosio for providing some useful suggestions to an initial version of this manuscript. Rob Loke is assistant professor data science at CMIHvA.
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Challenges and Perceptions of Ecuadorian Journalists in the Transition to Cybermedia Abel Suing
Abstract There are reconfigurations and combinations between old and new media, resulting in better experiences for users, including a repositioning of local media. Millions of people have smartphones on which they read the news, which means that journalists must develop skills to inform through emerging narratives for audiences that are regular Internet users. This metamorphosis is not the same in all countries, there are particularities that must be known because the technological and economic background and capabilities are different. The purposes of this research are to know the challenges that journalists in Ecuador perceive in the transformation to digital media and to identify their opinions about the irruption of software in newsrooms. The questions are (1) What challenges do journalists face in the transition to digital media, (2) Will manual news writing be replaced by specialized software? The research is descriptive and relational, using qualitative methodology through semi-structured interviews. The main challenges perceived by journalists are to maintain the professional practice with high standards, to face the disinformation that spreads on the Internet, a continuous learning of new forms and technologies of communication, the search for funding to cover education and to maintain good relations with government agencies for the delivery of information, as well as in lobbying for the promotion of public policies of communication. Keywords Cybermedia · Digital journalism · Ecuador · Perception
1 Introduction On more than one occasion it was thought that technological advances would lead to their disappearance, but there are reconfigurations and combinations between old and new media, which result in better experiences for users, even a repositioning of local media due to the proximity and plurality they represent, at a theoretical level there
A. Suing (B) Universidad Técnica Particular de Loja, calle Champagnat, casilla 11-01-608, Loja, Ecuador e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 J. L. Reis et al. (eds.), Marketing and Smart Technologies, Smart Innovation, Systems and Technologies 280, https://doi.org/10.1007/978-981-16-9272-7_43
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are arguments in this regard ranging from the global village [1] to the phenomenon of “global” communication [2]. The transition from analog and print to digital media is underway and gained momentum in the Covid-19 pandemic, which also showed that many management activities, in various fields of social relations, can be executed online, this emergence opened spaces for participatory, multimedia and interactive journalism [3], and for hybrid forms in the coverage and broadcasting of information [4, 5]. The proportion of people using the Internet and cell phone subscribers worldwide and regionally show sustained increases in the last decade [6], in the first case about 50% and in the second more than 100% of the population is able to receive and generate digital content, an example of this and the decline in consumption of conventional media is offered by the television sector, the future points to the rise of both free-to-air and pay-tv through Internet-connected devices. According to estimates by Digital TV Research, the number of Latin Americans with access to a pay TV service is projected to decrease from 72 million subscribers in 2017 to 67 million in 2025 [7].
In the aforementioned context, the digital transformation offers opportunities and challenges for professionals and for educational systems, since “it seems clear that new subjects and skills will have to be incorporated, such as […] data analytics, infographics, data journalism, distribution through social networks, new audiovisual formats, content marketing, etc.” [8]. The digital field involves training competencies that academic programs must incorporate, otherwise the graduates of communication and journalism careers would be outdated and would have little chance of finding employment. New scenarios and devices emerge, but the role of journalists remains the same, they are responsible for seeking information and delivering it to society to make conscious decisions. Millions of people have smartphones on which they read the news, which means that journalists must have the skills to inform through emerging narratives to audiences that are regular Internet users. Thus, traditional journalism has to deal with the emergence and development of the digital era and its tools to review and build the media discourse. Although journalism is based on immutable values and characteristics, the emergence of new channels modifies the configuration and dissemination of content where quality must prevail in the digital environment and the attributes of new technologies. The response of the academy is to advance to a “mixed transversally” in the sense of integrating the profile demanded by the cybermedia with the classic degrees [9], thus welcoming the treatment of big data, the use of technological tools and hypermedia narratives in a new profile of journalism where “software, statistics and database management take the lead” [10]. Another evidence that encourages the review of training programs is that “there is currently no coverage of job offers in communication attached to data analysis, programming, design or digital creativity. To address these areas, the future journalist needs interdisciplinary training” [11].
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This metamorphosis is not the same in all countries, there are particularities that must be known because the background and capabilities, technological and economic, are different, thus it is understood that, in East Timor, students “showed that they aspire to be journalists in the news industry, despite the lack of job opportunities in journalism [although] the real challenge is to improve interviewing and writing skills” [12]. It is expected from “academic institutions an important reflection and a wide flexibility to adapt their curricular offer and methodologies to the demands of the new communicative scenario” [13], without neglecting the teaching of language and writing, they should focus their efforts on specializing students “in specific areas, in order to mark a competitive advantage over other related professionals” [14], it is worth remembering that professional profiles are grouped into two axes “the basic elements or fundamentals […] and the technological dimension” [15]. The situation of journalists and the media in Ecuador is not different from the above, on the one hand, there are digital media that have already incorporated interfaces and interactive applications for digital users [16], and on the other hand, there is a gap between university training and the requirements of the companies, “The level of knowledge perceived by managers is [of] greater strength in theoretical and conceptual aspects, but with a weakness in the practical component” [17], in addition to the regulations and the political situation of the country seems to predict barriers to the presence of cybermedia. Based on the above, this paper presents part of the results of a study on the future of training in social communication that the Research Group in Communication and Audiovisual Culture of the Universidad Técnica Particular de Loja is carrying out in 2021. The purposes of the research are to know the challenges that Ecuadorian journalists perceive in the transformation to digital media and to identify their opinions about the irruption of software in newsrooms. The research questions are (1) What challenges do journalists face in the transition to digital media? (2) Will manual news writing be replaced by specialized software?
2 Methodology The research is descriptive and relational [18], using qualitative methodology through semi-structured interviews. The descriptive approach evaluates the characteristics of a phenomenon; according to Cazau [19], variables should be selected to represent the object of study in detail. From this characterization, important recommendations can be generated [20]. The semi-structured interviews were conducted between July 14 and 22, 2021 to journalists, media managers and experts living in 11 cities of Ecuador: Chone, La Concordia, Latacunga, Manabí, Manta, Pujilí, Puyango, Quevedo, Quito, Santo Domingo and Saraguro.
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The characteristics of the interviewees are: 13 men and 7 women, of whom seven are related to radio, one to television, two to social media, two to public administration, three to print media, two to teaching in universities, and three work as freelance professionals. The average age is 44 years old. The identification of the testimonies is carried out according to this coding. E-01: male, communicator and promoter of social networks. E-02: male, radio producer. E-03: woman, local government communicator. E-04: male, print media editor. E-05: male, social media producer with a focus on sports. E-06: female, freelance journalist. E-07: male, radio manager and news director. E-08: woman, radio journalist and social manager. E-09: male, former newspaper editor. E-10: woman, newspaper journalist. E-11: male, radio owner and broadcaster. E-12: male, radio manager and administrator. E-13: male, media consultant. E-14: male, television news director. E-15: male, journalist and radio broadcaster. E-16: woman, journalist and public relations expert. E-17: woman, director of communications for the Higher Education Council of Ecuador. E-18: male, teacher and radio broadcaster. E-19: woman, radio journalist. E-20: male, journalist, teacher and political consultant.
3 Results The challenges that the interviewees expressed in the transition to digital media are grouped in five axes: 1.
2.
3.
Quality journalism. “The challenge of the journalist is to keep the population well informed” (E-05), “to be more investigative and carry the news with more rigor” (E-07), to provide “information that contributes, that nourishes society” (E-01), to “form more innovative citizens, leaders for a more just and hardworking society” (E-07). Faced with the new media, “a newspaper or a television channel should tell the same news as the digital media with a different axis, with a better style of writing and of course with more suspicion” (E-04). Verification. Journalists must “identify fake news in digital platforms” (E-07), “highlight the information in the midst of many fake news” (E-08), for this it is necessary to “contextualize the news, it is the duty of a good journalist because there are official voices and actors indicating what to publish without verification” (E-02), Likewise, “communication agencies are a key piece when it comes to helping journalists to contrast information quickly” (E-03), the result of these actions will be “to win back that lost trust because today everyone considers themselves content creators, and the contents are poor, false” (E-05). Learning and implementing communication technologies. In the opinion of journalists, they must “learn to coexist and adapt to technology” (E07), “to Internet platforms such as social networks, streaming and manage software to transmit content” (E-06), it is necessary to “update, learn communication informatics and get involved in new technologies” (E-11), “in social networks, websites,
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blogs, design” (E-19), “to know the potential of digital communication, their own capabilities, strengths, threats and opportunities” (E-20). The transition to digital communication is essential because now everyone has a smartphone, a device at home in which to read the news, get information, and that a journalist must read and communicate well because these media also involve a responsibility against disinformation (E-14).
4.
Funding for training. The interviewees point out that there is a “lack of budget” (E-16) to “prepare their personnel and structure their work team with skills and knowledge compatible with the new environment” (E-20), which implies an economic issue because journalists want to be up to par, money is needed for training and the acquisition of technological tools to work in a better way (E-19).
5.
Maintain relations with governments. “Covid-19 taught us that the spokesperson and the flow of information must be kept expeditious, especially in the case of public institutions, since they are in constant need of information from society” (E-17), however, there is still “little help from government spokespersons to generate prompt information” (E-16).
Regarding the changes caused by cybernetics in newsrooms and the effects on the reconfiguration of routines and professional profiles, it was determined that there is no perception of replacing journalists by machines or software, and a potential support to improve performance is also appreciated. Journalists will not be replaced by software or machines because “a robot or something mechanical cannot build a human link, machines could not reach something emotional” (E-02), “we do not know what changes we will face tomorrow, but no machine can replace a job well done” (E-05), “at least at present, this scenario is not present, without ruling out that in future certain conditions could substantially alter it” (E-20). It must be considered that a machine will never be able to transmit the feelings with which a journalist expresses and writes to tell a story. A journalist to inform “investigates, searches, lives, feels, knows the reality in the flesh, we journalists transmit emotions, it is not only news, we are the voice of the citizenship, a machine is not going to do it one hundred percent” (E-07). Writing news are styles and each journalist has his own style, it is like fingerprints, each human being has a different fingerprint, likewise journalists personally handle a style, some may resemble each other but they are not the same, then the journalist goes out to the street to report, generates the story, consults the story, writes the story with a very different style than the machine because the machine will not interview, diagram the central axis of the news, then it is complicated that even specialized machines replace people in the newsroom (E-04). In future, absolute digitalization could come, until then we will be prepared to receive information by digital means, today traditional media are still widely used in rural areas for the reason that they are not yet trained to receive information by digital means (E-19).
Finally, it was specified that “bots do not have to be seen as enemies of journalists, they have to be considered as an aid to perform research tasks, make statistics, streamline processes and find data patterns” (E-01).
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At present, “robots are already being used in the newsrooms of some newspapers, such as the New York Times, for very technical topics, such as science, weather, the development of certain disciplines. In the radio, with pre-recorded programs to be broadcast at night” (E-06), greater automation can be achieved “but we as communicators will also be aware of the software to work in the new media” (E-13). The human being is made to adapt and in the next few years we will adapt to this situation, but of course, the journalist must be updated with new theories, new practices as there is now big data, data science, user experience, among other things, that some newspapers already have (E-14).
4 Conclusions The main challenges perceived by journalists in Ecuador in the transition to digital media are to maintain professional practice with high standards, to face the disinformation that spreads on the Internet, a continuous learning of new forms and technologies of communication, the search for funding to cover education and maintaining good relations with government agencies for the delivery of information as well as for lobbying in the promotion of public policies on communication. On the other hand, the impressions of journalist are that the implementation of communication technologies in software and computer equipment in newsrooms can be an opportunity to streamline the processing of data and confront false news, but mechanical equipment will not replace people. Field work, dialogs, culture and affections would not be changed by robots that have no feelings. There are certain protocols and automatic mechanisms that already help in the processing of information and imply that it is necessary for people to acquire rapid updates to work in the media, this means not losing a humanistic horizon, but also a better performance on the basis of higher professional quality. This is a case study; the immediate objective is to contrast the findings at the country and regional level, considering the different levels of development of the communication and culture industries and the legislation in force in other cities and countries.
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Are Social Media Users “Online” with Public Libraries? Talita Astori , Paulo Duarte , Ricardo Gouveia Rodrigues , and Vera Carlos
Abstract This study explores the relationship between social media usage, the use of public libraries, and reading habits. The data were collected using a questionnaire that evaluates the profile of public library users, the use of social media platforms, and reading habits. A total of 222 valid answers were obtained. The results show that only 33.5% of the respondents are regular users of public libraries. The findings suggest that using social media negatively influences being a public library user who spends more time in social media at the expense of reading and using libraries. Since the number of users is a performance indicator for libraries, increased social media use could threaten their survival. However, social media can be an opportunity to reach current users to stimulate non-users to visit and change reading habits. Keywords Public libraries · Social media · Usage intensity · Reading habits · Marketing strategy
1 Introduction Organizations have realized the potential of the Internet for their work [1], so this resource has become a crucial strategic weapon, particularly important considering the increasingly competitive environment organizations face [2]. Bidirectional T. Astori NECE-UBI (Research Centre in Business Sciences), University of Beira Interior, Rua Marquês D’Ávila e Bolama, 6201-001 Covilhã, Portugal P. Duarte (B) · R. G. Rodrigues · V. Carlos NECE-UBI (Research Centre in Business Sciences), Universidade da Beira Interior; NECE-UBI, Rua Marquês D’Ávila e Bolama, 6201-001 Covilhã, Portugal e-mail: [email protected] R. G. Rodrigues e-mail: [email protected] V. Carlos Universidade de Aveiro, Campus Universitário de Santiago, 3810-193 Aveiro, Portugal e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 J. L. Reis et al. (eds.), Marketing and Smart Technologies, Smart Innovation, Systems and Technologies 280, https://doi.org/10.1007/978-981-16-9272-7_44
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communication via the Web has become progressively popular [3], so this technology is also a vital resource for organizations to remain competitive [4]. The potentialities of Web technologies are outstanding, so many organizations spend large sums of money on them. Using Web apps, an organization can more easily and effectively reach customers and offer them different services [1]. Internet use began to spread on university campuses in the USA in the 1990s [5], and since then, this modern lifestyle has been shaped by new information and communication technologies [6]. Understanding new habits and patterns of Internet use can be crucial for predicting future online trends [5, 7], since the increasing use of social media intervenes in the formation of the identity of users, in the creation of expectations and engagement regarding services and products, in their habits, values, and behaviors [8]. Digitalization is one of the drivers of this transformation [6]. Instant messaging has become part of young people’s routine since it emerged as a form of interaction in the late 1990s [9]. WhatsApp is an app that includes several functions in addition to sending text messages, such as sending images, videos, and audio, allowing an active connection with anyone who has installed it on their smartphone [10]. Other examples are Facebook and YouTube that spread quickly around the world [11]. At the same time, there is a growing practice of digital reading, stimulating readers of electronic books to create personal and portable libraries [12]. Although there are many individuals online, the nature of Internet use has been changing over time: from static connections to laptops and smartphones [7]. This fact has also changed the way libraries are used since we tend to resort to the Internet before going to a physical library [5]. Since social media allow public sector organizations to connect with citizens and provide them with more detailed and useful information [13], facilitating the creation and sharing of content [8], these technologies have become popular tools for libraries in marketing practice. Contemporary libraries have been giving increasing importance to the satisfaction of users’ needs. Social media can shape relationships with users and actively engage user communities with library collections, services, and activities. Nevertheless, many libraries still find it challenging to use social media for marketing purposes [13, 14]. Assuming the omnipresence of the Interet in people’s daily lives which may act as an information source substitute for public libraries, and since previous studies have not addressed the impact of social media usage in the willingness to use public libraries, this study tries to understand the relationship between reading habits and the use of social media platforms and assess the relationship between the frequency of use of social media with being a library user.
2 Background Scholars have studied the profile of users and non-users of libraries to identify the aspects that influence people to visit these institutions and the factors that lead them
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not to do it [15–18]. However, few studies seek to analyze the behavior of potential users of libraries considering the increasing use of social media and the Internet. According to Kotler and Armstrong [19], social media is a broad concept that encompasses technologies focused on content—such as Twitter, blogs, online communities, and forums—and focused on people, including online social networks, such as Facebook or Instagram. It should be noted that social media differ from traditional mass media to the extent that the traditional marketing perspective focuses on “one-to-many” distribution. In contrast, social media establish networks of co-creation and integration [6]. The concept of social media is closely related to two other essential definitions: Web 2.0 and User-generated content. The first term appeared in 2004 to represent the new way of using the World Wide Web, in which content and applications started to be continuously modified collaboratively [11]. Web 2.0 technologies embody an innovative way of handling and repurposing information available online and knowledge sources compared to the traditional Web 1.0 [20]. On the other hand, the concept of User-generated content is linked to how individuals use social media, generating and sharing content among themselves [11]. Blogs, MySpace, and Twitter are examples of social media currently available that are increasingly used, particularly among young people and university students [21]. A survey of 27 colleges and universities in the USA examined the impact of the Internet on students’ academic and social routines, indicating that (1) students are intense Internet users, (2) the Internet has improved academic education, and (3) university social life has changed with the advent of the Internet [5]. In addition, the same research reveals a preference for using the Internet for information research, concluding that only 9% of students choose the library to perform searches. US college students were the pioneers in using the Internet for file sharing, communication, and entertainment [5]. Reference [21] state that students essentially use social networks to interact with each other and not for academic purposes. This situation gives rise to challenges for library managers since they find themselves losing space in a world in which electronic resources play a central role in people’s daily lives [22]. More recent research revealed that students currently use Instagram, Facebook, YouTube, and TikTok more than other social media platforms. They would like to see all types of content related to their campus library on Facebook, Instagram, and Twitter. They also revealed they did not wish to receive business news or content related to library resources on Snapchat. YouTube was seen by students particularly as a resource for library service information [23]. In what concerns the growing habit of digital reading that tends to evolve driven by digital convergence, authors state that with the development of electronic resources, there is the possibility that students do not feel the need to attend libraries [12, 21]. Considering that the number of library users can be an indicator of library performance [24], the convenience provided by the Internet has directly affected the research habits of individuals [5]. Therefore, it is necessary to understand how social media interferes with the use of libraries and the reading habits of users and non-users of libraries.
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Since the behavior of those who visit libraries differs according to their patterns of use, knowledge, skills, and perceptions [25], library managers should focus their efforts on understanding their potential clients [16]. Thus, it will be possible to develop retention strategies for users and attraction strategies for those who do not visit libraries yet [24]. Recent recommendations aiming to increase the effectiveness of social media use in marketing include avoiding unnecessary content, using causal language, and streaming videos of popular events [14]. Considering the mentioned studies, we propose the following hypotheses: H1: The use of social media influences the use of public libraries. H2: There is a significant negative relationship between individuals’ reading habits and the use of social media.
3 Method The data for the quantitative exploratory analysis were obtained through a questionnaire designed to assess behaviors and/or opinions [26]. Among the advantages of this type of research is that data can be quantified since they can be grouped and statistically analyzed to allow a clear interpretation of the reality studied as participants provide information about their beliefs, opinions, and behaviors. However, there are limitations to the respondents’ subjective perception of themselves, considering that there is a difference between what people are, in fact, and what they say they are [27]. Keeping in mind the advantages and limitations of this type of research concerning the study’s objective, which is to determine the motivations of users and non-users for, respectively, attending and not attending public libraries in Portugal, this option is considered appropriate for the research. The convenience sample of the research includes individuals that could be the user of public libraries in Portugal. The data collection was conducted by randomly approaching persons in public places on medium-sized cities in 13 of the 18 Portuguese districts using a questionnaire designed to describe the profile of library users. A total of 222 valid answers were obtained for the analysis of the results. The sample’s composition revealed a slight predominance of male respondents (52.1%), whose ages ranged from 10 to 85 years. The questionnaire applied includes a group of statements that characterize different reading situations to measure the respondents’ reading habits (regardless of whether they are users of public libraries or not) through a 5-point Likert scale, ranging from “Totally disagree” to “Totally agree.“ In order to identify the users of social media and their periodicity of use, the following social media were presented to the participants: Facebook, Instagram, YouTube, Twitter, WhatsApp, Snapchat, and Goodreads. The frequency of use of each one was measured using a scale with six points, ranging from “0,” which represents “never,” and “5,” which represents “more than 20 times a day.” Those who never use social media were categorized as “non-users,” while those with between 01 and 20 hits per day were considered “light users.” Therefore, respondents who
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consult social media more than 20 times a day on any social media available in the survey were segmented as “intensive users.” In order to verify whether the use of social media influences the reading habits of non-users and users of public libraries in Portugal, multiple variables were analyzed using the SPSS (Statistical Package for Social Sciences) to build a more realistic perspective [28]. Thus, the study intends to evaluate a priori the hypotheses presented. For H1, the interpretation of data was made using Fisher’s Exact Test, which compares the frequency of use of each social media presented in the research, under the condition of being a user or not of public libraries. Using this test, a confidence interval of 99% (α = 0.01) was considered. To analyze whether the use of social media influences individuals’ reading habits, the one-way ANOVA was applied, enabling the comparison of two or more means to test H2.
4 Findings Among the survey participants, 66.5% said they were not users of public libraries, while 33.5% are users. In what concerns library users, 5.8% mentioned visiting libraries daily, 23.3% several times a week or a month (32.6%). The remaining respondents (8.1%) visit libraries less frequently. The Fisher’s Exact Test was used to compare social media usage with the condition of being a non-user or a user of public libraries. The result shows an association between the use of social media and being a user or non-user of libraries (p < 0.05), particularly in what concerns the use of Instagram, YouTube, Snapchat, Goodreads, and WhatsApp, as shown in Table 1. Using Facebook is not associated with library usage, which could be related to the fact that there is a vast diversity of people using this platform [11]. Accordingly, the majority of social media associated with the use of libraries are the most used by research participants, as shown in Table 2. Frequency of use of social media. Table 1 Use of social media and the use of public libraries
Social media
Fisher’s exact test
Exact significance
Facebook
2.391
0.327
Instagram
6.576
0.038
7.558
0.023
YouTube Twitter WhatsApp Snapchat Goodreads
11.080
0.003
7.098
0.027
10.317
0.004
8.047
0.009
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Table 2 Frequency of use of social media Are you a public library user? Total No Facebook
Non-users
18
9
27
Light users
113
53
166
9
9
18
Non-users
67
21
88
Light users
60
39
99
Intensive users
14
11
25
Non-users
39
11
50
Light users
96
51
147
6
9
15
Non-users
117
45
162
Light users
16
21
37
8
5
13
Non-users
80
28
108
Light users
55
34
89
6
8
14
Non-users
114
43
157
Light users
23
22
45
4
6
10
Intensive users Instagram
YouTube
Intensive users Twitter
Intensive users WhatsApp
Intensive users Snapchat
Intensive users Goodreads
Yes
Non-users
137
62
199
Light users
4
7
11
Intensive users
0
11
2
Facebook—that does not influence library usage—, Instagram, YouTube, and WhatsApp include, respectively, 184, 124, 162, and 103 users, considering the light users, who access their social media from 01 to 20 times a day, and the intensive ones, who access them more than 20 times a day. Twitter, Snapchat, and Goodreads together include only 118 users. It is also noticeable that the use of public libraries is lower for users of social media in comparison to the ones that use libraries, suggesting that the use of social media negatively influences the use of public libraries. Therefore, we conclude that the individuals who spend more time on social media are less likely to enjoy public libraries, which partially supports H1. Furthermore, the one-way ANOVA test (Table 3) shows that the reading habits most influenced by the use of social media are “I like to read a book on a rainy day”, “I like to read when I am home,” “I like to spend my free time reading,” and “I like to read during the summer holidays.” “I like going to bookstores” is a habit that is less influenced by the use of social media. Also, as shown in Table 3, the social media that most influences reading habits is Twitter, followed by Goodreads and Snapchat.
0.272
1.310
I like reading a lot
I like going to bookstores
0.165 0.208
1.816
I often prefer reading to other kinds of fun
0.001
0.029
6.992
I like to read during the summer holidays
0.026
1.582
3.693
I like the feeling of starting to read a new book
0.039
0.013
0.000
0.087
0.000
Sig
I like to read different kinds of books 3.601
4.409
9.813
I like to read when I’m home
3.291
2.472
I like to read a book at during my free time
I like to spend my free time reading
9.532
I like to read a book on a rainy day
I like to get books as a gift
F
Reading Habits
Facebook
0.690
0.768
0.046
2.816
5.605
1.189
2.243
2.221
4.458
3.155
7.936
F
0.503
0.465
0.956
0.062
0.004
0.307
0.109
0.111
0.013
0.045
0.000
Sig
Instagram
Table 3 Relationship between reading habits and social media
0.798
1.465
1.021
1.457
4.406
2.824
3.197
2.176
4.410
1.915
4.278
0.452
0.233
0.362
0.235
0.013
0.062
0.043
0.116
0.013
0.150
0.015
Sig
YouTube F
3.796
8.605
0.623
0.592
6.578
8.004
7.441
9.951
4.516
4.211
8.251
F
Twitter
0.024
0.000
0.537
0.554
0.002
0.000
0.001
0.000
0.012
0.016
0.000
Sig
3.247
4.281
1.960
0.532
2.122
6.118
5.495
7.198
4.580
1.688
2.448
F
0.041
0.015
0.143
0.588
0.122
0.003
0.005
0.001
0.011
0.187
0.089
Sig
WhatsApp
5.377
4.025
1.571
7.973
9.820
4.557
10.152
11.422
7.203
4.959
9.107
F
Snapchat
0.005
0.019
0.210
0.000
0.000
0.012
0.000
0.000
0.001
0.008
0.000
Sig
4.295
5.356
3.708
9.766
6.049
3.955
6.190
3.160
2.367
7.781
4.953
F
0.015
0.005
0.026
0.000
0.003
0.021
0.002
0.044
0.096
0.001
0.008
Sig
Goodreads
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When comparing the means for the mentioned reading habits, we conclude that whenever the mean difference is significant (p < 0.05), intensive social media users show lower means than light or non-users. This result suggests that individuals who constantly use social media choose them over reading and using libraries. Together, these results support the second hypothesis tested in this study since they suggest that social media influences reading habits. The greater the individual’s use of social media, the less frequently she tends to use libraries and the more she tends to have fewer reading habits.
5 Conclusions and Implications The negative influence that using social media platforms—such as Facebook, Instagram, YouTube, and WhatsApp—has on reading habits should be noted. However, we must consider that this research was carried out in a specific cultural context, so our conclusions may not be generalizable. This study suggests that the use of social media influences the condition of being a library user since, among the users of most social media whose usage is relevant (Instagram, YouTube, and WhatsApp), the use of libraries is lower than for non-social media users. According to the research results conducted by [30, 31], who concludes that students’ preference is to use the Internet for research, only 9% of students choose the library to perform searches. Although the study presented is from 2002, it does not concern social media platforms and includes only students. Therefore, a comparison would not be accurate since our study suggests a rising trend to use the Internet with disregard of paper documents and, consequently, of library use. Our study, therefore, suggests that individuals who spend more time on social media prefer to do so at the expense of reading and to use libraries, Assuming that the number of library users is a performance indicator for libraries [24], the decreasing number of users can become a challenge for current management. However, we can see the most used social media as an opportunity to reach the target audience of libraries since they offer an alternative to reach potential users in their usual environment. Thus, Portuguese managers of public libraries should resort to these means to retain library users and, specifically, Instagram, YouTube, and WhatsApp to attract new ones. Considering that advertising costs on the Internet tend to rise due to its increasing popularity, public libraries, which usually depend on government funds and donations, could invest in viral marketing campaigns to increase reading habits in the population. Also, these institutions could resort to lead users interested in this issue since they have a strong influence on Web users, particularly the young ones. In order to attract the youngsters, libraries could partner up with influencers and institutions that target this audience or captivate its interest due to their purpose, such as environment-related organizations. One recent example of young people’s interest in this topic is Greta Thunberg, a 16-year old who shaped a trend of youth protests for
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the climate around the world and, for that reason, was nominated for the Nobel Peace Prize.1 It would also be essential to follow the recommendations proposed by Cheng et al. [14]. They advise avoiding unnecessary content on social media platforms to use causal language and streaming videos of popular events to increase these tools’ effectiveness. Another strategy that could be effective for attracting and retaining users could be partnering up with writers and creating activities to promote their work. In return, they could ask them to divulge how important it is to read, by sharing their own experiences, for example, or by sharing events on their website and social media platforms. Using Facebook does not influence the condition of being a user, which could be related to its vast characteristics. Therefore, libraries should invest in reaching the population through this platform, despite being aware that they focus both on users and potential library users. Considering that funding is usually a challenge for public libraries, these strategies could be implemented by creating partnerships with higher education institutions. By contributing to the success of public libraries, these institutions, through their human and intellectual capital, would promote knowledge and education. It would be important to replicate the research in different cultural contexts to evaluate whether the results are generalizable. Enlarging the research to include other well-known social media, such as Wikipedia, would be interesting. Also, distinguish the use of social media focused on content—such as YouTube and Twitter—and focused on people—Facebook and Instagram, for example—could lead to exciting results. Finally, the impact of the proposed marketing strategies on the population should be further studied to evaluate whether they would be successful. Acknowledgements The authors would like to thank NECE—Research Unit in Business Sciences, funded by the Multiannual Funding Programme of R&D Centres of FCT—Fundação para a Ciência e a Tecnologia, under the project UIDB/04630/2020.
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Social Media Marketing of Football Clubs: A Study with Portuguese Football Clubs—SL Benfica, FC Porto, and Sporting CP João Pereira , Ricardo Gouveia Rodrigues , Paulo Duarte , and Ana Gouveia Abstract The various existing social media platforms aim at interaction and connectivity between users within online communities through the production and sharing of content. Like sports, social media allows users to obtain experiences that often stirs emotion. This empirical study combines football with social media through a multiple linear regression analysis involving the social networks, Facebook, Instagram, and Twitter, of the three biggest Portuguese clubs—SL Benfica, FC Porto, and Sporting CP. This research reviews the literature of sports fanaticism, the structure, and content of posts, combined with a bibliometric analysis of social media, which allows the understanding of this vast theme in four components: social media engagement, user-generated content, online communities, and content marketing. Through the testing of the hypotheses written for this research, assertive conclusions were obtained about the performance of social media posts in the sports field, such as the relevance of visual posts, compared to textual posts; the effectiveness of posts that refer to the nostalgia of the supporter; and the determination of the social network most suitable for the accompaniment of a live football match. Keywords Social media · Sports marketing · Multiple linear regression
J. Pereira · R. G. Rodrigues (B) · P. Duarte · A. Gouveia Universidade da Beira Interior, NECE-UBI, Research Centre for Business Sciences, Rua Marquês D’Ávila e Bolama, 6201-001 Covilhã, Portugal e-mail: [email protected] J. Pereira e-mail: [email protected] P. Duarte e-mail: [email protected] A. Gouveia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2022 J. L. Reis et al. (eds.), Marketing and Smart Technologies, Smart Innovation, Systems and Technologies 280, https://doi.org/10.1007/978-981-16-9272-7_45
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1 Introduction Social media can be broadly defined as websites and applications that allow users to share content, thus being a form of media that allows interaction between people [1]. Sports, on the other hand, also allows interpersonal relationship and sharing, and as Collins, [2] wrote in The Oval World: “Sports connects friends and families, grandparents and grandchildren, allies and acquaintances, and offers a profound sense of belonging and kinship. (…) such deep bonds are not easily broken or lost”. The current study joins the capacities and advances of social media, with the world of sports, more properly with the structure and typology of posts that are practiced in Facebook, Instagram, and Twitter of the three main clubs at the highest level of Portuguese football league, Sport Lisboa e Benfica; Futebol Clube do Porto; and Sporting Clube de Portugal. Although there is no consensus on the scope of social media, most definitions suggest that social media consists of media that is published, created, and shared by individuals on the Internet, such as images, videos, and other materials [3], allowing the dissemination of user-generated content [4]. Social media facilitates relationships between people and entities, and for this reason, official social media pages have become a useful tool to improve brand image for organisations and for the sports industry [5]. Social media allows a platform to build social experiences and symbolic value for the user. Consumer engagement can be measured by metrics such as likes, comments, and shares [6]. The purpose of brands when posting on social networks is to generate reactions from fans, because the greater the interactivity, the more likes and comments are expected [7]. This study explores the literature on social media for understanding the relationship between the social media platforms and sports and the fanship associated, such as metrics, the type of media used, and ways to classify the various types of posts inserted in football club platforms.
2 Literature Review and Hypothesis Development 2.1 Sport Fanship In sports, the relationship that fans generate with teams and clubs is special since fans are willing to sacrifice time and resources to support the teams, thus creating a high involvement. Raney [8] affirms that the emotional reactions of sports fans are triggered by their affective mood (fanship) and the content of the event itself. As everyone has noticed or experienced, the emotions of sports fans change during a game; consequently, these emotions refer to different facial and body expressions; however, with Internet access, these emotions can be transmitted via social media post [9]. Social media platforms are used by sports fans for various reasons, including emotional liberation [10, 11]. In retrospective social media during sports organisations, it identifies content that is of common interest to its users, to stimulate the growth of likes, comments, and shares [12].
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2.2 Social Media Engagement The terms “engage” and “engagement” describe the nature of participants’ interactive experiences [13]. Although there are several definitions, [14] considers customer/consumer engagement as the intensity of participation and connection of individuals with the activities of organisations. Brodie et al. [13] consider customer/consumer engagement to create, build, and enhance consumer relationships. However, consumer engagement is very dependent on the context in which it is perceived, and is then considered a subjective phenomenon, depending on the position of the consumer [15]. Social media is built to enhance user interaction and engagement [16]. It is also one of the most predominant channels through which consumers engage with a brand or company. Consequently, companies are recognising the need to engage, where potential and current customers pay the most attention [17]. The engagement increases sales and profit, being both considered a key point in the strategy of several companies [13]. Engagement is associated with addressing issues rather than avoiding them, thus being directly linked to proactivity and awareness [18].
2.3 Online Communities Online communities provide opportunities for consumers who share common interests to come together and discuss opinions and share information. Brands use these online communities to interact with their consumers and to understand their needs for creating value for them. Social media communication is very important to create value for the users in these communities, so interaction and engagement are crucial components by the brands that gather consumers in a community. In this way, organisations use online communities as a crucial tool to set their new goals according to users, fostering engagement, sharing, collaboration, and conversation once again [19]. The appearance of these online communities is also due to the lack of geographic limitations, because social media is global and allows the participants of these communities to group around certain brands or interests and thus share information relevant to that interest [20].
2.4 Social Media Posts Post Structure Over the years, there has been a shift in social media platforms, where content has moved to a visual focus rather than a text focus. This trend is due to the change in users’ habits thanks to the popularity of smartphones and the improvement of the mobile experience. Users realise that it is easier to share a picture now through
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the smartphone’s high-resolution camera than writing a status on a small mobile keyboard [21]. The social media world becomes more and more visual. The three clubs included in this study, in the business context, are also brands. Thus, online brand communities provide various forms of expression, such as video, writing, and images, in which all these forms culminate in a platform aimed at facilitating the use and expression of consumers; therefore, posts on social media can be featured by text, images and videos [7, 20]. Thus, in this study, the type of media refers to posts considered as such: “image”; “video”; and “written post”. • H1: Image posts perform better than written posts. – H1.1: Image posts perform better than written posts on Facebook. – H1.2: Image posts perform better than written posts on Twitter. • H2: Image posts perform better than video posts. – H2.1: Image posts perform better than video posts on Facebook. – H2.2: Image posts perform better than video posts on Twitter. – H2.3: Image posts perform better than video posts on Instagram. Post Content In this research, posts from the three-social media (Facebook, Twitter, and Instagram) from the three clubs (SL Benfica, FC Porto, and Sporting CP) were assigned to identifying classes. These classes are Informative, Personal, Promotional, and Game Tracking. Informative Searching for information is an important reason why people use social networks [22], and therefore, social media users are subject to an overflow of information [21]. In a post about a brand’s information, fans of that brand will be motivated to participate or consume that same content [7]. Social media offers a mechanism for the dissemination and sharing of information, which enables consumers to be empowered [23]; in this way, it also allows consumers to use the online medium daily to obtain information that assists their purchasing decisions [20]. In social networks, information can be content production, which allows users to create their content to share valuable insights about a brand, for example. However, it can also be content consumption, which refers to the ease with which users can obtain information about a brand through their connections within the social network [24]. In this study, the posts analysed are more focused on content consumption, because although users disseminate information (through comments and other tools), the posts included in the category “Informative” refer to posts that the club in question shared information for fans. In the context of sport in the social media world, information is important. From a team perspective, fans turn to social media to have access to up-to-date information about the team, players, and other related aspects. In this way, by providing this type of information, the team allows fans to be satisfied before a match; for example, Weimar et al. [25] conclude that posts related to pre-game information and related
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news about players generate more reactions. Thus, in terms of hypotheses related to the Informative category, we can formulate: • H3: Informative posts increases performance. – H3.1: Informative posts perform better on Facebook. – H3.2: Informative posts perform better on Twitter. – H3.3: Informative posts perform better on Instagram. Personal Organisations are beginning to adapt their relations with consumers more socially, seeking their needs and collaborating with them in a more personal way, so they can deliver what they want [17]. In addition to the more emotional side of the category, posts that include birthday wishes to players and coaches team, recognition of sporting achievements [5], and posts that aspire hope in fans like player/coach announcements [26] are also included in this category. Not only posts about players or coaching staff, but posts that embellish the characteristics of the stadium influence the behaviour of fans, using the nostalgia of the consumer experience when they visit the stadium [27]. In their study of a football club, Parganas et al. [28] noted that posts related to star players and team success generate the greatest number of engagement among fans, both during and outside the sports season. Furthermore, Weimar et al. [25], in his study, concluded that player-related news generated more reactions than other posts. In this study, the category of “Personal” encompasses both club personalities and posts that pull the emotions of their fans, so it is possible to formulate: • H4: Personal posts increases performance. – H4.1: Personal posts perform better on Facebook. – H4.2: Personal posts perform better on Twitter. – H4.3: Personal posts perform better on Instagram. Promotional Today, social media are present in the lives of users and organisations. Yet, Mangold and Faulds [29], at the beginning of this boom, left it present that social media must be an integral part of the promotional strategy of organisations to achieve greater and different goals. Sponsors look at the versatility of social media platforms and the possibilities to interact with sports fans [30]. Sports brands use social media to promote merchandise, tickets, and other additional products and services [31, 32]. Linking these commercial practices with fan satisfaction, Abosag et al. [33] found that the more a sports consumer is satisfied and their needs met, the more likely they are to consume products related to the brand itself. In a similar study, analysing posts with NBA (National Basketball Association) categories, Meng et al. [34] named a “Marketing” category, which represented not only tickets, merchandising, but also
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special events with opportunities to meet players and exclusive pre-sales. This category shows the whole spectrum of what is commercial in a sports brand, and it is through this category that we can formulate: • H5: Promotional posts increases performance. – H5.1: Promotional posts perform better on Facebook. – H5.2: Promotional posts perform better on Twitter. Game Tracking The game itself is the central part of any sports team, Weimar et al. [25] found that the games represent the moment that most fans expect. Social media currently brings the component of being able to follow the game through the information debited in posts. Concerning game tracking, social media also has an important role as it does not limit geographically, i.e. it allows fans to follow their favourite team anywhere in the world and be updated to the second [35]. Also, the game tracking of matches in the social media field has synergy with promotion with other brands, for example in the English Premier League (EPL), which is the highest level of English football, when a team makes a post about a match, the presence of the league brand is inherent, thus creating a perfect opportunity for branding activities [36]. About social networks, the most acclaimed one for following games is Twitter, due to its nature and the fact that it allows users to tweet about their teams or what is happening in the game itself [37]. Overall, despite the volatility, posting after a victory will influence positive thinking [25], and so we can formulate: • H6: Game Tracking posts increases performance. – H6.1: Game Tracking posts perform better on Facebook. – H6.2: Game Tracking posts perform better on Twitter. – H6.3: Game Tracking posts perform better on Instagram.
3 Methods The term “performance,” previously mentioned in the research hypotheses of this study, translates into posts with more metrics (likes, comments, and shares) in the hypothesis’s context to be analysed. These metrics are of proportional importance in testing each hypothesis. We used multiple linear regression with three dependent variables (DV), likes, comments, and shares in different models. The independent variables (IV) are Key Explanatory Variables. All these metrics were taken from the social media platforms (Facebook, Twitter, and Instagram) of the three biggest clubs currently playing in the Portuguese Premier League, concerning the number of followers, Futebol Clube do Porto (FCP), Sport Lisboa e Benfica (SLB), and Sporting Clube de Portugal (SCP).
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4 Findings The results obtained from the multiple linear regression performed were divided into models for a more effective analysis (Table 1). These models correspond to the variable’s dependent on each social network analysed. Before analysing the results of this study, it is relevant for the research to mention the R2 values, which for each model are: Model 1.1 (0.090); Model 1.2 (0.105); Model 1.3 (0.094); Model 2.1 (0.004); Model 2.2 (0.011); Model 2.3 (0.025); Model 3.1 (0.038); and Model 3.2 (0.043). Regarding the linear regression data (Table 2) for the Media Type section of this article, we find that Model 1.1Written Post (β = −0.0575; p > 0.05) and Model 2.1Written Post (β = −0.079; p > 0.05) are predictors that the Image variable has more performance than the Written Post variable. Model 3.1Written Post (β = 0.003; p > 0.05) allows us to verify that concerning shares in Facebook, the performance of posts relative to the Image variable is similar to the performance of the Written Post variable. Although the results indicate a better performance of the Image variable than the Written Post variable, the p values are not statistically significant. Therefore, H1.1 is not supported. On Twitter, the Image variable has a higher performance than the Written Post variable since Model 1.2Written Post (β = −0.175; p < 0.01), Model 2.2Written Post (β = −0.003; p < 0.01), and Model 3.2Written Post (β = −0.023; p < 0.01) are predictors of this, thus supporting H1.2. About the Video variable, on Facebook, looking at Model 1.1Video (β = 0.061; p > 0.05), Model 2.1Video (β = 0.772; p > 0.05), and Model 3.1Video (β = 0.083; p < 0.01), we concluded that the video component has better performance in Facebook Shares, so the opposite effect of H2.1 is supported. Moving on, on Twitter, although Model 2.2Video (β = −0.002; p > 0.05) is not statistically significant, Model 1.2Video (β = 0.124; p < 0.05) and Model 3.2Video (β = 0.022; p < 0.05) prove that the opposite effect of H2.2 is supported, so as far as likes and shares are concerned, Twitter Video has better performance than Images. About Instagram, Model 1.3Video (β = −6.707; p < 0.01) strongly shows that Images perform better than Video; however, Model 2.3Video (β = 0.465; p > 0.05) is not statistically significant, so H2.3 is partially supported. Table 1 Structure of the models corresponding to the dependent variables of the study
Model
Metrics
Social media
1.1
Likes
Facebook
1.2
Likes
Twitter
1.3
Likes
Instagram
2.1
Comments
Facebook
2.2
Comments
Twitter
2.3
Comments
Instagram
3.1
Shares
Facebook
3.2
Shares
Twitter
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For the independent Informative variable, in all the social networks analysed in this study, and in all the factors, the relationships did not show statistical significance, i.e. [ Model 1.1Informative (β = 0.208; p > 0.05); Model 1.2Informative (β = −0.054; p > 0.05); Model 1.3Informative (β = −4.441; p > 0.05); Model 2.1Informative (β = 0.268; p > 0.05); Model 2.2Informative (β = −0.002; p > 0.05); Model 2.3Informative (β = −1.425; p > 0.05); Model 3.1Informative (β = −0.003; p > 0.05); and Model 3.2Informative (β = −0.014; p > 0.05)]. Thus, throughout all the metrics, it was not possible to support any of the hypotheses 3.1, 3.2, and 3.3. On the Personal variable, on Facebook, there was a strong performance in the Likes section, i.e. Model 1.1Personal (β = 1.236; p < 0.01) partially supporting H4.1 since Model 2.1Personal (β = 0.480; p > 0.05) and Model 3.1Personal (β = 0.033; p > 0.05) are not statistically significant. Then, on Twitter, the Model 3.2Personal (β = 0.017; p > 0.05) corresponding to Shares (in this case Retweets), is not statistically significant. However, Model 1.2Personal (β = 0.200; p < 0.01) supports the performance of Personal posts; on the other hand, Model 2.2Personal (β = −0.003; p < 0.05) supports the opposite of the hypothesis. Thus, since Model 1.2Personal is more significant, H4.2 is partially supported. On Instagram, the data of Model 1.3Personal (β = 0.953; p > 0.05) and Model 6Personal (β = −1.586; p > 0.05) are not statistically significant, so H4.3 cannot be supported. As with the Informative variable, it was not possible to analyse the data because they were not statistically significant, the same happens for the Promotional variable, i.e. [Model 1.1Promotional (β = −0.641; p > 0.05); Model 1.3Promotional (β = 1.642; p > 0.05); Model 2.1Promotional (β = 0.022; p > 0.05); Model 2.3Promotional (β = −1.359; p > 0.05); and Model 3.1Promotional (β = −0.031; p > 0.05). Model 1.2, Model 2.2, and Model 3.2 are not present as there were no promotional posts on twitter in the sample analysed. Thus, through the metrics, none of the 5.1 or 5.2 hypotheses could be supported. Finally, about the variable Game Tracking, on Facebook, the data once again are not statistically significant, on Model 2.1Game Tracking (β = 0.352; p > 0.05) and Model 3.1Game Tracking (β = 0.020; p > 0.05); therefore, Model 1.1Game Tracking (β = 0.819; p < 0.05) supports Game Tracking posts performance, so H6.1 is partially supported. On Twitter, Model 1.2Game Tracking (β = −0.198; p < 0.01) and Model 3.2Game Tracking (β = −0.032; p < 0.05) show that Game Tracking retweets (shares) don’t have the best performance; however, Model 2.2Game Tracking (β = −0.001; p > 0.05) is not statistically significant; thus, the results support the opposite of H6.2 sharing wise. In Instagram, Model 1.3Game Tracking (β = 1.697; p > 0.05) and Model 2.3Game Tracking (β = −1.502; p > 0.05) are not statistically significant, so they do not support H6.3. To summarise the results of this study, Fig. 1 represents the outcome of the proposed hypotheses. The only hypothesis fully supported was H1.1, corresponding to posts with Images performance better than Written Posts. However, several hypotheses were partially supported, as for one hypothesis to be fully supported, metrics (likes, comments, and shares) would have to perform better on all social networks (Facebook, Twitter, and Instagram), depending on their context. There are also hypotheses in which its alternative was supported, contrary to the hypothesis initially drafted, thus stating consistent conclusions that contribute to the study.
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Fig. 1 Summary of the outcome of the study hypothesis
Finally, the figure also represents that most of the assumptions made were not supported because certain coefficients did not have significant statistical values.
5 Discussion This study puts the three biggest football clubs in Portugal under analysis and ends up showing that the line of posts is similar among them. It is important to note that the data collected between 1 and 31 March were inserted at a different time for all organisations, not only football clubs, which was the global pandemic of COVID-19, not least because, on 13 March, Portugal was in a state of emergency, thus limiting sports practices in general. Due to this conjecture, different and more diversified content was created by the marketing teams of these clubs under analysis. It is important to note these facts, hence the opening of post classes (i.e. Informative, Personal, Promotional, and Game Tracking), because in this way it allowed to meeting all the events in the timeline of analysis. Concerning the hypotheses tested in this study, we found that most of the stipulated hypotheses were not supported. However, looking at H1.2, we see that on Twitter, the Images perform better on the three dependent variables analysed, being likes, comments, and shares. Considering that the H1.2 of this study was supported, there are studies in the literature on social media and media types, which show the superiority of image-based content related to text-related content. Pittman and Reich [1] questioned whether an image in Instagram was worth more than a thousand words on Twitter and confirmed that image-based social media platforms generate more happiness and less loneliness in young adults. On a similar note, Li and Xie [21] also wanted to prove whether an image was worth more than a thousand words, through an empirical study on image content and social engagement on Twitter, and thus concludes that the simple presence of an image in a tweet translates into increased social media metrics. On the other hand, H2.3 has been partially supported, a hypothesis which refers to Instagram. It was partially supported that images had a higher performance than the video component of Instagram; this can
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be explained by the fact that in the analysis made the posts with images had more likes than posts with video in this social network. However, we suggest that this aspect is due to the very layout of the social network, in which in publications with a video component, it does not directly show the likes in the publication, however, the views of the video, not biasing the user to “like” the publication. De Vries et al. [7] claim that types of media such as image and video are responsible for a positive influence of social media metrics. The literature that supports the video format as superior on social networks cements the fact that H2.1 and H2.2 support the opposite of their initial hypothesis. H2.1 states that on Twitter, retweets that integrated video performed better than retweets that integrated images. Similarly, H2.2 has superior performance on likes and share on Facebook, in video posts versus image posts. Regarding Personal posts, and the hypothesis that comes with it, H4.1 and H4.2 were partially supported, on Facebook and Twitter, respectively. Both hypotheses were partially supported in Likes’ performance, with superior strength on Facebook. Osokin [5] noted in a study analysing social media posts from European football associations, that in one particular post from the Football Association of Northern Ireland on the legendary footballer George Best generated 1300 likes, while the average of likes in the sample on that Facebook page was 230. In the same study, Osokin [5] concludes that the followers of this type of football Facebook pages take the opportunity to congratulate players, staff, and other members, through posts by the association that include birthday wishes, recognition of sporting successes, and personal events about their favourite athletes. As the good performance of likes in this study coincides, we can state that followers of sports pages (in this case, football) encourage engagement in personal posts. About Game Tracking posts, concerning performance on Facebook, H6.1 was partially supported, so it was supported concerning likes. On the other hand, as far as Twitter is concerned, the opposite of the hypothesis written in the Shares component has been proved (H6.2). About H6.2 where it was proved the opposite of the hypothesis, we suggest that about sharing on Twitter, the results are not “retweetable” type of posts, not least because Twitter is the social network where its characteristics allow the monitoring of games [37]. Because of this, the number of tweets concerning the monitoring of games is much higher than other classes of Tweets, so it becomes little “unique” to be retweeted on a large scale. On the other hand, on Facebook, the clubs published match follow-up posts, only at the beginning of the game and at the time of the result. Hence, the posts had a more restricted component, promoting metrics like likes, corresponding to H6.1. To conclude the discussion of the results of this study, unfortunately, the remaining hypotheses written do not present significant statistical data to be considered. Therefore, H3 and H5, corresponding to Informative posts and Promotional posts, were fully not supported. Certain sub-hypotheses are also categorised as unsupported, such as H1.1, H4.3, and H6.3, because the data are not statistically significant.
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Table 2 Models’ results Variable
Model 1.1
Model 1.2
Model 1.3
Model 2.1
Constant
1.869
0.420
23.444
Promotional −0.641
Model 2.2
Model 2.3
Model 3.1
Model 3.2
−0.036 0.009
1.530
0-083
0.063
−1.359 −0.031
1.642
0.022
Informative
0.208
−0.054
−4.441
0.268
−0.002
Personal
1.236*
0.200*
0.953
0.480
−0.003*** −1.586 0.033
0.017
Game Tracking
0.819*** −0.198*
1.697
0.352
−0.001
−1.502 0.020
−0.032**
−0.002
0.465
Video
0.061
0.124*** −6,707* 0.772
Written Post
−0.575
−0.175*
N
512
1125
302
512
1125
R Square
0.090
0.105
0.094
0.004
0.011
Adjusted R Square
0.079
0.101
0.079
Df regression
6
5
Df residual
505
F
8.314
−1.425 −0.003 −0.014
0.083*
0.022***
0.003
−0.023***
302
512
1125
0.025
0.049
0.043
−0.007 0.007
0.008
0.038
0.039
5
6
5
5
6
5
1119
296
505
1119
296
505
1119
26.217
6.29
0.369
2.474
1.497
4.346
10.057
−0.079 −0.003**
p≤0,001* p