IDEAS home Printed from https://ideas.repec.org/a/eee/joinma/v46y2019icp87-100.html
   My bibliography  Save this article

How Social Media Communications Combine with Customer Loyalty Management to Boost Green Retail Sales

Author

Listed:
  • Lu, Qiang Steven
  • Miller, Rohan

Abstract

This paper explores the combined impact of social media and customer relationship management (CRM) on retail sales in the context of green (aka organic, natural and healthy) retailing, specifically in terms of duration. In particular, the study explores the impact on green retail sales of altruistic or egoistic marketing posts on a Facebook brand page relative to CRM membership over time compared with other types of sales. The results show that the purchase expenditures for longer-term members of a retailer's loyalty rewards program are higher and that over time, consumers are more likely to respond to messages related to healthy benefits than to those related to price and environmental benefits. This study demonstrates the value of managing social media in conjunction with CRM, which can positively influence the purchase behavior of a retailer's most valuable customers.

Suggested Citation

  • Lu, Qiang Steven & Miller, Rohan, 2019. "How Social Media Communications Combine with Customer Loyalty Management to Boost Green Retail Sales," Journal of Interactive Marketing, Elsevier, vol. 46(C), pages 87-100.
  • Handle: RePEc:eee:joinma:v:46:y:2019:i:c:p:87-100
    DOI: 10.1016/j.intmar.2018.12.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1094996818300768
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.intmar.2018.12.005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. repec:gdk:wpaper:4 is not listed on IDEAS
    2. Rishika Rishika & Ashish Kumar & Ramkumar Janakiraman & Ram Bezawada, 2013. "The Effect of Customers' Social Media Participation on Customer Visit Frequency and Profitability: An Empirical Investigation," Information Systems Research, INFORMS, vol. 24(1), pages 108-127, March.
    3. Dhar, Vasant & Chang, Elaine A., 2009. "Does Chatter Matter? The Impact of User-Generated Content on Music Sales," Journal of Interactive Marketing, Elsevier, vol. 23(4), pages 300-307.
    4. Wang, Zhan & Kim, Hyun Gon, 2017. "Can Social Media Marketing Improve Customer Relationship Capabilities and Firm Performance? Dynamic Capability Perspective," Journal of Interactive Marketing, Elsevier, vol. 39(C), pages 15-26.
    5. Koen Pauwels, 2004. "How Dynamic Consumer Response, Competitor Response, Company Support, and Company Inertia Shape Long-Term Marketing Effectiveness," Marketing Science, INFORMS, vol. 23(4), pages 596-610, June.
    6. V. Kumar & Vikram Bhaskaran & Rohan Mirchandani & Milap Shah, 2013. "Practice Prize Winner ---Creating a Measurable Social Media Marketing Strategy: Increasing the Value and ROI of Intangibles and Tangibles for Hokey Pokey," Marketing Science, INFORMS, vol. 32(2), pages 194-212, March.
    7. Johanna Gummerus & Veronica Liljander & Emil Weman & Minna Pihlström, 2012. "Customer engagement in a Facebook brand community," Management Research Review, Emerald Group Publishing Limited, vol. 35(9), pages 857-877, August.
    8. Khim-Yong Goh & Cheng-Suang Heng & Zhijie Lin, 2013. "Social Media Brand Community and Consumer Behavior: Quantifying the Relative Impact of User- and Marketer-Generated Content," Information Systems Research, INFORMS, vol. 24(1), pages 88-107, March.
    9. V. Kumar & JeeWon Brianna Choi & Mallik Greene, 2017. "Synergistic effects of social media and traditional marketing on brand sales: capturing the time-varying effects," Journal of the Academy of Marketing Science, Springer, vol. 45(2), pages 268-288, March.
    10. Xiaohua Zeng & Liyuan Wei, 2013. "Social Ties and User Content Generation: Evidence from Flickr," Information Systems Research, INFORMS, vol. 24(1), pages 71-87, March.
    11. Jörg Claussen & Tobias Kretschmer & Philip Mayrhofer, 2013. "The Effects of Rewarding User Engagement: The Case of Facebook Apps," Information Systems Research, INFORMS, vol. 24(1), pages 186-200, March.
    12. Malthouse, Edward C. & Haenlein, Michael & Skiera, Bernd & Wege, Egbert & Zhang, Michael, 2013. "Managing Customer Relationships in the Social Media Era: Introducing the Social CRM House," Journal of Interactive Marketing, Elsevier, vol. 27(4), pages 270-280.
    13. de Vries, Lisette & Gensler, Sonja & Leeflang, Peter S.H., 2012. "Popularity of Brand Posts on Brand Fan Pages: An Investigation of the Effects of Social Media Marketing," Journal of Interactive Marketing, Elsevier, vol. 26(2), pages 83-91.
    14. Onishi, Hiroshi & Manchanda, Puneet, 2012. "Marketing activity, blogging and sales," International Journal of Research in Marketing, Elsevier, vol. 29(3), pages 221-234.
    15. Gauri, Dinesh K. & Ratchford, Brian & Pancras, Joseph & Talukdar, Debabrata, 2017. "An Empirical Analysis of the Impact of Promotional Discounts on Store Performance," Journal of Retailing, Elsevier, vol. 93(3), pages 283-303.
    16. Gleim, Mark R. & Smith, Jeffery S. & Andrews, Demetra & Cronin, J. Joseph, 2013. "Against the Green: A Multi-method Examination of the Barriers to Green Consumption," Journal of Retailing, Elsevier, vol. 89(1), pages 44-61.
    17. Frank M. Bass & Norris Bruce & Sumit Majumdar & B. P. S. Murthi, 2007. "Wearout Effects of Different Advertising Themes: A Dynamic Bayesian Model of the Advertising-Sales Relationship," Marketing Science, INFORMS, vol. 26(2), pages 179-195, 03-04.
    18. Shyam Gopinath & Jacquelyn S. Thomas & Lakshman Krishnamurthi, 2014. "Investigating the Relationship Between the Content of Online Word of Mouth, Advertising, and Brand Performance," Marketing Science, INFORMS, vol. 33(2), pages 241-258, March.
    19. Robert P. Leone, 1995. "Generalizing What Is Known About Temporal Aggregation and Advertising Carryover," Marketing Science, INFORMS, vol. 14(3_supplem), pages 141-150.
    20. Byrne, Patrick J. & Toensmeyer, Ulrich C. & German, Carl L. & Muller, H. Reed, 1992. "Evaluation Of Consumer Attitudes Towards Organic Produce In Delaware And The Delmarva Region," Journal of Food Distribution Research, Food Distribution Research Society, vol. 23(1), pages 1-16, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Blanca I. Hernández-Ortega & Michael A. Stanko & Rishika Rishika & Francisco-Jose Molina-Castillo & José Franco, 2022. "Brand-generated social media content and its differential impact on loyalty program members," Journal of the Academy of Marketing Science, Springer, vol. 50(5), pages 1071-1090, September.
    2. Carmen Bălan, 2020. "How Does Retail Engage Consumers in Sustainable Consumption? A Systematic Literature Review," Sustainability, MDPI, vol. 13(1), pages 1-25, December.
    3. Hong, Ying & Hu, Jiangting & Chen, Mengyu & Tang, Shoulian, 2023. "Motives and antecedents affecting green purchase intention: Implications for green economic recovery," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 523-538.
    4. Giuseppe Crapa & Maria Elena Latino & Paolo Roma, 2024. "The performance of green communication across social media: Evidence from large‐scale retail industry in Italy," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(1), pages 493-513, January.
    5. Claudia C. Tusell-Rey & Carmen F. Rey-Benguría & Ricardo Tejeida-Padilla & Yenny Villuendas-Rey, 2021. "Training Service Staff to Enhance Non-Verbal Behavioral Skills to Increase Customer Profitability in Tourism," Tourism and Hospitality, MDPI, vol. 2(2), pages 1-15, May.
    6. Yang, Morgan X. & Zeng, Kevin J. & Chan, Haksin & Yu, Irina Y., 2021. "Managing loyalty program communications in the digital era: Does culture matter?," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    7. Norhuda Salim & Mohd Nizam Ab Rahman & Dzuraidah Abd Wahab & Ariff Azly Muhamed, 2020. "Influence of Social Media Usage on the Green Product Innovation of Manufacturing Firms through Environmental Collaboration," Sustainability, MDPI, vol. 12(20), pages 1-17, October.
    8. Minh-Tri Ha & Giang-Do Nguyen & Thi Huong-Thanh Nguyen & Bich-Duyen Nguyen, 2023. "The use of dietary supplements and vitamin consumption during and after the Covid pandemic in Vietnam: a perspective of user-generated content," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-12, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vasu Unnava & Ashwin Aravindakshan, 2021. "How does consumer engagement evolve when brands post across multiple social media?," Journal of the Academy of Marketing Science, Springer, vol. 49(5), pages 864-881, September.
    2. Carsten D. Schultz, 2016. "Insights from consumer interactions on a social networking site: Findings from six apparel retail brands," Electronic Markets, Springer;IIM University of St. Gallen, vol. 26(3), pages 203-217, August.
    3. Tingting Song & Jinghua Huang & Yong Tan & Yifan Yu, 2019. "Using User- and Marketer-Generated Content for Box Office Revenue Prediction: Differences Between Microblogging and Third-Party Platforms," Service Science, INFORMS, vol. 30(1), pages 191-203, March.
    4. Halloran, Timothy J. & Lutz, Richard J., 2021. "Let's Give Them Something to Talk About: Which Social Media Engagements Predict Purchase Frequency?," Journal of Interactive Marketing, Elsevier, vol. 56(C), pages 83-95.
    5. Pauwels, Koen & Aksehirli, Zeynep & Lackman, Andrew, 2016. "Like the ad or the brand? Marketing stimulates different electronic word-of-mouth content to drive online and offline performance," International Journal of Research in Marketing, Elsevier, vol. 33(3), pages 639-655.
    6. Sheng, Jie, 2019. "Being Active in Online Communications: Firm Responsiveness and Customer Engagement Behaviour," Journal of Interactive Marketing, Elsevier, vol. 46(C), pages 40-51.
    7. Roma, Paolo & Aloini, Davide, 2019. "How does brand-related user-generated content differ across social media? Evidence reloaded," Journal of Business Research, Elsevier, vol. 96(C), pages 322-339.
    8. Marchand, André & Hennig-Thurau, Thorsten & Flemming, Jan, 2021. "Social media resources and capabilities as strategic determinants of social media performance," International Journal of Research in Marketing, Elsevier, vol. 38(3), pages 549-571.
    9. Schaefers, Tobias & Falk, Tomas & Kumar, Ashish & Schamari, Julia, 2021. "More of the same? Effects of volume and variety of social media brand engagement behavior," Journal of Business Research, Elsevier, vol. 135(C), pages 282-294.
    10. Sinan Aral & Chrysanthos Dellarocas & David Godes, 2013. "Introduction to the Special Issue ---Social Media and Business Transformation: A Framework for Research," Information Systems Research, INFORMS, vol. 24(1), pages 3-13, March.
    11. Leila Meratian Esfahani & Lester W. Johnson, 2018. "Stakeholders’ Engagement and Strategic Management of Social Media," Journal of International Business Research and Marketing, Inovatus Services Ltd., vol. 3(6), pages 47-56, September.
    12. Gensler, Sonja & Völckner, Franziska & Liu-Thompkins, Yuping & Wiertz, Caroline, 2013. "Managing Brands in the Social Media Environment," Journal of Interactive Marketing, Elsevier, vol. 27(4), pages 242-256.
    13. Naveen Kumar & Liangfei Qiu & Subodha Kumar, 2018. "Exit, Voice, and Response on Digital Platforms: An Empirical Investigation of Online Management Response Strategies," Information Systems Research, INFORMS, vol. 29(4), pages 849-870, December.
    14. Kawaljeet Kaur Kapoor & Kuttimani Tamilmani & Nripendra P. Rana & Pushp Patil & Yogesh K. Dwivedi & Sridhar Nerur, 2018. "Advances in Social Media Research: Past, Present and Future," Information Systems Frontiers, Springer, vol. 20(3), pages 531-558, June.
    15. Sheng, Jie & Amankwah-Amoah, Joseph & Wang, Xiaojun, 2017. "A multidisciplinary perspective of big data in management research," International Journal of Production Economics, Elsevier, vol. 191(C), pages 97-112.
    16. Grover, Purva & Kar, Arpan Kumar, 2020. "User engagement for mobile payment service providers – introducing the social media engagement model," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).
    17. Wu He & Feng-Kwei Wang & Yong Chen & Shenghua Zha, 0. "An exploratory investigation of social media adoption by small businesses," Information Technology and Management, Springer, vol. 0, pages 1-12.
    18. Ataman, B.M., 2007. "Managing brands," Other publications TiSEM 462dcbba-2ac1-46d1-a61c-f, Tilburg University, School of Economics and Management.
    19. Wu He & Feng-Kwei Wang & Yong Chen & Shenghua Zha, 2017. "An exploratory investigation of social media adoption by small businesses," Information Technology and Management, Springer, vol. 18(2), pages 149-160, June.
    20. Syed Zeeshan Zahoor & A. M. Shah, 2024. "Impact of Social Media on Users’ Complex Buying Behaviour: Analysing the Mediating Effect of Perception and Moderating Effect of Extended Social Media Usage," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 49(1), pages 119-148, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joinma:v:46:y:2019:i:c:p:87-100. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-interactive-marketing/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.