This page highlights the key findings from the literature review of recent research regarding the use of branding on social media, and the effects it has on small businesses. This web page references research explaining the effects branding has on a small business, and using social media to your advantage to help grow.
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Instagram allows small business owners to their companies for little to no cost, while also connecting them with potential customers. Genç (2015) found that social media allowed these smaller, micro-scaled, businesses to target their audience. Instagram also allows these small businesses to see what competitors are doing to advertise their products, while also seeing other potential products they can recreate. Social media is a great way for anyone looking to start a business to get going at little to no cost (Merza 2019).
Photo from @bigassicedcoffee Instagram
Photo from @biggassicedcoffee Instagram
Merza (2019) found that social media allows these women to be more creative with their business by buying and selling products through online sources which can be seen as more environmentally friendly. Using Instagram as a platform to sell products compared to a storefront can save the small business owner money, but also help save the environment in terms of being an e-commerce site.
Instagram allows users to market and promote products to consumers (Anaqhi 2021). This Instagram feature Is only offered to "business accounts" and allows the user to target from age, location, purchased similar products, and following similar accounts. For a very cheap fee, Instagram allows the user to pick a goal from three different options; more profile visits, more website visits, and more messages (Advertising on Instagram).
Photo from @hoodiesbychar Instagram
Photo from @shop.simplyplaced Instagram
The benefit of using Instagram to market is the low cost to market a large number of accounts with little to no effort (Dwivedi 2021). Hassan (2015) found that using social media for marketing purposes has a positive impact on small business economic growth. Instagram allows these small businesses to mimic larger businesses' brand decks to be more appealing to consumers. This can help lead to brand trust and awareness.
Word of Mouth, WOM, traditionally was how potential consumers got word about a new company or product. Now, consumers are hearing about businesses and products through Electronic Word of Mouth, EWOM (Goodrich 2013). Consumers share products via Instagram stories or even the new hit app called Tik-Tok. Electronic word-of-mouth, eWOM, influences consumer decision making on these platforms. Goodrich also found that relationship-oriented collectivists strongly reply on social media then individualists.
Kimmel (2013) found that the more positive an electronic word of mouth is within the consumer vs company relationship, the more likely other potential consumers would hear about the company. This was due to the level of commitment and trust the consumer had with the brand. Instagram allows consumers to share with followers the love they have for a particular product or business.
Photo from @bigassicedcoffee Instagram
On a platform, such as Instagram, which is used to pass time for most users, it is important for business' to understand what type of advertisements do best (Voorveld, 2018). Understanding the importance of building a brand and what advertisements, and in-feed posts are most important is crucial when growing the business. Voorveld (2021) found that Instagram will be a dominant platform in the next few years for companies hoping to expand and build a brand. Building a connection with current and potential customers is important as the entrepreneurship world is a very competitive place. When social media users, potential consumers, hear about a brand via e-WOM versus WOM, their attitude towards the brand may be affected. Social media allows these businesses to vouch for themselves and state who they are as a company
Photo from @bigassicedcoffee Instagram
Photo from @shop.simplyplaced Instagram
Companies can post stories that include a 24-hour sale, or new products they plan to release. This can be seen more as a targeted marketing strategy for these accounts. These 24-hour stories act more as a gallery feature compared to its Instagram profile feed which can be seen more as a portfolio for products. Instagram allows companies, especially smaller ones, to create a portfolio to help gain possible new customers. Instagram stories also allow consumers to see more into the company owners' personal life. Companies can post stories that include a 24-hour sale, or new products they plan to release. Schivinski (2014) found that user-generated social media eWOM had a positive effect on both brand equity and brand attitude. Social media users act differently towards a brand, especially when in crisis, based on their attitude towards the brand but also through word of mouth.
Voorveld (2018) found that most small businesses thrive on using Instagram as a way to connect with customers but also building a brand. Social media allows users to instant message, like and react to posts and even stories. This is a great way for the consumer to interact and feel apart of the company. Pakura (2018) found that PR in social media is very important as they help build the company's relationship with the consumer, in Germany. Social media PR has a positive impact on communication and can be practiced differently depending on the age of the start up.
Photo from @hoodiesbychar Instagram
Each social media platform provides an experience for users which can be positive for the company's growth. Khajuria (2019) found that by interacting with more people on social media, brand marketers are able to create and establish a brand identity. Once the brand awareness and identity has been set, then trust can begin to be built. Social media can be used as a major tool when creating awareness and trust and can be seen as the building blocks for a growing company.
For a small business, likes and followers matter as this can keep the company alive (Taneja, 2014). Social media can provide these companies with visibility, viability, and sustainability to remain competitive within the small business market on platforms like Instagram. Small business' that emphasize their marketing and branding tactics have better success with engaging with potential and current consumers. Social media increases awareness and enhances relationships between the consumer and business (Jones, 2015). Instagram offers many features to small business' such as stories, likes, comments, and promoting posts. Not only does this help build brand awareness, but also help build relationships with consumers. This type of relationship leads to consumers to continue to invest and purchase from the business. Using social media to promote a small business allows users to connect and build strong relationships then using traditional WOM, word of mouth, marketing to spread awareness about a company. Social media allows potential consumers to actually see the business before having to even step foot in the store or seeing the website.
Photo from @yourbodyhasyourback Instagram
Photo from @jilliangreavesrd Instagram
Photo from @abovehealth Instagram
Genç. (2015) found that social media has a positive impact on small businesses. Social media allows for small businesses to grow at little to not cost, spread brand awareness, highlight work created, and much more. Social media gives these smaller companies a platform to brand themselves while also sharing content about what is currently going on within the company. This helps keep customer engagement levels high while building a relationship with customers. Engagement is very important when trying to brand a company as it is a way to hear from consumers about excitement around a particular product, sharing current deals and update consumers on when a product launch may take place.
Photo from @bigassicedcoffee Instagram
Melissa (2013) found that women in Indonesia are using social media as a way to become entrepreneurs. Social media has allowed these women to find a good balance between family and career while also fixing the unemployment gap. Many women in Indonesia rely on families to help take care of younger children as they hope to make an income. Younger Indonesia women are starting to move away from home, and left with little to no help in terms of child care. These women have found a solution to create their own small business using Instagram as a platform to selling products. This style of work allows these women to feel motivated to keep expanding their businesses (Melissa 2013). Social media allows women to sell their products all over the world.
Photo from @mardika.kopi Instagram
Photo from @sleepytie Instagram
Olsson (2020) found that to remain a competitive business, women entrepreneurs must maintain digital skills. Although this may seem simple, staying up to date on trends and new features can be hard as applications like Instagram are constantly changing. Female entrepreneurs express limited resources and burnout due to external demand from their online presence, but found that gender stereotyping did not play an effect in their company (Olsson 2020). Female owned small businesses need to constantly engage with consumers while making sure they are being true to their brand. Which can be hard in such a competitive market.
Women who are active entrepreneurs have a positive impact on other women being active in the economy (Merza 2010). Women are seeing other women create amazing, yet simple things, and inspire them to become creative and create something similar for a cheaper price. These women can also help coach and advise other women into becoming entrepreneurs. Social media also has a significant impact on business growth for women entrepreneurship on a small and medium level. Being a woman entrepreneur on social media not only helps the business brand grow, but also their personal brand. Using their personal account to help spread word about their small business can be useful as it is seen that women love to support other women (Merza 2010).
Using social media as a way to advertise and brand for the small business can be very crucial to the growth period. Using social media as a home-base for their small women-owned business can inspire other women to also create their own start up businesses (Rah 2021). Women scrolling through social media can stumble upon a small women owned business, and see how simple it may be to create something but also get inspired to start up their own business. Social media platforms help break the third wall in terms of consumer and company relations which is a huge part in building brand trust. Through the analysis and previous research done on the importance of women-owned branding on social media, it is clear that there is a lack of research, especially on the connection between brand awareness and the importance of marketing for a small business on social media (Dwivedi 2021). this study will survey small businesses that use Instagram as a homebase for their company. It will also look into brand awareness and brand trust through the consumer. Questions will be asked regarding their use of social media for their business, but how do they connect with customers and how important they think branding is to their company.
Research Questions
RQ1: What do women small business owners think impacts engagement levels on social media?
RQ2: What do women small business owners think impacts brand trust and awareness?
RQ3: How does the use of Instagram as a home-base impact brand trust for women owned small-businesses?
RQ4: What do women-owned businesses feel is the benefit of branding on social media?
