The Effect of Marketing Expenses and Social Media on Financial Performance: The Case of Nigeria

Aminat Oropo Alashe; Metin Uyar

The Effect of Marketing Expenses and Social Media on Financial Performance: The Case of Nigeria

Abstract

Marketing and social media have an increasing impact on the sustainability and performance of financial institutions. Marketing expenditures, which are among the quantitative factors, and social media, which is a qualitative factor, affect the performance and profitability of financial institutions. In this context, it is extremely important to examine the relationship between marketing, social media, and corporate performance in financial institutions. In this scientific research, a model was created and tested by considering the number of social media followers of financial institutions, the number of marketing expenditures, and the variables of gross earnings and profit after tax. Regression method and correlation analysis were used to examine the relationships between the variables. The results of the analysis including regression, Kendall and Spearman show that there is a significant correlation between the number of users following the social media accounts of financial institutions and the gross earnings. Both the number of social media followers and the number of marketing expenditures positively affect the after-tax profit of financial institutions.

Keywords

References

BAIRD, C.H. and PARASNIS, G. (2011). From Social Media to Social Customer Relationship Management. Strategy and Leadership, 39(5), 30-37.
BARWISE, P & MEEHAN, S (2010), The One Thing You Must Get Right When Building a Brand, Prentice Hall.
BATRA, R., & KELLER, K. L. (2016). Integrating Marketing Communications: New findings, New Lessons, and New Ideas. Journal of Marketing, 80(6), 122-145, https://doi.org/10.1509/jm.15.0419.
BAX, S., MEYER, K., & WILKINS, N. (2013). Cambridge marketing handbook: Digital, Cambridge Marketing College. London: Kogan Page Limited.
BLOOM, P & WILLIAM, D. N. (1981), Problems and Challenges in Social Marketing, Journal of Marketing, 45, 79-88.
BULUT, I., & MANDARIC, M. (2012). Researching the Role of Social Media Marketing in Contemporary Business Practices. Russia: Symorg.
CHAFFEY, D., & SMITH, P. R. (2013). E-marketing excellence: Planning and Optimizing Your Digital Marketing, (4th ed.). London: Taylor & Francis.
CHARLESWORTH, A. (2014). Digital marketing: A Practical Approach (2nd ed.). New Jersey: Routledge.

CHI, H. (2011). Interactive Digital Advertising VS. Virtual Brand Community: Exploratory Study of User Motivation and Social Media Marketing Responses in Taiwan, Journal of Interactive Advertising, 12(2): 44-61.
CHIKANDIWA, S.T., CONTOGIANNIS, E. AND JEMBERE, E. (2013). The Adoption of Social Media Marketing in South African Banks. European Business Review, 25(4), 365- 381.
CHOI, Y., & THOENI, A. (2016). Social media: Is this the new organizational stepchild? European Business Review, 28(1), 21–38.
COX, S. A. (2010), Online Social Network Member Attitude toward Online Advertising Formats, MA thesis, The Rochester Institute of Technology.
CULNAN, M. J., MCHUGH, P. J., & ZUBILLAGA, J. I. (2010). How large U.S. companies can use Twitter and other social media to gain business value. MIS Quarterly Executive, 9(4), 243-259.
DĂNĂIAŢĂ, D., MARGEA, C., KIRAKOSYAN, K. AND NEGOVAN, A.M. (2014). Social Media in Banking. A Managerial Perception from Mexico. Timisoara Journal of Economics and Business, 7(2), 147-174.
DAOWD, A. (2016). The Impact of Social Media on the Performance of Microfinance Institutions in Developing Countries: A Quantitative Approach. Doctoral Thesis, Business School – College of Business, Arts and Social Sciences Brunel University London, 1-160.
ELENA, C. A. (2016). Social media–A strategy in developing customer relationship management. Procedia Economics and Finance, 39, 785-790.
EVANS, D & MCKEE, J (2010), Social Media Marketing, the Next Generation of Business Engagement, Management Decision, 32(2): 4 – 20.
FISHER, T. (2009). ROI in Social Media: A Look at The Arguments. JOURNAL OF DATABASE Marketing & Customer Strategy Management, 16(3), 189-195, https://doi.org/10.1057/dbm.2009.16.
FOURNIER. S & AVERY. J (2011), The Uninvited Brand”, Business Horizon, 54(3): 193-207.
FOX, K. F. A., & KOTLER, P. (2000), The Marketing of Social Causes: The First Ten Years, Journal of Marketing, 44(2): 24-33.
FRANCO, M., TURSUNBAYEVA, A. AND PAGLIARI, C. (2016). Social Media for e-Government in the Public Health Sector: Protocol for a Systematic Review. JMIR Research Protocols, 5(1), 1-10.
GAO, H., TATE, M., ZHANG, H., CHEN, S., & LIANG, B. (2018). Social media ties strategy in international branding: An application of resource-based theory. Journal of International Marketing, 26(3), 45–69.
GAVREA, C., ILIES, L. & STEGEREAN, R. (2011) Determinants of Organizational Performance: The case of Romania. Management and Marketing Challenges for the Knowledge Society, 6(2), 285-300.
HAIR, J., BLACK, W., & BABIN, B. (2013) Multivariate Data Analysis, Pearson.
HAMILTON, M., KALTCHEVA, V. D., & ROHM, A. J. (2016). Social media and value creation: The role of interaction satisfaction and interaction immersion. Journal of Interactive Marketing, 36, 121–133.
HARMELING, C., MOFFETT, J., ARNOLD, M. & CARLSON, B. (2017). Toward a theory of customer engagement marketing. Journal of the Academy of Marketing Science. 45. 10.1007/s11747-016-0509-2.
KANOVSKA, L., & TOMASKOVA, E. (2012). Inter-functional coordination at hi-tech firm Engineering Economics. 23(1), 70-76,http://dx.doi.org/10.5755/j01.ee.23.1.1224.
KAPLAN, A. & HAENLEIN, M. (2010). Users of the World, Unite! The Challenges and Opportunities of Social Media. Business Horizons. 53. 59-68. 10.1016/j.bushor.2009.09.003.
KARJALUOTO, H., MÄKINEN, H., & JÄRVINEN, J. (2015). A Firm’s Activity in Social Media and Its Relationship with Corporate Reputation and Firm Performance. 28th Bled e- Conference, e-Well-Being, Bled, Slovenia, 469-481.
KOTLER, P. & ARMSTRONG, G. (2011), “Principles of Marketing”, Pearson Prentice Hall.
KUMAR, A., & SALO, J. (2018). Effects of link placements in email newsletters on their click-through rate. Journal of Marketing Communications, 50(October), 561–576, https://doi.org/10.1080/13527266.2016.1147485.
LAM, H. K. S., YEUNG, A. C. L., & CHENG, T .C. E. (2016). The impact of firms’ social media initiatives on operational efficiency and innovativeness. Journal of Operations Management, 47/48, 28–43.
LAMBERTON, C., & STEPHEN, A. T. (2016). A thematic exploration of digital, social media, and mobile marketing: Research evolution from 2000 to 2015 and an agenda for future inquiry. Journal of Marketing, 80(6), 146–172.
LEWIS, K. (2009). 6 Social media Platforms at a Glance. [Online], Available at: . [Accessed 27 May 2021].
LOVEJOY, K. AND SAXTON, G.D. (2012). Information, Community and Action: How Non-Profit Organizations Use Social Media. Journal of Computer-Mediated Communication, 17(3), 337-353.
MANGOLD, W. G & FAULDS, D. J. (2009), Social Media: The New Hybrid Element of the Promotion Mix, Business Horizons, 52(4): 357 – 365.
MCCANN, M., & BARLOW, A. (2015). Use and measurement of social media for SMEs. Journal of Small Business and Enterprise Development, 22(2), 273-287, https://doi.org/10.1108/JSBED-08-2012-0096.
NAYLOR, R. W., LAMBERTON, C. P., & WEST, P. M. (2012). Beyond the “like” button: The impact of mere virtual presence on brand evaluations and purchase intentions in social media settings. Journal of Marketing, 76(6), 105–120.
NOBILIS, K. R (2010), Selling and Sales Management, Prentice Hall.
NJERI, M.W. (2014). Effect of Social Media Interactions on Financial Performance of Commercial Banks in Kenya. Master Thesis, School of Business, Department of Finance, University of Nairobi, 1-56.
NWOKAH, N.G. & AEENEE, F.L. (2017). Social media marketing and business success of automobile dealers in Rivers State. American Journal of Industrial and Business Management, 7, 1298-1319 (Online) retrieved from http://www.scirp.org/journal/ajibm. Accessed on 12/2/2018.
OLUJIDE, J., & AREMU, M. (2009). A comparative analysis of strategic marketing planning adoption in Nigerian banking and insurance industry. African Research Review, 3(5): 182-198.
OLUSANYA, S.O., AWOTUNGASE, S. A. & OHADEBERE, E. C. (2012), Effective planning and organizational productivity (A case study of Sterling Bank Nigeria Plc). IOSR Journal of Humanities and Social Sciences, 5(5), 31-39.
OMERUO, K. (2012). E-Merging Media; Challenges for Traditional Media in Nigeria. Retrieved July 21, 2013. www.techtrendsng.com.
PANSARI, A., & KUMAR, V. (2017). Customer engagement: The construct, antecedents, and consequences. Journal of the Academy of Marketing Science, 45(3), 294–311.
PARVEEN, F., JAAFAR, N.I. AND AININ, S. (2015). Social Media Usage and Organizational Performance: Reflections of Malaysian Social Media Managers. Telematics and Informatics, 32(1), 67-78.
RAPP, A., BEITELSPACHER, L. S., GREWAL, D., & HUGHES, D. E. (2013). Understanding social media effects across seller, retailer, and consumer interactions. Journal of the Academy of Marketing Science, 41(5), 547-566, https://doi.org/10.1007/s11747-013-0326-9.
RYAN, D., (2014). Understanding Digital Marketing: Marketing Strategies for Engaging the Digital Generation (3rd.ed.). London: Kogan Page Ltd.
SCHIVINSKI, B & DABROWSKI, D (2013), The Effect of Social-Media Communication on Consumer Perceptions of Brands, GUT Faculty of Management and Economics Working Paper Series A (Economics, Management, Statistics) No.12/2013 (12).
SLOAN, L., & QUAN-HAASE, A. (2017). The SAGE Handbook of Social Media Research
SMITS, M. AND MOGO, S. (2013). The Impact of Social Media on Business Performance. Proceedings of the 21st European Conference on Information Systems, 1-12.
TIRUNILLAI, S. & TELLIS, G. (2012), Does Chatter Matter? The Impact of Online Consumer Generated Content on a Firm’s Financial Performance, Marketing Science, 31(2): 198 –215.
UMOH, G. I. & SYLVA, W. (2016). Capacity planning and corporate productivity performance in the Nigerian aviation industry. International Journal of Business and Public Administration, 13(1), 21-35.
VATER, D., CHO, Y., AND SIDEBOTTOM, P. (2012). The Digital Challenge to Retail Banks. U.S.A: Bain & Company, Inc. www.statista.com

Details

Primary Language

English

Subjects

Operation

Journal Section

Research Article

Authors

Aminat Oropo Alashe This is me
0000-0002-7633-5136
Türkiye

Metin Uyar This is me
0000-0002-9773-9340
Türkiye

Publication Date

April 14, 2022

Submission Date

October 4, 2021

Acceptance Date

November 24, 2021

Published in Issue

Year 2021 Volume: 2 Number: 1

IZ

https://izlik.org/JA82ZT45EG

Cite

RIS / Bibtex

APA

Alashe, A. O., & Uyar, M. (2022). The Effect of Marketing Expenses and Social Media on Financial Performance: The Case of Nigeria. Journal of Sustainable Economics and Management Studies, 2(1), 17-40. https://izlik.org/JA82ZT45EG