dissertation - brand equity maximisation model using social media in corporate business
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THE NOTTINGHAM TRENT UNIVERSITY
HOW CAN THE SPORT AND LEISURE INDUSTRY USE
FIRM-CREATED SOCIAL MEDIA TO MAXIMISE
CUSTOMER-BASED BRAND EQUITY?
by
BENJAMIN J MORALEE
ben.moralee@hotmail.co.uk
Dissertation submitted in partial fulfilment of the Bsc (Honours) Sport Science and
Management
Summer 2013
DECLARATION OF OWNERSHIP
This submission is the result of my own work. All help and advice, other than that received
from tutors, has been acknowledged and primary and secondary sources of information have
been properly attributed. Should this statement prove to be untrue, I recognise the right and
duty of the Board of Examiners to recommend what action should be taken in line with the
Universitys regulations on assessment contained in the Handbook.
Signed ...................... Date ....................
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Summary Framework 30
Discussion 33
Conceptual Framework 33
External Conditions 36
Internal Conditions 37
Summary Framework 38
Limitations 40
Future Research 40
Summary 40
Conclusion 41
Bibliography 47
Appendix 54
Ethics Approval 54
Online Survey Questions 55
Online Survey Graphs Key Description 72
Interview ScheduleSport and Leisure Industry Professionals 75
Interview ScheduleSocial Media Key Informants 79
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List of Figures
Figure 1. An adapted summary of the relative influence of communication source on brand
equity models.
Figure 2. The five-stage summary framework by which firm-created social media affects
customer-based brand equity.
Figure 3. Positive (Negative) firm-created social media content and search engine
optimisation cycle.
Figure 4. The five-stage conceptual framework by which firm-created social media affects
customer-based brand equity by using search engine optimisation and social media content
strategy in the external and internal conditions.
Figure 5. The relationship between the stages of developing customer-based brand equity
using firm-created social media and the relative frequency (%) of themed responses (see
Appendix) in the online survey.
Figure 6. The factors and sub-factors (see Appendix) influencing the conceptual framework
stages and their comparative influence relating to relative frequency (%) in the online survey.
Figure 7. The number of participants at each of the six stages of the summary framework.
Figure 8. Customer-based brand equity maximisation model using firm-created social media
in corporate business.
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vi
List of Tables
Table 1. Demographic information the 82 online survey participants.
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Abstract
The study investigates how social media can be used by organisations to maximally influence
customer perceptions in the context of the sport and leisure industry. Social media has a
massive influence, with vast numbers of people regularly using it. Previous literature has
suggested firm-created social media (FCSM) is the most influential factor on overall brand
attitude, yet little research has been completed on its use it to maximise customer-based brand
equity (CBBE).
The study combines two of the most renowned brand equity models from a customer
perspective. Using an original marketing communication model a conceptual framework was
created by, moving users through five stages. Previous research had found a number of
external and internal conditions which all contribute towards FCSM.
Research was conducted from three perspectives: an online survey with customers;
interviews with sport and leisure professionals who control FCSM; and with FCSM key
informants. It found similarities with previous research but with significant holes in
knowledge, exemplified by the lack of knowledge and understanding of professionals. Five
key factors on search engine optimisation were found, with the forthcoming introduction of
Facebook Graph Search pointing to an increase in the influence of link-sharing. Seven aims
and qualities for FCSM were established. The external and internal conditions were accepted,
establishing that the type of organisation holds the greatest influence over FCSM. Three
different types of fan were identified. The further through the seven stage model of FCSM,
the greater the CBBE.
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Games that set out to increase participation in sport as part of the legacy (Bullough, 2012).
Since the Olympics there has been an increase of 1.3 million people participating in sport
(Sport England 2012). These people are now regularly interacting with the SLI, creating an
increased target market. However, there has been little research into this area (Shannon,
1999).
Therefore, the aim of the research is to investigate how organisations in the SLI can use
social media to maximise brand equity from a customer perspective. Interviewing key
informants with extensive experience in social media and marketing communications will
establish strategies to maximise customer-based brand equity (CBBE). Interviewing
professionals in the SLI who are responsible for controlling the social media communication
will establish which strategies are to used. Online surveys from participants who have
involvement in the SLI will establish the effectiveness of current social media marketing
communication in sport and leisure organisations (SLO). Using these insights a framework
for the use of social media can be created for the SLI to maximise CBBE.
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Literature Review
Brand Equity
Brand equity is a multidimensional concept that is dependent on many different factors (Park
& Srinivasan, 1994). Most definitions comprise the idea of added value to gain a competitive
advantage. Therefore, brand equity is the value that consumers associate with a brand (Aaker,
1992).
Theorists have also struggled to find a universal method to measure brand equity. Businesses
must do this as simplifying it into a model will help them to gain a greater understanding of
it.
There are two different perspectives to brand equity; finance-based (FBBE) and customer-
based (Lassar, Mittal & Sharma, 1995). FBBE assesses the brand in monetary terms (Hakala,
Svensson & Vincze, 2012). The principle behind CBBE is that the power of a brand is in the
mind of the consumers; in what they have experienced; and what they have learnt about the
brand (Tuominen, 1999). Hakala et al. (2012) observed that FBBE is reliant on CBBE
because to have financial value the company must also have customer value.
Social Media
Social media is the interaction of people through creating, sharing, exchanging and
commenting contents in virtual communities and networks (Toivonen, 2007). Social media
marketing communication divides into two categories; firm-created (FCSM) and user-
generated (UGSM) (Godes & Mayzlin, 2009). FCSM is controlled and produced by the
business (therefore only positive or neutral) while UGSM is independent, produced by the
user (so can be positive, neutral or negative).
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SLI
The SLI is an area in which companies offer a combination of regulated physical and non-
physical activity, skill and competition that lead to personal growth, satisfaction and self
fulfilment (Tordkilsen, 2005 & 2011: Council of Europe, 1992).
Brand Equity Models
There are two common models of brand equity; The Aaker Model (Aaker, 1991), and The
Brand Value Chain (Keller & Lehman, 2003).
The Aaker Model is a set of five brand assets and liabilities linked to a business (product or
service) that influences (positively or negatively) its value. They are: brand loyalty (customer
attachment to a brand);brand awareness (customers ability to recognise that a brand is a part
of a certain product category); perceived quality (customers perception of the superiority of
a product relative to alternatives); brand image (a set of, usually meaningful, associations);
and other proprietary assets (relevant assets to the brand such as patents, etc.). Other
proprietary assets have been dropped as a dimension as not relevant to the customer (Pappu,
Quester & Cooksey, 2005: Buil, de Chernatony & Martnez, 2008).
The Brand Value Chain has four levels: Marketing Programme Investment (MPI) (the source
of marketing communication effecting brand value development); Customer Mindset
(everything customers think about the brand); Brand Performance (the customers attitude
towards the brand against other brands, leading to purchase intention); and Shareholder Value
(the financial implications of the brand value). There are three multipliers that are factors
determining how value is transferred between levels. They are: Programme Quality (the
clarity, relevance, uniqueness and consistency of the marketing); Market Conditions (the
effectiveness of the marketing in comparison to other brands, how much brand
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support/reinforcement by partners and number and type of customer); and Investor Sentiment
(dynamics of the financial market, growth potential, vulnerability of the brand and how
important it is in relation to the brand portfolio). The Brand Value Chain gives businesses a
way to understand how brand equity is created and offers suggestions for improvement.
Bruhn et al. (2012) study on CBBE dropped Shareholder Value from their framework as it is
related to the business not customers.
Both models solely focus on traditional firm-created marketing communication, not word-of-
mouth or social media (which arrived after the models). Both models attempt to define brand
equity into a linear model which cannot be exactly representative of such a multidimensional
and dynamic concept. Nonetheless, they remain useful.
Many studies have used The Aaker Model (Simmons, Thomas & Truong, 2010: Kim, Kim &
An, 2003) and The Brand Value Chain (Bruhn et al., 2012) or both (Pappu et al., 2005: Tolba
& Hassan, 2009) to analyse CBBE. Both are well accepted models but only take into account
the marketing the firm creates, not what the customer generates. Now both theories must also
be applied to social media.
Literatures use ofCBBE Models in social media
Bruhn et al. (2012) created a conceptual framework which adapted a model of CBBE, The
Brand Value Chain (Keller & Lehman, 2003), to both traditional marketing communication
and social media (UGSM and FCSM). It aimed to find the relative influence of
communication source on the stages of the model across three different industries
(telecommunication, pharmaceuticals and tourism) in German speaking countries. They
created an online survey sent out to a wide variety of 393 participants (age, job, education
and gender). The questions were multiple-choice, each relating to all the different
relationships in the conceptual framework. Differences were found in the relative influence of
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communication source between industries, implying different industries need to employ
different strategies. However, the traditional marketing was solely advertising. Word-of-
mouth (WOM) was not investigated in the research despite previous research showing it to be
a highly influential factor in CBBE creation (Cui, 2011: Dubois, 2011: Rezvani, Hoseini &
Samadzadeh, 2012). Another issue with the study was that the businesses investigated were
the top 20 brands in the industry; whether or not the research can be applied to smaller
businesses, cross-culturally and cross-nationally cannot be established (Hakala et al., 2012).
However, other research suggests the factors effecting brand equity do not change cross-
nationally (Buil et al., 2008).
Most significantly, FCSM was found to have the greatest indirect influence on overall brand
attitude (P < 0.05) and therefore purchase intention. This suggests that FCSM is the most
influential form of marketing communication on CBBE. In addition, Bruhn et al. (2012)
found social media to have a greater influence on brand image than traditional media, while
traditional media has a greater effect on brand awareness. Combined, this suggests that brand
image has a greater influence on CBBE than brand awareness.
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Communication
Source
Brand Equity
Customer-based Finance-based
Traditional Media
Advertising Brand Awareness
WOM Perceived Quality
Social Media Brand Attitude Fiscal Outcome
User-generated Brand Loyaltyi
Firm-created Brand Image
Other Proprietary Assets
(MPI) (Customer Mindset) (Brand Performance) (Shareholder Value)
Figure 1: An adapted summary of the relative influence of communication source on brand
equity models.
Pathway by which FCSM influences CBBE
Marketing communication is no longer only through traditional forms, but also between the
business and recipient on social media. The question remains whether advertising models for
traditional forms of media communication will work on social media. Lavidge and Steiner
(1961) created a highly-accepted model proposing that effective advertising is long-term: six
short-term processes in the customer which lead to a sale. These stages are split into three
behavioural dimensions: Cognitive (intellectual or rational thoughts) which are awareness
and knowledge; Affective (emotional or feeling reasoning) which are liking and
preference; and Motivational (underlying desires and motives for purchase) which are
conviction and purchase. These stages are not necessarily equidistant.
Coulter and Roggeveen (2012) created a conceptual framework using this model,
investigating WOM on social networks, in particular Facebook and Twitter. Using two online
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surveys of 502 participants, one for each platform, participants were asked to remember a
specific product that had previously been suggested to them on the social network and to
respond to the questions in relation to that suggested page (Facebook)/follower (Twitter). The
Likert scale was used to establish source credibility, source closeness, product network
credibility, product network closeness, directed message content and product page content in
relation to the knowledge and liking process.
Key findings included: product page content appeared to be the primary driver moving
consumers from knowledge to liking; and the type of product (physical, service, cause-
related or personal) being liked was significant. Significance in the product page content, or
brand image, implies that FCSM content that is relevant and important can act as a catalyst
for the knowledge to likingprocess. The difference on the type of product indicates that
organisations need to have specific FCSM strategies dependent on the characteristics of the
organisation.
The study took into account the potential difference in response depending on the type of
product page. The primary limitation of the study is its reliance on participants ability to
recall events, allowing potential for error or bias. Other limitations include: only two social
networks were tested; the study only looks into WOM through suggesting a page or follower,
not other forms (e.g. a status update about a business). Finally, there may be a different value
in liking and following on the different social networks and in relation to the real world.
Summary of Research
Bruhns et al. (2012) research established FCSM to be the most influential factor on overall
brand attitude compared to advertising and UGSM marketing. Adapting Lavidge and
Steiners (1961) six-stage advertising model and The Aaker Model (Aaker, 1991) of CBBE
with FCSM (Coulter & Roggeveen, 2012) a summary framework of the five stages can be
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created. Which are: customer is unaware of the business (has not viewed FCSM); customer is
aware of the business (has not viewed FCSM but knows it exists); customer has knowledge
of the business (has viewed FCSM with no action); customer that likes/dislikes the business
(has viewed FCSM and made a positive/negative association to it); and customer is a
fan/critic of the business (has viewed FCSM and shared it publically in a positive/negative
light). The hypothesis is that businesses need to use FCSM to move users up the stages of the
summary framework to increase CBBE. Coulter and Roggeveens (2012) confirm that
product page content, or FCSM, is the most influential factor in moving users from
knowledge to liking.
The framework suggests that FCSM is closely linked to UGSM and that the closer the user is
to creating their own social media, the further through the five-stages they are and the closer
the organisation is to maximising CBBE. However, organisations cannot control UGSM; the
only way they can influence it is in the way they respond to it. If the UGSM is negative, the
organisation may regain their brand image and loyalty in the way they respond to it. They
may not completely regain brand image and loyalty lost to the particular user, but their
response will often influence other users in a positive way. In stages two to four are dormant
members who have not moved on to the next stage for some time. An organisation needs a
strategy to activate dormant members.
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Figure 2. The five-stage summary framework by which FCSM affects CBBE.
The processes of brand awareness and perceived quality are influenced by FCSM through
search engine optimisation (SEO), while brand image and brand loyalty are influenced by
FCSM content. Organisations that plan to maximise CBBE through the use of FCSM need to
have a SEO and FCSM content strategy. Establishing how the literature suggests an
organisation does this will answer the research question.
Brand Awareness
Perceived Quality
Brand ImageBrand Image
Brand LoyaltyBrand Loyalty
Customer-Based Brand Equity
Firm-Created
SocialMedia
Viewed FCSM with no
action
Knowledge
Aware of FCSCM but not
viewed it
Aware
Has not viewed FCSMmedia
Unaware
Viewed FCSM with positive
association
Like
Viewed FCSM and shared it
positively
Fan
Viewed FCSM with negative
association
Dislike
Viewed FCSM and shared it
negatively
Critic
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Search Engine Optimisation
SEO, also known as search engine positioning (Zuze & Weideman, 2012), enables a website
to appear at the top of the result lists, of a search engine for certain keywords (Yalin &
Kse, 2010). This ensures the maximum number of relevant users find the social media
account(s) above competitors, agency:2 (2013), a leading social media marketing
organisation, states the importance of optimising social media visibility on search engines
and other has shown that the value of a website is determined by the search engine page on
which it ranks (Visser & Weideman, 2011: Zuze & Weideman, 2012). SEO also increases
organic traffic through a website (Heinze, Fletcher & Chadwick, 2010).
Social media has become a key aspect in SEO strategy since 2011 when Google Panda was
introduced, changing the algorithm that influences the value and rank of websites on the
search engine (Leibtag, 2012). Google Panda changed the emphasis away from advertising
influencing ranking (CNET, 2011), it analyses whether an organisations content is being
linked-to, interacted-with and shared and therefore regarded as an asset by customers and
ranks according to these factors. It assumes the content is more valuable and rewards it
(Leibtag, 2012).
Consequently, little research has been completed into the area of social medias influence on
SEO. An adapted approach from Google (2010) and Zuze and Weideman (2013) can be used
for additional practical steps in how to optimise search engine coverage: use keywords
appropriately (around 3-10% of text); create content for users not search engines; linked to
social media across platforms and other marketing; use Google AdWords to assist and
monitor keyword count and PageRank to monitor progress.
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Figure 3: Positive (Negative) FCSM content and SEO cycle.
Social Media Content
Businesses have a number of opportunities to maximise CBBE through FCSM content. One
option is to use a social media specialist company to control the channel. Or, if an
organisation is keen to remain in control themselves, communication tools (e.g. Shoutlet) are
available which allow you to schedule posts across a number platforms, manage responses
and view statistics on user response and reach. Businesses can monitor their success by using
other tools (e.g. PeerIndex).
No research has been done into the use of social media in the SLI, however, there have been a
number of theories proposed in the music (Alper, 2010) and library sector (Fitcher, 2007). A
leading specialist (agency:2, 2011) have proposed a number of techniques to use.
Alper (2010) gives a list of six dos and donts for the music industry. Do: follow relevant
people across time zone, province, country, or even genre; follow and connect with fans
regularly; and be personal through interaction with them. Dont: send automatic messages;
Good (Bad)FCSM
More (Less)liking,
interaction andsharing of
FCSM
Good (Bad)SEO
More (Fewer)visits to social
mediaaccocunt(s)
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involve religion or politics; and write anything that wouldnt be shared with parents, principle
or the pope.
Fitcher (2007) states five optimisation techniques librarians can use: be friendly (and mean it
through user interaction with complaints and the tone of voice); be link-worthy (make it
fresh, different, interesting and funny); make bookmarking and sharing content easy; let
library web stuff circulate (be on different platforms for a large presence); and join the
conversation wherever your users are.
Both theories note the importance of personal, honest and regular interaction with users and
for posts to be interesting and sensible. However, there are distinct differences: in the music
industry artists represent a single person; a librarian represents not only a greater organisation
but a number of people. So, communications the librarian uses need to be aligned with a
number of different individuals views. The SLI, unlike other industries, represents both of
these different situations. Professional sports men and women have their own social media
accounts for themselves but SLOs have the whole organisation to represent.
agency:2 (2013), the leading social media specialist, outlines 5 stages to optimise content
(agency:2, 2011): encourage audience engagement (by facilitating UGSM through engaging,
relevant and funny conversations and asking clear simple questions); personalise your brand
(by developing a relationship with users specific to the platform through replying to and
thanking them, showing caring); stand out with rich content (by sharing videos and pictures
which grab users attention and are personal); timing is key (topically relevant posts when
users are most active); and use the data (use analytic tools to see what topical posts work).
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Conceptual Framework Summary
Both social media content strategy and SEO have also been identified by other theorists as
the key to increasing CBBE (Bloomstein, 2012). Taking these theories an adapted conceptual
framework for the SLI use of social media to maximise CBBE can be established (Figure 4).
The hypothesis is that for a SLO to maximise CBBE it must create the most efficient 5 stage
process in the conceptual framework (Figure 4). To establish this an online survey will assist
in establishing that the process exists and how the customers use social media. The stage
where the majority of the customers are at is the limiting stage to the process and requires
optimising. Interviews with professionals who control a SLOs social media communications
were completed to find the techniques and strategy used in the SLI.Finally interviews will be
conducted with social media communication key informants to establish how the SLI can use
FCSM to maximise CBBE. This gains a rounded view of the use of social media to establish
if the conceptual framework can be used in the SLI to maximise CBBE.
Literature Review Conclusion
There are particular external conditions that effect FCSM: including industry (Bruhn et al.,
2012), culture and country (Hakala et al., 2012). Size (Bruhn et al., 2012) and type (Coulter
& Roggeveen, 2012) of business have been suggested as further external conditions.
The target market of an organisation influences its marketing objectives; this in turn
influences the type of marketing selected (Armstrong & Kotler, 2013). Adapting this process
for social media leaves three internal conditions that influence FCSM: the target market of
users; the social media objectives; and which social media platforms (Coulter & Roggeveen,
2012).
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Therefore, it is hypothesised that each organisation needs to have a specific social media
strategy for their industry, culture, country, business size and type. Having established this, it
can create a social media content strategy based on their internal objectives, target market and
platform use. Only then can a SLO, through the creation, management and control of FCSM,
progress a customer through the five-stage conceptual framework into a fan, thereby
maximising CBBE.
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External Conditions:
Country
Culture
Business Size
Business Type
Internal Conditions:
Target Market of Users
Social Media Objectives
Social Media Platform
Knowledge
Like
FanUnaware
Aware
Sport and Leisure Industry
Figure 4: The five-stage conceptual framework by which FCSM affects CBBE by using SEO and social media content strategy in the
external and internal conditions.
Viewed FCSM
with no action
Aware of FCSM
but not viewed it
Not viewed FCSMViewed FCSM and
shared it positively
Viewed FCSM
with positive
association
Social Media Content:
Interact Personality Monitor Linkable Timely Mediums Appropriate Link to other organisations
SEO:
Link-sharingo Likingo Interactiono Sharing
Keywords Universal Monitor
Low CBBE High CBBE
Brand AwarenessBrand Loyalty
Perceived QualityBrand Image
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Method
Qualitative research is unstructured, exploratory research based on small samples, providing
insights and understanding of the problem setting (Malhotra, 2002), whereas quantitative
research emphasises on using formal questions and predetermined responses to a large
number of respondents (Hair, Wolfinbarger, Ortinau & Bush, 2008). This research is
exploratory not validating what is already known and, therefore, qualitative research is most
appropriate (Hair et al., 2008). Qualitative data has limitations. It is often unreliable, hard to
measure significance and hard to generalise due to the low sample size (Hair et al., 2008).
However, it is often quicker to collect, more accurate at understanding behaviour and better at
investigating preliminary insights (Hair et al., 2008).
The investigation researched three different groups of individuals: key informants in the use
of social media (chosen for their experience); professionals who control social media for a
SLO (from a variety of international/local organisations of different types); and customers in
the SLI (chosen by snowball sample). Data was collected from professionals and key
informants using semi-structured interviews while the last group completed online surveys.
These groups cover every perspective of the use of social media. By comparing and
contrasting the responses, using a mixed methodology, concurrently sequenced, it can be
analysed how effective the current use of social media is and then how to maximise CBBE
through it.
Semi-structured interviews were used above other methods such as observation,
questionnaire, etc. Using the same core questions across interviews but asking supplementary
questions for greater detail (Hair et al., 2008). Interviews have a number of disadvantages;
they can be time consuming and hard to arrange (Malhotra, 2002). But the flexibility of
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questions, detail gathered and ability to build a rapport to gain more information (McDaniel
& Gates, 1999) makes semi-structured interviews the most effective a method.
An online survey was chosen for customers (above other methods such as focus group,
survey, etc.) for a number of reasons including: speeding up production, completion and
analysis of data; data is already in electronic form; much cheaper as (no paper, ink or
mailing); participants are more likely to answer the questions honestly; and larger number of
participants can be reached (Wilson, 2012: McDaniel & Gates, 1999). The population that are
missed because they do not own social media account are not the customers the SLO are
targeting. The main downfall to this method is the control over which users complete the
survey (McDaniel & Gates, 1999). However, respondents can be locked out of the website
after completion (McDaniel & Gates, 1999).
SurveyMonkey website was used on a Select subscription. On three questions (Q16, Q22
and Q57) in the 5-point Likert Scale was used. Chudoba (2010) investigated average drop-off
rates from surveys with 1 to 50 questions, finding that the greater the number of questions,
the greater the drop-off rate. Therefore, question logic was used, reducing the number of
questions from 61 to 40 maximum and 6 minimum. Chudobas (2010) research suggests that
the online survey should expect a drop off rate between 2-10%. The selected sport and leisure
organisation (SSLO) was the last the user had come into contact with, to prevent bias: they
were to select a SLO of their own choice it is likely they would be a Fan. The questions
following related to that SLO, requiring the user to recall the sequence and reasoning behind
their actions on social media. Questions were included to establish the accuracy and
reliability of the users ability to recall. Sudman and Bradburn (1973) researched ability to
recall a variety of events: it was found that the closer to the event taking place, the more
accurate and reliable the data. Approximately 10% difference from the original response was
seen in survey results over 3 months after the specific event compared with results taken
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within 3 months (Sudman & Bradburn, 1973). Therefore, in this study all results of Over 3
months will be removed to ensure accuracy. Those who have Never come into contact with
the SLI will also be removed as they are irrelevant.
The online survey was completed by a wide range of participants from different genders,
ages, education, job and involvement in the SLI. There were 41.46% more men than women.
This more accurately represents the SLI: research has shown that just under 1 million more
men participate in sport than women (Sport England, 2012). As expected, the largest group of
participants were 1822 years old. Social media is most commonly used in younger
generations (Madden & Zickuhr, 2011), 1829 made up 42.69% of participants. Majority of
participants had degrees while the least common educational backgrounds were PhD and
Apprenticeships/Internship, which together made up 4.88% of participants. The high number
of students again reflects the high use of social media in younger generations. In the first 18
months of social media the percentage of young adult users rose from 949% (Madden &
Zickuhr, 2011). No participants selected the Once a month option for contact with the SLI,
probably due to the wording of the answer, as no person would arrange contact with the SLI
infrequently. This is confirmed by the even spread of responses across other answers with a
range of only 6.95% excluding Couple of times which was the most frequent response by
8.33%.
Table 1. Demographic information the 82 online survey participants.
Participant Information (n = 82) %
Gender
Male
Female
70.73
29.27
-
7/28/2019 Dissertation - Brand equity maximisation model using social media in corporate business
27/87
20
Prefer not to answer 0
Age
1822
2329
3039
4055
56
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