Introduction
The internet has been used in the past decade or so for business development. Its ability to link services to potential clients has been termed crucial in the management of international business. Jităreanu, Chiran and Gîndu (2014) and Mohd (2015) argue that there are many business that have been promoted due to the use of the internet. In line with this, it is important to point out that there are several ways in which business around the world have used the internet to their advantage. One of the most common ways is through advertising.
Shavitt, Jiang and Cho (2016) explain that the internet has favoured both small ad big companies the same. It has in fact, made the field that much smoother for small companies as they are able to target the same clients as the big companies. Due to the nature of the internet, target identification has become easier for both the small and the large businesses. Target identification is the process in which clients are pin pointed based on their preferences in regards to products and services.
The nature of the internet allows companies, through search engine optimization to filter out the millions of users and get only those interested in the company’s products or services. After the identification process, the involved firm is then able market and advertises directly to the clients. It goes without saying that the discussion on the use of the internet by businesses is expansive. The dissertation will, therefore, only focus on usage of the internet by small businesses. To be precise, only a specific region will be investigated. The chosen region is Buckinghamshire, in South East England where the sample size for the research study was picked.
The paper will give a literature review of the same topic and present findings of a survey done to determine the impact of the internet on small businesses in the region. A theoretical and conceptual framework will also be provided. Also, a critical analysis of the finings realised will be given. Conclusions and recommendations for future research will be provided in line with what would have been discussed and presented.
Definition of Small Businesses
The research paper will use the term small business to refer to small and medium enterprises.
Buckinghamshire
In order to appreciate the research question that has been posed, it is important to fully understand the business and economics dynamics of the area of coverage identified. This is important as the sample size was picked from the said region. The area of coverage is Buckinghamshire, which is in South East Europe. Like other regions in South East Europe. Buckinghamshire has developed elaborate policies that promote small businesses. The Buckinghamshire County Council provides guidelines to all traders on the expectations of the government on the traders, and also educates the traders on the services they can receive from the government to enhance their businesses.
Some of the services that small businesses receive from the council include access to financial support and access to mentorship. Important to note, small businesses in the area face the same challenges that businesses in other parts of the continent, and the world, face. Therefore, a strong support system is required to ensure growth. Weston (1995) argues that small businesses affect the economy of a region, and a country, more than large businesses.
One key feature that can be noted about Buckinghamshire is the fact that consumer guidelines are also provided through the Buckinghamshire County Council. Small business owners are able to physically visit the Council’s office or check their website to get all the information they need about their clients. However, and important to note, much of the information that is available is on the direct clients within the region. Albeit important, the information provided is not relevant when applied in the international platform. The internet, thus, comes in handy when small businesses try to open up their area of reach. Widdifield and Grover (1995) assert that a clear understanding of the target market that is immediate to the business is crucial in also understanding the international target audience. Therefore, an online clothing store in Buckinghamshire should first understand the target market in Buckinghamshire before attempting to understand those in other countries. Having said so, it is important to point out at this juncture that the dynamics, and the characteristics of the sample size, who were picked from Buckinghamshire, does not differ from other consumers from different parts of the world.
Hypothesis
Service delivery is more important to the modern consumer than brand while using the context of internet use.
Research Objectives
The primary and secondary objectives of the dissertation are:
- To showcase whether the use of the internet by small businesses has any impact on service delivery.
- The extent to which consumers use reviews of small business online to make decisions about purchase of products and services.
- To find out whether customer satisfaction is linked to service delivery.
Literature Review
Ashcroft (2005) argues that small businesses have used the internet to enhance their area of coverage. Due to the nature of the internet, marketing and advertising has been made easier. Also, culmination of products and services has been made easier, thus, attracting more clients. In the literature review, several components will be discussed in regard to other scholars’ ideas and researches on the impact of the use of the internet on service delivery.
Marketing And Advertising
It goes without saying that the internet has helped small businesses market and advertise their brands products and services much easily. The premise is also true in regard to marketing and advertising to immediate clients. Immediate clients, in this case, are the people of Buckinghamshire. Schoenefeld (2011) explains that over the years, marketing and advertising through the internet has become very competitive. Companies have had to come up with more creative ways to reach out to the millions of people who are using the internet.
There are several ways in which small businesses market and advertise their products online. One of the most common is through social media. Important to point out, advertising through the internet is much cheaper than advertising through other traditional media such as television, radio and newspaper. Having said so, small companies have taken the advantage of price to advertise through social media. Search engine optimisation is key in such types of advertisements (Calvo-Porral, Medín & Losada-López 2017).
To the benefit of small and medium sized businesses, there are several platforms under the concept of social media that can be used (‘An overview of web mining’ 2008). For example, one business can hold social media accounts on Facebook, Twitter, Instagram, Google + and Pinterest just to mention a few. All these accounts give the small business a platform to advertise its products. As mentioned, advertising through social media is very affordable, ensuring that small and medium sized businesses have the same. Many of the mentioned social media accounts also offer free advertising packages, albeit being more limited compared to the paid advertising services.
Apart from social media, small and medium sized businesses can also use websites to advertise their products and services. Freitas and de Almeida (2017) explain that websites are also generally affordable to create and also target a wider scope of audience. Again, to perform well and get as much clients as possible, the said firms have to use search engine optimisation to generate traffic to their website. It should be added that the good thing with advertising and marketing on the internet is the ease of linkages. The social media accounts that have been mentioned, can all be linked to the website and vice versa to allow for better exposure of the firm.
On the same breath, and through proper linkages, the small companies also have the advantage of affiliate marketing. Ulijaszek and McLennan (2016) define affiliate marketing as the use of online referrals to attract clients Affiliate marketing, as the name suggests, is the use of other people, known as third parties, to market a brand or product (Liat et al. 2017). Such people are paid according to the traffic they help generate towards the company’s website and social media pages. The strategy makes it easier for small and mid-sized companies to get coverage and exposure as they only pay a commission to the marketers.
To Schoenefeld (2011), the intense marketing and advertising strategies that have been used by small and medium sized firms to widen their scope or area of reach, has affected service delivery. Georgiou and Stefaneas (2002) also argue that firms have to impress the clients in order to retain them. Arguably, getting a new client is much easier than retaining them. Unlike traditional advertising and marketing tactics where clients would be retained through promotions, discounts and the disillusion that competitors are far (physical distance), through the internet, firms can only compete in regard to quality of service.
Reviews can be used as a source of affiliate marketing (Quint 2010; Radionova 2016). As mentioned, internet users rely heavily on quality of service delivery. If the quality is high, the users tend to leave positive reviews. However, as Schoenefeld (2011) confirms, if the reviews are negative, then even though the small business will enjoy a lot of exposure, it will not record much sales.
Stoian (2014) and Jin, Line and Merkebu (2016) go further to explain that marketing strategies on the internet have changed to become more assuring of best service delivery practices. For instance, businesses have to state how long delivery to the client will take, whether there is refund in case the product is not as expected, and how much time is needed for a client to return a bad product. All these factors are considered heavily by the client when he/she is making recommendations or reviews of the service provider.
The question that can be asked at this juncture, thus, is whether the use of the internet by small businesses affects the quality of service in a positive way. Through the discussion that has been presented, scholars are of the opinion that it does. The competition and the changing dynamics of marketing and advertising that have been propelled by the use of the internet all advocate for proper and better quality of service delivery. In the said regard, the service delivery is not just for the international clients but also for the local clients around Buckinghamshire. Indeed, for a brand to grow internationally, it has to also be accepted locally. The same applies to small and mid-sized companies in Buckinghamshire.
Brand
Stoian (2014) argues that traditional media allowed for the inspection of the brand before purchase. For example, if a new product, from a new company was introduced into the market, the clients have the luxury of analyzing the product through physical observation, before purchasing it. The same cannot be said for products that are sold through the internet. Internet users use three main ways for determining purchase of product (Johnson 2014). The first way is through reviews. Reviews are left by people who have used the products, or acquired the services of the company in the past. Ormachea and Langer (2010) explain that many small companies have failed due to the forgery of reviews. Whereas firms believe that positive reviews give the best outcomes, research shows that users do not trust products that have only good reviews.
There are several aspects that users take into account when writing reviews for products and services offered. The most important of the components is the service delivery that was attached to product or service. Stoian (2014) points out that uses rate service delivery as being more important than the brand of the product, especially if bought online. The premise suggests one key thing. The first is that unlike before, consumers today are not as loyal to brands (Manickam & Sriram 2013). It can be argued that there are too many products in the market, and the fact that the internet makes it easy to review and purchase them, complicates the dynamics of brand loyalty. Focus has, however, shifted to service delivery where clients are more likely to use a service provider who has better service delivery even if the brand is not well known.
When discussing brand, image also comes into mind. Public image is still as important on the internet as it is on traditional media. Schoenefeld (2011) reveals that public image in traditional media is built on the impact the brand has on the ground. In today’s economic world, public image has, thus, been built using tools such as Corporate Social Responsibilities (CSRs). CSRs refer to the use of a percentage of the profit earned to give back to the community. For a physical business, CSRs are very easy as they can be done to the immediate community. For instance, if a mining company is established in a village in India, the firm management can decide to take a percentage of the company’s profit and build a school in the village.
CSR can also be done on social media. In fact, it allows small companies to promote their CSR activities on a larger scale. Since small companies do not record as much profit as large companies, their CSR activities are not as prominent. However, the ability to showcase their charity work is not affected by the kind of work they do. Fox and Bustos (2003) are of the opinion that CSR does not build a brand much on the internet except if the brand wants exposure. Thus, it can be argued that small and mid-sized firms can use their CSR activities to make their brand more visible online.
The question, thus, is whether all these activities connect with service delivery. It can be argued that for a company, or any size, to think about service delivery, it has to first attract clients. Therefore, even though brand is not a critical component in online marketing of products and services, it can be used to attract the right clients. In line with the stated, therefore, brand and service delivery go hand in hand to build a small business’ presence online, in turn, affecting sales and growth of the company.
Customer Service
Vukasović (2016a) argues that customer service is a very important element when discussing service delivery in business. Businesses that are based online, regardless of whether they also have a physical address or not, have to have exceptional service delivery. There are three main aspects of consumer service that have to be considered, as they heavily affect service delivery. The first is the ease of access to a customer service agent. Small businesses are encouraged to always have several ways in which a client can contact the service agents. For example, you will find that a website has a phone number, an email address and a chat system, all which should be easily accessible.
The second element to consider in regard to customer service is the rate of response. Mostaghimi, Akhlagh and Seyed Danesh (2016) confirm that internet users are not very patient. Due to the fact that many companies now conduct much of their business online, clients will stay on a site for an average of one minute. Within this one minute, the customer agent must have engaged the client and clarified on any question they have. Failure to do so will prompt the potential client to visit another site. Also such failures are documented through reviews, which in turn puts off other potential clients.
Van Wert (2002) and von Retzlaff (2006) assert that customer service goes hand in hand with service delivery. A client is more likely to be patient about a delayed order after proper communication. The customer service agent is the first contact person the client will interact with before or after purchase. To ensure that online businesses prevail, business owners have been advised to always train consumer agents well and thoroughly to ensure maximum sales based on proper customer service.
The third main aspect of customer service is, thus, the quality of service offered (Raynard 2017; Schoenefeld 2011). The main query in line with the stated is whether the client is satisfied by the response that is given by the consumer agent. To ensure that consumer agents answer the questions appropriately, many businesses have thrived in the categorisation of consumer queries. Thus, a client is re-directed to a page on the business’ website where he or she can pick the type of query they want addressed. The query is then sent to the best customer agent to deal with it at the time. Just like in the discussions of brand, and marketing and advertising, customer services, as explained, are interlinked with service delivery. Ivanus and Iovan (2016) confirm that many clients and internet users create a mental link between customer service and service delivery.
Communication
Communication is key in all businesses. Whether the business is done online or not, communication plays a key role in ensuring success. The internet opened up communication for businesses in such a way that it enhanced service delivery. One of the factors to consider in regard to communication and service delivery is the effective transfer of information of expectations to the clients. Po-Young,Gin-Yuan and Yu (2012) argue that when a company is able to effectively transfer expectations to the clients, and convince the clients that the said expectations are of quality, and suitable to their unique position, it starts recording sales and success.
Waterman and Wook (2012) go further and explain that due to the difficulty of physical observatory confirmation of the promised products and services, small businesses have felt the urge to lie to their online clients. In such cases, the clients receives the package bought, but is not able to reconcile the promise made via the internet, and the physical appearance of the product. It is important to note that many small and mid-sized companies that have tried to go global, have failed due to the disconnection. Mohd (2017) urges honesty in transactions as it builds rapport and also enhances trust. In this sense, therefore, communication is used to create loyalty.
Communication is also key in establishing respect for the brand that is being used. For example, if a cosmetic supplier starts an online business, he or she has to communicate better than his or her competitors in order to achieve respect in the said field. It is very important for the small and mid-sized companies to adhere to rules of communication. The first rule is to always be polite to the consumer, regardless of whether he or she is right about the issue at hand. Secondly, it is important to always inquire on feedback in order to improve service delivery.
Theoretical framework
Several theories can be used to explain the use of internet in small and middle sized companies. The section will discuss the theories in line with how they affect some of the issues addressed in the literature review.
Theories of Advertising
Several theories of advertising have been projected over the years. One of the most applicable in the research is the theory of shifting loyalties (Sabir & Brown 1995; Singh, Vrontis & Thrassou 2011). The theory suggests that advertising is not only to create brad loyalty, but also to change loyalty. Therefore, companies can apply the said theory to attract clients who are currently engaged with competitors. In regards to the issue at hand, the theory of shifting loyalties works best for small and mid-sized companies that are engaged in online transactions. There are several reasons why this is so.
The first reason is that, as mentioned, brand loyalty is not strong in online transactions. Internet users are willing to take time and do research to get a product or service that they feel suit them best. Small firms can take advantage of this characteristic and engage with the clients on a one on one level. By doing so, they will show the client that he or she is important, while at the same time build trust in the service delivery, and not in the brand. Schneier (2005) explains that a majority of businesses transacted online are of sale of different brands by a single provider.
The second reason for use of theory of shifting loyalties is that small companies do not necessarily have loyal clients. When discussing multi-nationals, the issue of brand loyalty is strong, thus, crucial. However, small companies do not enjoy such. To make the economic field even for the small companies, especially ones competing with larger and more established firms, users review the small companies in line with their service delivery. A large percentage of users will give recommendations on quality of product, and try the product again after recommendation, but will not give second chances in regard to poor service delivery (Wu & Wu 2015; Feng et al. 2016).
A second theory of advertising that is applicable in the use of internet by small businesses is the theory of mediation of reality (Stoian 2014; Ulijaszek & McLennan 2016). It has been argued that in the current time and age, the content of the message is not as important as the fusing of the importance of the product with everyday life. Again, theoretically, the stated premise works best for small and middle firms that are doing different transactions online. Such companies can prove to the public the need for their product and how it makes the client’s life easier, or more enjoyable, in order to not only attract new clients, but also retain old ones.
Theories of Marketing
One of the theories of marketing that is applicable in the research is the Marketing 7P’s theory. Banerjee and Duflo (2008) explain that there are 7 P’s that should be considered in every marketing venture. The P’s are product, place, price, promotion, people, processes and physical evidence. In regards to product, the small businesses have to make sure that their product is of quality. Ngo and Nguyen (2016) argue that it does not matter whether the product is new in the market or not. As long as it is of quality, chances of getting loyal clients are high. On the same breath, the product should take care of a need of the client targeted. Lobo, Mascitelli and Chen (2014) explain that shifting dynamics in advertising encourage small firms to make the consumer realise they need the product. Therefore, the firm has to use advertising strategies to convince and persuade the client on the importance of the product in their daily lives, in order to come out as unique and different from competitor products.
The second p, place, is the internet as the discussion is based on online transactions. The companies have to consider the different dynamics encouraged by the place they intend to sell their product or service. Price of product is equally important in marketing as it also defines the target audience. In the same breath, promotion goes hand in hand with the advertising theories and strategies that have already been discussed. People, processes and physical evidence all come into play when discussing marketing of the products online.
The internet makes it easier for firms to do their research on their target audience (people). The small company will be able to get all the data and information needed about their clients through internet targeted advertising. Whereas the company will not get such data directly, through the internet, the management can define the target audience they desire, and the internet systems and processes can then advertise the products on the company’s behalf, to the defined target clients.
Theory of Consumer Behavior
Mathras et al. (2016) and Vukasovič (2016b) explain that the theory of consumer behavior suggests that clients will use their money generously as long as they get satisfied with the product or service purchase. The leading factor in the theory, therefore, is satisfaction. Looking at the components that have been discussed in the literature review, it is arguable that satisfaction plays a big role in service delivery. Two main components in regard to client satisfaction have to be considered when discussing the theory of consumer behavior. The first element is satisfaction based on the expectations of the client.
Advertising and PR strategies are well known to exaggerate the importance and benefits of a product or service. GAO (2001) argues that even some form of exaggeration is required to sale products and services, they should never be far from the truth. By using the suggested premise, small firms will be able to curb some of the challenges that arise due to differences in expectations. Also, important to note, it is such miscommunication in regard to expectations that led to negative reviews.
The second element that also has to be considered in regard to consumer satisfaction is service delivery (Ghanbari et al. 2017). Suffices to state, even with high quality products, it is important to ensure that service delivery is also of high quality. Some of the factors that customers consider crucial in service delivery include delivery time of product, how the product is packaged, customer service and policies on refunds (Nelson 2000). To ensure that the customers are satisfied on all the identified fronts, it is crucial to communicate to them properly. As mentioned, communication is a key part of service delivery. The internet has made communication easy and fast, and should be used by small businesses for both exposure and effective and efficient service delivery (Limpasirisuwan & Donkwa, 2017).
Pilot Study
Research Methodology
This section of the dissertation gives a systematic definition of the research methodology that was used in the pilot study in order to enable data collection, data analysis and data presentation. The methodology to be used in the research study includes research design, target population, sampling design and data collection and analysis procedures.
Research design
The pilot research study used both qualitative and quantitative research design. In regard to qualitative research design, a descriptive approach was employed. Faye Fangfei (2010) defines descriptive research design as the explanation of the current state of affairs. The design is deemed suitable as it gives an overview of how consumes rate service delivery currently, of companies in Buckinghamshire in South East England. Descriptive design also goes hand in hand with the formation of the study hypothesis, which was mentioned at the beginning of the report.
The angle/ approach taken towards this end, thus, is exploratory in nature. In regard to quantitative research, the study will use numerical figures to prove the impact of some of the elements used to rate service delivery by online clients. Due to the combined approach of research methodology, a customised questionnaire was used to collect the data. The questionnaire had both structured questions (for quantitative research) and unstructured questions (for qualitative research). The combined approach proved best suited for the pilot study as several concepts will be measured in an attempt to both prove and disprove the study hypothesis.
Target population
The target population selected were online users who shop in virtual shops that could be traced back to Buckinghamshire. There are several factors that had to be considered before the choice of target population was made. The first factor was the ease of data collection from the target population. Due to the fact that the survey is on online usage, it was decided that the data collection also be done online. In the same breath, a second factor that had to be considered was the shopping characteristics of the population. The said was then used to determine the demographic characteristics of the sample used in the research.
Sample Design and Procedure
The study used stratified sampling design (Winchester, Hall & Binney 2016). The design takes into account the larger population. In the study, the larger population was the internet users. The researcher divided the larger population into a smaller first group, which compromised of people who shop at online stores that can be physically traced back to Buckinghamshire. The sampling was done through a Facebook targeting model (Chang & Thai 2016). Despite the narrowing down of the target population, the sample was still too large for the study. The researcher went further and divided the shoppers according to interests. The sub-group that was settled on was actively involved in purchase of both male and female clothes from stores online. The described model was identified as best suited as it encompasses the whole target population. Today, there are millions of internet users It would be impossible and impractical to try and interact with each and every one of the users in order to conduct the pilot study.
Sample Size
The sample size refers to the participants who took part in the survey. The initial number was 300 participants. However, due to lack of interest to participate in the survey, and other similar factors, the sample size was reduced to 130 people. Several demographic characteristics were used in choosing the sample. First, the age of the online shoppers was considered with age categories defined as 15-25, 26-36, and 37-47. Also, the sample sized were divided equally in regard to gender, therefore, the research involved 65 females and 65 males. In the same breath, the sample were chosen based on locality. 33 of the sample size were residents of Buckinghamshire while the rest came from other parts of the world. The figures below show the different dynamics of the sample size that was used.
Table 1: Number of participants per age bracket created
Data Collection Methods and Instruments
The researcher used both primary and secondary sources of data. A questionnaire was presented to the 130 participants as a means of collecting the primary data. Secondary data was collected through previous research studies that had been done on the same topic, or on near similar topics. Important to point out, whereas the primary data formed the core of the research study, the secondary data was also very valuable.
The viability and reliability of the data collection tools was also tested and confirmed before they were used. The questionnaire was developed by the researcher and some research assistants. The tool was tested on the research assistants and it was confirmed to be reliable and to capture the information needed for the pilot study. Important to state, the researcher trained the research assistants on the used methods of data collection and also on the handing of the data collected.
Data Analysis Methods
The data was analysed through both qualitative and quantitative techniques as the same techniques were used as the research methodologies. Tables and charts were used for easier presentation of the findings that were realised after the pilot study.
Findings
The questionnaire was used to gather data that will be presented in this section. A copy of the questionnaire can be found in the appendix section. The questionnaire had six main sections. The sections will be used to present the findings that were realised. The first section of the questionnaire presented the demographics of the sample (as has been presented in the ‘sample size’ section).
Service Delivery Versus Brand Loyalty
The second section of the questionnaire gathered data on service delivery versus brand loyalty. Out of the 130 participants, 117 were of the opinion that service delivery beat brand loyalty in both purchase of product and services. Only 9 participants said brand beat service delivery. In the same breath, out of the 9 participants who chose brand loyalty over service delivery, 5 were of the opinion that brand loyalty dictates service delivery. Thus, to them, large and well-known brand cannot have poor service delivery. 3 out of the 9 participants stated that brand loyalty did not affect service delivery and 1 participant did not answer the question.
On the other hand, out of the 117 participants that chose service delivery over brand, 100 were of the opinion service delivery dictated brand development. In line with this, the 100 said participants were of the opinion that service delivery can help improve brand. 15 of the participants agreed that brand and service delivery had no relation. 2 participants did not answer the question. The last 4 participants of the survey said brand and service delivery were one and the same thing. The figure below gives the breakdown of the findings presented in regard to strength of service delivery and brand.
Service Provider Loyalty
The third section of the questionnaire revolved around the issue of service provider loyalty. The participants were asked whether they had heard about service provider loyalty, and their thoughts on the concept. 76 out of the 130 participants said they were aware of the concept while the rest, 54 had not. Out of the 76, 50 were of the opinion that they would purchase a new product, from a new company, if they were sure the service delivery was good. 26 of the participants stated that they would not try out a new product from a new company, but would try out a new product from a company they had interacted with before. The table below is a summary of the results presented.
Table 2: Are you aware of service provider loyalty?
Table 3: Which options would you take between the two?
Impact of Reviews on Purchase and Service Delivery
The fourth section of the questionnaire looked into the impact of reviews on purchase and service delivery. The participants were asked whether they would take advice based on online reviews on purchase and service delivery. They were also asked whether they would believe advice given on reviews on product quality. In the first question, 89 participants would believe the reviews made on service delivery. On the other hand, 41 participants would believe reviews on product quality.
The participants were also asked the extent to which they would take the advice that is given through reviews for both product reviews and service delivery. 13 participants said they would take the advice strongly, 107 said they would take the advice very strongly. Participants were also asked whether they would reviews based on service delivery and product quality. All participants said they would give online reviews. It is interesting to note that the researcher attributed the findings to age. It was assumed that the age bracket in general, that is 15 – 47, is well versed wit technology and the online review systems. Thus, are more willing to give reviews.
Consumer Satisfaction
Consumer satisfaction elements were also analysed. Particularly, the researcher asked the participants what satisfies their needs the most. Several options were given and the participants were asked to note the choices in order of most important, and also to rank them in regard to level of satisfaction. The table below summarises the findings that were realised towards this end. Through Table 4, it is clear that the majority of the participants believed that best customer service is important in client satisfaction than pricing, loyalty, preference and high quality products.
Table 4: Ranking of importance to customer satisfaction
Customer Service
Customer service was key for consumer satisfaction in 82 of the participants (Table 4). The section revolved around some of the things that clients would rate highly when rating customer service in small online businesses. It was revealed that a majority of the participants would rate ability to communicate properly highly. Other factors that would be rated include the time the client has to wait to get assistance from the support department, the quality of the support and the feedback tool used to report any misdemeanor or problem with the customer relations department.
Analysis of findings
Several things arise from the analysis of the findings that have been presented. First, through the survey, the premise/hypothesis of the research was proved true. 117 participants, out of the 130 that were engaged believed that service delivery was more important than brand. Several arguments presented in the literature review have also supported the said premise. Important to note, service delivery, to 117, which represents 90% of the sample population, referred to the way the consumer was treated by the company in question. In online businesses, clients do not have the luxury of meeting sales agents, or interacting on an interpersonal basis with the managers/stakeholders of the business. Some level of trust has to be reached, from both ends, in order for successful transactions to be made. The 90% of the sample population mentioned believes that such trust can be built if they are treated properly by the company.
Important to also note, 9 participants, representing 6.923%, believed that brand was more important than service delivery. Weiser and Conn (2017) explain that brand is seen as more important as compared to service delivery, if large multinationals are considered in the discussion. The assumption that one can go by, therefore, is that the 9 participants did not only consider small businesses, but also larger and more established corporations. If one was to work without the assumptions, then it can be argued that the 9 participants preferred loyalty. Indeed, there are consumers who would rather use one brand even if the preferred brand does not meet the standards that competitors have set. This brings in the issue of different mental and psycho-social dynamics of brand loyalty and consumer behaviour.
Through the study, it was also revealed that service provider loyalty is crucial in the development of new businesses. Waterman and Wook (2012) argue that service provider loyalty revolves around the idea that a consumer will purchase products from one service provider, albeit purchasing different brands. Several things can be highlighted in regard to the same. First, service provider loyalty can be established through good consumer relations. Friedman and Leclerc (2015) explains that consumer relations depend on the immediate agents the consumer engages with in regard to products and services offered. Therefore, such agents have to be well trained on how to handle clients. By doing so, they will retain loyal clients and help the small businesses to grow.
Still on the same finding, it can be argued that service provider loyalty is independent from brand. Out of 76 participants 50 agreed that they would purchase a new product from a new company. 26 participants said they would purchase a new product from an old company. At this juncture, it is important to point out that due to globalisation and the use of the internet in conducting businesses, firms have encouraged several levels of ‘brands’. The first level is the product brand, which is specific to an individual product that the company makes. The second level is the brand of the company, which is the umbrella of the other products. For both small and larger businesses, both types of brands have to be in-synch in order to achieve the best results in terms of sales.
When analysing the findings recorded in regard to brand, it is arguable that a majority of the participants are willing to purchase new products from new companies as a way of experimenting. Freitas and de Almeida (2017) argue that the modern consumer wants to feel unique and different from the rest. Therefore, by exploring and discovering the different and new products and services, they satisfy their needs as consumers.
Another realisation based on the data that was collected is the importance of reviews in online businesses. Foxall (2015) confirms that large, mid-sized and small firms need reviews. Crucial to state, reviews should be both positive and negative. Georgiou and Stefaneas (2002) assert that companies that only have good reviews are suspect to the public. Thus, consumers will keep off such companies. On the other hand, companies that have a few complains but more positive reviews will be more successful in the public domain. The main reason why this is so is that consumers believe that a business/ managers in a business cannot please everyone. Thus, businesses that appear to please everyone are forged and can be worse than those that have some complaints.
Through the research study, it was revealed that 100% of the sample would leave reviews based on both quality and service delivery. The premise showcases the importance of knowledge. It can be argued that the participants will leave reviews in order to inform other potential clients on their experiences with the company in question. If the reviews are good, more sales will be recorded. The passing of knowledge through the internet is very fast. Also, such knowledge never gets lost. It is due to the said that small businesses have to be careful, especially with their consumer engagement, in order to have few complaints in their reviews.
Also, it was revealed that consumer satisfaction, which goes hand in hand with success and growth of a business, is tied to customer relations. For example, if a company has a rude customer agent, clients will be afraid of calling and purchasing the products or services that are offered. On the other hand, if a company has an approachable and patient agent, more sales will be recorded.
Crucial to note, even though the participants picked were from Buckinghamshire in South East Europe, the researcher saw no significant difference between the consumer behaviour of the same region with the global consumer behaviour. For the said particular reason, the questionnaire did not feature any mention of Buckinghamshire. The changes to the questionnaire that was used in the survey were made in collaboration with the research assistants, who also raised similar concerns.
Conclusion
In conclusion, there are numerous factors to consider when discussing the use of internet in small and mid-sized businesses. The researcher focused on Buckinghamshire in South East Europe but the region was not incorporated into the research due to the vast and inclusive nature of the internet. The research hypothesis was to prove that service delivery is more important to the modern consumer than brand while using the context of internet use. The research had three objectives. The first objective was to determine whether the use of internet by small business had any impact on service delivery. The second objective was the extent to which consumers use reviews of small business online to make decisions about purchase of products and services. Thirdly, the study set out to find out whether customer satisfaction was linked to service delivery.
The three mentioned objectives were all addressed in the study. In regard to determining whether the use of the internet by small businesses had any impact on service delivery, the data that was collected proved that it did. One of the reasons why it is so, is the fact that many small businesses use the internet to communicate with current and future clients. Regardless of whether the company is in Buckinghamshire or not, the online platforms that are available to the businesses allow for an equal marketing field for all other firms. The second objective was realised through a discussion on the importance of reviews. It was revealed that all participants would leave reviews for the companies they interacted with online. The third objective, on the same note, was realised through a discussion on the linkages between consumer satisfaction and customer relations. A detailed literature review and a theoretical framework were also provided in line with the research hypothesis and objectives already mentioned.
Recommendations for future research
Indeed, there have been numerous reports and research studies that have been done on consumer behaviour and the impact of the internet on the same. In fact, getting secondary material to support the literature review, for this particular research study, was relatively easy. It is, however, recommended that future research be angled towards the impact consumer behaviour has had on internet use. It can be argued that consumer behaviour, which is changed by various variables, has an impact on internet use. For example, in the recent past, governments have formulated policies on advertising to children through traditional media such as televisions and radios. However, the same children have access to the internet. Due to different backgrounds and different exposure levels, some children will encourage others to search for certain websites and advertisements online.
It is also recommended that future research look more into the impact all the said factors have on the cognitive, social and physical development of consumers. It goes without saying that consumer behaviour changes with trends. The trends, in turn, change within the different age groups in the society. Thus, the complexity of group dynamics in regard to consumer behaviour, also has to be clearly brought out. There are some materials and research studies that have been done in regard to the same. However, the research work is very limited and more can be done to allow students and other scholars get a deeper understanding of consumer behaviour. Findings of the studies should then be published and shared in libraries and conferences. It can be confirmed that the findings realised in this particular survey will also be published and made available to all who are interested in the topic.
Ethical implications of the study
There were several ethical implications that were noticed during the survey. First, the researcher had to observe ethical guidelines that guide the research process. One such guideline is that participation in the research is voluntary. The researcher informed al participants that the study was on a voluntary basis, and that they were free to stop the process at any time. Also, the researcher explained to the participants that the research study was confidential and took them through the different ways the data collected would be stored, how the data would be disseminated, and eventually, how the raw data would be disposed. Even though the researcher explained the stated, a consent form to use the data collected in all manner of research was signed by all 130 participants.
Also important to note, there were some ethical implications in the choice of the participants. As earlier explained, the researcher used the Facebook consumer targeted tool to pick out the participants. The researcher had defined the target audience needed for the study For instance, the age brackets, the genders and the region were all picked before the study began. However, to the public, concern on the access to personal information was a big issue. The researcher, therefore, took time to explain to the sample size about the Facebook targeted advertising tool that was used. One advantage that was noted about the sample size’s age is that they were well aware of the Facebook tool, and upon realisation of usage, their concerns were mitigated and resolved.
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