Research Nugget #5

Kim, A. (2012). Do Social Media Marketing Activities Enhance Customer Equity? Journal of Business Research, 65(10). 

Link Here


This article is discussing how Luxury retailers are re-thinking marketing strategies. The article talks about how major high-end designers are beginning to implement blogging, live fashion show streams, twitter, Facebook, and etc. in to their business. When the economy crashed relying on their brand was not enough so they had to re-position themselves to appeal more to their customers. When they began to do this it showed that stores that implemented social media did better.

Nugget #1

One-third of survey participants posted opinions about products and brands on the brand’s blog, and 36% thought more positively about companies that have blogs. A recent study by DEI Worldwide (2008) provides the following statistics: 70% of consumers have visited social media sites to get information; 49% of these consumers have made a purchase decision based on the information they found through the social media sites; 60% said they were likely to use social media sites to pass along information to others online; and 45% of those who searched for information via social media sites engaged in word-of-mouth. The report states that companies not engaging in social media as part of their online marketing strategy are missing an opportunity to reach consumers. 

This nugget shows that companies that fail to use social media are not keeping up with their competition. There are many arguments against social media in the fashion industry. But as these statistics show consumers don’t think that way as a consumer being able to go online and get information about a brand is crucial. So for those companies that are not on the web it is frustrating and confusing for the consumer because the internets is such an integral part of our world.

Nugget #2

Technology development benefits the world of fashion by attracting customers to interact with the brands. Fashion brands’ involvement in such things as tweeting, blogging, and networking has led luxury brands to participate in the current trend. At first, most of the brands were somewhat reluctant to use technology; however, the industry has come to consider technology as an opportunity rather than a threat. Unlike the first predictions, social media do not act against the positive reputation of brands. Interaction with customers via social media sites such as Facebook and Twitter actually builds up friendly attention, even affection, toward brands and stimulates customers’ desire for luxury.

This shows that luxury brands are being forced to use social media in my opinion. At the bottom of the nugget it talks about how “Unlike the first predictions, social media do not act against the positive reputation of brands”. Although this may be true from a consumer standpoint, industry leaders in the fashion industry may disagree with this. Although consumers have more interaction there is less exclusivity about the product. When a brand loses exclusivity the people purchasing the product move on to the next thing. For example Coach, Tommy Hillfiger, and more recently Michael Kor’s have all flooded the market with their logo that it is no longer viewed as an exclusive product. 

This nugget goes hand in hand with #4 and is showing how more and more companies don’t have the resources not to engage in social media. It is not enough in this day and age to be classic, everyone wants the next big thing and that is what people respond too. Blogging is the big thing in fashion right now and those companies that tapped into bloggers as marketing tools are the ones who are succeeding. I think that right now in my research process my ideas are beginning to unfold, my metaphor for one of the concept experiences was a balloon. Right now my balloon is half way blown up.

3 thoughts on “Research Nugget #5”

  1. You say “There are many arguments against social media in the fashion industry. ” What are these arguments? This article definitely provides data on how consumers consult social media for fashion ideas. What companies are not branding online (it’s hard to believe that any are NOT doing this?) Did the article give any examples of companies who are struggling to keep up?

  2. Please make sure you approve comments on your blog. My comments have “awaiting moderation” on them. I just want to make sure you are seeing the comments on your blog posts!

  3. I agree that social media is playing a large roll in keeping up with competition. Other than the web being a place to find information I feel the consumers ability to share pictures plays a large roll as well.

    Social media could not act against positive reputations of brands but ultimately it would be in the consumer’s hands.

    Seems like social media has mixed effects on these brands. Would you also like to include the fact that music plays a roll in flourishing brands?

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