Effects of Social Media Marketing on Business Performance in the Pension Fund Sector

ABSTRACT

The primary objective of this research work is to investigate the positive effects of social media on business performance and its influence in the Pensions Fund sector. Using both the quantitative and qualitative means, this study strives to investigate how social media can benefit PFAs in optimizing their overall performance through the appropriate usage of this internet. This research investigates how social media has been beneficial to the case study organization Pensions Alliance Limited which is one of the first PFAs licensed by the National Pensions Commission (PenCom) in 2006. Through the questionnaires and semi structured interviews conducted with various respondents in the organization we find out how social media has been utilized for fostering better business relationships with clients, partnering organizations as well as prospective clients. The results obtained through this study show that social media has been able to positively impact the organizations in improving their visibility, enhanced customer service, better relationships within the industry and have overall improved the organizations communication with within the business space

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE OF CONTENT

Title page ……………………………………………………………………………………… 1

Declaration………………………………………………………………………………………2

Certification...…………………………………………………………………………………...3

Dedication ………………………………………………………………………………………4

Acknowledgement……………………………………………………………………………....5

Abstract …………………………………………………………………………………………6

Table of content…………………………………………………………………………………7

CHAPTER ONE: INTRODUCTION

1.1 Background to the Study …………………………………………………………………..13

1.2 Problem Statement …………………………………………………………………………16

1.3 Objectives of the Study …………………………………………………………………….17

1.4 Research Questions ………………………………………………………………………...17

1.5 Research Hypothesis ……………………………………………………………………….18

1.6 Scope of Study ……………………………………………………………………………..18

1.7 Methodology ……………………………………………………………………………….19

1.8 Significance of Study ………………………………………………………………………19

1.9 Definition of Terms ………………………………………………………………………..19

CHAPTER TWO LITERATURE REVIEW

2.1  Preamble …………………………………………………………………………………....21

2.2  Conceptual Clarification ……………………………………………………………………21

2.2.1        Concept of Social Media and its Channel ………………………………………………21

2.2.2        Motivating Factors for Sourcing Pensions Information on Social Media ……………...24

2.2.3        Social Media as a Marketing Communication Tool in the Pensions Industry ………....26

2.2.4        Social Media and Business Performance in the Pension Industry ……………………...27

2.3  Conceptual Model of the Study ……………………………………………………………..31

2.4TheoreticalFramework……………………………………………………………………..32                                                               

2.4.1 Micro-Theories ……………………………………………………………………………32

2.4.2 Macro-Theories ……………………………………………………………………………34

    2.5 Empirical Review …………………………………………………………………………35

CHAPTER THREE RESEARCH METHODOLOGY

3.0       Preamble ………………………………………………………………………………...38

3.1       Research Design ………………………………………………………………………...38

3.2       Population of the Study ………………………………………………………………....39

3.3       Sampling Technique and Size …………………………………………………………..39

3.4       Instrumentation ………………………………………………………………………….40

            3.4.1   Personal Interview ……………………………………………………………….40

            3.4.2   Questionnaires …………………………………………………………………...40

3.4.3    Scaling Method ………………………………………………………………….41

3.5       Data Validation and Reliability …………………………………………………………41

3.6       Method of Data Analysis ……………………………………………………………….42

3.7       Limitation of the Methodology …………………………………………………………43

CHAPTER FOUR    DATA ANALYSIS, INTERPRETATION AND DISCUSSION

4.1       Preamble ………………………………………………………………………………..44

4.2       Presentation and Interpretation of Results ……………………………………………..44

            4.2.1    Respondents gender …………………………………………………………….45

            4.2.2    Respondents Age Group ………………………………………………………..45

            4.2.3    Educational Qualifications ……………………………………………………..46

            4.2.4    Period of time served in the organization ………………………………………46

            4.2.5    Category of employment ……………………………………………………….47

            4.2.6    Membership of any social media sites …………………………………………48

            4.2.7    Social media usage in numbers of years ……………………………………….48

            4.2.8    Pension decision using social media……………………………………………49

4.2.9    Preferred source for pension information on social media …………………….50

4.3       Questionnaire Findings & Analysis ……………………………………………………51

4.3.1    Respondents Perception towards getting pensions information on social media ……..51

 

4.3.2    Factors that motivate clients to source for pension information through social media platforms ……………………………………………54

4.3.3    Social media channels effect on Pension decision making ……………………………..57

4.3.4    Social media contribution to business growth as a marketing tool in the pensions fund industry ……………………………………………………………60          

4.4       Test of Hypothesis ………………………………………………………………………63

4.5       Discussion of Finding …………………………………………………………………...66

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.0       Preamble ………………………………………………………...………………………68

5.1       Summary of Findings …………………………………………………………………...68

5.2       Conclusion ………………………………………………………………………………69

5.3       Recommendations ……………………………………………………………………….70

5.4       Suggestion for other Study ………………………………………………………………72

Bibliography …………………………………………………………………………………....73

Appendices ……………………………………………………………………………………...79

 

 

TABLE OF FIGURES

Figure 1: A conceptual of social media: Prospects use of social media and the consequent business outcome………………………………………30

Figure 2-Gender Analysis ……………………………………………………………………..44

Figure 3-Age Analysis …………………………………………………………………………44

Figure 4-Level of education Analysis ………………………………………………………….45

Figure 5-Years of service Analysis …………………………………………………………….45

Figure 6- Category of employment Analysis …………………………………………………..46

Figure 7- Social media sites membership Analysis ……………………………………………47

Figure 8- Social media usage in number of years Analysis ……………………………………47

Figure 9- Pension decision using social media Analysis ………………………………………48

Figure 10- Respondents preferred sources for pension information on social media Analysis...49

Figure 11- Respondents perception towards pension’s information on social media Analysis…50

Figure 12- Motivating factors for sourcing for pension information on social media …………53

Figure 13- Social media channels effect on pension decision making ………………………….57

Figure 14- Social media contribution toward marketing growth with PFAs ……………………60

 

 

 

 

 

 

LIST OF TABLES

Table 1- Social media importance in pension fund marketing communication ………………51

Table 2-Social media platform as key channels for pension information …………………….51

Table 3-Social media as a two way communication tool between clients and their PFA ……52

Table 4- Strong social media presence and the strength of a PFA …………………………….53

Table 5- effective social media platform and PFA professionalism …………………………..54

Table 6- Social media and customer feedback ………………………………………………...55

Table 7- Social media and pensions information verification …………………………………55

Table 8- PFAs and Clients relationship with questions and answers platforms ………………56

Table 9- Social media and achievements publicity with PFAs ………………………………..58

Table 10- Social media and customer engagement with PFAs …............................................58

Table 11- Social media channels and professionalism in the pensions industry ………………59

Table 12- Social media space and customer loyalty and referrals ……………………………..61

Table 13-Positive influence of social media application on pension                              organizations performance …………………………………………………………..61

Table 14- Social media and cost efficiency …………………………………………………….62

Table 15- Social media and sales increase in the Pensions industry ……………………………62

Table 16: chi-square analysis showing level of Prospects negative perception about social media marketing communication on pension ………………63

Table 17: chi-square analysis showing factors that motivates prospects to source for pensions information through social media platforms ……………………64

Table 18: chi-square analysis showing Social media channels have no effect on the choice of prospects making pension decision ……………………...…………64

Table 19: chi-square analysis showing Social media have zero contributions to business growth as a marketing tool in the pension fund industry…………………65