Social Media Usage to Facilitate Knowledge Creation: History
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Contributor:
Peter R. J. Trim
,
Yang-Im Lee
,
An Vu

Social media usage is a direct result of Internet connectivity and is gaining increased prominence in business-to-consumer (B2C), business-to-business (B2B), and consumer-to-business (C2B) relationship building, which is allowing marketers to devise and implement digital marketing strategies that are perceived as enhancing a customer’s well-being. Through the process of utilizing social media (SM) to share information with consumers, marketers are affording themselves with the concept of value co-creation and ensuring that the development of knowledge is given priority. 

  • communications technology
  • digital platform
  • information
  • intelligence
  • knowledge
  • social media

1. Introduction

The speed at which marketers analyze data, innovate, and bring new products onto the market are characteristics that can be associated with a firm’s strategic capability and how marketing managers deal with the complexities of knowledge transfer through learning and implementing information gained from a potential target audience. Lacka and Chong [1] suggest that marketers are increasingly using social media (SM) sites to manage relationships with customers, and this can be interpreted from the stance of increasing a firm’s strategic capability. Indeed, Studen and Tiberius [2] (p. 2) are of the view that SM will in the future allow people to: “interact on a platform using virtual and augmented reality, our somatosensory sense, and touch—and movement—based navigation. We will not be able to distinguish between other human users and AI-based entities. Social media platforms will massively extend their scope of activities, merge with the World Wide Web and advance the e-commerce, edu-tech, fintech, the automobile industry, and HR recruitment”. Hence, communications technology can be viewed as providing an organization with enhanced network capability so that it adopts a proactive, innovative approach that accelerates the firm’s capability building process [3][4] and achieves strategic continuity in the various markets in which it competes [5].
The increased use of SM has been attributed to the availability of various SM platforms such as Facebook, TikTok, and Instagram that allow people to engage with others either socially and/or for business [6] (p. 80). The utilization of various SM platforms by company staff will enhance business-to-business (B2B) links by integrating business operations more fully (e.g., e-procurement facilitates a speedy customer service). The use of SM will, therefore, become more important in a business-to-consumer (B2C) context and a consumer-to-business (C2B) context whereby the interconnected relationships between a company and its customers, and a company and its suppliers, are managed to the benefit of all parties. In other words, B2B interactions will become increasingly driven by the consumer through the process of value co-creation.
Knowledge is known to have a direct influence on shaping an individual’s attitude and behavior, and so do fear appeals [7], which are aimed at influencing perception. In terms of the use of various SM platforms for gaining market data and intelligence, the barriers marketers need to overcome are more than knowledge and skill deficiencies; they also include compatibility, privacy, and security. Additionally, in relation to knowledge and skill deficiencies, there is a psychological element involved because an individual may feel a sense of embarrassment if their deficiency is known by their peers [8][9][10]. In addition, marketers may face problems such as how to incorporate SM sites into their strategies [11], and how to understand the role that communications technology plays [12]. In terms of the issue of security and control, marketers may feel inhibited if they lack control vis-à-vis the type of information exchanged, especially regarding confidential information disclosure that impacts on business relations [13].
Puhakainen and Siponen [14] reiterated the point that some staff do not comply with the organization’s information systems’ security policy, and this is of concern to management because as Leonardi [15] (p. 747) indicates: “Social media technologies are beginning to proliferate across organizations as executives and managers attempt to leverage the power of the informal information economies of their companies”. One of the key concerns of adopting SM is the possible leakage of confidential information and the impact it might have on the reputation and level of strategic risk the company is exposed to. Hence, there is a common view that the use of SM is not always appropriate for marketers [16].
Nevertheless, the analysis of data using artificial intelligence provides companies with an opportunity to utilize and improve marketing operations [17]. Marketing staff in emerging markets are increasingly being drawn to analyzing customer and market data that is gathered through Internet-based technology using analytical tools. The objective is to provide a bespoke customer service that deepens an end user’s online experience [18]. This can be considered important and influential in terms of building and maintaining ongoing company-to-consumer (B2C) relationships. For example, continual monitoring and development of consumer insights that act as a catalyst for gathering usable intelligence aids the development of a sustainable competitive advantage that is enhanced by organizational learning. Organizational learning involves staff training and development, which represents organizational intervention. Organizational intervention is necessary because customer feedback and engagement (e.g., online reviews and the actions of online community groups) needs to be managed. Hence, the crowd sourcing approach is viewed as providing timely customer feedback and is representative of generating ideas for product innovation. The participation in crowd sourcing groups is likely to increase over time as young consumers are happy to share their views and increase their sense of self-esteem [19] through receiving rewards for their participation in online interactive exchanges.

2. Consumer Engagement through Social Media

The positive perception of value varies depending on whether the consumer wants to achieve a logic-based rational goal that relates quality of the offering to the value competences of the company; or warmth in the context of emotion, whereby the judgement relates to a firm’s social and moral attributes [20]. The evaluation of competence affects consumer purchase decisions, whereas warmth/emotion affects consumer identification with the brand/company [20]. Hence, it is important that retailers identify consumer motivational needs (either hedonic or utilitarian) and evaluate behavior and link these with the brand identity and unique offerings such as product assortments, communication style, and a theme/story for the brand [21].
In terms of delivering unique value to a consumer, if retailers can identify how groups of consumers use specific language or cues and consumer preferences, they can relate to the consumer better vis-à-vis sense-making from the consumer perspective [22][23]. According to Moulard et al. [24], consumers make judgements based on their intrinsic or extrinsic motivations, and take cognizance of three factors: consensus, consistency, and distinctiveness. This brings to the fore the concept of rarity and association with SM influencers which equates to celebrity authenticity and the fulfilling of consumer emotional needs. Considering the fact that digital marketing strategists are concerned with truth in the context of SM dialogue, it is useful to note that Gavra et al. [25] point out that a methodological process can be used that enables algorithms to segment audiences and detect and diagnose support through utilizing relevant data/information that is conveyed via SM interactions. In terms of an in-depth understanding of how certain consumer group(s) function, it can be considered relevant to analyze both the level of feedback and the accounts of those engaged in the various forms of discourse.
In relation to consumer motivation in the context of using Internet-based technology for an information search vis-à-vis a purchase, according to Lee et al. [26], young consumers in a collectivist emerging market tend to use their knowledge capability that is gained through higher education to assess information from the stance of an independent thinker, which is different from the traditional view, and is especially evident in regard to high involvement products [27]. This suggests that information on a retailer’s website must be current and accurate. Therefore, it is necessary that a process is in place to update the information on a regular basis, ensuring that engagement in terms of C2B knowledge development is ongoing. In regard to knowledge development, according to Nonaka and von Krogh [28], tacit and explicit knowledge are viewed as interacting along a continuum, and this needs to be borne in mind with regard to how knowledge conversion occurs. In other words, consumers internalize knowledge and reflect on it and, if necessary, seek further information to gain reassurance of how the brand will perform.
In relation to reassurance, it is useful to note that seeing a collection of responses (e.g., online reviews) is important for young consumers in a collectivist emerging market as this allows them to gain confidence, which leads them to express themselves cognitively [26]. The collated responses work as a source that helps them to achieve internalization of information based on their understanding of how they are perceived by others. This can be related with motivation and placed in the context of personal development and growth. According to Cheung et al. [29], when people interact online, they have a different purpose and understanding, which influences their willingness to engage and develop their cognitive learning skills. Understanding consumers’ cognitive learning skills is important for marketers as they need to gauge how and why consumers search for and exchange information as well as how digital platforms can be utilized fully. On the other hand, it may be useful to note that Kumar [30] challenges existing assumptions regarding SM interactive marketing communications from the perspective of relationship building with customers and suggests that it has limited reach in emerging economies. This brings to attention issues such as suitability, a user’s capability, and the benefits and potential risks associated with using communications technology in a relationship-oriented network marketing context. Nevertheless, various researchers such as Itani et al. [31] acknowledge that marketers have availed themselves of the benefits of SM and argue that they should invest further in utilizing SM technology as the benefits associated with using communications technology to collect competitive intelligence as well as to adapt sales approaches are well established.
Thus, senior management needs to pay attention to how to utilize a range of digital platforms to reduce barriers and increase information sharing and network capability and, at the same time, increase the usability of information. Lacka and Chong [1] applied Nielsen’s (1993) model of attributes of system acceptability and argued that for a system to enhance relationship building, it must be effectively designed. This relates to the issue of how Internet-based communications technology contributes to the knowledge conversion process through the interplay of operant and operand resources that aid and increase the knowledge density of an organization. To understand the significance of this, Gawer [32] and Mukhopadhyay and Bouwman [33] point out that a technological architecture needs to be viewed as modular and structured around stable core components and variable peripheral components. This suggests that it is necessary to have structures and processes in place that facilitate information sharing at different levels of business-to-consumer (B2C), consumer-to-business (C2B), and business-to-business (B2B) interactions, if that is knowledge conversion is to be successful.

3. Enhancing Consumer Motivation

The growing tendency to utilize SM can be viewed from several perspectives. The consumer is driven to receive and divulge information that makes them feel important to the peer group they wish to be associated with [34]. At the same time, they receive information from their peers that helps promote a defined view of the company whose products they consume [35]. In relation to motivation and online community group(s) behavior, individuals provide either positive or negative narrations that allow an individual to gain self-importance. If an individual receives positive feedback from an online community group, they feel a higher level of satisfaction. In turn, company staff can identify how information is circulated and by whom and can monitor the actions of the main influencers on SM and various SM networking sites and engage with them, so that company–consumer relationships are enhanced through time.
In relation to learning how to craft the communication engagement process, although SM can be used to provide a consumer with accessible product-oriented information [36], it is important for marketing staff to be aware of the benefits derived from dialogue between the company and the public. In regard to consumer engagement and a sense of fulfilment, it is useful to note that consumer engagement fulfilment at the cognitive level and the emotional level [35] manifests in increased well-being [37]. This is because engagement contributes to a sense of personal development, and this indicates that marketers need to think of the process of communication being tailored to support customer post-purchase evaluations that embellish a brand’s reputation and at the same time strengthen a customer’s feelings towards it [38]. It should be noted that although the focus of co-creation is to develop sustainable relationships with end users for repeat purchases, it must be said that some end users seek a reward that goes beyond a regular repeat purchase. Indeed, it can be pointed out that those providing online reviews are driven by a psychological need to receive attention from an active community of interest.
Based on the analysis of consumer engagement behavior with a brand, marketers can gain insights into consumer expectations and motivations, which can be leveraged for further personalization [39]. A note of caution, however, is that although post-purchase comments can be linked to an end user’s emotional attachment to a brand [40], which can be viewed as a positive or a negative occurrence depending upon how the relationship is managed between the end user and the company, what needs to be borne in mind is that an end user may be seeking some form of gratification for the comments offered. If they do not receive reassurance that their comments are valid or feel that they are respected, they may become anxious and uncooperative. Indeed, this raises a fundamental issue. Basically, orientation-to-engagement is fueled by a desire to achieve emotional well-being and satisfaction [41] and company staff need to be aware that SM provides an opportunity for a consumer to express their appreciation and receive in return a certain amount of appreciation from others [42].
By establishing and building an emotional rapport between the company and its customers, the company can build trust-based relationships that leverage a competitive advantage [43]. In the technology information management field, a great deal of attention has been given to communications technology acceptance and the utilization of SM from a user’s perspective [1][44]. Thus, SM has value [45] and helps to convert information into a reward if customers feel that the information obtained via SM helps them to make an appropriate purchase decision that satisfies their inner desires. In other words, SM can be viewed as a facilitator of reciprocal relationships and an aid in organizational learning.

4. Knowledge Development and Utilization

To stimulate and guide consumers, retailers should be able to control when, how, and what is communicated with their target audience [46]. For this to happen, the use of digital analytics is beneficial to understand a consumer’s lifestyle and preferences based on past purchase records, which includes shopper click analysis. Such intelligence helps retailers to learn about their target audience’s actual and potential needs and how to personalize product web pages [39] to appeal congruently to them and build meaningful customer-based relationships. For example, Burberry and H&M are using the “see now, buy now” concept as it utilizes digital integration to speed up interactions accurately—involving designers, manufacturers, suppliers, retailers, and buyers [47]. Such an approach adds value from a consumer’s perspective as they feel their engagement is appreciated.
The customer-centric approach, which emanates from the market orientation and market-based knowledge approach [48], utilizes Internet-based technology to facilitate marketing planning and strategy implementation that focuses on meeting customer demands through solving practical problems [49]. The resulting customer-centered learning approach [50], whereby B2C and C2B relationships are harvested to turn information into intelligence and intelligence into knowledge, becomes central to value co-creation. Hult et al. [51] (p. 542) recognize this and view learning as being representative of the “values and beliefs associated with the development of new knowledge that has potential to influence behavior”. Hence, for strategy development, it is important to place emphasis on linking various learning activities [52][53] within the company and within partner organizations. This has many advantages including stimulating knowledge conversion through various forms of learning [54]. However, in terms of knowledge development within a shared and collectivist setting (e.g., company–supplier (B2B)), it should be noted that knowledge will emerge in the form of a group consensus [55] that is embraced by company staff from the perspective of knowledge exchange that facilitates and reinforces the staff’s commitment to learning [56][57]. This view is representative of how innovation(s) occur and is supported by Zuo et al. [58] (p. 1168) who state that: “Meaningfulness considers the extent to which innovation is useful to customers and important as an input for future innovations”.
In terms of how knowledge influences behavior, it should be remembered that knowledge is produced through dialogue and consultation that aids the marketing planning and strategy process and consequently, new products and services emerge into the market that are considered to have value and provide customer satisfaction [47]. In other words, it can be said that innovation emerges from the process of the development of customer prioritization strategies, which means that customers are given priority in terms of their immediate and post purchase requirements [59][60].
With regard to knowledge transfer within and between organizations, appropriate organizational structures can be viewed in terms of systems (interconnected digital platforms), procedures (the protocols in place), and policies (information security guidance) that help to produce knowledge that is considered to have value [54]. Those involved in the production of knowledge should be aware that collaborative trust emerges at the personal level [60]. In addition, trust can be differentiated into economic exchange (trust and commitment) that is associated with a task being completed, and social exchange (the work situation and culture) [61][62], whereby the appropriate informal relationships are in place (social bonds) to facilitate knowledge conversion.

This entry is adapted from the peer-reviewed paper 10.3390/fi15040123

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