The perceptions of SME retailers towards the usage of social media marketing amid COVID-19 crisis

Abstract

Purpose During the COVID-19 crisis, diversified attitudes and behaviors of structural equation modeling (SME) retailers were observed in using social media marketing that could have helped mitigate the adverse effects of this crisis on businesses. This paper aims to present a thorough investigation of these perceptions and limited acceptance of social media marketing among SME retailers in a developing country during a crisis. Design/methodology/approach The investigation was designed using a mixed-method design. A qualitative investigation, as the first part, explored SME retailers’ perceptions of the use of social media marketing when they were faced with mandatory lockdown that stifled their business activity. The insights from qualitative study and literature helped devise the second part of the study, a quantitative study using the technology acceptance model (TAM). Analysis of responses from a sample of SME retailers (n = 149) was done using SEM in this study. Findings In the qualitative study, SME retailers were found to have a varying outlook toward social media marketing. Some ventured into social media marketing while others were impeded by their limited understanding. The second (quantitative) study showed the general applicability of TAM such that perceived ease of use through perceived usefulness influenced SME retailers’ attitudes toward the usage of social media marketing during the COVID-19 crisis. An important finding in both studies was that business owners’ education level influenced their perceptions of social media marketing. Research limitations/implications The investigation, albeit a comprehensive one, was conducted in a particular market and for SME retailers. This opens avenues for conducting similar studies in other segments of entrepreneurs to generate insights based on comparative analysis across segments and scenarios. Originality/value Limited or no marketing in the physical marketplace amid lockdown meant almost an existential crisis for entrepreneurs, especially SME retailers, in developing countries during the COVID-19 crisis. While technology acceptance by SME retailers has been discussed in the literature, there are limited discourses on technology acceptance among entrepreneurs and SME retailers during a crisis. These findings from the COVID-19 crisis explicate the possibilities and limitations of technology usage as a means to mitigate challenges faced by entrepreneurs during a crisis.

Exploring social media usage as a communication channel among independent food retailer SMEs in South Africa

“…The saturated nature of the South African market and the need to show continuous growth has resulted in the major retail groups setting up operations throughout Africa. Retailers have also extended their store mix and developed multichannel strategies, which include online shopping platforms as a way of remaining competitive (Geller & Ntloedibe, 2019;Winchester, 2017;Salam et al, 2021).…”

“…The underlying theoretical model applicable to this study is the Technology Acceptance Model (TAM), which theorizes that perceived usefulness (PU) and perceived ease of use (PEOU) have a positive influence on attitudes and behavioral intentions toward new technology usage (Davis, 1989;Davis et al, 1989). Though, this current qualitative study will not endeavor to empirically test the associations between the aforementioned TAM variables, since several other recent SME marketing-related inquiries have already found positive associations between PU and PEOU, and social media behavioral/usage intentions (Chatterjee & Kumar Kar, 2020;Sutomo et al, 2020;Tumsifu and Gekombe (2020); Kwon et al, 2021;Salam et al, 2021). A number of external variables were found to have an influence on technology adoption/usage in revised versions of the TAM (Venkatesh & Davis, 2000;Venkatesh & Bala, 2008) and the abovementioned SME social media marketing-related studies across various sectors and countries (Chatterjee & Kumar Kar, 2020;Sutomo et al, 2020;Tumsifu & Gekombe, 2020;Kwon et al, 2021;Salam et al, 2021).…”

“…They do not belong to a larger chain or group. Independent retailers are usually managed by the owner and, generally, have less financial capacity or the ability to conduct promotional programs Schmidt et al, 2017;Salam et al, 2021).…”

“…A number of new studies identify other research gaps. Several inquiries assert that additional research is necessary to investigate the use of social media marketing by SMEs in other countries (Lepkowska-White et al, 2019;Gabbianelli & Pencarelli, 2021;Kwon et al, 2021), especially in developing countries (Alzougool, 2019;Qalati et al, 2021;Salam et al, 2021). Rajahonka and Villman (2019); Olsson and Bernhard (2020);and Siti-Nabiha et al (2021) stress that further research is required to explore how SMEs use and implement social media, as well as investigate the associated benefits and drawbacks.…”

“…Though, this current qualitative study will not endeavor to empirically test the associations between the aforementioned TAM variables, since several other recent SME marketing-related inquiries have already found positive associations between PU and PEOU, and social media behavioral/usage intentions (Chatterjee & Kumar Kar, 2020;Sutomo et al, 2020;Tumsifu and Gekombe (2020); Kwon et al, 2021;Salam et al, 2021). A number of external variables were found to have an influence on technology adoption/usage in revised versions of the TAM (Venkatesh & Davis, 2000;Venkatesh & Bala, 2008) and the abovementioned SME social media marketing-related studies across various sectors and countries (Chatterjee & Kumar Kar, 2020;Sutomo et al, 2020;Tumsifu & Gekombe, 2020;Kwon et al, 2021;Salam et al, 2021). So, this study seeks to make an original contribution to literature by examining the external factors that promote or impede the use of social media as a communication channel from an African independent food retailer SME perspective.…”