Impact of Social Media on Customer Retention in Textile

Industry

RESEARCH PROJECT REPORT

SUBMITTED BY:

Mahrukh Moryani – ID#1735105

Moiz Noor Siddiqui - ID#1735114

Preh Soomro - ID#1735106

IN PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE

OF

MASTERS OF BUSINESS ADMINISTRATION (MBA)

SHAHEED ZULFIKAR ALI BHUTTO INSTITUTE OF SCIENCE AND

TECHNOLOGY HYDERABAD

SZABIST

December, 2018

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 Declaration of Originality

We hereby undertake and disclose that we have conducted our project according to all the rules
and regulations described by SZABIST in order to complete our business research project. The
project has been undertaken to fulfill the requirement of MBA degree program offered by
SZABIST, Hyderabad.

Moreover, we declare that this project is purely an original piece of work and that all additional
sources of information have been duly cited. Furthermore, internet sources, published or
unpublished works from which we have quoted or drawn references have been cited. We
understand the failure to noncompliance of this will result in earning an ‘F’ grade or cancellation
of the research project.

We understand that we will be called for presentation/viva and we are duty bound to attend it. We
acknowledge that it is our responsibility to ensure our availability during presentation/viva
period and we also understand that this project will stand cancelled in case we fail to submit the
required information on time.

Name ________________________________

Signature______________________________ Date _________________________________

Name ________________________________

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Name ________________________________

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 Dedication

We would like to dedicate this thesis work to our parents who gave us full support in
completion the work and provided us the positive help throughout the thesis work.
Acknowledgment of hard working goes to our families who are always with us in every phase of
our lives.

We dedicate this thesis work to our supervisor Mam Mariyam Qureshi for being
encouraging throughout this work. She taught us the best way to do the research.

We are thankful to Mr. Jawad Khoso who is the head of campus (HOC) and Assistant
Professor at SZABIST, Hyderabad. He is a great adviser who gave this chance to discover our
skills in the area of research.

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 Acknowledgement

Firstly, we would like to thank Allah Almighty the most merciful for empowering us to
complete this thesis.

We would like to take the chance to state our thoughtful gratitude and deep regard to our
research advisor Mam Mariyam Qureshi, for her commendable supervision valued feedback, and
constant support throughout the period of the project. Besides our advisor, we would like to
thank the rest of our thesis committee, Mr.Jawad Raza Khoso& Mr. Rashid Ahmed Qureshi for
the encouragement, insightful comments. The valuable suggestions from our respective advisor
and research committee were of immense help throughout our project work. Their perspective
criticism kept us working to make this paper in much better way. Working under them was an
extremely knowledgeable experience for us.

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 ABSTRACT
Before Social Media had only purpose of connecting people now it has gone far beyond that. In
result of that today we can easily interact with millions of users in a cost effective and real time
manner. And it has risen the engagement of online content provided by different content creators
from diverse professional and personal backgrounds. It is intelligent to feel that a man's informal
organization impacts their purchasing conduct. On the off chance that my companion likes
Organization X, they will presumably delineate for me it and I, as well, may like them enough to
wind up a client. The purpose of this study was to provide an insight and evaluate the effect of
how social media is impacting the customer retention in textile industry of Hyderabad, and does
it accelerates the online buying or not.

This research also focused on how customer loyalty programs can help different clothing outlet
to survive in Hyderabad market. Primary data collected through questionnaire from 100
respondents was used for conducting the study. A quantitative research method is used for this
research to get the definite results. Results have suggested that the relationship of social media
and customer retention seems too weak in the future though they have positive relationship
among them.

Brands should focus on how social media is powerful tool for better and effective marketing
along with cost effective method and is helpful for them to analyze new market trends and newer
promotional activities and it helps in communicating with their clients through these platforms.

The findings from the data provide that there is no such impact of social media on customer
retention through loyalty programs. Our data collection was only focused on the market of
Hyderabad but if research conducted from different cities (Karachi, Islamabad, Lahore) might
show different results based on different markets.

It is also stated that Social media in every term is impacting on customers and its retention, but
no independent variable is having significant impact on customer retention it this study.

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Contents
Abstract……………................................................................................................................................. v

CHAPTER NO 01 ..................................................................................................................................... 1

INTRODUCTION ......................................................................................................................................1

1.1 Social Media ........................................................................................................................................ 1

1.2 Brands, Branding at Social Media ...................................................................................................... 2
1.3 Loyalty Programs and Brands Activation ............................................................................................ 4
1.4 Retain and Acquire with Social Media .................................................................................................5
1.5 Purpose of Study ................................................................................................................................. 6
1.6 Research Gap ........................................................................................................................................6
1.7 Objectives .............................................................................................................................................7
1.8 Hypothesis ............................................................................................................................................7

CHAPTER NO 02 .......................................................................................................................................8

LITERATURE REVIEW ........................................................................................................................... 8

CHAPTER NO 3 .......................................................................................................................................12

METHODOLOGY ....................................................................................................................................12

3.1 Research Approach ............................................................................................................................. 12

3.2 Relationship Between Independent and Dependent Variables ............................................................12
3.3 Research Purpose .................................................................................................................................12
3.4 Research Design ...................................................................................................................................13
3.5 Data Source ..........................................................................................................................................13
3.6 Population of the Study ........................................................................................................................13
3.7 Sampling Strategy ................................................................................................................................13
3.8 Sample Size ..........................................................................................................................................14
3.9 Measurement/Instrumental Collection .................................................................................................14
3.10 Findings and Analysis ........................................................................................................................14

CHAPTER NO 04 ......................................................................................................................................15

RESULTS AND DISCUSSION .................................................................................................................15

4.1 Research Methodology for Data Analysis ............................................................................................15

4.1.1 Reliability Analysis ...........................................................................................................................15
4.2 Linear Regression ............................................................................................................................... 15
4.3 Correlation Model ............................................................................................................................... 16
4.4 Hypothesis Testing................................................................................................................................17

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CHAPTER NO 05 .....................................................................................................................................18

CONCLUSION AND RECOMMNENDATIONS ...................................................................................18

5.1 Conclusion ...........................................................................................................................................18

5.2 Recommendations ................................................................................................................................18
REFERENCES ...........................................................................................................................................19

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List of Tables

Table 1: Reliability Analysis.........................................................................................................16

Table 2: Linear Regression...................………………………………………......................…...16
Table 3:Correlation Model ...........................................................................................................18
Table 4: Hypothesis Testing..........................................................................................................18

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 CHAPTER NO: 01

INTRODUCTION

1.1 SOCIAL MEDIA

Social Media life has developed past its unique motivation behind interfacing individuals all over
the globe. Today, the simplicity of collaborating with a huge number of social media clients in a
financially savvy and continuous way has offered ascend to the making of exceptionally
captivating on the web content by clients from different expert and individuals. It is intelligent to
feel that a man's informal organization impacts their purchasing conduct. On the off chance that
my companion likes Organization X, they will presumably describe for me it and I, as well, may
like that enough to wind up a client.

In fact, utilizing this thought has long been utilized in the everlasting assortment of "companion
get-companion" programs utilized in client obtaining crusades. Fruitful online networking stages
today are organized to join a quick and practical message conveyance framework that is
universally open. Prominent online networking sites can be portrayed by a consistently
developing system of members that associate through very captivating content. Due to this
capacity to have influential substance, online life stages have turned into a ground-breaking
apparatus for brand chiefs to achieve their intended interest group. Continuing progressions in
innovation, expressions, and financial aspects have extraordinarily enhanced the convenience
and reach of online networking stages. Remembering the focused scene, the online networking
stages are being utilized not just by the substance makers to amplify their compass to the
intended interest group, yet additionally by the organizations offering the item being assessed. To
catch the enthusiasm of such an immense gathering of people, a brand director must gauge the
adequacy of the channels that reveal mark data to that gathering of people. As indicated by the
Cambridge lexicon (2017), Social Media life can be characterized as sites or applications, which
enable clients to take part in interpersonal interaction by making or sharing substance. As per this
definition, social media life incorporates organizing webpage, for example, Facebook, Twitter,
Instagram and YouTube, for the most known. In any case, it additionally incorporates blogging
locales, messages, visit rooms and discussions. Past investigates from Statist, distributed in

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"Social Media life utilization around the world" (2018) demonstrate that 56% of French populace
was utilizing one social media account organizing stage in 2017. In addition, 87% of individuals
less than 40 years are dynamic on social media. (Statist 2018) Social media isn't just used to get
up to speed with individuals or draw in visit with loved ones any longer. In the previous couple
of years, it likewise turned into a place where individuals, government and associations can
communicate with one another. The development of social media has not changed the buy choice
procedure of clients itself. Be that as it may, it has totally changed.

The acquiring design. For model, it has engaged the verbal exchange by turning into a place
where clients can make proposals and assess the items. How Social will be online networking?
an investigation from Cambridge College demonstrates that clients accept other individuals'
feeling when they post it on online. It implies that clients' practices are not just impacted by
loved ones any longer, yet in addition by obscure individuals via web-based networking media.
In this way, it is an open door for organizations to make mark influence their clients to wind up
brand promoters. Brand advocates are submitted clients with solid feelings about the given
brand, though influencers indicate less energy for the brand. Brand promoters and influencers are
extraordinary and ought not to be blended.

1.2 Brands, Branding at Social Media

The meaning of a brand is a one of a unique name, term, words, sign, image, structure, a blend of
these, or whatever other component that recognizes products and services of an organization and
separates them from other competitors. (Business Dictionary 2015; American Marketing
Association 2016). As indicated by Davis (2005, 26), brands help the purchaser to "select one
item over another in a perplexing universe of expanded decision". Brands assist customers with
identifying and pick items that they see as better in contrast with the options. The job of brands
as a "manual for decision" has proceeded with a similar path to the present day since soon after
the brands were initially started to be utilized on domesticated animals as a sign of
proprietorship. (Clifton, Simmons and Ahmad, 2003, 14). The previously mentioned highlights
depict the center thought of a brand. Nonetheless, what has changed is that now the idea of the
brand has stretched out to cover something more than only an image or a name speaking to an
item. Brands never again speak to the insignificant substantial items and their highlights or
qualities – today brands may speak to things, for example, qualities, feelings and ways of life.

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Alongside the contemporary idea of the brand, promoting has likewise changed from item
depictions to notices that attempt to summon feelings in purchasers and position the brand as
speaking to something more than the item. A brand is an immaterial, yet in addition a basic
segment of what an organization speaks to. (Davis and Bojalil Rébora, 2002, 3).

Brands with positive brand value may set more expensive rates for their items and benefits or
gain more deals. Brands assist organizations with creating an association with clients on a
passionate dimension. Therefore, numerous organizations attempt to fabricate it and achieve
positive solid brands (Kotler and Keller, 2012, 32). The accomplishment of a brand relies upon
the experience that the shopper gets from it. A brand is fruitful if the customers see it as superior
to the opposition, and falls flat on the off chance that they don't (Weilbacher 1999, 22). In the
period of web-enabled life, this is winding up significantly clearer, when correspondence is
ending up more focused on the customer.

Marking includes an organization separating itself from its opposition, by making a one of a kind
offers with substantial and immaterial attributes went for particular target markets, and all the
more significantly joining these with a recognizing name and picture that can be related with
quality and fulfillment. (Building a Brand, 2004, According to Miletsky and Smith (2009, 68),
marking comprises of two sections: The reliable satisfaction of the brand guarantee and
ascending of desires. – The advancement and task of unmistakable visual and identity driven
attributes and the progressing exertion to mirror the brand decidedly through all advertising and
correspondence vehicles (Miletsky and Smith 2009, 68). The reason for marking or brand
building is to make and successfully impart a brand that is unique from the opposition, to which
purchasers have solid brand mindfulness and a positive brand picture, which prompt brand value.
Separating a brand from the opposition is called mark situating. Brand situating comprises of
characterizing the brand's unique qualities, objectives and characteristics (Geelhoed, Samhoud
and Hamurcu 2013, 125) and utilizing these as a reason for making a brand that is seen by buyers
as particular in contrast with contending brands. A solid brand is an imperative impalpable
resource which may have critical fiscal esteem. As indicated by De Chernatony, McDonald and
Wallace (2011, 8), it is evaluated that in any event 20% of the estimation of organizations on real
securities exchanges originates from brands.

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1.3 Loyalty Programs and Brand Activations:
Other than internet-based life there is no advertising device accessible to private companies
today that gives two-way correspondence. It can take any of the input from utilizing a device like
email promoting, individual messages and supercharge it by giving clients a chance to share their
considerations, questions, and thoughts without setting aside the opportunity to compose a whole
email. There are numerous advantages of advertising by means of long-range informal
communication locales. Through informal communities, the organization can expand item and
brand mindfulness, increment web activity, increment client unwaveringness and increment
accomplishment of dispatch of new items.

Sites like Facebook permit craftsmen, as Alicia Keys, to compensate the faithfulness of their
clients and fans by enabling them to tune in to their new collections previously anybody could
even get it. In addition to the fact that this provides an energizing intuitive affair for the fans, it
takes into consideration better approaches for self-advancement in the music business. Four-
square is the principal decisions in faithfulness compensate programs for some. They convey
data to advanced mobile phones anyplace that individuals end up shopping. This implies not just
that the organization sending the notice will have an expansion in deals, yet the explicit area that
client is pointed towards will straightforwardly benefit from this kind of showcasing. For
organizations that offer numerous normal items to the majority, this implies they can amplify the
presentation to their intended interest group more than ever. For some clients, this kind of
promoting conveys another and imaginative approach to shop and be engaged in the cutting-edge
technology.

Online networking is changing client dependability programs likewise by distinguishing issues

through observing what individuals are saying in regards to their brands. They can join the
discussion to demonstrate that they are tuning in, to clear up miscommunications or to include
elucidations. For instance, Rackspace Cloud Sites have had issues where Robert Scoble went
about as a channel of data to their clients on what is occurring progressively. Rather than trusting
that quarterly reports will see where an organization sparkles or is in need, they are presently
ready to have moment reaction with regards to the effect of that specific limited time venture or
item. The measure of time and cash squandered before is cosmic, and by and large, was an
extremely pointless use.

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Online networking promoting now called as Internet showcasing. Today individuals can discover
numerous routes for web showcasing. The general populations who enter this web enabled
showcasing are not stressed as a result of its high proportion of progress. Web draws in numerous
private ventures to advance their business on informal organization. Informal community
advertising is developed to such tallness; to the point that today numerous advertisers can't
acquire without it. The absolute most perceived system promoting apparatuses are Facebook,
Instagram, My Space, Twitter and LinkedIn. Twitter wound up normal place for individuals who
are new in the field of informal organization advertising.

Interfacing with the clients on ordinary premise is a show of good confidence for different
clients. At the point when individuals go to compliment or gloat about an item, they swing to
web enabled life through remarking on post. What's more, when clients post any brand name,
new crowd come and needs to pursue for the updates. The more individuals discuss any brand
via web-enabled networking media, the more profitable and definitive the brand will appear to
new clients and potential clients. Also, if a brand can associate with significant influencers on
Twitter or other interpersonal organizations, their noticeable specialist and access will soar (Al-
Qreini 2016).

1.4 Retain & Acquire with Social Media

This is on the grounds that a decent steadfastness program utilizes internet-based life to take care
of two issues: holding existing clients and gaining new ones. How about we take a gander at
some ways online life can enable us to do that. The primary route is to welcome the intensity of
the hash tag. On the off chance that you have advancement, basically including a hash tag which
is both pertinent to your particular thought and which is important to your key socioeconomics
can have a significant effect. Utilizing a steadfastness program will enable you to work out who
your center client base is. This will enable you to tailor presents and advancements on something
they will share.

Remunerating clients for essentially sharing your posts is an extraordinary method to build
unwaveringness. Without breaking a sweat, it takes to make a post, it basically gives something
to nothing which clients truly esteem. The reward, obviously, won't should be particularly

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fabulous. It tends to be as meager as a rebate code or even some free media. What you receive in
return will be more prominent reach and potential new custom.

Another approach to utilize hashtags to your client dedication advantage is to make a challenge.
It could include suggesting a conversation starter on an online life stage like Twitter. On the off
chance that the appropriate response is tweeted with the right hashtag, they are participated in to
a challenge where the victor and reward can be imparted to the equivalent hashtag. This enables
you to piggyback on participant's devotees as the hashtag will come up in their feeds, alluring
new clients to enter.

1.5Purpose of Study
The reason for this examination is to comprehend the significance of Social Media diverts in
making client maintenance through various devotion programs and their viability in life span of
faithful customers to brands.

1.6Research Gap
In this exposition or research the examination expand distinguished is the pool of utilization of
online networking in advancing dependability programs, as of cry writings and articles share the
cost viability of Social media publicizing or advancements. Undermining the idea of minimal
effort compelling showcasing, the utilization of internet-based life channels like LinkedIn,
Facebook, YouTube, Twitter & Instagram can be an extraordinary method to accomplish higher
outcomes and sparing more cash. As of late the vast majority of the days have swung to Social
media and making its majority however by one way or another there is still more to come and
brands are not using the genuine intensity of Social Media.

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1.7Objectives
Objectives of the study are to evaluate the impact of:

 To identify the significance of the impact of social media on customer retention.

 To evaluate the effect of social media on customer purchase behavior.
 To understand the determinants of customer retention.

1.8Hypothesis
H1: Social media is having a significant impact on customer retention.

H0: Social media is not having a significant impact on customer retention.

H2: Social media is having a positive relationship with customer retention.

H0: Social media is not having a positive relationship with customer retention.

H3: Loyalty services offered on social media are increasing customer satisfaction.

H0: Loyalty services offered on social media do not have any impact on customer
satisfaction.

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 CHAPTER: NO: 02

LITERATURE REVIEW
Social Media life is a wonder that has turned into a critical perspective in promoting blend and
upsetting the manner in which organizations cooperate with clients. Internet-based life promoting
comprises of endeavors to utilize web enabled life to induce purchasers that one organization,
items or potentially benefits which implies, web enabled life showcasing is advertising that
utilizes the network – online network, long range interpersonal communication, showcasing blog
and the other. Internet-based life has progressively turned into a result of customers.

RadityoKusumoSantoso (2018) talks about the impact of internet-based life to hold occasion
maintenance. The improvement of E-Commerce in Indonesia brought about the advancement of
the idea of publicly supporting with the end goal to 'Develop' the business from thoughts
communicated by customers. This exploration utilizes a quantitative spellbinding examination
technique and various relapses, and the example of the buyer look into is J.Co. Occasion joined
in internet-based life; J.Co. Research results got screened their pestered impact of online life on
client maintenance and measurements of internet-based life that influence client maintenance is a
media lavishness and self-introduction. These investigations propose that issue to improve
purchaser unwaveringness that prompts expanded client maintenance, giving a reward, reacting
to client dissensions rapidly, and utilizing the conventional media like by radio or magazine to
help correspondence between buyers with makers.

Monica W. Chege (2017) assesses the viability of online networking promoting on client
dedication at Equity Bank in Kenya. This examination was guided by the accompanying goals; to
decide the impacts of online networking apparatus utilized on buyer's image faithfulness, to
decide the components customers search for in web enabled life advertising message and to
decide how internet-based life can be utilized as a way to expand shopper unwaveringness to
mark. The investigation utilized an expressive overview plan. Purposive and straightforward
arbitrary testing was adjusted to choose the 138 respondents albeit just 94 reacted. The
information gathered was both quantitative and subjective in nature. The investigation inferred
that Social media site offer legitimate data to customers particularly from an association site this
has likewise supported in brand situating in internet-based life that has helped respondents
recollect the brand. Web enabled life webpage help make a solid bond with associations and
encourage trade of data with other online clients.

Farook et al (2016) analyzed the impact web-enabled social networking advertising has on client
commitment. The examination was chosen to be explored as should be obvious that associations
spending via web-enabled networking media keep on rising, yet estimating its effect remains a
test for generally organizations. All things considered, long range informal communication
locales encourage dynamic correspondence among organizations and clients energize
connections among clients. Here the need touched base to discover the variables impacting client

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commitment; to investigate what content they appreciate most on a Facebook mark page which
drives them to return to. Information utilized for this examination was gotten through surveys
conveyed to fanatics of a specific Facebook mark page. The outcomes exhibited that media and
substance kind of posts apply a huge impact on client online commitment. It likewise
accentuated that higher the impact of online networking showcasing, higher would be the client
commitment. The discoveries of this investigation uncovered the five factors that significantly
affect client commitment. SNSs are an extra medium through which data can be spread since it
energizes a two-path correspondence among clients and firms. Thus, advertisers should be more
mindful on what they post online as this is bound to impact clients.

Bhanot (2016) this exploration led in India and the motivation behind this examination was to
discover the effect of online networking on how organizations were embracing showcasing
methodologies to join internet-based life and discover the outcomes subjective strategy was
utilized by leading meetings with 25 web enabled life specialists and discovered web-enabled
social networking have huge impact on the business more than 60percent organizations utilize it
as their promoting apparatus and more than 80percent organizations utilizes both customary
techniques for advertising and web enabled life to build the deals.

Maecker, Barrot, Becker (2016) Discuss in their examination that the organizations battle to
evaluate whether their interests in setting up and keeping up brand pages in online networking
really live up to their high desires regarding creating and holding clients. In view of three
experimental investigations, the writers investigate the job of collaborations through corporate
internet-based life channels, for example, Face book mark pages, in client relationship the
executives. The information utilized in this investigation were gotten from a cell phone specialist
co-op in a noteworthy European nation and catch all client related exercises of this firm.
Specifically, the dataset envelops data on 334,111 clients and incorporates their statistic data, (for
example, sex, age, or family acquiring force) and contract history. The outcomes demonstrate
that internet-based life cooperations undoubtedly facilitate the up-moving endeavors and
diminish the danger of beat. These constructive outcomes balance the watched increments with
respect to the quantity of administration demands and the higher generally benefit cost.

Aleksandra Ilina (2015) ponders the best methods for internet-based life showcasing that can be
connected for clients' unwaveringness the board. Her fundamental thought was to make fitting
rules for the case organizations to assemble social securities with client that will emphatically
effect on keeping up correspondence and maintenance. The information for this investigation
were gathered from a few sources, for example, articles, books, and diaries. The quantitative
research strategy was chosen for obtaining information from the two case organizations for
further examination and plan of proposals. As indicated by the exploration exhibited in this
proposal, promoting through long range interpersonal communication administrations can be an
ideal instrument for client maintenance in various ventures on the off chance that it is actualized
effectively and dependably.

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Buss, Begorgis (2015) in their exploration they investigated the relationship between the
Customer Relationship Orientation of an organization, their Social Media Use through Social
Customer Relationship Management Capabilities, with Customer Relationship Performance with
the end goal to decide whether Social Media can be utilized as a powerful Customer Relationship
Management instrument in a business-to-business setting. Four advanced supervisors inside
Swedish little and medium measured ventures were met and 34 of their comparing clients
partook in an online review. The creators used both subjective (semi-organized master
interviews) and quantitative (online review) techniques. The discoveries demonstrated because of
organizations constrained Social Customer Relationship Management Capabilities the positive
effect on Customer Relationship Performance was not accomplished through Social Media Use.
Besides, the online reviews uncovered that Social Media isn't the best Customer Relationship
Management device, by the by a feeble relationship was found and hence Social Media can be
utilized notwithstanding the organizations' as of now settled Customer Relationship Management
exercises.

Golshani. (2015) led at Aarhus college division of business organization Denmark. The target of
this examination is to decide the shopper commitment factors on online web enabled life stage.
Essential information was gathered via web-enabled networking media from through best 105
Facebook brands rank in social bakers.com. The outcome indicates essentially expanded buyer
commitment layers which enable brand to page moderates (ADMIN) unconcerned industry to get
ready promoting technique.

Bulka (2015) this exploration was led to discover the internet-based life systems that was utilized
as the promoting apparatus and to discover optional information was gathered by perusing
articles, perusing books via web-enabled networking media and researching web-enabled social
networking scholars and discovered there were four distinct techniques that were utilized 1
"prescient expert" it limits to client benefit zone and it is utilized to stay away from vulnerability
and get results that can be estimated 2 "innovative experimenter" it grasps vulnerability by
utilizing little scale test with the end goal to discover the approaches to enhance discrete capacity
and practices 3 "online life champion" it is utilized to handle substantial activities to get the
required outcomes and the last one was "web-enabled social networking transformer" it is
utilized for vast scale communication so organizations can enhance the methods for working
together.

Bruno schivinski, Dariusz dabrowski (2014) they talk about in their exploration that the
Researchers and brand administrators have restricted comprehension of the impacts online life
correspondence has on how shoppers see brands. We explored 504 Facebook clients with the end
goal to watch the effect of firm-made and client created (UG) web enabled life correspondence
on brand value (BE), mark state of mind (BA) and buy aim (PI) by utilizing an institutionalized
online study all through Poland. To test the reasonable model, we broke down 60 marks
crosswise over three unique businesses: non-mixed refreshments, apparel and versatile system
administrators. While breaking down the information, we connected the auxiliary condition

10
displaying method to both research the interchange of firm-made and client created internet-
based life correspondence and look at industry-explicit contrasts. The aftereffects of the exact
examinations demonstrated that client produced web enabled life correspondence impacted both
brand value and brand disposition, while firm-made online life correspondence influenced just
brand state of mind. Both brand value and brand state of mind were appeared to impact buy aim.

Christine Adhiambo Odhiambo (2012) utilizing a logical research approach of contextual

investigation examine, this examination was intended to investigate whether internet-based life is
more powerful than the conventional media on a brand the board point of view and discover the
usage challenges that make it a two-confront wonder. The discoveries introduced in this
investigation infer that despite the fact that web enabled life is more viable than a portion of the
customary publicizing channels, it can't be executed in separation without increasing it with
different types of conventional promoting channels. The suggestions are that online life alone
can't single conveniently make mark mindfulness or even create business.

Wang et al (2011) think about embraced a plan of action approach that applies the idea of client
relationship, a component of the e-plan of action cosmology, as the beginning stage to build up
the exploration display. Also, they guessed online life utilize has a positive connection with client
relationship, and in addition its three parts. Further, a quantitative exact examination has been
utilized to inspect these speculations. After the experimental examination, they exhibited the
consequences of their theories and refreshed their exploration display. Toward the end, an
aberrant connection between online life utilize and client relationship were found.

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 CHAPTER: NO: 03

METHODOLOGY

3.1 Research Approach

This is a quantitative research that evaluates the response generation of customer loyalty
programs promoted through Social Media Channels on customer’s buying behavior and customer
retention in the textile industry. The research will be conducted in Hyderabad city, Pakistan. Data
is collected through online questionnaire and 100 respondents included customers of branded
cloths (Junaid Jamshed, Khaadi, Kapray and Al-Karam etc.).

Two kinds of variables are used in this research that includes dependent and independent
variable. In this research customer retention is a dependent variable and social media is an
independent variable. Customer retention is defined as the long-term commitment of the
customer with a particular brand due to any exclusive satisfaction benefits provided by the brand.

3.2 Relationship Between Independent and Dependent Variables

Customer retention is a dependent variable as customers usually prefer those products

which are available with extra benefits, discounts, points, actual gifts. The independent variable
here is social media campaigning offered by companies in order to generate higher revenues.
Customers usually shift their loyalty towards the retailers that offer product with extra benefits.
Therefore, customer loyalty programs offered through social media are independent variable in
this research and act as a shift factor in increasing customer retention.

3.3 Research Purpose

The purpose of this study is to understand the importance of Social Media channels in creating
customer retention through different loyalty programs and their effectiveness in longevity of
loyal customers to brands.

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3.4 Research Design

This study has focused on response generation of customer loyalty programs promoted
through Social Media Channels on customer’s buying behavior and Customer's Loyalty in
clothing industry, what influence customers to purchase from a certain brand, how customers
perceive loyalty programs whether it increases customer satisfaction and help
brands/organizations to build long-term relationships with customers or waste of time. Over all
the study focus on the impact of customer loyalty services offered through social media on
customer buying behavior in clothing sector of Hyderabad, Pakistan. In doing so, it tests a
number of specific hypotheses using primary data collected through questionnaire. A quantitative
methodology has been adopted for conducting this study. This methodology helps to determine
particular phenomenon of the research study. A quantitative methodology also has capacity to
derive results that can lead to a definite conclusion.

3.5 Data Source

The data source of the study is ‘Primary’, which involves the collection of research data directly
from the respondents. In other words, the primary source is the direct data source related to the
subject or problem. Here, data is collected directly from the participants using a questionnaire to
know about customer’s retention on social media.

3.6Population of the Study

The population of a research study is participants or the respondents of the study that
possess similar personality or behavior. As the aim of the study is to explain impact of social
media on customer retention in textile industry therefore the population of the study consists
different individuals who use different brands.

3.7Sampling Strategy

Random selection strategy has been selected for this.

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3.8Sample Size

We have collected data through questionnaires from 100 respondents.

3.9Measurement / Instrumental Collection

Questionnaire was used as an instrument for collecting data from customers of clothing brands
such as Junaid Jamshed, Khadi, Kapray and Al-Karam etc.

3.10Findings and Analysis

The Findings and analysis are created through summing up answers of the questions that were
asked from the respondents. SPSS has been used for performing Linear Regression and
Correlation model in this study.

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 CHAPTER: NO: 04

RESULTS AND DISCUSSIONS

4.1 Research Methodology for Data Analysis

4.1.1 Reliability analysis

The cronbach alpha is used to check the reliability of data and based on that data we can say that
the final conclusions can be reliable or not.

Reliability Statistics

Cronbach's
Alpha Based on
Cronbach's Standardized
Alpha Items N of Items

.813 .870 5

The value of Cronbach’s Alpha is used for final decisions about the reliability of studied
data. On that basis, we can level reliability in terms of poor or good, in this table value of
Cronbach’s Alpha is 0.813. The conclusion for reliability can be drawn as data is reliable.
4.2 Linear Regression

Model Summary

Adjusted R Std. Error of the

Model R R Square Square Estimate

1 .003a .000 -.010 3.878

a. Predictors: (Constant), SocialMedia

15
 ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression .011 1 .011 .001 .979a

Residual 1489.217 99 15.043

Total 1489.228 100

a. Predictors: (Constant), SocialMedia

b. Dependent Variable: CustomerRetention

Coefficients

Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 22.439 1.768 12.693 .000

SocialMedia .007 .257 .003 .027 .979

a. Dependent Variable: CustomerRetention

Source: Primary data analysed by authors in the SPSS.

The regression analysis shows that there is not a significant impact of social media on
customer retention because p-value is greater than 0.05. The value of Adjusted R-Square is
-0.010 which indicates that social media is explaining customer retention up to -1% (-0.010).
Thus, there is not a significant relationship between social media and customer retention.

4.3 Correlation model

Correlations

CustomerRetenti
SocialMedia on

SocialMedia Pearson Correlation 1 .003

Sig. (2-tailed) .979

N 101 101

CustomerRetention Pearson Correlation .003 1

Sig. (2-tailed) .979

N 101 101

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Source: Primary data analysed by authors in the SPSS.

The relationship between social media and customer retention is positive but its
magnitude is very weak which is just 0.003.

4.4 Hypothesis Testing:

Hypothesis Acceptance/Rejectio
n
Social media is having a significant impact on customer Rejected
retention.

Social media is having a positive relationship with customer Accepted but weak
retention. impact

Loyalty services offered on social media are increasing customer Rejected

satisfaction.

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 CHAPTER: NO: 05

CONCLUSIONS AND RECOMMENDATIONS

5.1 Conclusion
This study is about the impact of social media on customer retention in the textile sector. The
thesis study has focused on the Hyderabad city. Primary data is used for analysis and data has
been collected through questionnaires filled by 100 respondents. Random sampling was used
for identifying the sample. Furthermore, linear regression and correlation model in SPSS has
been used for testing the hypothesis. Results has suggested that there is no significant impact
of social media on customer retention and their relationship is positive but the magnitude of
that relationship is too weak. In future, the researchers should focus on the other parameters
of social media in order to identify its impact on customer retention. Moreover, they should
also focus on the market of other big cities like Karachi, Lahore etc. as the citizens of these
cities are more influenced by social media.

5.2 Recommendations:
There are number of recommendations that can be followed to stream line more effectiveness of
social media for not just promotion loyalty card but also in helping the branding perspective of
brands if they are to go through longevity in the market; they must attempt to follow social
media trends and perception as this platform has grown rapidly and a vast majority of people has
welcome this platform because this help a lot in saving the cost and teach more exciting things
about social media:

 Brands should utilize the meaning of social media in terms of cost saving and highly
effective promotional strategy.

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  Brands should start communicating with their customers through social media platforms
and generate more following.
 Using social media as channel Brands must be pro-active and responsive.
 Market is dynamic and everyone in today era is trying to reach out most of the social
media.

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 APPENDIX

QUESTIONNAIRE

Social Media:

1. Which is your favorite social media app?

a) Facebook
b) Snap-chat
c) Instagram
2. Clothing brands should promote more of their loyalty programs and offers over internet.
a) Strongly agree
b) Agree
c) Disagree
d)Strongly disagree
3.You will switch your brand, if you get good loyalty programs or other attractive offers on
social mediafrom them
a) Strongly agree
b) Agree
c) Disagree
d)Strongly disagree
4. Would you like to be subscribed with Brand’s offers and newsletters on social media?
a) Yes
b) No
Customer Retention:

1. Are you Brand Conscious?

a)Yes

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 b) No
c) May be
2. Which is your favorite clothing brand?
a) Khaadi
b) Alkaram
c) Sapphire
d) Kaprey
e) Nishat linen
f) Junaid Jamshed
3. How frequently do you purchase from your favorite clothing brand?
a) Once in three months
b) Once in two months
c) Once in a month
d) Twice in a month
4. How much influence did social media have on such purchase?
Scale: 1 - 2 - 3 - 4 - 5
(1= Lowest; 5=Highest)
5. How frequently do you participate in loyalty programs offered through social media?
a) Once in a month
b) Twice in a month
c) Every Week
d) Daily
6. If you see an offer from other brands on social media, do you get excited or engaged?
a) Yes
b) No
c) I prefer selected Brands
7. How much do you rate your favorite brand page on social media in terms of attracting and
retaining customers?
Scale: 1 - 2 - 3 - 4 - 5
(1= Lowest; 5=Highest)
8. Which of the following loyalty program are effective in terms of customer retention?
a) Membership Cards
b) Coupons
c) Discounts

9. What are the reasons of your loyalty towards your favorite brand?
a) Product quality/service
b) Effective pricing strategy
c) Easy availability on social media
d) Attractive advertisement

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