1

BENEFITS OF INSTAGRAM AS A MARKETING TOOL FOR ONLINE

SELLER

A Thesis
Presented to the Faculty of the College of Business Management
DE LA SALLE ARANETA UNIVERSITY
Victoneta Ave., Malabon City, Metro Manila

In partial fulfillment of the requirements for the degree of

BACHELOR OF SCIENCE IN BUSINESS ADMINSTRATION
Major in Marketing Management

By

EZEKIEL Q. CASIÑO
VINCENT REY P. TAPOC
MATTEW VILLARAMA
March 2019
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Recommendation Sheet

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Approval Sheet

This Thesis entitled [THESIS TITLE] by [NAME/S OF STUDENT/S], in

partial fulfillment of the requirements for the degree of [DEGREE CONFERRED], has
been examined and is recommended for acceptance and approval for ORAL
EXAMINATION.

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Panel of Examiners

Approved by the COMMITTEE ON ORAL EXAMINATION with a gradeof

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Accepted and approved as partial fulfillment of the requirements for the degree
of [DEGREE CONFERRED].

_______________________
[NAME OF DEAN]
Dean, [NAME OF COLLEGE]
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Acknowledgements
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Table of Contents

Page

TITLE PAGE .................................................................................................................#

RECOMMENDATION SHEET ....................................................................................#

APPROVAL SHEET .....................................................................................................#

ACKNOWLEDGEMENT .............................................................................................#

ABSTRACT ...................................................................................................................#

TABLE OF CONTENTS ...............................................................................................#

LIST OF TABLES .........................................................................................................#

LIST OF FIGURES .......................................................................................................#

LIST OF APPENDICES ................................................................................................#

CHAPTER

1 The Problem and a Review of Related Literature

Introduction ........................................................................................................#

Review of Related Literature .............................................................................#

Theoretical and Conceptual Frameworks ..........................................................#

Statement of the Problem ...................................................................................#

Hypotheses .........................................................................................................#

Assumptions of the Study ..................................................................................#

Significance of the Study ...................................................................................#

Scope and Delimitation ......................................................................................#

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Definition of Terms............................................................................................#

2 Methods

Research Locale .................................................................................................#

Research Design.................................................................................................#

Respondents of the Study...................................................................................#

Research Instruments .........................................................................................#

Statistical Treatment of Data .............................................................................#

Research Procedure ............................................................................................#

3 Results and Discussion

Presentation of Results .......................................................................................#

Interpretation of Data .........................................................................................#

[Additional entries] ............................................................................................#

4 Summary, Conclusion and Recommendation

Summary ............................................................................................................#

Conclusion .........................................................................................................#

Recommendation ...............................................................................................#

REFERENCES ..............................................................................................................#

APPENDICES ...............................................................................................................#

CURRICULUM VITAE ................................................................................................#

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List of Tables

Table Page

1 [Table Caption 1] ...............................................................................................#

2 [Table Caption 2] ...............................................................................................#

3 [Additional entries] ............................................................................................#

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List of Figures

Figure Page

1 [Figure Caption 1] ..............................................................................................#

2 [Figure Caption 2] ..............................................................................................#

3 [Additional entries] ............................................................................................#

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List of Appendices

Appendix Page

A [Appendix Caption A]........................................................................................#

B [Appendix Caption B] ........................................................................................#

C [Additional entries] ............................................................................................#

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Abstract

TITLE : [Thesis Title] (Date of Graduation)

RESEARCHER : [NAME/S OF STUDENT/S]

ADVISER : [NAME OF ADVISER]

SCHOOL : De La Salle Araneta University

DEGREE CONFERRED : [Degree Conferred]

In this paper, we studied …

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CHAPTER 1

The Problem and a Review of Related Literature

Introduction

Marketing has evolved into a plethora of strategies geared towards creating

consumer awareness on a certain business or product. Conventionally, businesses have

employed a variety of marketing tools in order to expand its market reach. Technology

however paved the way to create a virtual marketplace wherein sellers and

current/potential buyers engage. The creation of social media platforms made the

introduction of products and services as fast as a blink of an eye. Photo sharing, text

and link postings, and other social media activities form channels of business growth in

this era of socially-connected people.

Taking into account this improvement in marketing tool, there has been a shift

into more complex marketing strategies in order to intensify customer reach.

Instagram has been a viable social media marketing tool to online sellers.

Through visual contents (i.e. photos/images share), potential customers are able to

gather information about certain products or services. Instagram, if used correctly by a

business, can provide a wonderful opportunity to let the brand grow.

Instagram’s benefit in particular has become a great platform for reaching

current, new, and potential clients. Instagram is one of the largest website in the world.

In the Philippines alone, Instagram has recorded 8.5 million users, 35 percent of whom
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are male and over 80 percent are aged 18 to 44 (Instagram User Demographics In

Philippines, 2017).

This study aims to provide empirical evidence on the benefits of Instagram and

how promotion through this platform serves as an effecting marketing tool. The

relevance of the study is that it tries to verify the usefulness of Instagram as a marketing

tool by applying it to the local context (i.e. DLSAU students who engage in online

selling). The researchers will focus on the business side, like online selling using social

media and most likely instagram (i.e. online sellers’/resellers’ responses through

surveys that are distributed online).

Review of Related Literature

There is quite a vast number of existing literatures on the topic. The following

discussions present those that are relevant to this study.

As described by Thomas and Akdere (2013), social media have increasingly

become an important marketing tool for establishments of any size. As further

explained by Edwards (2011) and by Rasid et al., (2013), social media platforms such

as Instragram, Facebook, and Twitter, have transformed the way by which people

communicate through the uploading of photos and through the conveniently sharing of

opinions about products, services, and experiences. Due to this advancement in

technology, users of electronic devises today can easily and habitually connect to social

networking sites (Bergstrom & Backman, 2013; Raacke & Bonds-Raacke, 2008). This
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results in social networking becoming a necessary part of human life, especially the

youth.

Obviously, businesses take part on these new platforms of communication in

order to promote their products. As expressed by Kim et al. (2013), the different

features of social media have changed and improved the business operations, giving the

businesses new opportunities to effectively connect with their customers. As a result,

many businesses have started to use social media to connect with their potential

customers. They further explained that the addition of visual information intensified the

influence of social media in the decision-making process of consumers. According to

Egan (2015), being a photo-sharing tool, Instagram uses mobile technology in order to

visually connect the company’s brands with that of the consumers. Akar and Topcu

(2011) added that these social media platforms also serve as channels for sharing

opinions and information, aside from the fact that these also build social connections

among communicators.

Instagram: A Social Platform

Instagram is a newer social platform, relative to Facebook and Twitter.

Instagram, founded in 2010 by Kevin Systrom and Mike Krieger, serves primarily as a

photo-sharing tool that can easily be downloaded for free on smart phones and other

similar devises. As highlighted by Goor (2012), the simplicity and popularity of

Instagram made the platform reach millions of user accounts in a short period of time

and was then awarded in 2011 by Apple Inc. as the “App of the Year”. He further
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expressed that such factors prompted the interest of Facebook’s Mark Zuckerberg to

buy Instagram in the succeeding year.

For many years, Facebook, Twitter, and LinkedIn are the faces of social media.

Not until Intagram joined the social media world. As mentioned by Goor (2012),

Thomas and Akdere (2013), and Egan (2015), Instagram has taken the social media

market by storm in the past years. Accordingly, despite being a photo-based social

networking tool and was just launched in 2010, there were already more than 100

million users who are actively using Instagram on a regular basis; thus, making it

among the fastest growing social media platforms in a short span of time. Endres

(2013) even mentioned that Instagram’s popularity has even exceeded Facebook,

especially among the students. Such was affirmed by Abbot et al. (2013) and Salomon

(2013) stating that the platform reaches the younger generations and interests varied

societies more effectively compared to other social networking platforms. Abbott et al.

(2013) explained that such is because young mobile users are excessively attracted and

addicted to taking photos using their smart devises and instantly sharing photos with

others though the platform.

In a study conducted by Simply Measured, Inc., Shively (2014) highlighted the

following statistics on Instagram: (a) 200 million monthly active users; (b) 60 million

photos are uploaded every day; (c) 1.6 billion likes happen every day; (d) 86% of top

brands have Instagram accounts; and (e) Top brands on Instagram showed significant

growth for the past two years.

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Benefits of Instagram as a Marketing Tool

Connecting People

As a social platform, Instagram enables marketers to connect with customers

across multiple channels. Instagram is an application which can be connected into

various social networking sites (e.g. Facebook, Twitter) and even in the company’s

official website. For instance, when potential customers see a gallery of Instagram

photos, they can click through to see the marketer’s Instagram account, start following,

and reconnect later. Alternately, an Instagram user browsing on an Instagram

photo/gallery may have never been to the marketer’s website before but may instantly

be directed to the site through hyperlink.

Economical

Another advantage of the use of Instagram is that it costs minimal or even null.

Marketers just need to create an Instagram account and build connections. Marketers

likewise may re-use marketing materials. They may re-upload or send to other

Instagram accounts photos which were made earlier.

Highly-engaged User Traffic

A major reason for Instagram as a marketing tool that enables fast marketing

turn-around is due to its attraction of highly engaged traffic. User traffic that comes

from Instagram photos is super-engaged (i.e. Instagram drives more engaged traffic

than any other social channel.). In a study conducted by Simply Measured (2014), it
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concluded that engagement rates on Instagram are 15 times higher than Facebook and

20 times higher than that of Twitter.

User-generated Content

Instagram photos are, by nature, user-generated contents. Photos shown to users

depend on their filtering preference and platform recorded activities. This way,

Instagram helps marketers engage with their audience through user-specific contents.

Promotion through Instagram

According to Rezvani (2014), in the study conducted by Forrester Research in

2014, they found that Instagram users were 58 times more likely to like/comment/share

a brand’s post than the users of Facebook. Furthermore, Instagram is accordingly 120

times more likely than the users of Twitter.

According to Bendall (n.d.), this significant effect of the use of Instagram, a

visual-intensive platform, as a marketing tool is due to the following facts: (a) Visual

data are processed 60 thousand times faster by the brain than text; (b) 40% of people

will respond better to visual information than plain text; and (c) 60% of people are

visual learners.
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Theoretical Framework

Instagram as a
marketing tool

Effectiveness as a
Benefits
promotional tool

Affective Behavioral Cognitive

As mentioned earlier, this study aims to identify the benefits of Instagram and

assess how promotion through this platform serves as an effecting marketing tool. In

order to do so, below theoretical framework has been developed in order present how

the chosen theoretical basis would lead to the actual study.

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Conceptual Framework

A seen in the above figure, Instagram as a social media platform will be studied in

order to identify benefits derived by online sellers by using such platform as a

marketing tool. Likewise, it is also the task of the study to assess the effectiveness of

such platform in terms of promoting the online sellers’ product. The assessment shall

be conducted through analyzing cognitive, affective, and behavioral responses by the

online sellers’ customers.

In addition to the Conceptual Framework of this study, below is the figure

presenting the Operational Framework, which is intended to lay out how the study

would go forth.

INPUT PROCESS OUTPUT

•The profile of •Survey •Study depicting

the Questionnaire the findings on
respondents •Respondent's the benefits of
•Age Perception Instagram as a
•Sex •Related study marketing tool
•Income materials -
books, journals,
internet
•The benefits
that •Data are
respondents treated and
get through the interpreted
use of using
Instagram as a descriptive
marketing tool statistics

Figure 3. Operational paradigm of the study

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Statement of the Problem

This study aims to provide empirical evidence on the benefits of Instagram and

how promotion through this platform serves as an effecting marketing tool. The study is

limited to the extent on which the Consumer Socialization Theory (Cognitive,

Affective, and Behavioral responses) is applicable. As such, the following questions

serve as the researchers guide:

1. What is the profile of the respondents as to:

(a) Age

(b) Sex

(c) Income

2. What is the assessed benefits of Instagram as social media marketing tool among

DLSAU students who sell their products through Instagram by applying the

Consumer Socialization Theory?

3. What is the assessed effectiveness of Instagram as a promotional tool among

DLSAU students who sell their products through Instagram by applying the

Consumer Socialization Theory?

4. Is there a statistically significant difference in the assessed benefits of Instagram as

social media marketing tool among DLSAU students who sell their products

through Instagram when the profile of the respondents is considered?

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5. Is there a statistically significant difference in the assessed effectiveness of Instagram

as a promotional tool among DLSAU students who sell their products through

Instagram when the profile of the respondents is considered?

Hypotheses

1. There is no statistically significant difference in the assessed benefits of Instagram as

social media marketing tool among DLSAU students who sell their products

through Instagram when the profile of the respondents is considered.

2. There is no statistically significant difference in the assessed effectiveness of

Instagram as a promotional tool among DLSAU students who sell their products

through Instagram when the profile of the respondents is considered.

Assumptions

In this study, the researchers assume that the participants understood and have

answered the questionnaire without any restrictions and at their own volition. It is also

assumed that respondents have rightfully identified themselves which made them

qualified to be studied.

Scope and Delimitation of the Study

The focus of this paper is to identify the benefits of Instagram and how

promotion through this platform serves as an effecting marketing tool. The study is
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limited as far as the Theory of Consumer Behavior is applicable. Data and results not

relevant or not connected with the guiding theoretical principle are not omitted from the

study. As to the respondents, they are assumed to have answered the survey

questionnaire to the best of their knowledge and at their free will. Respondents are also

assumed to have rightfully identified themselves that made them qualify as respondents.

Significance of the Study

The primary purpose of the study is to provide light on the use of Instagram as a

marketing tool for students who are engaged in social media entrepreneurship.

In particular, this study would benefit the following:

1. To the Entrepreneurs – Entrepreneurs are expected to get insights on how to

maximize the use of their Instagram account in order to intensify their selling

potential. Students who are not yet engaged in social media marketing may also be

inspired by this study to pursue such endeavor.

2. To the Consumers - The study may likewise benefit the consumers as this study tries

to point out and lay down consumers’ tastes, preferences, and attitudes toward social

media marketing, especial through Instagram. Sellers will then be guided on what

these customers really want to see on social media marketing postings/materials.

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Definition of Terms

For a clear understanding of the study, the following terms are defined:

Affective – It refers to the emotional reaction one has toward an attitude object.

Behavioral - It refers to the way one behaves when exposed to an attitude object.

Benefits – That is something gained by the seller through the use of Instagram as a

marketing tool.

Cognitive - This refers to social activities and that helps us understand and predict the

behavior of ourselves and others.

Consumer Socialization – It refers to the process which young people

develop consumer related skills, knowledge and attitudes.

Instagram - It is a social networking website that allows registered users to create

profiles, upload photos and video and keep in touch with friends, family,

colleagues and businesses. It allows members to post, read and respond to

classified ads.

Marketing Tool – It refers to product development and promotional strategies and

actions that a company uses to develop and promote its products or services.

Promotion – The entire set of activities (e.g. Instagram postings) which communicate

the product, brand, or service to the user.

Social Media – websites and applications that enable users to create and share content,

online chatting and also nowadays to sell products.

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Chapter 2

Methodology

This chapter presents the research locale, research design, the respondents, the

research instruments, and the data gathering procedure.

Research Locale

The study will be conducted by the researchers at De La Salle Araneta

University. The researchers chose this as the research locale since the researchers are

from this University and since the research focuses on Online sellers who has online

business.

Research Design

The study is based on descriptive design under the quantitative type of research.

Being a descriptive research, the study will employ statistical tools that describe the

nature of the situation/circumstance that the researchers would like to study. In the

context of this study, the researchers would like to study the benefits of Instagram as a

marketing tool using the three consumer socialization components: Cognitive, Affective,

and Behavioral and apply it to DLSAU students who sell products through Instagram.

Respondents of the Study

The researchers would like to study 30 online sellers who has online business

who engage in online selling through Instagram.

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Sampling Technique

The researchers intend to use convenience-quota sampling technique under the

nonprobability sampling. The primary reason for employing such sampling technique is

due to the characteristics of the target population. Since complete list of DLSAU

graduates who sell through Instagram can only be identified through self-reporting, the

researchers cannot employ probabilistic sampling technique.

Research Instruments

The researchers will make a self-made survey questionnaire in order to know the

benefits of Instagram as a marketing tool to Business Owners selling online. The self-

made survey questionnaire will be validated and pre-tested in order to ascertain the

usefulness of the survey questionnaire.

Statistical Treatment of data

To facilitate analysis and interpretation, the data that will be gathered from the

replies of the respondents will be studied using descriptive statistics. In particular, the

following statistics will be employed:

1. Frequency and Percentage will be used to present respondents’ profile.

2. Mean and Standard Deviation will be used to measure the assessed benefit

and effectiveness of Instagram as a marketing tool.

3. T-test and ANOVA will be used to measure the difference in the assessed

benefit and effectiveness of Instagram as a marketing tool when the profile of

the respondents is considered.

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Data Gathering Procedure

The researchers will gather data by personally messaging the self-made

questionnaire to the respondent. The researchers will approach and/or contact Online

seller who then became entrepreneurs and ask if they sell items online through

Instagram. Onlne sellers who qualify will be asked to be included as respondents at their

free will.
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References

Abbott, W., Donaghey, J., Hare, J., & Hopkins, P. (2013). “An Instagram is worth a

thousand words: An industry panel and audience Q&A”, Library Hi Tech News,

Vol. 30 No.7, pp.1-6.

Akar, E., & Topcu, B. (2011). “An examination of the factors influencing consumers’

attitudes towards social media marketing”, Journal of Internet Commerce,

Vol.10 No.1, pp. 35-67.

Bendall, C. (n.d.). “16 statistics to show why Instagram marketing is crucial”. Retrieved

from http://oursocialtimes.com/16-statistics-to-show-why-marketers-need-

instagram/

Bergstrom, T. & Backman, L. (2013). Marketing and PR in social media: How the

utilization of Instagram builds and maintains customer relationships.

Stockholm University.

Goor, M. (2012). Instamarketing: A content analysis into marketing on Instagram.

Universiteit van Amsterdam.

Edwards, S. M. (2011). “A social media mindset”, Journal of Interactive Advertising,

pp. 1-3.

Egan, J. (2015). “14 eye - opening Instagram statistics: Entrepreneur media”, Retrieved

from http://www.entrepreneur.com/article/242659
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Endres, H. (2013). Shreddz a clothing brand: Creating a marketing plan through social

media and traditional marketing research. California Polytechnic State

University San Luis Obispo.

Instagram User Demographics In Philippines. (2017). Retrieved from

https://napoleoncat.com/blog/en/instagram-user-demographics-in-philippines-

april-2017/

Kim, K. S., Sin, S. C. J., & Yoo-Lee, E. (2014). “Undergraduates’ use of social media

as information sources”, College & Research Libraries, Vol. 75, pp. 442-457.

Rasid, A. H. M., Loke, S. P., Hazri, I., & Khalid, K. (2013). User motivation and their

response towards social media marketing among Malaysian college and

university students. University Teknologi MARA, Perak, Malaysia.

Raacke, J. & Bonds-Raacke, J. (2008). “MySpace and Facebook: applying the uses and

gratifications theory to exploring friend-networking sites”, Cyber Psychology

and Behavior, Vol. 11 No. 2, pp. 169-174.

Rezvani, J. (2014). “Why every brand should be on Instagram”. Retrieved from

https://www.fastcompany.com/3032848/nofilter-necessary-why-any-brand-can-

and-should-harness-the-power-of-inst

Salomon, D. (2013), “Moving on from Facebook using Instagram to connect with

undergraduates and engage in teaching and learning”, College & Research

Libraries News, Vol. 74 No. 8, pp. 408-412.

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Shively, K. (2014). “New research: See how the top brand marketers use Instagram”.

Retrieved from https://simplymeasured.com/blog/new-research-see-how-the-

top-brand-marketers-use-instagram/

Thomas, K. J. and Akdere, M. (2013), Social media as collaborative media in

workplace learning. Human Resource Development Review.

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SURVEY QUESTIONNAIRE

BENEFITS OF INSTAGRAM AS A MARKETING TOOL: THE CASE OF

DLSAU-GRADUATE ENTREPRENEURS
De La Salle Araneta University
Victoneta Avenue, Malabon City
_______________________________________________________________________

I. RESPONDENT PROFILE

Name (Optional): _______________________

Age: ______
Sex: ______
Income: ______
II. BENEFITS AND EFFECTIVENESS OF INSTAGRAM AS A MARKETING TOOL

1. What are the benefits of using Instagram to you as an online seller?

5 – Strongly Agree
4 – Agree
3 – Neither Agree nor Disagree
2 – Disagree
1 – Strongly Disagree
Indicators 5 4 3 2 1
More accessible to consumers.

Faster communication to customers.

Lower your marketing expenses.

Increased exposure to potential customers.

You can easily reach a targeted audience.
Spy on your competition.

1. Do you really look Instagram as effective Marketing Tool? Specify

2. What are the other effective Social Media Marketing tool? Specify
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2. Listed below are the item indicators in assessing the effectiveness of Instagram as a
marketing tool following the Consumer Socialization Theory. Please rate based on
below ratings hierarchy, whichever applies:

5 – Strongly Agree
4 – Agree
3 – Neither Agree nor Disagree
2 – Disagree
1 – Strongly Disagree

COGNITIVE DIMENSION:
Indicators 5 4 3 2 1
Instagram users are easily exposed to our
product/service.
Instagram users notice our paid Instagram ads.

Instagram users notice our non-paid Instagram

ads.
Instagram users understand contents of posted
photos about our product/service.

AFFECTIVE DIMENSION:
Indicators 5 4 3 2 1
Instagram users become interested on updates
about our product/service that their Instagram
friends post or chat about.
Instagram users become interested on our
product/service that is being advertised in
Instagram through paid ads.
Instagram users become interested on status
updates about our product/service that we post in
our Instagram account (i.e. free ads).
Instagram users click Like and/or Share on an
Instagram posting regarding our product/service.

BEHAVIORAL DIMENSION:
Indicators 5 4 3 2 1
Instagram users buy our product/service when we
post paid advertisements.
Instagram users buy our product/service when we
post free advertisements (i.e. posts, shares, and
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status updates from our Instagram account).

Instagram users buy our product/service when it is
always being talked about by other users in
Instagram.
Instagram users buy our product/service after an
Instagram event/group activity/group
conversation.
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Curriculum Vitae

[NAME]
Photo

[Address]
[Contact No.]
[Email Address]

EDUCATIONAL BACKGROUND
[Date Graduated] DE LA SALLE UNIVERSITY
Taft Avenue, Manila
[Degree Conferred]

[Date Graduated] [NAME OF SCHOOL]

[School Address]
Secondary Education

[Date Graduated] [NAME OF SCHOOL]

[School Address]
Primary Education

AFFILIATIONS
[Date Covered] [NAME OF ORGANIZATION]
[Organization’s Address]
 35

Curriculum Vitae

[NAME]
Photo

[Address]
[Contact No.]
[Email Address]

EDUCATIONAL BACKGROUND
[Date Graduated] DE LA SALLE UNIVERSITY
Taft Avenue, Manila
[Degree Conferred]

[Date Graduated] [NAME OF SCHOOL]

[School Address]
Secondary Education

[Date Graduated] [NAME OF SCHOOL]

[School Address]
Primary Education

AFFILIATIONS
[Date Covered] [NAME OF ORGANIZATION]
[Organization’s Address]