Marketing to Millennials in Virtual Community - SME Perspective Applied

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School of Economics | Master's thesis

Date

2010

Major/Subject

International Business
Kansainvälinen liiketoiminta

Mcode

Degree programme

Language

en

Pages

109

Series

Abstract

This study aims to find out how Millennials, new generation of internet users perceive social media marketing conducted in virtual communities. Additionally, this study focuses on providing SMEs guidelines on how to apply marketing for this specific group of consumers. Theoretical framework has been conducted after approaching theories from three perspectives: social media, transition in marketing and consumer behavior and virtual communities. Quantitative research methods have been chosen in order to provide generalizable results. Data was collected through a web-based survey published in Petsie.fi and received 520 completed questionnaires. Two multivariate statistical data analysis methods were applied. Firstly, factor analysis was conducted to find out similar behaviors and secondly, data was processed further with cluster analysis to form customer segments. Results suggest that there are five distinctive customer segments in Millennials that need to be taken into consideration separately in marketing planning. Additionally, virtual communities were found out to be excellent venues for targeted marketing and provide also good platform to have required two-way conversations with the Millennials. However, trustworthiness and transparency were called for.

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Keywords

social media marketing, millennials, virtual community, web advertising, multivariate analysis

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