New Trends in International Retail: Influence of Social Media on the Growth of M-Commerce

Ivana Štulec, Dora Naletina and Josipa Knežević
Faculty of Economics and Business, University of Zagreb, Trg J.f. Kennedyja 6, 10000 Zagreb, Croatia, Oib: 27208467122

Abstract

The paper studies the influence of social media on the growth of m-commerce. Social networks and social media in general, although appeared about twenty years ago, present an inevitable part of our everyday life. Data show that an average Internet user spends 2 to 3 hours a day using social media. The original purpose of social networks as a medium of communication with distant friends and family and estranged acquaintances quickly evolved into platform that allows easy, prompt and inexpensive visibility gain and target audience reach. Businesses worldwide, international retailers in particular, soon recognized the benefits of social media utilizing them first as a form of advertising, promotion and communication by establishing official company profiles. More recent trends in international retail include engaging influencers to endorse a brand, omnichannel retail and s-commerce. S-commerce leverages the power of social media in order to sell, using the power of social influence, referrals and recommendations of social network peers. With social interactions and contributions to assist online buying and selling of goods and services, s-commerce eases the transition from multichannel to omnichannel retail. Majority of social purchases are made via mobile devices. User-generated content on social media favourably influences purchasing behaviour in form of purchase intentions especially among young consumers. The research aim is to further assess the interconnectivity between social media and m-commerce by providing insights into factors that drive young consumers to purchase via mobile devices and idiosyncratic features of social media that positively affect purchasing decisions. An online questionnaire among Croatian young consumers is conducted. Study findings offer valuable practical implications regarding strategic retail management in both domestic and international markets. Keywords: international retail, social media, m-commerce, young consumers, purchasing behaviour.

Presentation