Abstract

Social media platforms have been utilized by marketing strategists to establish brand identity and awareness and to garner sales. However, translating public participation to financial growth has its challenges. Thus, the present research explored the effectiveness of social media marketing in engaging consumers and the challenges associated with this. The research focused on the food retail market in Indonesia as it presents a diversified retail pattern with a simultaneous increase in internet use and consumption of social media. A mixed methods research approach was adopted and the quantitative component helped identify the relevant factors perceived by customers that profoundly impact the effectiveness of social media marketing. The qualitative research component involved conducting interviews with social media strategists, who helped unravel the strategies adopted and the opportunities and challenges associated with social media marketing. The study was conducted on two leading retailers based in the Jakarta region. The findings from the quantitative questionnaire showed that the fulfillment of the social aspect of social media marketing was not perceived to be useful by consumers in satisfying their motivations. The motivations of belief (relevance of social media in obtaining up-to-date information and ability to share experiences), community participation (active participation in a retailer’s social media page and stimulating the retail brand), and monetary (obtaining better prices and free coupons for making purchases) and psychological (seeking a sense of affiliation and belonging in the community and establishing and maintaining relationships with other members) aspects were found to be significant motivators of consumers’ perception of the relevance of social media marketing.