Research Methodology

This critical literature review aimed to answer the following question: How can Social Media Marketing (SMM) Strategies adopt word of mouth (WOM) marketing theory to enhance luxury brands’ performance? The need to answer this question stems from the absence of academic literature on the integration of significant marketing theories in social media marketing strategies among luxury brands. In particular, this dissertation provides a critical view of the adoption of the word-of-mouth marketing theory by luxury brands to enhance their online marketing performance. Furthermore, this methodology section gives a comprehensive review of the critical literature framework.

This study aimed to shed light on the adoption of the word-of-mouth (WOM)marketing theory in SMM and its role in enhancing the performance of luxury brands in online marketing. Certainly, by analyzing available literature on the adoption of the word-of-mouth (WOM) marketing theory in social media marketing (SMM), this dissertation provides an updated review of academic data on the role of electronic word of mouth (EWOM) in online luxury fashion marketing. This review has consequently adopted a qualitative data analysis approach to enable us to understand the complex relationship between EWOM and SMM and their role in luxury brand marketing in social media (Corbetta, 2009; Salo, 2017). Specifically, from the pool of qualitative research methods, this dissertation has adopted a data analysis method that is in close association with the systematic review process.

This review has partially adopted the critical literature review process advanced by Tranfield et al. (2003) which is regarded as a practical and valid system to improve available data in a specific area of research.  Indeed, this qualitative analysis had not followed all the steps highlighted by Tranfield et al. (2003). Instead, this dissertation has relied on the steps that are more relevant to the main topic of the research process; it has focused mainly on the following steps: (a) identifying the need for this critical literature review; (b) preparing a progressive proposal paper for the review, and developing a critical literature review protocol; (c) searching for and selecting the studies from online databases; (d) data extraction and analysis, and finally; (e) writing the critical review. Consequently, this critical literature review study used a five-phased method to extract and interpret data from the existing studies carried out on the “adoption of the ‘word of mouth theory’ (WOM) in social media marketing (SMM) strategies to enhance the performance of luxury brands” (Sheppard et al., 1988)

The first phase of the critical literature review process, i.e., ‘identifying the need for this critical literature review’ was to find the potential research gap that exists within available academic literature on the research concern. The second stage involved analyzing the available literature on social media marketing, word-of-mouth marketing, and luxury fashion brand online marketing. The third stage extrapolated the information acquired from the available research studies, and the fourth phase identified the research gap available before proceeding to communicate the results acquired in a critical review process.

After identifying the research gap and the data analysis approach, this dissertation proceeded to the second phase of the research process aimed at executing the study whereby, the study searched for available literature on the topic using the following search engines for international journals (Elsevier, Google Scholar, ScienceDirect and ResearchGate) these provided reliable and relevant studies. The most suitable studies were selected from several online databases and a broad range of publications based on their relationship to the specific topic in the study (Alalwan et al., 2017). Moreover, this study used a comprehensive selection of keyword-based from the research question of this review: social media marketing (SMM), word of mouth theory (WOM), social media, luxury brands, luxury fashion brands, luxury marketing, consumer engagement/participation, social media, Instagram, social media influencer marketing, influencer marketing, and customer engagement. The following search strategy was adopted in all the databases, either separately or combined with other keywords, using the advanced search tool:

(social media marketing OR online marketing) AND (Instagram marketing) AND (marketing theory OR marketing theories) AND (luxury brands OR fashion brands OR luxury fashion brands OR Luxury products) AND (critical literature review OR synthetic literature OR systematic literature review) AND (WOM theory OR WOM marketing OE electronic WOM marketing OR electronic WOM) AND (social media ambassadors OR social media influencer OR celebrity endorsements OR brand ambassadors) AND (customer participation OR customer engagement OR consumer engagement)

The aim of using the advanced search tool was to ascertain the reliability and accuracy of the results. Studies with the greatest correlation to the research question were selected through a pre-defined inclusion and exclusion criteria as follows:

Table 1: Inclusion and Exclusion Criteria

A total of 142 studies related to social media marketing and the word of mouth theory among luxury brands were identified. After applying the inclusion and exclusion criteria based, a total of 71 studies remained. Data was extracted from each of the studies through full-text and in-depth reading of the study abstracts and methodology used and the results achieved to capture the relevant information and make appropriate and valid interpretations based on the research question. The abstracts were significant in the analysis process, which was criteria based and dependent on answering the research question. The dissertation ensured that the studies were relevant to fill in the research gap in the field; moreover, the paper aimed to establish the validity of the study methodology and results analyses (Arrigo, 2018). In particular, this analysis found that most of the studies used empirical data to make assessments on the role of the word of mouth marketing strategy through social media influencer marketing among luxury brands, in retrospect, there were limited studies that adopted the use of qualitative methodologies and critical literature reviews.

The process of data analysis in this critical literature review depended on data extrapolation after a thorough and comprehensive reading of the studies. In this stage, the dissertation adopted the structure of a research framework that relies on the analysis of selected elements of the research including; the theme acquired from the study concerning the research question of this study; the data collection method used in the study as well as the data synthesis method and the form of study (quantitative, qualitative or systematic review). It was significant that this study reads the insights from all the studies as it helped to outline the state of the progress of research in the field with a careful observation to note recurrent research themes which were effectively detailed in this literature review. The insights were also acquired from carefully reading the discussions in the studies as well as the conclusions and the future research data shared by the researchers.

Figure 1: Research Method Flowchart

 3.1 Insights from the literature

The significant data that first emerged from the data synthesis of available studies was the scarcity of studies on the adoption of the WOM marketing strategy in SMM are scarce. Specifically, most of the limited studies available adopted quantitative study approaches. This review aimed to evaluate and analyze the data available from the study and to identify significant contributions. In this phase of the methodology, the dissertation sought to establish the significant variables in the studies that are important for directing future studies that will eventually be more specific and will identify the role of EWOM in influencing luxury brand marketing strategies in SMM. The purpose of this critical review was to offer clear data on the adoption strategies of EWOM concerning social media strategies among luxury brands.

Specifically, this study focused on how luxury brands adopt the strategy of influencer marketing to enhance the online marketing performance of fashion luxury brands.

3.1.1 Social media marketing-theory and practice

The study of SMM has been a significant topic in businesses marketing studies because businesses need to understand how their clients make purchasing decisions from online marketing in social media (Kim and Ko 2012). The literature on SMM has however paid little attention to the influence of social media marketing in the context of a wide variety of luxury brands (Godey et al., 2016; Kontu and Vecchi, 2014; Ng, 2014; Phan et al., 2011).

According to studies by Lee and Watkins (2016); Chu et al. (2013) and Dhaoui (2014), the SMM and its application among luxury brands are only beginning to be increasingly explored in the marketing field. In this context, recent research carried out by (Godey et al., 2012; Mangold and Faulds, 2009, Ko et al., 2019, Ngai et al., 2015 identify a growing culture of SMM among luxury brands in the context of influencing consumer decision-making behaviour through increasing marketing channels. Richardson et al. (2016) highlight the existence of several articles that focus on the effect of social media marketing on how consumers access information on products and service and their purchasing decisions of consumers. In this sense, Liam (2018) offers insight into the impact of the integration of marketing theories such as the WOM into SMM as effective tools that promote open channels of communication between brands and their consumers.

3.1.2 Relationship between SMM and WOM marketing

Several studies contacted have examined the relationship between SMM and the luxury fashion brand marketing. Still, few are in the context of EWOM adoption, and there is a shortage of literature on the subject, and hence the role of this critical literature review. Studies conducted by Eun and Watkins (2016); Hu et al., (2020); Godey et al., (2016); Hsu (2020); McCormick (2016); Mukherjee and Banerjee (2017); Neti (2018) and Vinerean and Opreana (2019) describe in detail that luxury fashion brands prefer to use influencer marketing as an EWOM tool. To begin with, these studies highlight that social media is a vital application for marketing purposes. They proceed to identify that EWOM is an open channel of communication that allows brands to interact with the customers and influencers with their followers. These studies highlight that the adoption of open lines of communication, i.e., through the use of influencer marketing among luxury fashion brands helps the brands to build trust and expand their brand equity and customers are then able to make product and services purchases easily. Hsu (2020) adds that consumers tend to make purchases from influencer marketing platforms that have established open communication channels through shared personal experiences with products and services. Godey et al. (2016); Hu e al., (2020); Hsu (2020) and Yuksel (2020) further add that brands that rely on influencer marketing to create appealing images to consumers through various forms of EWOM in Instagram, i.e., stories, posts, videos, IGTV can sell contextualized product and service reviews which result in higher engagement rates from consumers and consequent product and services purchases.

3.1.3 Adoption of the word of mouth marketing by luxury brands

In their search to gain a competitive advantage in social media marketing, luxury fashion brands are collaborating with influencer and celebrities in online marketing campaigns through influencer marketing to initiate, and sustain positive word of mouth for their products and services (Kim and K0, 2020; Langro et al., 2018). In this sense, Yunus (2016); Herrando et al., (2018); Trembath, 2017; Chen and Wang (2017) highlight that successful brands are those that adopt the diverse marketing tools available in social media sites including Instagram to expand their products by electronic word of mouth (EWOM). Besides, successful brands are identified as those that have adopted comprehensive portfolio for partnering with micro, macro and hero influencers who effectively expand the brands’ online presence (Yuan, 2016); Kadekova and Holienčinová (2018); Erkan (2015). Also, studies by Sadrabadi et a. (2018) emphasize that the online presence of these luxury brands and higher engagement scores from interactions with their customers promote the capacity of brands to promote product sales. The studies suggest that the adoption of social media marketing through word of mouth is a phenomenon that is beginning to take root and will remain for some time in the future.

In terms of the promotion of brand awareness through the WOM marketing in SMM, Severi and Ling (2018) add that it can be attained through efficient strategies that associate the brand with positive reviews through brand ambassadors. Herrando et al. (2018); Kim & Ko, (2012); Ko et al., (2019) and Severi and Ling (2018) underline that factors such brand management and the quality of the brand luxury products impact the user reviews and their eventual performance in online marketing by EWOM. As a result, the implementation of EWOM marketing in SMM strategies in luxury fashion brands has affected several academic studies (Godey et al., 2016; Kim & Ko, 2012), where the findings suggest that the use of influencer marketing as an EWOM creates a broad reach for brands to expand their online visibility among a diverse range of consumers. Furthermore, in the context of influencer marketing, the studies identify that influencers and celebrities are useful in generating increased brand loyalty among their followers (Kim and Ko, 2020).

In particular, thorough the use of a diverse range of tools and application in social media platforms like Instagram, luxury fashion brands can rely on influencer marketing to further broaden their consumer reach (De Jans et al., 2020; Song and Kim, 2020; McCormick, 2016). For instance, the studies by Bazi et al., (2020), Yüksel (2016), Vinerean and Opreana, (2019); Seo (2018); Severi and Ling (2017); and Zollo et al., (2020) provide data on how brands effectively use brand ambassadors, celebrity endorsements and influencer marketers to engage with consumers through storytelling as a medium of electronic word of mouth. These studies by Severi and Ling (2017) and Seo (2018) explain that the use of storytelling helps brands to receive high engagement scores.

Furthermore, other studies including; Constantinides (2014); De Jans et al., (2020); Eun and Watkins (2016); Glassman (2019); McCormick (2016); Pace et al., (2017); Rahman (2017); Song and Kim (2020) share data on the significance of celebrity endorsements in social media, particularly Instagram. The research papers underline that celebrities are crucial WOM marketing tool because of their greater capacity to raise brand awareness from their extensive influence across global reaches of consumers. These studies provide insight into how the use of hashtags by celebrities have effectively been used by established fashion brands such as Louis Vuitton and Burberry to reach more targeted consumers.

3.2 Conclusion

This critical literature review has provided an analysis of the available data on social media marketing vis a vis the adoption of the word of mouth marketing strategy among luxury consumers to enhance online marketing performance. Considerable interest has been established on social media marketing theory and practice (Eun and Watkins, 2016; Hu et al., 2020; Godey et al., 2016; Hsu, 2020; McCormick, 2016; Mukherjee and Banerjee, 2017; Neti, 2018 and Vinerean and Opreana, 2019). These studies highlight that the adoption of open lines of communication in social media marketing but fail to establish a direct correlation between SMM and EWOM. This study effectively provides a comprehensive review of the relationship between SMM and EWOM through influencer marketing in social media, i.e., Instagram.

Consequently, the paper discusses key findings from several studies such as Kim and Ko, (2020); Langro et al., 2018). In this sense, Yunus (2016); Herrando et al., (2018); Trembath, 2017; Chen and Wang 2017) who identify the use of influencer marketing in social media marketing, a tool which this study establishes as being a crucial component of the EWOM marketing theory. This critical review effectively finds a close correlation between social media marketing strategies and EWOM marketing strategy via the variable of influencer marketing (Godey et al., 2016). This dissertation, in turn, proposes the further study of the adoption of EWOM in social media marketing on both quantitative and theoretical bases to evaluate other channels of EWOM in social media marketing in a diverse range of social media sites.