Journal of Business and entrepreneurial
October - December Vol. 7 - 4 - 2023
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e-ISSN: 2576-0971
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Receipt: 11 November 2022
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Page 117-129
Social media as a means of communication and
marketing in neighborhood stores, Guayaquil
La social media como medio de comunicación y
comercialización en tiendas de barrio, Guayaquil
Luisa María Herrera Rivas
*
Maria Tamara Ortiz Luzuriaga
*
Karla Maribel Ortiz Chimbo
*
Veronica Coronel Perez
*
ABSTRACT
The Covid-19 pandemic has negatively impacted the
commercial context of neighborhood stores,
uncovering a regrettable change in consumer
behavior when purchasing goods or services. This
study focuses on how digital communication tools
can improve the marketing strategies of
neighborhood stores located in northern Guayaquil.
A descriptive study was conducted using both
qualitative and quantitative methods, surveying
merchants and consumers in the Alborada, Vergeles
and Paraíso de la Flor sectors. The target population
was 1200, with a representative sample size of 350.
In addition, 30 store owners were interviewed. The
findings indicate that cell phones and social
networking platforms such as WhatsApp Business
are essential to establish daily communication with
customers and suppliers. In addition, store owners
should be trained on digital platforms to form
*
MSc. Universidad de Guayaquil, luisa.herrerar@ug.edu.ec,
https://orcid.org/0000-0001-8936-3091
*
MSc. Universidad de Guayaquil, maria.ortizl@ug.edu.ec,
https://orcid.org/0000-0002-9849-9350
* MSc. Universidad de Guayaquil, karla.ortizch@ug.edu.ec,
https://orcid.org/0000-0001-7054-5741
* MSc. Universidad de Guayaquil,
verónica.coronelpe@ug.edu.ec, https://orcid.org/0000-0001-
9771-367X
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strategic alliances with major brands and government
entities to address this issue.
Keywords: Consumer behavior, Social Media,
neighborhood stores, Covid-19, Social Networks.
RESUMEN
La pandemia del Covid-19 ha impactado
negativamente en el contexto comercial de las
tiendas de barrio, descubriendo un cambio
arrepentido en el comportamiento del consumidor a
la hora de adquirir bienes o servicios. Este estudio se
enfoca en cómo las herramientas de comunicación
digital pueden mejorar las estrategias de marketing
de las tiendas de barrio ubicadas en el norte de
Guayaquil. Se realizó un estudio descriptivo
utilizando métodos tanto cualitativos como
cuantitativos, encuestando a comerciantes y
consumidores de los sectores Alborada, Vergeles y
Paraíso de la Flor. La población objetivo fue de 1200,
con un tamaño de muestra representativo de 350.
Además, se entrevistaron a 30 propietarios de
tiendas. Los hallazgos indican que los teléfonos
móviles y las plataformas de redes sociales como
WhatsApp Business son esenciales para establecer
una comunicación diaria con clientes y proveedores.
Además, los dueños de las tiendas deben capacitarse
en plataformas digitales para formar alianzas
estratégicas con las principales marcas y entidades
gubernamentales para abordar este problema.
Palabras clave: Comportamiento del consumidor,
Social Media, tiendas de barrio, Covid-19, Redes
Sociales.
INTRODUCTION
The advancement of technology around the world varies from country to country,
resulting in a diverse range of cultural practices related to the use of information and
communication technologies (ICTs). These tools are capable of providing benefits to
people in many ways. However, it is crucial to consider the most significant aspect of
the current global climate: how the pandemic has been pandemic. This, makes the
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importance of technology the driving force in building as a means to promote economic
growth. (Klevers et al., 2021)..
Ecuador is a country distinguished by the permanence of family businesses within its
traditional society. These businesses are often reflected in community stores that, while
they may be small, exist primarily out of necessity and still provide a sense of satisfaction
to time-pressed consumers (Santos et al., 2022). However, the prevalence of these
stores has been threatened by a variety of disasters that have affected the country, such
as political conflicts, natural disasters, economic problems, and even pandemics (Klevers
et al., 2021)..
The implementation of information and communication technology tools acted as a
catalyst to promote business planning and wider distribution of key products. Despite
the changing roles and responsibilities of the merchant, traditional tasks, such as
monitoring foot traffic and employing persuasive sales tactics, have been approached or
replaced with technological resources that optimize operational processes and
competition (Vinayagalakshmi, 2022)..
Social networks are a fundamental tool for neighborhood stores in Guayaquil, because
they allow them to communicate and reach a wide audience effectively. The strategic
use of social media helps to increase the visibility of stores, attract new customers and
retain existing ones. In the field of communication and marketing, social networks have
acquired an influential role, and it is crucial to understand their impact on neighborhood
stores in Guayaquil (Caballero et al., 2021)..
To thrive in society, individuals must adapt to their social environment. Lately, this
adaptation has taken place in the digital realm, leading many to participate and
communicate through online means. This change marks an evolution in the way we
interact with one another (Raghunath et al., 2023)..
The primary objective of this research is to examine innovative approaches to digital
marketing on social media platforms such as Facebook and Instagram, specifically for
companies that have been forced to transition to the online sphere as a result of the
pandemic. This involves developing novel methods of audiovisual communication and
engagement that can encourage consumer behavior and foster brand loyalty
(Monserrate et al., 2022); (Noorlitaria Achmad & Adhimursandi, 2021); .
This study aims to provide an overview of the impact of social networks as a
communication and marketing channel in neighborhood stores in Guayaquil. The study
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examined the definition of social networks and their characteristics, the importance of
communication and marketing for neighborhood stores, and the visual strategies used
by stores on social networks (Moreira et al., 2021).. By analyzing these factors, it is
intended to gain a better understanding of how social networks affect neighborhood
stores in Guayaquil (Espinoza, 2021).
In doing so, the goal of this statement is to demonstrate that society is not stagnant;
rather, it is adaptable. The emergence of the digital sphere has created opportunities for
people to understand without being present in a store. In addition, there is a growing
need to be active in this digital realm, particularly on social media platforms. This is
because numerous businesses and activities take place exclusively in these environments.
A clear example of this is the field of education. Digital platforms have replaced
traditional classrooms in schools and universities, and homework and exams are now
delivered through digital links (Raghunath et al., 2023)..
Online communication platforms that allow users to create and share their own content
using Web 2.0 tools are known as social networks. These platforms facilitate the editing,
publishing and sharing of information. Social networks are an extension of traditional
word-of-mouth advertising, enabling quantification and cost-effectiveness through social
media marketing and social CRM. The role of community managers involves
disseminating engaging and valuable content, as well as encouraging conversation
between customers and the company while maintaining brand presence on the platform.
Communication has been transformed both between individuals and between individuals
and brands thanks to the advent of social media (Kotler & Hermawan Kartajaya, 2021)..
The impact of social media on sales and marketing has been significant in recent years.
A post from a marketing agency discusses the impact of social media on sales, highlighting
how it has influenced businesses. Social networks provide companies with a platform to
showcase their products and services, connect with customers, and build brand loyalty
(Sampedro et al., 2021);(Caballero et al., 2021).. Therefore, it is important for
neighborhood stores in Guayaquil to understand the potential impact of social networks
on their business and develop a strategic plan to take advantage of this communication
and marketing channel.
The use of social media allows microenterprises to create and reinforce long-term
connections with their consumers or users through social media platforms. As is well
known, a user's journey from identifying their needs to making a purchase often involves
seeking opinions from family and friends about various brands and models (Jimenez et
al., 2018)..
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In Guayaquil, the demographics of social media users show a majority in the 18-34 age
range. During the pandemic, the use of social media as a marketing strategy has had a
positive impact on businesses. Social selling has become crucial in the digital age,
influencing the way companies interact with customers from marketing to post-sales
stages. Therefore, it is important for neighborhood stores in Guayaquil to take advantage
of social networks as a communication and marketing channel to reach their target
audience and stimulate business growth (Sampedro et al., 2021)..
Social networks extend the reach of companies, generating recognition and a broader
customer base. The quality of information on social media has a positive effect on brand
awareness. By building a strong presence on social networks, neighborhood stores
attract new customers and increase sales (Rubalcava de León et al., 2019).. In addition,
the use of social networks as a communication and marketing channel allows companies
to establish direct communication with customers, providing answers to queries and
personalized service. In the same context, a social networking studio fosters a closer
relationship with customers and promote brand loyalty. Social media provides a cost-
effective advertising solution for neighborhood stores by being more cost-effective than
traditional advertising methods. The ability to target specific demographics on social
networks can result in a higher conversion rate and return on investment
(www.es.statista.com, 2023). The use of social media as a communication and marketing
channel can be challenging for neighborhood stores in Guayaquil due to limited
resources and expertise. Small business owners often lack the knowledge and skills
necessary to effectively leverage social media platforms. This can hinder their ability to
reach their target audience and compete with larger companies that have more
resources to invest in social media marketing. Given the above, one of the challenges in
using social media as a communication and marketing channel for neighborhood stores
is the difficulty in measuring return on investment (ROI). Determining the direct impact
of social media marketing efforts on sales and revenues can be complicated, making it
difficult for small business owners to assess the effectiveness of their strategies and make
necessary adjustments (Jimenez et al., 2018).
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Figure 1. Number of Internet users by country in Latin America in January 2023 (in
millions)
Thus, the influence of social media on sales has proven to be significantly constructive
and manifests itself in a number of ways. In essence, social media helps cultivate trust
between current and potential customers, which, in turn, translates into sales growth.
From attraction marketing to post-sales follow-up and customer service, social selling
has impacted modern sales strategies. According to Statista, more than 60% of the
population in Latin America uses social networks. Moreover, in Mexico alone, it is
estimated that the number of social network users will exceed 95 million by 2025.
(www.es.statista.com, 2023).
Figure 2. Device usage and services
Source: (https://datareportal.com, 2023)
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The number of Internet users has now surpassed 5 billion, and social network users
reached a record high of 4.7 billion. Through this ongoing research, it has been observed
that these numbers continue to rise, with a staggering 200 million people accessing the
Internet for the first time in the 12-month period leading up to July 2022. However, the
current growth figures are marginally lower than those reported during the peak of the
COVID-19 blockades. (datareportal, 2023).
Figure 3. Most used social platforms
Source: (https://datareportal.com, 2023)
In the Q2 2022 earnings report, Facebook's worldwide monthly active user count
experienced a decline of 2 million. When considering the global socio-political context,
the decline can be attributed primarily, if not entirely, to the sanctions imposed on Russia
by the United States. One of the most telling pieces of evidence is the presence of
numerous third-party data points indicating the continued strength of the Facebook
platform. According to data.ai, Facebook has the largest active user base among non-
gaming mobile apps worldwide (datareportal.com, 2023)..
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Figure 4. Monthly active users
Source: (https://datareportal.com, 2023)
In addition, the most recent research conducted by GWI shows that Facebook remains
in third position in the global list of preferred social networking platforms among users
(, 2023). (https://datareportal.com, 2023).
MATERIALS AND METHODS
The research employed a hybrid approach incorporating qualitative and quantitative
methods. The objective was to collect information from traders and consumers in the
designated study sectors. Merchants were interviewed using a structured format to
provide information on their business practices, their history and their relationships with
customers. Consumers, on the other hand, were given a survey with questions tailored
to the project objectives.
Similarly, in order to adequately examine and evaluate the data, it is important to bear
in mind that qualitative research approaches the information from the perspective of the
subjects being studied, as pointed out by Castillo and Vásquez in 2003. In contrast,
quantitative research methodologies prioritize measurement and numerical
representation of variables.
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Banchón and Gutierrez (2022) explored the communication tools used in the marketing
process of neighborhood stores in the north of the city of Guayaquil through direct
observation and field research in the most transited roads of the Alborada, Vergeles and
Paraíso de la Flor sectors . For data collection, structured interviews and surveys
directed to the owners of local stores in Guayaquil were used.
RESULTS
Store owners range in age from 18 to 64 years old, with a population of 53% female and
47% male. The time they have been operating the stores range from 12 to 61 months
or more. In terms of marketing strategies they have used: promotions with discount
offers, paid advertising, price variation, word of mouth, among others.
Table 1. Communication tools used by shopkeepers
Frequency
Percentage
Social Networking
12
40
People Reference
24
80
Other (Not Used)
3
10
Total
30
Table 2. Social networks most used by the shopkeepers
Frequency
Percentage
Whatsapp
11
37
Facebook
6
20
Instagram
0
0
Tik Tok
0
0
Other (Not Used)
18
60
Total
30
Taken from: Communication tools to improve the marketing of neighborhood stores in
the north of the city of Guayaquil (Banchón & Gutiérrez, 2022).
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Table 3. Traditional media used by shopkeepers
Frequency
Percentage
Point Of Sale
Communication
28
93
Social Networking
10
33
Sms/Call
7
23
Others
0
0
Total
30
Taken from: Communication tools to improve the marketing of neighborhood stores in
the north of the city of Guayaquil (Banchón & Gutiérrez, 2022).
Shopkeeper's knowledge about the functioning and usefulness of social networks
Frequency
Percentage
Very High
3
10
High
2
7
Medium
3
10
Under
7
23
Very Low
15
50
Total
30
100
Taken from: Communication tools to improve the marketing of neighborhood stores in
the north of the city of Guayaquil (Banchón & Gutiérrez, 2022).
CONCLUSIONS
The pandemic has had a significant impact on the technology sector. Its widespread use
has appeared several daily activities, such as online grocery shopping instead of physically
going to the store and virtual meetings instead of face-to-face meetings or classes. These
changes were instrumental in facilitating a more digital environment, where digital tools
are essential for social media marketing and connecting with target audiences. However,
it is essential to know how to handle these tools, which is a challenge for many small
and medium-sized businesses, particularly neighborhood stores, as they strive to
overcome ignorance and gain wisdom.
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The neighborhood stores that were studied in the north of the city of Guayaquil,
specifically in the Alborada, Vergeles and Paraíso de la Flor sectors, showed that 80%
use referrals from people to disseminate information about their store instead of some
social network or technological tool. However, 33% showed acceptance for using
communication tools in their neighborhood stores in order to improve marketing,
increase sales and obtain greater recognition in the market.
Consequently, there is concordance with the research of Parada (2021). (2021) in
relation to neighborhood shopkeepers in the Chapinero district in Colombia, in that
advertising is done physically at the point of sale and some use WhatsApp as an
advertising tool.
In addition, it was identified that consumers who have a better command of technology
belong to the younger age range. This group of consumers would be satisfied to
communicate or receive information about a product or service offered by the
neighborhood store through the cell phone, laptop or computer; while the shopkeepers,
being older, found it difficult to include these communication tools and, due to their lack
of knowledge, to manage social networks, limiting the benefits for the development of
their business.
In summary, social media is a valuable channel for neighborhood stores in Guayaquil,
allowing them to communicate, generate brand awareness and expand their sales
channels. The positive impact on sales has been widely demonstrated, highlighting the
importance of using social networks effectively to obtain successful results.
(www.es.statista.com, 2023).
It is evident that, in order to effectively use social networks as a communication and
marketing channel, neighborhood stores in Guayaquil should follow certain
recommendations. First, identify their target audience and choose the most popular
social networks among them. Second, develop a clear strategy aligned with overall
marketing objectives. Third, engage with followers by responding in a timely manner.
Finally, constantly monitor metrics and adjust your strategy accordingly.
Future research can focus on the impact of social media on sales in specific neighborhood
stores, such as grocery or clothing, and evaluate the effectiveness of different types of
content. In addition, it can explore how social networks influence customer loyalty and
repeat purchases (Sampedro et al., 2021).. This research will help neighborhood stores
in Guayaquil to improve their social media strategy and stimulate business growth.
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