CHAPTER 1
THE PROBLEM AND ITS BACKGROUND
Introduction
The power of the online world especially the social networking sites at this generation is absolutely beyond discourse. As stated in the Social Media Report (2011) published by NM Incite, a Nielsen/McKinsey company, consumers are spending more time than ever using social media. What is crucial with the social media is that it has a very great role on how people discover, search and promote products and brand names. About 60 percent of consumers looking for products learned about a specific brand through social networking sites. Also, active social media users tend to read product reviews online. And out of five people, three social media users create their own reviews of services or products.
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According to (Hackley, 2005) as cited by (Karlsson, 2007) AIDA was created by Strong in 1925. The AIDA model which stands for stands for awareness, interest, desire, and action according to Gharibi, Danesh and Shahrodi (2012a) is a behavioral model presented for measuring the effectiveness of advertising. In the AIDA Model, buyers go through a series of steps before making the final purchase. It also identifies the steps that a buyer goes through during the buying process.
The first stage represents attention or awareness. It refers to the ability to attract the attention of the consumers and how do the retailers will make buyers aware of their products or services. In our modern world the presence of the internet has help a lot in the word of business especially when it comes to giving awareness of a product or service that a company offers. The second stage is interest (tdisdi.com) is one of the most challenging stages in the AIDA model. This includes demonstrating of product benefits and advantages instead of focusing only on its features, to make people get interested in their product. Desire of a certain product is the third part or stage of the AIDA. It focuses on what makes a product or service desirable to the costumers. And last is action which would come as a result of movement through the first three stages of the model. The last
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If the production or the delivery is faster than your competitors, customers will prefer you over your rivals. Next is the Theory of Cost, the cost-effectiveness of a product or service you render is a very important determining factor in the school of internet marketing (Chijoke, 2007b). People like affordable products, therefore as a business owner, your goods and services must be cheaper than your competitors. And lastly, in the Theory of Quality, customers will choose high-quality products even it's costly, hence if you are expecting for high sales, products and services must have a higher quality than the products of your rivals. With such factors be put into importance, reviews of customers posted online may lead to positive remarks and may encourage other prospects and social media users to try the product and trust the business, even without first-hand