Performance in Social Network and Revenue: Moderating Effect of Seasonality on Small Retailer

Abstract

Small business managers have resorted to strategies on social networking expecting that their relationship with consumers would lead to sales. However, identifying which actions on social networking relate to revenue has not been clarified in marketing studies. Moreover, these actions have influence the seasonality of demand, which causes fluctuations in sales. This research investigates the moderating effect of seasonality in the relation between the performance of a small business in a social networking and its revenue. A longitudinal study, using time series regressions, was carried out with dimensions of performance in social networking (involvement with the company’s social networking, the company’s virtual fans and reach and view of the company’s page) as predictor variables, having the revenue as a predicted variable and the seasonalities as moderators. The result shows that the dimensions of involvement and company’s virtual fans are predictors but at different period of times. The study identifies the timing to implement strategies on social networking that would lead to sales, confirming theories that claim to environmental interference in consumer relationships and sales.