POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Assessment of the Social Media Usage on the Marketing Strategies of Micro,

Small Medium Enterprise’s at San Carlos, Mariveles, Bataan

A Project
Presented to the Faculty of the
Polytechnic University of the Philippines
Bataan Branch

In Partial Fulfillment
Of the Course Requirements in
Bachelor of Science in Information Technology

By:
Ancheta, Aeron B.
Destura, Jaquline P.
Enguig, Jellamae U
Sonday, John Paul A.
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

1
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

TABLE OF CONTENTS

LIST OF FIGURES #

LIST OF TABLES #

CHAPTER 1 - THE PROBLEM AND ITS BACKGROUND #

Introduction #

Statement of the Problem #

Hypothesis #

Significance of the Study #

Scope and Limitation #

Definition of Terms #

Conceptual Framework #

CHAPTER 2 - REVIEW OF RELATED LITERATURE AND STUDIES #

Literature Review #

Related Study #

CHAPTER 3 - METHODOLOGY #

Research Design #

Research Locale #

Population Sampling Size #

Research Instrument #

2
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Data Gathering Procedure #

Statistical Treatment of Data #

CHAPTER 4 – RESULTS AND DISCUSSION #

CHAPTER 5 – SUMMARY, CONCLUSION AND RECOMMENDATIONS #

Summary #

Conclusion #

Recommendations #

3
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

LIST OF FIGURES

Figure No. Title Page

1 Conceptual Framework #

2 Name of the Figure 2 #

4
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

LIST OF TABLES

Table No. Title Page

1 Name of the Figure 1 #

2 Name of the Figure 2 #

5
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

CHAPTER 1

THE PROBLEM AND ITS BACKGROUND

INTRODUCTION

Social media has developed and still developing into a widely available

platform that promotes open communication and worldwide connectivity among

those with online access. The term "social media" describes a range of

technological tools that allow users to share information and ideas (Dollarhide,

2023). Notably, one of the most opportunities social media have offered is to

promote the business products and/or services with a broader audience using

social media platforms such as Facebook, Twitter, and Instagram, which is also

called social media marketing (Baker, 2023). As a result, this is considered a

new marketing strategy due to the advantages of social media to businesses

such as cost-effectiveness, time-saving, low level of IT skills required to use it,

and the high level of engagement with customers (Abed, 2020).

According to the Digital Global Overview Report (2023), the world’s internet

users of more than 5.6 billion people and 60% of the world’s population have

used social media. People may now communicate and share information since

messages are sent in real-time. Because of this, business owners consider

social media platforms as essential tools for succeeding in the online market

(Ebrahim, 2020). This shift towards social media is not merely a trend but a

6
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

strategic response to the changing dynamics of consumer behavior and

preferences.

The use of social media marketing has become the most common business

strategy (Chatterjee & Kar, 2020). Furthermore, the data gathered by SCORE

stated that 77% of small businesses use social media to help build brand

awareness, facilitate customer service, and increase revenue. Social media

marketing can have a significant impact on the success of small businesses

(Kapoor, 2023). Additionally, Shahid (2019) stated that social media marketing

is highly effective in the significant growth of small businesses globally. Micro,

Small and Medium-sized Enterprises (MSMEs) have come to accept social

media as an essential tool for marketing, using its benefits to improve their

online presence to attract and expand their potential customers.

The Philippine Statistics Authority (PSA) 2023 List of Establishments

recorded a total of 1.6 million business enterprises operating in the country.

These make up 99.6% of small businesses in the Philippines. According to DTI

2022 Philippine MSME statistics, there are 1, 105, 143 (99.59%) MSMEs in the

Philippines. Micro enterprises constitute 90.49% of total establishments,

followed by small enterprises at 8.69% and medium enterprises at 0.40%.

Moreover, As the pandemic unfolds, numerous businesses are transitioning

towards utilizing social media for marketing purposes. According to GoDaddy's

2023 Global Entrepreneurship Survey, 67% of small business owners in the

country are relying on technology to keep their ventures afloat during the

7
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

pandemic, surpassing the global average of 58%. Then, 49% of business

owners in the Philippines create profiles on social media platforms, and 30%

engage in online advertising. Furthermore, in a study by Banzon et al. (2022),

utilizing social media platforms in advertising small local businesses in the

National Capital Region effectively developed better strategies and

performance for achieving the marketing goal of the company. Same to the

study of Santos et al. (2022), showcasing the significant efficacy of social media

marketing for Micro, Small, and Medium enterprises (MSMEs) operating in the

National Capital Region under the new normal.

This evolving marketing strategy causes a deeper exploration of the ways

MSMEs utilize social media in running their businesses. As researchers and

Information Technology students, we recognize the significance of

understanding how owners use social media as a marketing tool, also, we aim

to leverage our skills and knowledge to empower local MSMEs by assisting by

offering step-by-step guidance on how to create and post-marketing

advertisement on social media platforms for those owners who lack the skills

necessary for their marketing campaigns and share them on social media,

especially in this study, focused on assessing the usage of social media

platforms in marketing strategy in MSMEs in San Carlos, Mariveles, Bataan.

Understanding the usage of social media in MSMEs is crucial, as it can

provide valuable insights into how businesses in this area can effectively utilize

it as a marketing tool. Despite the effectiveness of social media marketing as a

8
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

global and national trend, it remains essential to investigate whether business

owners or managers are effectively utilizing social media in localized contexts,

particularly in San Carlos, Mariveles, Bataan. This study seeks to address this

gap by conducting a detailed assessment of the usage of social media platforms

in marketing strategies employed by MSMEs in San Carlos, Mariveles, Bataan

and to determine the training needs of respondents in relation to social media

usage.

STATEMENT OF THE PROBLEM

This study aims to identify how social media platforms are utilized as a

marketing tool among MSMEs in San Carlos, Mariveles, Bataan and to

determine the necessary skills they need to utilize it effectively.

Specifically, this seeks to the following questions:

1. What is the demographic profile of respondents in terms of:

1.1 Personal

1.1.1 Age;

1.1.2 Gender;

1.2 Education

1.2.1 Educational attainment;

1.2.2 Training;

2. The characteristics of business in terms of:

9
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

2.1 Type of business;

2.2 Size of business;

2.3 Years of operation;

3. What social media platforms/marketing tools are used, and the level of

literacy of respondents?

4. Is there a significant effect/relationship between the demographic profile

of respondents, business characteristics, respondents’ digital literacy

and social media usage of MSMEs?

5. What are the respondents' training needs in relation to social media

usage?

HYPOTHESIS

H1: There is a significant relationship between the age and social media usage

of MSMEs.

H2: There is a significant relationship between the gender and social media

usage of MSMEs.

H3: There is a significant relationship between the type of business and social

media usage of MSMEs.

H4: There is a significant relationship between the size of business and social

media usage of MSMEs.

10
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

H5: There is a significant relationship between the years of operation and social

media usage of MSMEs.

H6: There is a significant relationship between the type of social media platform

and social media usage of MSMEs.

H7: The respondents’ level of digital literacy affects the social media usage of

MSMEs.

SIGNIFICANCE OF THE STUDY

This study aimed to provide a valuable information on the assessment of social

media usage in the marketing strategies of MSMEs in San Carlos, Mariveles,

Bataan.

The following will be the beneficiaries of the study.

MSMEs owners, this study will help them to have a better understanding of

how these platforms offer valuable insights into the efficacy of using social media

strategies in reaching and engaging their intended audiences.

Future business owners, this study will give them insights into effective

utilization of social media, enabling them to make well-informed decisions when

developing their strategies as well as allocating resources, ensuring that social

media efforts align with the specific needs and expectations of their target

audiences.

Community, this study can contribute to fostering knowledge regarding the

ways in which entrepreneurs can benefit the community through the utilization of

social media platforms as part of their marketing strategies.

11
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

IT Community, this study is beneficial to the IT community, offers tailored

solutions and guidance to help MSMEs maximize their online presence and

compete more effectively in the digital marketplace. development of new tools,

technologies, and methodologies aimed at empowering MSMEs to achieve their

marketing objectives more efficiently and affordably.

Information Technology Students, the study can provide students with

practical insights into the intersection of technology and business, as this helps

them to use their skills which prepare them for future careers in the field of

information technology, particularly in roles related to digital marketing, social media

management, and helps to provide a solution related to the technological barriers

faced by MSMEs.

Future researchers, the result of this research may be a basis for further

studies and can be used as related literature.

SCOPE AND LIMITATION

The focus of this study is to assess the utilization of social media in the

marketing strategies of Micro, Small and Medium Enterprises (MSMEs) located

specifically in Barangay San Carlos, Mariveles, Bataan. To maintain a specific

focus, the research will exclusively concentrate on MSMEs, intentionally excluding

larger businesses. Additionally, findings from this study may not be generalized to

MSMEs in another barangay beyond the specified area. Data collection through

questionnaires will involve 137 respondents who are the businesses' owners or

12
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

managers. The study will take place during the year 2023-2024, specifically in

December and February.

The researchers will be conducting the study for the purpose of filling the gap

from the existing studies related to the use of social media platforms in MSME

marketing strategies. While social media marketing strategies for MSMEs will be

the central focus, this study will only lightly touch on offline marketing and traditional

advertising due to scope limitations.

DEFINITION OF TERMS

The following term used in the study are defined operationally to ensure clarity and

better understanding.

Assessment. It refers to the examination and analysis of the strategies that

business owners utilize in their business.

Online Marketing Strategies. It is the plans and tactics businesses use to

promote their products or services through digital channels and the internet,

leveraging various online platforms and tools to reach and engage target

audiences.

Micro, Small and Medium Enterprises (MSME’s). It refers to the sized and

characteristics of these businesses.

Social Media Usage. It refers to how business owners and managers

interact and engage on social media platforms. It includes activities such as posting

content, creating content, sharing, and connecting with consumers.

13
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Social Media Platform. It pertains to the software or tool employed by

business owners and managers to manage and conduct their business operations.

CONCEPTUAL FRAMEWORK
Mediating Variable

Literacy Level

Independent Variable
Dependent Dependent Variable

 Demographic
Profile
 Characteristics of
Business Social Media Usage
 Marketing
tool/Social Media
platforms

Figure 1: Conceptual Framework

This study utilized an IV-MV-DV model to analyze the significance of

independent variables, including demographic profiles, characteristics of

businesses, and the marketing tools or social media platforms used by MSMEs,

14
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

and the literacy level of respondents as a mediating variable, on the dependent

variable, which is the usage of social media.

The research aims to understand how the demographic characteristics of

business owners/managers (such as age, gender, education) and the

characteristics of MSMEs (such as type of business, size, years in operation)

influence certain outcomes or variables. Moreover, it investigates whether the level

of digital literacy of the respondents have a significant effect on the usage of it. The

researchers will also examine whether MSMEs are effectively utilizing social media

and identify any skills they may lack in its usage.

15
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

CHAPTER 2

REVIEW OF RELATED LITERATURE AND STUDIES

The researcher extensively reviewed various literature and studies to

enhance insights and reinforce the foundational knowledge in this area of research.

The synthesis of existing scholarly work was presented to facilitate a more thorough

understanding of the study. The primary objective of this study was to identify how

social media platforms are utilize in the marketing strategies of micro, small and

medium-sized enterprises (MSMEs) situated in San Carlos, Poblacion, Mariveles,

Bataan.

Social media as a marketing tool of MSMEs

Social media marketing (SMM) is the process of creating content for social

media platforms to promote your products and/or services, to meet your target

audience and customers, and drive traffic to your business (Baker, 2023). Social

media offers competitive advantages that will guarantee business stability in the

constantly changing world of business (Odediran,2020).

According to a study by Tarsakoo and Charoensukmongkol (2020),

marketing strategies and tools have changed tremendously since the inception of

social media. Consumers no longer need to rely on traditional media to learn about

a product before making a purchase because social media provides such

information in an effective and convenient manner.

16
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

The adoption of social media has proven beneficial for Micro, Small and

Medium Enterprises (MSMEs), allowing them to expand their market base through

increased customer satisfaction, a steady flow of products and services, and

improved market availability (Ghezzi and Cavallo, 2020). In addition, social media

marketing can give small businesses several benefits, including increased brand

awareness, client engagement, and deals. According to a study by Gheribi et al.

( 2019), social media marketing can increase brand mindfulness and client

engagement, leading to increased client fidelity and advanced deals.

Furthermore, according to the study of Sokolova and Kefi (2020), the free

flow of information and communication between customers, partners, and MSMEs

through social media has been proven to be more effective and efficient.

Leveraging social media allows for quick responses to consumer inquiries across

various platforms such as Facebook, Twitter, and YouTube. This study highlighted

the importance of social media to enhance interactivity to improve responsiveness

and overall effectiveness in addressing consumer needs. Therefore, social media

platforms are an extremely important tool in marketing operations, offering MSMEs

a convenient means to stay competitive. Additionally, Irhas et al. (2020) stated that

the advantages of social media marketing extend beyond customer satisfaction for

MSMEs. They highlight benefits such as heightened productivity, system

integration, increased competitiveness, and cost reductions. These transformative

effects underscore the significant impact of social media marketing on MSMEs.

Utilizing social media for business introduces new opportunities for growth.

17
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Also, In the study of Deel (2023), utilizing social media marketing provides small

businesses with a powerful tool to reach broader audiences, build brand identity,

and engage with customers in a cost-effective and measurable way. Unlike

traditional advertising techniques, social media allows small businesses with limited

resources and small marketing budgets to reach their target customers organically.

Social media marketing can have a significant impact on the success of small

businesses. Social media marketing provides businesses with an affordable and

effective way to reach their target audience, build their brand, and increase sales. In

order to maximize the numerous advantages of social media marketing, micro,

small and medium businesses must keep up with the latest trends in social media

marketing Kapoor(2023). In a journal cited by Sutarwala (2023), stated the

numerous advantages of social media marketing, businesses must use this power

to stay ahead in a continually shifting market to stay relevant in the digital age.

Hernandez et al. (2023), study revealed that social media marketing has a positive

business in the Philippines, contributing to their performance and sustainability.

With the social media marketing tool by MSMEs in the Philippines leads to

collaboration, information sharing, customer relations, and accessibility to

competitors. The study aims to explore the usage of social media and its impact on

MSMEs.

Social Media Marketing Trends and Practices

18
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Choosing the right social media marketing tool and learning how to use it

effectively can help in building a strong online presence, which, in turn, can steadily

grow the business (Allen, 2024). While social media marketing offers numerous

opportunities for businesses to connect with their audience and drive growth, it's

essential to select the right platforms and tailor the approach accordingly because

not all platforms are equally suitable for every type of business. For instance,

visual-centric businesses might find success on platforms like Instagram and

TikTok, while business-to-business (B2B) enterprises may prefer LinkedIn for

professional networking and lead generation. According to statistics provided by

West and West (2024), the most-used platforms by marketers worldwide as of 2024

are Facebook (89%), with Instagram following closely in second place (80%),

followed by YouTube, TikTok, X (formerly Twitter), and LinkedIn. However, Palma

(2024) notes a rapid growth in the usage of TikTok among marketers, which is

becoming an essential component for attracting customers due to its eye-catching

aspects in TikTok ads. Indeed, after viewing TikTok advertisements, 57% of

consumers confirm making purchases.

Given that business owners or managers aim for an increase in sales through

their marketing efforts, they must utilize a suitable social media platform for their

business and marketing needs. According to Council (2019) and Hajiyeva (2023),

identifying various factors including the type of business, target customers,

customers' behavior, and demographics is essential to consider in choosing the

best social media platforms. Considering the importance of selecting the

19
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

appropriate social media platform, business owners must also prioritize learning

effective strategies for utilizing social media to maximize the impact of their digital

marketing efforts. Staying updated with current marketing trends can be

challenging, but for businesses to succeed in the rapidly changing marketing world

– it is vital to anticipate and adapt to these trends proactively (Santiago, 2024).

Shahbaznezhad et al. (2021) found that content creation strongly influences various

forms of engagement behavior. They noted that content formats like videos or

photos prompt consumers to actively engage by expressing their opinions and

comments on firms' posts. Furthermore, they observed that different types of media

possess varying levels of interactivity.

The fact that Filipinos are the world’s most active social media users is

important for local MSMEs to understand, as it highlights the significance of

knowing how to utilize social media platforms to engage Filipino consumers.

Facebook remains on top in the most-used social media platform in the country,

with 96% of people aged 16 to 63 using the platform, followed by YouTube (95%),

Facebook Messenger (89%), Instagram (64%), and X (56%), making these

platforms the primary source of information for consumers in the Philippines (Zoleta

& Zoleta, 2023). By understanding the social media habits and preferences of

Filipino consumers, MSMEs can change their marketing strategies, accordingly,

creating content that resonates with their audience and fostering meaningful

interactions. According to the study of Albarando et al. (2023), Facebook marketing

strategies, including Facebook advertisements, consistent posting, live selling, and

20
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

customer reviews, have improved Filipino consumers' understanding of the brand,

which may lead consumers to purchase in the future from brands that regularly post

about their product or services on their Facebook page.

Conclusively, utilizing social media marketing effectively is crucial for MSMEs to

establish a strong online presence and engage with their target audience. By

selecting the right platforms, understanding consumer behavior, and adapting

strategies to current trends, businesses can maximize the impact of their digital

marketing efforts and drive growth in the competitive market landscape.

Digital Literacy and Social Media Competency Among MSMEs

The literacy level of micro, small and medium-sized enterprise (MSME) owners

in social media advertising varies significantly. Certain studies suggest that many

MSMEs struggle with low levels of digital literacy and show limited adoption of

social media for business purposes. According to Suyanto et al. (2023) study,

numerous challenges are faced by MSMEs in India including the digital literacy

capabilities of MSMEs actors. These capabilities have a significant impact in the

continuity of businesses.

Enhancing digital literacy among MSMEs is essential for their digital

transformation. By improving their proficiency in digital technologies, MSMEs can

potentially boost their revenues by as much as 80%. The research study

emphasizes that adopting media can lead to beneficial outcomes, for MSMEs in

terms of sustainability and overall business success. The level of literacy with social

21
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

media advertising among MSME owners seems to differ, with some fully embracing

it while others are slower to adopt it.

The literature on social media literacy and its impact on micro, small and

medium-sized enterprises (MSMEs) reveal several key findings. Studies have

shown that social media adoption significantly influences firm performance (Ahmad

et al., 2019), especially in the context of the COVID-19 era, where MSMEs have

demonstrated a high intention to adopt social media for marketing and customer

engagement (Kakumbi & Phiri, 2022). Moreover, digital literacy, including e-literacy,

has been identified as a mediator for improving business performance, particularly

in the context of digital marketing development (Omiunu, 2019; Umboh & Aryanto,

2023). The literature also emphasizes the role of knowledge creation, innovation,

and entrepreneurial orientation in driving MSME performance through social media

(Moy et al., 2020; Hastuti, 2021).

These findings collectively underscore the significance of social media literacy

for MSMEs, highlighting its multifaceted impact on business performance,

marketing capabilities, and overall sustainability. The study provides valuable

insights into the potential of social media as a strategic tool for MSMEs, especially

in the context of digital transformation and evolving market dynamics.

Challenges Faced by MSMEs in Utilizing social media

Pandemic Challenges of MSME’s

22
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

The challenge to MSMEs during COVID-19 pandemic is the restriction of the

people coming out on their community (Syaifullah, J., et al., 2023). A survey

conducted by International Labor Organization (ILO) stated that the impact of the

COVID-19 pandemic on 571 micro, small, and medium-sized Enterprise led the

70% of MSMEs stopped the production due to COVID-19 lockdown. The survey

conducted across Indonesia. Besides, ILO found that the employees asked their

employee to take paid and unpaid leave. (ILO report, 2020). The COVID-19

pandemic lockdowns have affected to the businesses and economic activity that

result to the low sales and revenues that cause of some of the business’ closure

during COVID-19 pandemic. The bankruptcy that facing of business, especially

products, has a more severe impact on MSMEs than more extensive and

multinational companies (Velita, L. V. 2021). The widespread closure of

businesses, particularly affecting lower-income populations, is anticipated to lead to

contractions in national economies. This phenomenon has been closely associated

with a significant surge in unemployment and poverty (World Bank, 2020; Fabeil,

Pazim, & Langgat, 2020).

Difficulty on making Creative Contents and Engaging with Customers

According to Barnhart (2023) there are numerous challenges face by business

and keeping up with changing social media trends is tougher than ever, as the

average lifespan of a trend is shrinking fast. It states that Creating content must

resonate with the target audience. Moreover, Kruse (2024) mentioned that not

engaging with customers in a meaningful way is also one of the challenges face by

23
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

businesses. Additionally, weak brand awareness, slow sales, poor online

reputation, nonexistent connection with customers are the effect of not utilizing

social media marketing effectively.

The insights provided by the reviewed literature and studies shows that MSMEs

face challenges in keeping up with rapidly changing social media trends and in

effectively engaging with their audience. Failure to address these challenges can

result in negative effects such as weak brand awareness, slow sales, and poor

online reputation. It is crucial for businesses to adapt their social media strategies to

ensure meaningful engagement with customers and capitalize on the opportunities

presented by social media platforms.

Synthesis

In the studies and literatures of Baker and Odediran examined how social media

marketing plays a crucial role in promoting products/services for MSMEs.

Additionally, in the study by Tarsakoo and Charoensukmongkol explained the

effectiveneses of utilizing social media marketing to the business especially in the

MSMEs than the traditional marketing. Moreover, Ghezzi and Cavallo, Gheribi et

al.,Sokolova & Kefi, and Irhas et al., examined the adopting social media for

marketing strategy improved and increased the brand awareness and client

engagement of the business. Furthermore, Deel, Kapoor, Suturwala, and

Hernandez explained the importance of utilizing social media marketing to the

business as it gives numeroius advantages.

24
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

In the studies and literature of Allen, West and West, and Palma, explained the

effective utilization of social media marketing by selecting the right social media

marketing tool, and key for MSMEs to establish a strong online presence, engage

with their target audience, and drive growth in the competitive market landscape.

They involve identifying platforms that align with the nature of the business and the

preferences of the target audience. Different social media platforms cater to distinct

demographics and user behaviors, so MSMEs need to strategically choose

platforms that best suit their products or services. These factors are seen as

integral elements in leveraging the potential of social media for business success.

In the studies and literatures of Suyanto et al., Kakumbi & Phiri, Omiunu,

Umboh & Arynato, Moy et al., and Hatusi, exmained the significance of social

media literacy for MSMEs, impacting business performance, marketing capabilities,

and overall sustainability in the context of digital transformation and evolving market

dynamics. MSMEs with a higher level of social media literacy are better equipped to

navigate the digital landscape, attract customers, and ultimately enhance their

overall performance. It is not only a fundamental skill but also a strategic asset that

influences business performance, marketing capabilities, and the overall

sustainability of MSMEs in the dynamic and digitally-driven market environment.

In the studies and literatures of Syaifullah et al., Velita, Barnhart and Kruse,

discussed the challenges faced by MSMEs in utilizing social media is essential for

meaningful engagement with customers and capitalizing on the opportunities

presented by social media platforms. The studies highlight how these challenges

25
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

have led to production stoppages, closures, and financial difficulties for MSMEs,

underscoring the broader economic context in which these businesses operate. In

addition, they examined the adaptation to changing trends is crucial for the success

of MSMEs in the digital age, that adaptation is not only about understanding current

trends but also about anticipating and responding to emerging trends effectively.

26
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

CHAPTER 3
METHODOLOGY

METHOD OF RESEARCH
The researchers used a correlational approach of quantitative research as a

method to collect, discuss, assess, analyze, and interpret data that are relevant to

this study. The researchers intend to evaluate the relationship between the

demographic profile of respondents, business characteristics, respondents’ level of

digital literacy and social media usage of MSMEs.

According to MSEd (2023), it is a type of research design that looks at the

relationships between two or more variables. Correlational studies are non-

experimental, which means that the experimenter does not manipulate or control

any of the variables.

POPULATION SIZE
The respondents of the study will be the registered businesses from San

Carlos, Mariveles, Bataan which covers 137 total population excluding the business

inside Mariveles Public Market. To find the sample size of the respondents,

Cochran’s Formula was used.

2
z ⋅ p ⋅(1− p)
Cochran’s Formula: n 0=
e2

27
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Where:
n0 = sample size
e = margin of error of 0.05
p = sample proportion
z = standard normal value based on 90% confidence level
Therefore:
2
z ⋅ p ⋅(1− p)
n 0= 2
e
2
z ⋅ p ⋅(1− p)
n 0= 2
e
2
1.645 (0.10)⋅(1−0.10)
n 0=
0.052
2.706 (0.09)
n 0=
0.0025
0.2434
n 0=
0.0025
n 0=¿ 97.36

By applying this formula, the total number of respondents for the study can be

determined. A total of 98 respondents will participate with a 0.05 margin of error.

Additionally, a random sampling method was utilized to ensure a good

representation of the respondents.

The table below shows the frequency and distribution of the respondents according

to their business category.

Category Total Percentage Respondents

Population
Amusement 4
6 4.38

28
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Brokers/Gen. 45
Merchandise 32.85 32
Contractor 5 3.65 4
Manufacturing 4 2.92 3
Retailer 61 44.53 44
Financial
Institution
16 11.68 11
Total 137 98
Out of the 98 total respondents from six business categories, 4 were from

Amusement and Contractor each, which is about 8.03% of the sample. Additionally,

3 respondents were from Manufacturing. The majority of respondents, 44 out of 98

(44.53%), belonged to the Retailers category. Brokers/General Merchandise had 32

respondents out of 45 total, making up 32.85% of the sample, while Financial

Institutions had 11 respondents.

SAMPLING TECHNIQUE
To ensure a diverse and representative sample of San Carlos's micro, small

and medium businesses (MSMEs), the researcher will utilize a two-step sampling

approach. First, the researcher will employ stratified sampling, dividing the

businesses into groups based on their specific service offerings. This ensures that

each major business category within the MSMEs is represented in the study. Next,

within each of these groups, random sampling will be used to select individual

businesses to participate. By using random sampling, the researcher wants to make

sure that the sample includes a wide variety of businesses and accurately

represents the whole population. This combination of stratified and random

sampling ensures a fair and equal participation of the respondents and helps to

improve the validity and reliability of the study's findings.

29
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

DESCRIPTION OF RESPONDENTS

The respondents of the study were the micro, small and medium enterprises

(MSMEs) that operate in San Carlos, Mariveles, Bataan. They were profiled based

on their age, gender, educational attainment, and training of the owner, as well as

the business demographics, which consist of their business type and years of

operation.

RESEARCH INSTRUMENT
The researcher used a self-structured survey questionnaire to collect particular

information from the study’s participants. The questionnaire assessed the utilization

of social media as a marketing strategy among MSMEs using both categorical or

nominal scales and a Likert scale.

Numerical Description Verbal Interpretation

1 Strongly Agree

2 Agree

3 Neutral

4 Disagree

5 Strongly Disagree

30
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

The questionnaire includes the letter to the respondents specifying the title of

the study and assuring them of the confidentiality of the information that will be

gathered in accordance with the Data Privacy Act (RA 10173). There are four

sections in the questionnaire. The first section includes personal information,

educational information of the respondents, and the business type, size of business

(employee count), and years in operations. The second section explores the social

media usage of MSMEs, including adoption, platforms used, content types, and

frequency of posting. The third section evaluate the respondents’ level of digital

literacy, using a Likert scale to identify the respondents confidence in navigating

platforms, comfort with terminology, ease of understanding instructions, and

proficiency in content creation. Finally, the fourth section addresses training needs

in social media usage, with options for specific areas of support and interest in

attending sessions indicated by Yes, No, or Maybe.

DATA GATHERING PROCEDURE

The researcher used a self-structured survey questionnaire to collect data. The

researcher presented the questionnaire to the Research Instructor for checking and

validation of data. Following validation, a formal request letter was submitted to the

Municipal Hall of Mariveles to obtain statistical data on Micro, Small and Medium

Enterprises (MSMEs) in San Carlos. Subsequently, another request letter was sent

to the Brgy. Hall of San Carlos to seek permission to conduct the survey. Once both

the statistical data and permission were obtained, the survey was distributed to

identified respondents, who comprised business owners and managers of MSMEs

31
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

in Mariveles. Sufficient time and convenience were provided to the respondents for

questionnaire completion. Upon retrieval of the questionnaires, the researchers

ensured the protection and confidentiality of the collected information.

Subsequently, the respondents' responses were tabulated according to the study's

problem format, and relevant statistical techniques were applied for analysis.

STATISTICAL TREATMENT OF DATA

The data acquired for this study was arranged and classified by the researcher for

interpretation and analysis. The data were coded, totaled, tabulated, and

statistically evaluated using the following statistical measures:

1. Frequency Distribution is used to describe data that has been tabulated

by category class intervals without accounting for the conforming frequency for

each class. This was used to interpret the respondent's demographics, such as

age, gender, educational attainment, and training as well as the business

demographic, business type, years of operation, and number of employees. It is

a collection of data that shows how frequently different values or collections of

values variables occur.

2. Percentage Distribution was used to calculate the responses as a

percentage of the total respondents who participated in the survey. This is done

by dividing the frequency of the response by the total number of respondents. It

is calculated as follows;

f
%= x 100 Where:
n

32
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

% = percentage

f = frequency

100 = constant value

n = number of respondents

3. Weighted Mean the researcher also used the method used to find the

average value of a dataset, but it considers that some data points are more important

than others. Each data point is given a "weight" based on its significance, and the

calculation takes these weights into account to determine the overall average.

Essentially, it's like giving more emphasis to certain data points when calculating the

average. It was used for calculating the statistical mean of responses from the various

survey questionnaire questions.

The equation for calculating it:

fx
x=∑
n

Where:

x = weighted mean

∑fx = the sum of all the products of f and x, f being the frequency of each weight

and x as the weight of each operation.

n = total number of respondents

4. Pearson’s Product Moment Coefficient of Correlation (r). This was used to

determine the relationship between the demographic profile of respondents,

33
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

business characteristics, respondents’ level of digital literacy and social

media usage of SMEs.

REFERENCE

Maya Dollarhide (2023). Social Media: Definition, Importance, Top Websites &
Apps https://www.investopedia.com/terms/s/social-media.asp

Kristen Baker (2023). Social Media Marketing: The Ultimate Guide

https://blog.hubspot.com/marketing/social-media-marketing#:~:text=Social

34
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

%20media%20marketing%20is%20the,media%20marketing%20is%20constantly
%20evolving.

Abed, S. S. (2020). "Social commerce adoption using TOE framework: An empirical

investigation of Saudi Arabian SMEs". International Journal of Information
Management, Vol 53 pp:102-118.

Chatterjee S., Kar A. K. (2020). Why do small and medium enterprises use social
media marketing and what is the impact: Empirical insights from India. International
Journal of Information Management, 53, 102103.

Hasan Shahid (2019). Effectiveness of Social media marketing"."

https://www.researchgate.net/publication/335714818_Effectiveness_of_Social_med
ia_marketing

Shaurya Kapoor (2023). The Impact of social media marketing on Small

Businesses. https://www.ijariit.com/manuscripts/v9i2/V9I2-1284.pdf

Ebrahim R. S. (2020). The role of trust in understanding the impact of social media
marketing on brand equity and brand loyalty. J. Relat. Marke. 19 287–308.
10.1080/15332667.2019.1705742 [CrossRef] [Google Scholar]

Santos et al. (2022). Effective Digital Marketing Strategies Used by MSMEs in NCR
Under New Normal
https://al-kindipublisher.com/index.php/jbms/article/download/2869/2529

Tarsakoo, P., and Charoensukmongkol, P. (2020). Dimensions of social media

marketing capabilities and their contribution to business performance of firms in
Thailand. J. Asia Bus. Stud. 14, 441–461. doi: 10.1108/JABS-07-2018-0204

Ghezzi, A., & Cavallo, A. (2020). Agile business model innovation in digital
entrepreneurship: Lean startup approaches. Journal of Business Research, 110,
519–537.

Irhas E. M., Dyah S., Yuni I. (2020). Social media adoption in SMEs impacted by
COVID-19: The TOE model. The Journal of Asian Finance, Economics and
Business, 7(11), 915–925. https://doi.org/10.13106/JAFEB.2020.VOL7.NO11.915

Sokolova, K., & Kefi, H. (2020). Instagram and YouTube bloggers promote it, why
should I buy? How credibility and parasocial interaction influence purchase
intentions. Journal of Retailing and Consumer Services, 53, 101742

Kristine Baker (2023). Social Media Marketing: The Ultimate Guide

https://blog.hubspot.com/marketing/social-media-marketing
35
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Isaac Deel(2023). Social Media Marketing Strategies for Small Businesses: A

Comprehensive Guide to Success and Growth
https://dc.etsu.edu/cgi/viewcontent.cgi?article=1956&context=honors

Adegboyega Odediran et al. (2020). SOCIAL MEDIA MARKETING: THE

ADVANTAGE AND DISADVANTAGE.
https://www.researchgate.net/publication/347442400_SOCIAL_MEDIA_MARKETIN
G_THE_ADVANTAGE_AND_DISADVANTAGE_SOCIAL_MEDIA_MARKETING_T
HE_ADVANTAGE_AND_DISADVANTAGE_FINAL_PROJECT

Umme Sutarwala (2023). Impact of social media marketing on businesses

https://www.sprinklr.com/blog/social-media-business-marketing/#:~:text=Social
%20media%20marketing%20provides%20an,revenues%20and%20overall
%20business%20performance.

Allen, N. (2024, January 30). How to use social media to grow your business.
Investopedia. https://www.investopedia.com/use-social-media-to-grow-business-
8391642

Palma, B. R. (2024, February 16). Social media marketing platforms to use in 2024
- Center for Economic Development. Center for Economic Development.
https://economicdevelopment.umw.edu/blog/2024/02/15/social-media-marketing-
platforms-to-use-in-2024/

Hajiyeva, K. (2023, November 29). How to choose the right social media platforms
to target your buyers? Planly. https://planly.com/right-social-media-platforms/

Council, F. C. (2019, July 31). 13 top tips for choosing the right social media
platform for your business. Forbes.
https://www.forbes.com/sites/forbescommunicationscouncil/2019/07/31/13-top-tips-
for-choosing-the-right-social-media-platform-for-your-business/?sh=59600f9d78eb

Santiago, E. (2024, January 15). The Top Marketing Trends of 2024 & How They’ve
Changed Since 2023 [Data from 1400+ Global Marketers]. Hobspot.
https://blog.hubspot.com/marketing/marketing-trends

Shahbaznezhad, H., Dolan, R., & Rashidirad, M. (2021b). The role of social media
content format and platform in users’ engagement behavior. Journal of Interactive
Marketing, 53, 47–65. https://doi.org/10.1016/j.intmar.2020.05.001

36
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Zoleta, V., & Zoleta, V. (2023, February 28). Social Media Marketing for Philippine
Businesses [Complete Guide]. Grit PH. https://grit.ph/social-media-marketing/

Albarando, T., Narca, C. M., Tabora, D. G. S. P., & Alano, J. A. (2023). The
effectiveness of Facebook social media marketing on Filipino college students’
preferences. ResearchGate. https://doi.org/10.13140/RG.2.2.21861.78562

Hastuti, W. K. (2021). THE IMPACT OF DIGITAL LITERACY AND

ENTREPRENEURIAL ORIENTATION TO SURAKARTA BATIK SMEs
PERFORMANCE. Economica : Jurnal Prodi Pendidikan Ekonomi STKIP PGRI,
9(1), 120–132. https://doi.org/10.22202/economica.2020.v9.i2.4648

Annisa, L. H., & Er, M. (2019). Impact of Alignment between Social Media and
Business Processes on SMEs’ Business Process Performance: A Conceptual
Model. Procedia Computer Science, 161, 1106–1113.
https://doi.org/10.1016/j.procs.2019.11.222

Moy, M. M., Cahyadi, E. R., & Anggraeni, E. (2020). The impact of social media on
knowledge creation, innovation, and performance in small and medium enterprises.
Indonesian Journal of Business and Entrepreneurship.
https://doi.org/10.17358/ijbe.6.1.23

Arianty, N., & Julita, J. (2019). The impact of social media use on SME progress.
Journal of International Conference Proceedings, 2(3), 176–182.
https://doi.org/10.32535/jicp.v2i3.660

Omiunu, O. G. (2019). E-literacy-adoption model and performance of women-

owned SMEs in Southwestern Nigeria. Journal of Global Entrepreneurship
Research, 9(1). https://doi.org/10.1186/s40497-019-0149-3

Belás, J., Amoah, J., Dvorský, J., & Šuleř, P. (2021). The importance of social
media for management of SMEs. Economics & Sociology, 14(4), 118–132.
https://doi.org/10.14254/2071-789x.2021/14-4/7

Susanto, P., Hoque, M. E., Shah, N. U., Candra, A. H., Hashim, N. M. H. N., &
Abdullah, N. L. (2021). Entrepreneurial orientation and performance of SMEs: the
roles of marketing capabilities and social media usage. Journal of Entrepreneurship
in Emerging Economies, 15(2), 379–403. https://doi.org/10.1108/jeee-03-2021-
0090

Qalati, S. A., Ostic, D., Sulaiman, M. a. B. A., Gopang, A. A., & Khan, A. (2022).
Social media and SMEs’ performance in developing countries: Effects of
Technological-Organizational-Environmental Factors on the adoption of social

37
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

media. SAGE Open, 12(2), 215824402210945.

https://doi.org/10.1177/21582440221094594

Alkhateeb, M. A., & Abdalla, R. (2021). Social Media Adoption and its Impact on
SMEs Performance A Case Study of Palestine. Estudios De Economía Aplicada,
39(7). https://doi.org/10.25115/eea.v39i7.4872

Kakumbi, G., & Phiri, J. (2022). Adoption of Social Media for SME Growth in the
Covid-19 Era: A Case of SMEs in the Clothing industry in Lusaka, Zambia. Open
Journal of Business and Management, 10(06), 3202–3229.
https://doi.org/10.4236/ojbm.2022.106159

Ahmad, S. Z., Bakar, A. R. A., & Ahmad, N. (2019). Social media adoption and its
impact on firm performance: the case of the UAE. International Journal of
Entrepreneurial Behaviour & Research, 25(1), 84–111. https://doi.org/10.1108/ijebr-
08-2017-0299

Saleem, M., Khan, S. A., Shamsi, I. R. A., & Magd, H. (2023). Digital Marketing
through Social Media Best Practices. In Advances in marketing, customer
relationship management, and e-services book series (pp. 17–30).
https://doi.org/10.4018/978-1-6684-8166-0.ch002

Fayyaz, A. (2022). Latest trends in social Marketing. Business and Management

Horizons, 10(1), 18. https://doi.org/10.5296/bmh.v10i1.19985

Lulandala, E. E. (2022). Social media advertising. In Routledge eBooks (pp. 173–

186). https://doi.org/10.4324/9781003315377-13

Yildiz, E., & Özmen, Ş. Y. (2023). COMMUNICATION PRACTICES ON SOCIAL

MEDIA PLATFORMS. Düşünce Ve Toplum Sosyal Bilimler Dergisi, 5(1), 1–30.
https://doi.org/10.55796/dusuncevetoplum.1191122

Suyanto, B., Sugihartati, R., Egalita, N., Mas’udah, S., Singgih, D. S., & Sudarso.
(2023). Digital literacy and survival mechanism of micro-small enterprises in
practicing sharing economy. Cogent Social Sciences, 9(2).
https://doi.org/10.1080/23311886.2023.2245691

MSEd, K. C. (2023, May 4). Correlation studies in psychology research. Verywell

Mind. https://www.verywellmind.com/correlational-research-2795774

Kruse, K. (2024, January 15). 6 Common Business Challenges Solved with

Creative Social Media Strategy. Kruse Control Inc.
https://www.krusecontrolinc.com/common-business-challenges-solved-social-
media-strategy/
38
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Syaifullah, J., Syaifudin, M., Sukendar, M. U., & Junaedi, J. (2021). Social media
marketing and business performance of MSMEs during the COVID-19 pandemic.
The Journal of Asian Finance, Economics and Business, 8(2), 523-531.

Velita, L. V. (2022). Business performance of micro, small and medium enterprises

during the COVID-19 pandemic in Cebu City, Philippines. Journal of Agriculture and
Technology Management (JATM), 25(1), 199-206.

Fabeil, N. F., Pazim, K. H., & Langgat, J. (2020). The Impact of Covid-19 Pandemic
crisis on micro- enterprises: Entrepreneurs’ perspective on business continuity
and recovery strategy. Journal of Economics and Business, 3(2) 36-90.

Ekaputri, H. E., Nurfadilah, F. A., Rafsanzani, F., & Santy, R. D. (2021). The Effect
of Creative Content to Increase Brand Awareness: Information Technology-Based
Marketing Strategies. International Journal of Research and Applied Technology
(INJURATECH), 1(2), 410-423.

39