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Table of Contents
Greener Journal of Social Sciences
Vol. 15(1), pp. 151-160, 2025
ISSN: 2276-7800
Copyright ©2025, Creative Commons Attribution 4.0 International.
https://gjournals.org/GJSC
DOI: https://doi.org/10.15580/gjss.2025.1.052425089
1 Department of Sociology, Lead City University, Oyo State, Ibadan.
Email: olowo.joseph@lcu.edu.ng, olowojoseph70@gmail.com
2 Department of Sociology, Lead City University, Oyo State, Ibadan. Email: kolapo.tunji@lcu.edu.ng
Social media has increasingly become a strategic tool for customer engagement, its relevance for SMEs-particularly in emerging economies -warrants deeper investigation, SMEs in Nigeria play a pivotal role in employment generation, innovation and economic development, yet many struggle with customer complaints resolution and customer retention among many other customer satisfaction challenges. This study therefore, investigates the influence of social medial usage on customer satisfaction of selected SMEs in Oyo and Ogun States in Nigeria. The study adopted a descriptive research design. A purposive sampling technique was used to select 7 SMEs that have acquired digital transformation for the study. Three hundred and ten (310) Owner/Management, Mid- level Managers and Junior Staff were selected using the Taro Yamanes Sample size determination. A research questionnaire was used in gathering data from the respondents. The Resource Based View Theory was the theory adopted in this study. Descriptive and inferential statistics, including regression, were employed. The findings reveal that social media usage positively impacts customer satisfaction, accounting for 66.4% of its variance (R² = 0.664, F(1,300) = 592.576, p = 0.000). The study concludes that ICT tools such as social media positively impact various performance metrics, most importantly Customer Satisfaction. Based on these findings, the study recommends that SMEs invest or leverage on social media for customer engagement and ultimately customer satisfaction.
Type: Research
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DOI: 10.15580/gjss.2025.1.052425089
Accepted: 27/05/2025
Published: 02/06/2025
Joseph Dada OLOWO
E-mail: olowo.joseph@lcu.edu.ng, olowojoseph70@gmail.com
Keywords: Social Media Usage, Customer Satisfaction, Small Medium Enterprises (SMEs)
Today’s world is fast becoming a global village in which small and medium enterprises (SMEs) are being acclaimed globally as the economic bedrock in many countries. SMEs are also constantly changing and becoming a very vibrant sector for the world economy (Li et al., 2020). In developing countries, SMEs provide more than 80% of jobs and contribute up to 70% of their GDP (Janavi et al., 2021). These inform the imperative for governments and private enterprises to undertake several efforts to enhance SMEs operational efficiency. This, they hope, will enable them to compete effectively for emerging business opportunities (Borah et al., 2022). Hence the performance of SMEs is currently an issue of urgent discourse. Although, SMEs performance is important, Customer Satisfaction is paramount to the actualization of that performance. Customer satisfaction is the degree to which a customer is happy with their user experience with the company or the company’s products or services. It measures how well a firm is able to meet their customer’s expectations. (Basari, & Shamsudin, 2020).
Customer satisfaction is a key factor in business operation because SMEs cannot retain its customers unless having highly satisfied them. As a result, the performance of SMEs mostly in developing countries have not been too successful despite the effort to improve customer satisfaction. These has resulted to very low survival rate or early death of SMEs.
Here in Nigeria, in a study by Saibu and Bello (2019), it was discovered that out of a total of 187 SMEs they studied, only 79 survived up to the 6th year (average survival year) while 108 did not survive up to the 6th year (average survival year). Etim, et al (2022) also concurred that SMEs in Nigeria have been characterized by high mortality especially within their first five years of existence. This high mortality therefore, influences economic growth negatively. This is evidenced in the high rate of unemployment, poverty and low standard of living. According to Odutola, Oyekola, and Ajayi (2021), many of these SMEs close shop few years after opening, while some retain a stagnant growth. In this case, these SMEs cannot be said to have made significant gains from Customer Satisfaction, as a satisfied customer is a growth asset to an SME.
In order to offer a solution to some of these challenges, the use of social media has been touted as one of the strategies to enhance this customer satisfaction. SMEs have gradually evolved from the traditional marketing approach to an online marketing approach using social media platforms such as Instagram, Facebook, WhatsApp, and YouTube to reach out to and interact with potential and existing customers. Evidently, social media usage globally is reported to have been expanding at an annual growth rate of 25%, which has endeared most businesses to advertise their products (Glory & Crispin, 2022).
Furthermore, Anuj, Ali Syed, and Pandey (2020) argue that with social media adoption and usage, customers could effortlessly patronize businesses of their choice from the comfort of their room while leaving feedback or publicly recommending such services to others who might want to try it out. In the same vein Esther and Jaspers (2022), in agreement with Liu and Wang (2022), opined that social media raises firms’ performance and provides firms with many benefits such as help in introducing new products and services, becoming more customer oriented, responding better to market changes, and being able to innovate for better performance.
However, the emergence of social media in over a decade ago has been accompanied with a lot of upsetting in many aspects of life (Mahoney and Tang, 2017). The effect of social media in many of these aspects is still a matter of debate. In particular, the role of social media in Customer satisfaction is still a subject of debate (Mahoney and Tang, 2017). As a result, there needs to be an ongoing investigations and interrogation as to whether social media empirically contributes to SMEs customer Satisfaction or not. It is against this background that the study aims to investigate the influence of social media usage on customer satisfaction in selected SMEs of Oyo and Ogun State in Southwest Nigeria. Moreover, most of the studies in extant literature on the subjects of social media networks as they affect Customer Satisfaction are mostly studies carried outside of Nigeria, making this research study relevant to the increase of the body of knowledge on customer satisfaction especially in Nigeria (Seo et al., 2020).
Statement of the Problem
Social media has increasingly become a vital tool for businesses seeking to improve customer engagement, brand visibility, and service delivery. For Small and Medium Enterprises (SMEs), particularly in developing economies like Nigeria, social media presents a cost-effective means to enhance customer satisfaction and remain competitive. However, despite the high level of internet access and mobile phone penetration in South West Nigeria, many SMEs have yet to fully harness the potential of social media platforms in a strategic and consistent manner (Adebayo & Okafor, 2023).
While recent studies affirm that effective social media engagement positively influences customer satisfaction and loyalty (Nwachukwu, Eze, & Umeh, 2022; Yusuf & Oladipo, 2024), practical adoption among SMEs in South West Nigeria remains fragmented. Common challenges include limited digital skills, lack of clear social media strategies, and inadequate understanding of customer expectations online (Ogunleye & Ibrahim, 2023). Moreover, most existing research does not adequately consider the regional specificities of Southwest Nigeria, where socio-economic, infrastructural, and cultural contexts shape digital behaviors differently from other parts of the country.
This research problem underscores the need for an empirical study that examines how social media usage influence customer satisfaction specifically among SMEs in Oyo and Ogun State. Addressing this gap will not only contribute to academic literature but also provide actionable insights for SME operators and policymakers seeking to optimize digital engagement strategies in the region.
Study Objective
Following from the above the specific objective is to: assess the influence of social media usage on customer satisfaction on selected SMES in Oyo and Ogun State of Nigeria. The hypothesis guiding the study is:
H01: SME’s that adopts social media uses as an ICT business management tool will not positively and significantly influence rate of customer satisfaction.
Customer Satisfaction:
The concept of Customer satisfaction means the degree to which a customer is happy with their trade experience with the company. It measures how well a firm is able to meet their customer’s expectations. According to Enemuo et al (2023) customer satisfaction is a key factor in SMEs performance because a firm cannot retain its customers unless they are highly satisfied. Kotler and Keller (2019) define customer satisfaction as a person’s feeling of pleasure or disappointment resulting from comparing a product’s perceived performance (or outcome) in relation to his/her expectations. Therefore, we can safely say that customer satisfaction as the adulation or compassion of customers toward a product/service after it has been used. Hence a satisfied customers will repeat the purchase, be brand loyal, convey positive word-of mouth advertising, and these will ultimately enhance patronage. While on the other hand a dissatisfied customer may stop buying the product, spread unfavorable word-of-mouth advertising, and may avoid the product. Consequently, the importance of customer satisfaction stems from its role in ensuring customer retention, (Matarazzo et al., 2021). Customer satisfaction therefore occurs when the customer is deeply held commitment to rebuy or patronize a preferred product or service consistently in the future, despite situational influences and marketing efforts having the potential to cause switching behavior. This means that a loyal customer desires to repeat the purchase of the product or service and will have no other.
Social Media:
Social media as a concept is internet-based and gives users quick electronic communication of content, such as personal information, documents, videos, and photos. Consequently, what is known as social media today has many definitions. Thus, social media can be defined as consisting of all digital platforms where people meet and exchange information (Holland, Teicher. and Donaghey 2019). Therefore, the concept social media stands for digital platforms such as website and application where users, either individuals or organizations, are able to produce, commune and share contents under different types of form (Davis et al 2015).
According to Statista (2021), a worldwide report has it that these Social Media applications comprise Facebook with 2.8 billion active users, YouTube with 2.3 billion users, WhatsApp with 2 billion users, and Instagram with 1.4 billion active users. But here in Nigeria Statista (2020) reported that, WhatsApp at (94%) is the most popular social media as at the third quarter of 2019, followed by Facebook (87%), YouTube (76%), Instagram (67%).
The figures are expected to increase organically due to connectivity upgrades, increased smartphone penetration, and amplified customer demand for new products and services (Ahmed et al., 2019).
However, for the purpose of this study this researcher shall be concerned with the following social media Network apps (Applications). They are WhatsApp, Facebook, YouTube and Instagram.
Small and Medium Enterprises (SMEs)
The concept of SMEs differs across frontiers. However, numbers of persons employed seem to remain a recurring application. Capital employed, sales turnover, and/or assets are also used in categorizing firms. In Nigeria, a small enterprise is a firm employing a workforce of 10 – 49 persons or turnover not exceeding N100 million, including working capital but excluding cost of land. a medium enterprise is one with a workforce of 50 – 199 persons or turnover not exceeding N1 billion, including working capital but excluding cost of land (Smedan Report 2021).
Resource-Based View (RBV) Theory
This study is anchored on the resource-based view (RBV) theory as propounded by Penrose in 1959. Resource-Based Theory (RBT) posits that a firm’s ability to achieve and sustain competitive advantage depends on the strategic resources it controls—resources that are valuable, rare, inimitable, and non-substitutable (VRIN) (Barney, 1991). In the modern digital economy, social media platforms—when used strategically—can be viewed as such resources, particularly when they are embedded in the firm’s routines, knowledge, and customer relationship processes (Barney & Felin, 2023).
In the context of SMEs in South West Nigeria, social media serves not merely as a communication tool but as a strategic resource that allows firms to build customer relationships, collect feedback, resolve complaints swiftly, and create personalized marketing—functions that directly contribute to customer satisfaction. However, merely having access to social media is not sufficient. What matters is how SMEs use these tools, which aligns with the resource orchestration perspective (Sirmon et al., 2022). Firms must develop capabilities to manage social media interactions effectively, curate relevant content, and respond to customer concerns in real time to create perceived value.
Given the high smartphone penetration and increasing digital literacy in South West Nigeria, SMEs that can effectively integrate social media into their customer relationship management systems are likely to enjoy better customer satisfaction outcomes than those that use it passively or inconsistently (Yusuf & Oladipo, 2024). For example, an SME with a well-managed WhatsApp business account or Instagram page that provides timely responses and personalized support can differentiate itself in a competitive market—fulfilling the VRIN criteria of RBT.
Moreover, social media engagement generates intangible resources, such as customer trust, brand loyalty, and market intelligence, which can be difficult for competitors to replicate (Peteraf & Bergen, 2022). These intangibles, nurtured over time through effective social media practices, become critical assets that support sustained customer satisfaction and retention.
Thus, RBT explains that the influence of social media usage on customer satisfaction in South West Nigerian SMEs hinges on the firm’s ability to develop and deploy social media as a strategic, inimitable capability, rather than just a communication platform.
Social Media Usage Influence on Customers Satisfaction
The dominant factor that affects customer satisfaction is the quality of service which is very important for users of these services. This determines the continuity of using the services offered by the company or not. If consumers are not satisfied with the services provided, there is a high probability that consumers will switch to services of other kind. Studies have shown that the notion of satisfaction has indicators such as encouraging people to return to using and promoting positive word of mouth and lowering costs to attract customers (Lovelock 2015).
Social media is now being seen by SMEs as one thing that could help in achieving to a great extent a high level of customer satisfaction. Seemingly, social media has revolutionized the way people interact with one another. It has widened the opportunity for the businesses to reach more people than ever before. Previously, traditional mass media like TV and radio were used to promote businesses. This method was indeed effective but with an inherited problem of one-way communication. The problem of one-sided communication is solved by modern technologies that have opened the opportunity for people to have two-way communication with the customers in real time. Research by Omeish et al (2024) indicates that the internet has significantly improved the way of communication by enabling people to use various platforms like social media in order to interact without having the need to meet physically. This new mode of communication, where interaction is so convenient, has opened new doors of opportunities for businesses (Omeish 2024). Today, customers do not only receive promotional messages from companies, but also indulge in interaction with other customers in order to motivate them to buy their products, and also to guide customers in the whole buying process. When customers face any kind of issues with the product/ service, the company can easily resolve that through social media interactivity, hence satisfying customers. (Garg et al 2020)
Chung, Ko, Joung, and Kim (2020) posit that it is a noted fact that when customers intend to purchase products online, there is a certain level of risk that reduces their motivation to buy. This risk can be mitigated by the interaction between the buyer and the seller through social media, which will eventually result in customer buying that company’s product/service, in this regard they found that social media interactivity enhances communication quality, which further increases process satisfaction and ultimately customer satisfaction.
Research by Analytic Global Survey has affirmed that attracting customers via social media is necessary because of the benefit ingrained in it, as 90 per cent of businesses that engaged in social media marketing have indicated the opportunities it provided their businesses. These benefits include improved customer satisfaction, reduced marketing costs, improved trust among stakeholders, increased marketing effectiveness, a decline in travel costs, a decline in customer support costs, and improved purchasing decisions. (Analytics 2020).
In empirical research done on Cologne Retail trade, a company involved in living and decoration products with 490 employees in Germany, shows as follows. The company had 50 million per annum was founded in April 1999. When it started to enter the digital sector with an online shop in 2007, revenues increased by 7% year on year. In 2015, the company slid into the red due to loss making business, but turned the business from insolvency to a digital and marketing driven company. Today, Cologne Retail Trade is being celebrated as digital pioneer and serves as consultant in the retail industry. Well known as brand and second largest furnishing chain in Germany, it increased its revenue by 20% during the Covid-19 lockdown only due to its online business (Pfister and Lehmann 2023).
Similarly, Yeo et al (2020) affirmed that social media advertising has enormous benefits and commercial value of information transmission in terms of high precision and relevance, wide reach of users, rich social scenes and deep user participation. A further study by (Ndung’u, Kinyanjui, and Abayo 2020) indicated that there is a significant relationship between social media usage and customer satisfaction, with 3.72 as the mean score. It was also affirmed that utilizations of social media influences interaction with customers in terms of increased frequency. The findings also indicated that the utilizations of social media for business purposes enables the creation of brand image consistency to 3.74 as the mean score.
Here in Nigeria, Kateri (2021) conducted a study on the impact of social media adoption on the performance of SMEs in Kano State. The study used quantitative research design and data was collected from primary source through the use of questionnaire from 384 managers/ owners of SMEs. Stratified random sampling was used in selecting samples. Data was analysed using regression model with the aid of SMART PLS 3. The study reveals that social media adoption impact on SMEs performance in terms of reduction in cost of marketing and communication, increase customer relationship, increased customer satisfaction, easy access to market information, building brand awareness, loyalty and equity, increase market share, increased sales revenue and competitive advantage.
Research Design
This research adopted a descriptive cross-sectional design. It is a quantitative study using a structured questionnaire to collect data from Owners /Managers and Junior Staff of SMEs in South West Nigeria. The study’s population consisted of Owners/Managers and Junior Staff of SMEs from 7 companies in Oyo and Ogun States of Nigeria. These companies were purposively selected because the pilot study found that they have fully adopted social media usage into their daily business operations. Moreover, the two States were selected because they are contagious to each other and they also have the highest number of SMEs in Southwest Nigeria outside Lagos. The sample of the study consisted of 310 respondents. The sampling technique used for selecting the sample was Taro Yamane. The instrument for data collection was a structured questionnaire of four-point modified Likert scale consisting of SA, A, D and SD. The method of data was mean score for answering the research questions and ANOVA for testing hypothesis.
Presentation of Data
Table 1.1: Descriptive Analysis of the Responses on Social media
Decision rule 1-1.49= strongly disagree, 1.50-2.49= disagree, 2.50-3.49= agree, 3.50-4.00= strongly agree Note: SA-Strongly Agree, A-Agree h, D-Disagree, SD-Strongly Disagree
Source: Field Survey, 2024
According to the results in Table 1.1, 82.5% of the respondents strongly agreed that social media has improved their communication with customers, 15.2% agreed, 1.3% disagreed, and 1.0% strongly disagreed. On average, the respondents indicated that social media has improved their communication with customers with a mean of 3.79. The results also revealed that 81.5% of the respondents strongly agreed that social media allows them to respond promptly to customer inquiries, while 17.9% agreed, and 0.7% disagreed. On average, the respondents indicated that social media allows them to respond promptly to customer inquiries with a mean of 3.81.
Additionally, 86.8% of the respondents strongly agreed that social media has made it easier to address customer complaints, and 12.9% agreed, while 0.3% disagreed. On average, the respondents indicated that social media has made it easier to address customer complaints with a mean of 3.86. Furthermore, 71.9% of the respondents strongly agreed that social media platforms help them gather feedback from customers, 26.2% agreed, 1.7% disagreed, and 0.3% strongly disagreed. On average, the respondents indicated that social media platforms help them gather feedback from customers with a mean of 3.70.
Finally, 89.4% of the respondents strongly agreed that their company uses social media to educate customers about their products or services, and 10.6% agreed. On average, the respondents indicated that their company uses social media to educate customers about their products or services with a mean of 3.89.
The grand mean for the responses on social media is 3.81, indicating that the respondents strongly agreed with the statements regarding the effectiveness of social media. The high level of agreement, as evidenced by the grand mean, suggests that there is significant evidence of the positive impact of social media on customer engagement and interaction within the surveyed organizations.
Test of Hypothesis
Table 1.2: Summary of Regression Analysis for the Influence of Social Media Usage on Customer Satisfaction in Oyo and Ogun State, Nigeria
Adjusted R Square
Source: Researcher’s Field Survey, 2024
The results in Table1.2 indicate that social media usage has a positive and significant influence on customer satisfaction among SMEs in Oyo and Ogun States in Nigeria (R = 0.815, p < 0.05). The coefficient of determination (R2) of 0.664 demonstrates that 66.4% of the variations in customer satisfaction are explained by social media usage, while the remaining 33.6% is attributable to other external factors not examined in this study.
The results of the ANOVA test, which measure the overall significance of the regression model, reveal that social media usage has a statistically significant influence on customer satisfaction (F = 592.576, p = 0.000). This finding confirms that social media usage plays a critical role in enhancing customer satisfaction in SMEs in Oyo and Ogun States of Nigeria.
The regression coefficients further demonstrate a positive and statistically significant relative influence of social media usage on customer satisfaction. Specifically, at a 95% confidence level, social media usage (β = 0.610, p = 0.000, t = 24.343) significantly contributes to customer satisfaction. This suggests that a unit increase in social media usage leads to a 0.610 increase in customer satisfaction, assuming other factors are held constant.
Based on the regression coefficients, the regression model can be expressed as follows:
CS = 7.600 + 0.610SM ——————- (i)
Where:
CS = Customer Satisfaction
SM = Social Media Usage
On the strength of this result (R2= 0.664, F(1,300) = 592.576, p = 0.000), this study rejects the null hypothesis, which states that SMEs that adopt social media usage as an ICT business management tool will not positively and significantly influence the rate of customer satisfaction. The findings affirm that social media usage significantly enhances customer satisfaction among SMEs in Oyo and Ogun State in Nigeria.
The null hypothesis, which states that SMEs that adopt social media usage as an ICT business management tool will not positively and significantly influence the rate of customer satisfaction, was tested using linear regression analysis. In the analysis, customer satisfaction (dependent variable) was regressed on social media usage (independent variable). The data for social media usage was generated by summing responses to all the items measuring this variable, while customer satisfaction was derived by summing responses to all the items measuring it. The regression test results are presented in Table 1.2. From the analysis, the null hypothesis was rejected, demonstrating that social media positively influences customer satisfaction.
This Study contributes to the understanding of the influence of Social media usage on Customer Satisfaction in Oyo and Ogun State, Nigeria. The result of the study offered very strong empirical support to the existence of a positive and statistically significantly effect of social media usage on Customer satisfaction. The results reject the null hypothesis, revealing a strong positive and statistically significant relationship between social media usage and customer satisfaction (R = 0.815, p < 0.05). The coefficient of determination (R² = 0.664) indicates that 66.4% of the variations in customer satisfaction can be explained by social media usage, highlighting its effectiveness in enhancing customer experiences. The findings demonstrate that SMEs leveraging social media platforms effectively manage customer interactions, promote engagement, and address feedback promptly, which collectively contribute to higher levels of customer satisfaction. Social media’s ability to provide real-time communication and personalized interactions fosters trust and loyalty, further reinforcing its impact on customer satisfaction. To a very large extent the findings of the present study is in accordance with earlier study on Social media usage and customer satisfaction
This study aligns with that of Odita (2023) whereby findings from Delta State, Nigeria, indicated that the adoption of relationship marketing strategies through social media significantly enhances customer patronage and loyalty. Similarly, a study by Chowdhury et al (2024) in the fashion retail industry emphasized that social media enables firms to tailor marketing content, build authentic connections, and enhance consumer engagement, which resonates with the positive influence observed in this study.
Also, research by Anjorin et al (2024) examined the pervasive influence of social media marketing in the retail industry, noting that it enhances consumer-brand relationships through increased engagement and interaction. Social media platforms facilitate personalized communication with customers, build brand loyalty, and influence consumer purchasing decisions, all of which contribute to improved customer satisfaction. These findings echo the results of the current study, where SMEs that actively engage with customers on social media platforms like Facebook and Instagram have seen higher satisfaction rates. Similarly, research explored the impact of social media marketing on small business growth, highlighting that small businesses benefit significantly from social media use. By leveraging these platforms, small enterprises can increase their brand visibility, reach a broader audience, and enhance communication with their customers. These factors directly contribute to improved customer satisfaction by fostering a more dynamic and responsive relationship between the business and its clients (Bastian et al 2023).
In concurrence with the result of this research, a study by Oludoyi (2024) established that social media marketing significantly improves customer satisfaction, retention, and patronage among SMEs in Southwest Nigeria. The research highlighted strategies such as ad placement, influencer marketing, and content marketing as critical components for leveraging social media effectively.
Similarly, research by Ndife (2020) on SMEs in Anambra State supports the current results by demonstrating a significant positive relationship between social media usage and performance indicators such as customer base and profitability. These findings reinforce the idea that effective social media usage is not only beneficial for customer retention but also for expanding a customer base, which ultimately enhances satisfaction levels. Additionally, Abdulkadir (2022) in a study in Northwestern Nigeria highlighted social media as a crucial tool for SMEs in the North-Western Nigeria region, especially in terms of performance, marketability, and competitiveness. While this research focused on the broader impact of social media, the current study confirms that customer satisfaction is a critical outcome of social media usage. This suggests that SMEs in the Southwest region can also benefit from these factors by using social media strategically to engage with customers.
Finally, the result of this research properly aligns with the Resource-Based View (RBV) by demonstrating that ICT tools such as Social Media, when effectively deployed constitute valuable, rare, and inimitable resources capable of conferring sustainable customer satisfaction. In addition, the study further deepens the importance of RBV theory by highlighting that the effectiveness of Social Media adoption is contingent on internal organizational readiness, particularly structural adaptability and behavioral responsiveness.
The study also demonstrates that social media usage significantly enhances customer satisfaction in SMEs. Through social media platforms, SMEs are able to interact directly with customers, respond to inquiries, promote their products or services, and receive immediate feedback. This two-way communication fosters positive customer relationships and leads to higher levels of satisfaction. The findings suggest that SMEs that effectively incorporate social media into their business strategies are more successful in building customer trust and satisfaction. Thus, social media has become an essential tool for SMEs aiming to improve customer engagement and foster long-term loyalty going forward.
SMEs should leverage social media platforms to enhance customer satisfaction and engagement. Social media provides an effective channel for real-time communication, customer feedback, and marketing. SMEs should develop clear social media strategies and engage customers in meaningful interactions. Regular monitoring of social media performance metrics will help businesses adjust their strategies to meet customer expectations and improve satisfaction levels.
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