THE ROLE OF SOCIAL MEDIA IN THE REAL ESTATE INDUSTRY

Abstract

As globalization continues to change how people live, work and play, there has been a shift in the way businesses reach out to customers; the interaction is becoming increasingly personal, and a brand’s reputation is now vulnerably in the hands of consumers. What they type online gets broadcasted on social media channels. Consequently, many businesses are beginning to join in on social networking sites to better connect with target customers, and play a crucial role in shaping their online brand reputations, all in the name of profit-maximization. Hence this study was undertaken with three objectives; firstly to investigate the extent of social media usage in real estate and the effectiveness of using social media as a marketing platform; secondly to investigate consumer behavior and perceptions with regards to using social media as an important source of information for purchase decisions; and thirdly the role of social media as a demand driver in the retail and hotel space market. It was found that malls and hotels in Singapore have greater success with using social media than condominium developments do. Also, a significant proportion of consumers find social media an important source of information when making decisions on retail- and hotel-related activities. Lastly, social media is not likely to be a significant demand driver of retail or hotel space because there are many interdependent factors that drive demand, and social media does not have a direct relationship with those factors.