Social Proof and U.K. company profitability: A Case of Vichy

Abstract

Purpose: The purpose of this study is to examine the relationship between social proof and a company's profitability, with a specific focus on the case of Vichy. Fear of Missing Out (F.O.M.O.) is a psychological phenomenon social proof trigger. The study emphasises the significance of social proofing, a marketing strategy that analyses consumer preferences and behaviours. Methodology: The research paradigm used in this study is positivism, with a deductive approach. The sample size is made up of fifty employees from the company. To achieve the best research results, both quantitative and qualitative research methods were used. In-depth interviews were conducted with two Vichy managers to understand better the use of social proof to boost company performance. Findings: The study demonstrates organisational growth and profitability through social proofing in a competitive business environment. As a result, it comprehends current organisational conditions and emphasises business expansion in the digital business economy. Furthermore, the ANOVA test indicates that there is an existence of a direct or indirect relationship between social proof and brand profitability. Study originality and implications: To attract customers and increase profits, U.K. skincare retailers widely use social proofs such as case studies, customer reviews, awards, and influencer marketing. Companies can easily reach their target audience by using this marketing technique. However, there has been little or no research in this area, particularly in a luxury brand like Vichy. As a result, the findings are highly original, with significant academic and organisational implications. Companies can use the findings to implement effective social-proof marketing strategies to increase profits.