Effect of Facebook Usage on Marketing and Customer Engagement of Micro, Small and Medium Enterprises (MSMEs) in Lusaka Central Business District

This study examined the effect of Facebook usage on marketing and customer engagement among micro, small, and medium enterprises (MSMEs) in Lusaka Central Business District (CBD). It was guided by three objectives: to investigate the effect of Facebook usage on marketing and customer engagement; to determine challenges faced in leveraging Facebook; and to determine the strategies that will be used to optimize the use of Facebook in marketplace engagement of MSMEs. A mixed-methods approach was used with structured questionnaires and semi-structured interviews as data collection tools in Lusaka CBD. Yamane formula was used to derive the sample size of 397 respondents from 48,070 target population. Data was analyzed using descriptive statistics and regression analysis. The findings revealed that Facebook usage significantly enhances marketing and customer engagement among MSMEs. Businesses that actively utilize Facebook experience improved visibility, stronger customer relationships, and higher sales performance. The study further established that MSMEs face several challenges, including high internet costs, limited digital marketing knowledge, inadequate time and personnel to manage online platforms, and security concerns such as cyber fraud. The study also identified several strategies for optimizing Facebook usage, such as investing in digital marketing training, using paid advertisements, creating engaging visual content, collaborating with influencers, and employing Facebook analytics to monitor performance. Additionally, government and business associations were encouraged to provide support through affordable internet access and digital capacity-building programs. The study concludes that Facebook plays a pivotal role in promoting digital marketing and enhancing customer engagement among MSMEs in Lusaka CBD. However, maximizing its potential requires addressing existing challenges and implementing sustainable digital strategies. These insights are grounded in Social Exchange Theory (SET), which emphasizes reciprocal value creation between businesses and customers, and the Technology-Organization-Environment (TOE) framework, which highlights contextual factors influencing technology adoption. By integrating these theories with empirical data from Zambia, the study contributes to the growing body of literature on social media marketing in developing economies, offering practical recommendations for MSMEs, policymakers, and researchers to foster digital transformation and economic growth.