Article

Examining the efficacy of brand social media communication: a consumer perspective

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Abstract

There is a need to examine the productivity of marketing investments in brand social media communication, specifically the implications for brand value enhancement. Adopting a consumer perspective, we examine how consumer evaluation of brand social media communication influences consumer willingness to pay a price premium for a brand. Building upon frameworks of marketing led brand value creation, we conceptualize two pathways to enhancing consumer WPP: one mediated through consumer brand attitude, the other through consumer brand trust. Structural equation modeling using US consumer survey data supports the research framework. We present brand attitude and brand trust as pre-conditions for enhancing consumer willingness to pay a price premium for a brand. Overall, the study clarifies the efficacy of brand social media communication as a brand-building tool.

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... Social media marketing using a four-item scale adapted from [22]. A brand engagement using a three-item scale adapted from [7]; [18]; [27] [30]. Brand trust by using a three-item scale adapted from [5]; [24]. ...
... According to study findings that social media marketing is important to brand trust, social media marketing plays a vital part in boosting brand trust. Research findings [7] [8] [32] demonstrate that social media marketing activities may build brand trust. The primary goal of social media marketing is to spread awareness of a brand, promote it, and build consumer trust in a crowded market. ...
... The primary goal of social media marketing is to spread awareness of a brand, promote it, and build consumer trust in a crowded market. [7]. Social media marketing activity demonstrates actions that are closely connected to brand trust, according to [7]; [32]. ...
... Online trust E-loyalty H1 direct impact on their actions and the decisions of online retailers (Lee & Min, 2021). Social media marketing includes a variety of value-added actions with the primary goals of informing, promoting, and establishing credibility in the digital marketplace (Dwivedi & McDonald, 2020). According to Tatar and Eren-Erdoğmuş (2016), there is a correlation between social media marketing and credibility in the digital sphere. ...
... According to Tatar and Eren-Erdoğmuş (2016), there is a correlation between social media marketing and credibility in the digital sphere. Dwivedi and McDonald (2020) argued similarly, arguing that there is a positive correlation between online trust and social media communication. Customers are more likely to have faith in a brand if they are provided with credible brand-related information via social media platforms. ...
... At first, social networking was seen as nothing more than a way to keep in touch with old friends and family. In today's world, thanks to social media, we can instantly reach a large audience and share our thoughts, feelings, and emotions with them (Dwivedi & McDonald, 2020). Because of the convenience of online information sharing, social interaction, and content creation, social media have attracted billions of users worldwide over the last decade. ...
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Web 2.0, focusing on user involvement and cooperation, is vital for online marketing. To succeed in such a cutthroat industry, every online business must place a premium on earning and retaining clients' trust and loyalty in the digital realm. The study's objective is to ascertain whether or not electronic consumer loyalty and online trust are enhanced by social media marketing. The results of the poll, which included 596 individuals, showed that social media marketing tools had a significant effect on consumers' faith in and commitment to businesses through digital channels. The results of this study will hopefully add to what has been applied to social media marketing for online businesses.
... The price of fashion products is an indicator of status consumption (Eastman et al., 2018;Gao et al., 2016). We can consider those concepts as the willingness to pay a price premium (Dwivedi and McDonald, 2020), price sensitivity (Goldsmith et al., 2010) and perceived value (Davis and Dyer, 2012) are proxies of the price. Luxury fashion consumers will be more open to paying price premium when they perceive the product as having value and signalling status, as can be achieved through social media communication (Dwivedi and McDonald, 2020). ...
... We can consider those concepts as the willingness to pay a price premium (Dwivedi and McDonald, 2020), price sensitivity (Goldsmith et al., 2010) and perceived value (Davis and Dyer, 2012) are proxies of the price. Luxury fashion consumers will be more open to paying price premium when they perceive the product as having value and signalling status, as can be achieved through social media communication (Dwivedi and McDonald, 2020). ...
... Nonetheless, when brand managers intend to make their fashion brands sustainable, the authenticity of the fashion products and the business process are key (Bandyopadhyay and Ray, 2020). The transparent production and communication processes, together with the consistency of eco-friendly brands, confer them authenticity and motivate customers to follow and purchase such fashion brands (Dwivedi and McDonald, 2020). Kapferer et al. (2009) manifest their concern towards the use of information about sustainability in promoting luxury brands, saying that it could conflict with the ethos of luxury goods (i.e. ...
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Purpose This paper aims to review the topic of “luxury fashion consumption”, a field of recent interest for academics and practitioners. However, a literature review that can map the existing knowledge and aggregate it into relevant topics and offers a research agenda for future research is still lacking. Methodology This paper uses a systematic review and a text mining approach to analyse 73 articles on luxury fashion consumption aiming to clarify, rationalise and critically interpret the literature on luxury fashion consumption; identify the core topic, create an integrative framework of core constructs; and offer research gaps and suggest a research agenda for future studies. Findings From this analysis, eight major research topics are found and analysed (brand desire, authenticity, luxury markets, value perceptions, luxury retail experience, luxury brands communication, responsible consumption and sustainability and status signalling). Based on these topics and following the TCM framework, this review offers directions for future research. Value This research offers a text-mining review of luxury fashion consumption to help scholars and managers further develop this field, as there is no comprehensive review on the topic exploring the themes, theories, constructs and methods used in prior studies.
... Fig. 1 The interaction logic between users and the service (Akter et al., 2022) specifically noting in their research that value co-creation positively influences perceived value. Dwivedi and McDonald (Dwivedi & McDonald, 2020) found in their study that value co-creation behavior can contribute to brand premium pricing. Additionally, Chen et al. highlighted in their research that high levels of value co-creation can encourage users to pay higher value for services, thereby enhancing users' perception of the price value of services. ...
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Sustainable development has become mainstream in today’s era, and sustainability education is gradually gaining attention worldwide. This study addresses the issue of significant resource waste and environmental pollution resulting from improper disposal of books idle after use in traditional education. In practice, based on the theory of value co-creation and using perceived value as a design indicator, we have innovatively developed a design proposal consisting of both an online service system and offline community management facilities to effectively address this issue. On the theoretical front, this study further expands the research focus on the theory of value co-creation in traditional research and constructs a community value co-creation reading behavior model, effectively enriching and extending previous research. Through the analysis method of structural equation modeling, the design project was validated, and the results indicate that the value co-creation proposed in this study can effectively promote users’ perception of service price value, quality/performance value, emotional value, and social value. Price value, quality/performance value, and emotional value all positively influence users’ intention to use, while social value indirectly affects intention to use through emotional value. Among these, price value is the core factor influencing users’ intention to use. This provides highly actionable insights for the development of sustainable economies and education.
... Consecutively it is reported that the level of consciousness of food quality, safety and hygiene subjects is also growing due to varied living standards caused by income growth, urbanization and globalization (Badar et al., 2015;Trienekens et al., 2012;Akkerman et al., 2010). The date palm sector requires a major prioritized turn arounds to meet international standards that include varietal development, value addition and packaging to respond challenging competitive international market (El Hadrami and Al-Khayri, 2012) and to cater changing dynamics of local consumers with more international exposure and e-commerce gateways [social media] (Dwivedi and McDonald, 2020;Li, and Meshkova, (2013). ...
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This research endeavors to enhance our comprehension of the contemporary value chain associated with dates in the domestic market, while concurrently adapting to the fluctuating dynamics of the marketplace. A paramount emphasis is placed on orchestrating an optimal performance of the dates value chain by integrating all actors involved, focusing on aligning strategies with consumer value preferences. Five distinct focus discussions were conducted across varying socio-economic strata in Karachi to achieve this. Thematic content analysis, a rigorous qualitative research method, was employed to extract meaningful insights from the discussions. Findings showed that dates were a multi-value popular fruit consumed in a variety of forms but the fresh form is mostly utilized form. Consumers ascribed value to its strong religious affiliation, socio-cultural significance, taste, energy, health benefits, functional food, packaging and availability. The main attributes consumers considered in buying dates were clean dates, flavor/taste, packaging, origin, freshness, price, size, brand, and freedom from damage. Consumers expressed concerns about high dates fluctuating prices, trust for safe dates retailer practices, inefficient government regulations, poor marketing systems, and lack of awareness. These findings highlighted that businesses in date value chains did not pay adequate attention to consumer requirements nor had their concerns been responded to. To face competitive value chain potential, consumers highlighted lack of value addition, ineffective labelling, strong local brand sustainable presence to gain consumer confidence. To face market competition there is strong scope of branding, packaging and value addition which consumers are adapting at fast pace have also been reported. Consequently, it will affect the profitability of value chain participants as consumers are evolving with experience and higher living standards. The study also suggested that the government should ensure that consumer concerns such as those relating to food safety are adequately addressed by relevant institutions and organizations. This research not only sheds light on the intricacies of the current market dynamics but also provides strategic insights for stakeholders to optimize the value chain in a manner that resonates with the preferences of consumers across different socio-economic strata in Karachi.
... Consumer WPP is thus a valuable indicator of a valued consumer-brand relationship and a metric of prospective earnings and financial brand value. According to brand equity literature, a brand attitude favors consumer WPP (Dwivedi and McDonald 2020). As a result, our study adds to the body of literature by supporting brand attitude as a factor in consumer WPP. ...
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This study seeks to understand the influence of brand authenticity on consumer willingness to pay premium price (WPP). Also, this study examines the mediating effect of brand identification in the connection between brand authenticity and consumer WPP to strengthen the model's capacity for an explanation. The target respondents for the study were hotel guests who visited or stayed in 4- and 5-star hotels, and a sample size of 395 responses was used. We employed structural equation modeling using the maximum likelihood estimation through AMOS 22.0 to test hypotheses. The study results show that brand authenticity positively influences brand attitude and attachment. Moreover, brand attitude, in turn, positively influences the WPP. Brand identification has a partial mediating influence on the link between brand authenticity and WPP. This study has significant implications for academics and practitioners. This study adds to the body of knowledge on brand authenticity by connecting it to the literature on consumer behavior. This study extends the idea of authenticity—being true to oneself—used to describe personal brands to how consumers see a service brand (hotels).
... Changes in customer behavior require firms to rethink their marketing strategies in the digital domain [12]. Besides, customers' perceptions of brand personality can partially mediate the relationship between brand-owned content marketing and consumers' brand attitudes [13,14]. ...
Conference Paper
In times of rapid change and sustainable development in marketing, user-generated marketing has gained a considerable advantage as a powerful marketing tool to attract and interact with various targeted audiences. User-generated Content UGC gives customers a unique opportunity to participate in a brand’s growth. Hence, it creates a bridge between a brand and a customer. In addition, it establishes a sense of community between the brand and the audience. The study aimed to demonstrate the impact of user-generated marketing on creating greater audience connections and brand loyalty. The authors used a three-step approach to research. First, systematic secondary research was used to explore and analyze available materials. As a result, 83 scientific articles were carefully chosen. Second, a survey study was developed in which 157 marketing practitioners participated. Lastly, the study was conducted on a company using UGC strategies to build relationships between audiences and brands. The obtained information was then synthesized and used to develop conclusions. The results of this research are exceptional as it enables marketers to hone their campaigns based on actionable guidelines that assist in transforming user-generated content into more engagement and conversations with the brand. Brands that incorporate the power of UGC in their marketing operations can construct a more pertinent relationship with future audiences.
... Businesses are substituting social media for traditional media because social media has a significant impact on shaping consumer culture due to its potency in information exchanges (Ananda et al., 2019;Lin and Malhotra, 2012). For instance, in the US, nearly 27 USD billion was spent on social media advertising (SMA) alone (Dwivedi and McDonald, 2020), with an estimated 34 USD billion by the end of 2021 (Bright and Logan, 2018). With SMA, firms are estimated to have spent $35.89 billion in 2017, representing 16.0% of global online advertising spending (Palacios and Jun, 2020;Hamouda, 2018). ...
... This study tries to address the effects of communication media on brand attitude and repurchase intention for a cosmetic brand. Dwivedi and Mcdonald (2020) determined that traditional media still has a crucial influence on sales results. In their study, media is irreplaceable, even though it is motivated by the presence of more modern communication media. ...
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This study empirically examines the effects of four types of media communication (traditional media advertising, firm-created social media, user-generated social media, and personal selling) on brand attitude. The effect of brand attitude on rerepurchase intention was also tested. The research applied a survey method to collect the data. For this purpose, judgmental sampling was used and 302 female respondents who use cosmetic products of a certain brand were gathered. Then, the data were analyzed using structural equation modeling. The results show that firm-created social media communication, user-generated social media communication, and personal selling have positive effects on brand attitude. However, traditional media communication does not influence brand attitude significantly. This study also corroborates the effect of brand attitude on repurchase intention. The research complements the previous studies that investigate only several media by examining comprehensively four types of media communication representing two poles: mass media (traditional advertising) versus personalized media (firm-created social media, user-generated social media, and personal selling); and non-interactive (traditional advertising) versus interactive media (firm-created social media, user-generated social media, and personal selling). The findings also provide guidelines for companies when planning and deciding the media communication for their promotion. These guidelines enable companies to target their communication activities more effectively.
... More concretely, new forms of personal presentation are emerging: Journalists and non-journalists are increasingly becoming their own brands through social media and especially Instagram. The platform-mediated interaction between audience and journalism is thus more strongly influenced by logics and rules from external corporate communication and brand social media communication (Dwivedi & McDonald, 2020) than by normative requirements for the activity and impact of journalism. ...
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Instagram has become one of the most important channels for journalism to reach younger target groups. Because of this increasing importance, Instagram has since spurred a transformation of journalism on various levels. This chapter discusses the application’s impact on three of those levels. Firstly, looking at the organizational level, we highlight the changes that Instagram and other social media platforms have brought to individual journalists, newsrooms, and entire media organizations. Secondly, the content has experienced a change: It no longer has to be created entirely according to familiar journalistic criteria, but according to the logic of the platform. Finally, direct interaction with audiences has caused a permanent change, which can be described in three logical steps. A central result of these considerations: Journalism remains dependent on the technical offerings provided by the platform. However, it has found a promising way to drive its own innovations through format development.
... For these consumers, it is not about SMLSs or what they can bring to them but rather about the brand's image on social media. Brand communication on social media has become essential for building consumers' attitudes towards brands and enhancing their intentions to purchase products on social media (Dwivedi & McDonald, 2020). Brands with a positive image and eWOM on social media tend to increase consumers' brand attitudes and willingness to purchase the brand (Chu & Chen, 2019). ...
... For these consumers, it is not about SMLSs or what they can bring to them but rather about the brand's image on social media. Brand communication on social media has become essential for building consumers' attitudes towards brands and enhancing their intentions to purchase products on social media (Dwivedi & McDonald, 2020). Brands with a positive image and eWOM on social media tend to increase consumers' brand attitudes and willingness to purchase the brand (Chu & Chen, 2019). ...
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Social media live streams (SMLSs) are becoming mainstream e-commerce platforms, especially for direct selling, offering online retailers (e-tailers) immense consumer interaction and engagement levels. Despite their growing prevalence, e-tailers face difficulties capitalising on this platform to enhance retail operations. This paper explores how SMLSs affect consumers' purchase intentions by exploring their motivations for participating in e-commerce SMLSs. To this end, we used the uses and gratifications (U&G) theory to explain how using SMLSs to satisfy consumers' needs could lead to high or low purchase intentions. It was done by collecting cross-sectional data from 795 consumers who have participated in e-commerce SMLSs. The data were analysed using partial least squares-structural equation modelling (PLS-SEM) and fuzzy set qualitative comparative analysis (fsQCA). Our findings revealed that people use SMLSs to satisfy their need for value, social identification, and the medium's attributes. Based on these findings, we show six configurations that lead to high or low purchase intentions and make corresponding theoretical propositions. Thus, our study contributes to the research and practice of using SMLSs for online shopping.
... Firms should start emphasising FGC now since the pandemic has changed the marketing landscape. Second, building brand loyalty through digital marketing tools such as social media has been very challenging for social media marketers (Dwivedi and McDonald, 2020). The present research provides several practical insights into social media marketers to understand the cognition and emotions influencing brand loyalty. ...
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Purpose – The purpose of this study is to analyse user-generated content and firm-generated content on perceived quality and brand trust, and eventually how it impacted brand loyalty with pandemic fear as the moderator. Design/methodology/approach – This study employed an online survey questionnaire method in the Facebook online shopping groups to collect the data. The filter question technique was adopted to verify the respondent’s validity. A total of 434 samples was collected using purposive sampling. The data were then analysed using SmartPLS 3.0. Findings – The analysis showed that firm-generated content appeared to have a stronger positive relationship on perceived quality and brand trust than on user-generated content. Brand trust and perceived quality are found to influence brand loyalty positively. However, pandemic fears only moderate the relationship between firm-generated content and brand trust and perceived quality. This study revealed that the main components in social media communication do not influence perceived quality and brand trust to the same extent. Originality/value – This study contributes to the knowledge of social media communication during the pandemic period that has not been studied empirically in the Malaysian context. The main components in social media communication were delineated and the impact of pandemic fears on how they would possibly affect the established relationships in the literature were examined. This study enables the researchers and practitioners to take a closer look at how the pandemic crisis could provide a shift on what has been understood so far
... Unique to marketing on social media platforms, users interact with marketing content and ultimately co-create messaging to drive a movement forward, rather than passive engagement with messages on posters or billboards (Dahnil, Marzuki, Langgat, & Fabeil, 2014). A growing body of literature in marketing and communications has documented the impact that messages delivered on social media platforms can have on shaping attitudes, building trust, and promoting engagement with campaign content (Dwivedi & McDonald, 2020;Kim & Um, 2016). ...
Chapter
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... In addition, in the field of value co-creation research, an anomaly persists: Extant research usually treats online value co-creation as an integrated behavior (e.g., social media usage or value co-creation behavior) (Dwivedi & McDonald, 2020), putting the antecedents of OVCA in an overall research process. By "overall research process," we refer to whether consumers directly participate in product development and innovative design; contribute to the promotion and testing of the company; and provide feedback, suggestions or cooperate with the company later. ...
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Customers’ online value co-creation activities can occur the whole management domain (i.e., product design, marketing, and customer relationship management) of a product. Previous studies have researched value co-creation from different angles, customers’ online value co-creation activities are more complex and its formation mechanism still worth exploring. Online communities need to create different environments according to different management fields to stimulate customers to participate in Online Value Co-creation activities. Existing research confuses different value co-creation activities in the entire management field without considering the different antecedents of Online Value Co-creation activities in different situations and different management domains. The purpose of this paper is to explore the formation mechanism behind customers’ online value co-creation activities during the whole management domain. Drawing on social learning theory, this study examines the influential role of environmental factors (i.e., innovation climate and social climate) of online communities and personal need factors (i.e., brand passion, satisfaction, dissatisfaction and desire for control) on customers’ value co-creation activities in the three fields of the management domain. Empirical analyses in this study reveal that these factors play different roles in shaping value co-creation activities in the three fields. The findings enrich our understanding of customers’ value co-creation activities in online communities and offer a broadened view of the value co-creation framework and climate theory. Understanding the factors that motivate consumers to engage in co-creation activities in different management domain enables firms to strategically manage their co-creation relationships and innovation processes.
... Across all industries, the dynamic and real-time interaction enabled by social media has significantly changed the brand management landscape (Gensler, Völckner, Liu-Thompkins, & Wiertz, 2013). Social media communication is now vital to brand marketing and management (Dwivedi & McDonald, 2020). It is recognised that social media has fundamentally altered both the demand (i.e. consumer decision-making process) and supply (i.e. ...
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... Machado et al. (2019) demonstrated that consumer engagement and brand love mediate the relationship between brand gender and consumer-based brand equity on Facebook. Some prior studies found that the brands' social media communications are a key factor in the branding process (Dwivedi & McDonald, 2020;Syrdal & Briggs, 2018). More recently, Khan et al. (2021) illustrated that customer word of mouth through WeChat and brand love have a mediating role in the relationship between Web-drama connectedness and intention to spend on the brand. ...
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1. LATAR BELAKANG Melihat perkembangan digital marketing dari masa ke masa mengalami perkembangan yang pesat di Indonesia. Menurut Chen dan Qasim (2020) menyatakan bahwa digital marketing dan media sosial belakangan ini menjadi penting seiring dengan majunya teknologi. Perkembangan yang terjadi dari tahun 2017, data yang diperoleh dari survei yang dilakukan oleh Asosiasi Penyelenggara Jasa Internet Indonesia (APJII) pada tahun 2017 tercatat sebesar 143,25 juta penduduk yang menggunakan internet. Selanjutnya pada tahun 2018 sampai dengan 2019 pengguna internet di Indonesia sebanyak 171,17 juta. Peningkatan pengguna dunia juga mengalami kenaikan yang cukup pesat yaitu pada tahun 2020 sebanyak 3,6 miliar dan akan semakin naik menjadi 4,41 miliar pada tahun 2025 (Statista, 2021). Pemanfaatan internet di Indonesia ini banyak digunakan melalui sosial media, baik itu untuk diri pribadi konsumen dan juga untuk bisnis jual beli. Penggunaan media sosial pada tingkat individu digunakan untuk mencari wawasan bisa berupa pengetahuan, menambah jaringan dan juga melakukan komunikasi dengan yang lain. Selain itu Bilgihan dkk (2014) mengungkapkan bahwa media sosial juga digunakan oleh konsumen untuk proses bertukar pendapat, mencari produk dan membagikan pengalaman terkait produk atau merek. Saat ini, peran media sosial menjadi sangat penting dalam mempengaruhi sebuah persepsi dan juga perilaku konsumen yang tentu saja hal ini menarik para pemasar untuk mengadopsi platform ini (sebagai contohnya adalah Facebook, Instagram dan juga YouTube) yang dipilih untuk digunakan sebagai saluran komunikasi pemasaran ABSTRACT This study includes the tourism sector in particular to examine the influence of SMM (Social Media Marketing) activity, brand love, brand trust on brand equity and brand loyalty. This study adapts social network theory, the use of this theory is appropriate for this study which examines SMM activities that affect brand equity which will eventually lead to brand loyalty, because the focus that marketers want to aim for is loyalty. The brand equity can be built with high brand love and high brand trust. This study used 344 respondents to fill out a questionnaire via the Google form provided. The determination of the sample was carried out using a non-probability method with a purposive sampling technique. Then proceed with testing the validity and reliability as well as testing the hypothesis with the SEM-AMOS 22 analysis tool. The results of this study state that all hypotheses that have a direct relationship and mediation are all supported. The results of this study also show that the influence SMM activities on Brand Trust is the strongest. This means that SMM activities through platforms that are in it, such as Instagram, for example, greatly affect brand trust.
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Purpose This study aims to investigate the impact of the source of the content in social media communication and the content distribution intensity on consumer-based brand equity (CBBE) dimensions and how the study will eventually impact purchase intention. Design/methodology/approach A total of 521 samples were collected using an online survey questionnaire. The respondents' validity was verified using purposive sampling techniques, and the responses were analysed using SmartPLS 3.0. Findings The authors outlined the fundamental mechanisms of what makes social media communication effective and discovered that emotional-based brand equity dimensions (brand association and brand loyalty) remained significant in influencing purchase intention. However, attribution-based brand equity dimensions (perceived quality, brand trust and brand awareness) are found to have no impact. Originality/value This study decomposed social media communication into three different dimensions, and the authors' result showed that the dimensions do not impact CBBE to the same extent. The authors concluded that some CBBE dimensions, which appear to be a rigour determinant of purchase intention over time, have a feeble effect during the pandemic. The existing relationship between the CBBE dimensions with purchase intention might not hold in the pandemic context. The authors suggested that anxiety or pandemic fear could alter the normal consumer buying process and make some well-established relationships not hold. As research indicates that pandemics are reoccurring events, the authors' study contributes to the global effort to dampen some of the pandemic-related effects on business and marketing.
Chapter
There is no doubt that social media (SM) has changed the fundamental nature of customer-company interaction and communication. The extant literature on SM use is focused on the mechanics of SM use and the possible benefits that companies can achieve. The literature has also identified number of managerial challenges associated with SM use in companies. However, the literature is fragmented when it comes to the question as to how these benefits can be realized by companies. This study attempts to provide a comprehensive coverage of the SM use by the companies. This study also reviews various managerial challenges associated with SM data use and provides recommendations to deal with these challenges.
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Purpose This research aims to explore the impact of social media marketing (SMM) activities on brand equity (BE) in the banking sector in Bangladesh. Moreover, brand love and brand trust are examined as a mediator of SMM activities and BE. Design/methodology/approach Data were collected from a total of 289 banking customers in Bangladesh through a structured questionnaire and the hypotheses were examined using structural equation modeling (SEM). Findings The results validated that SMM activities have no significant influence on BE directly. Furthermore, brand love fully mediates the linkage between SMM activities and BE. Likewise, brand trust was found to have a partial mediation effect on SMM activities and BE. Research limitations/implications This study was based on a specific sector in a particular geographic area. Hence, cross-cultural studies on different sectors need to be conducted to generalize the findings of the current research. Practical implications The study offers useful insights for bank marketers to successfully manage SMM activities that can generate consumer interest toward a bank's brand and prevent switching behavior. Furthermore, the proliferation of authentic brand-related information over a firms' social media pages can build strong brand trust, which in turn contributes to BE for the banks. Originality/value The study further extended the current knowledge by showing that how SMM activities influence BE in the banking sector in Bangladesh. Also, this study empirically corroborates the mediation influence of brand love and brand trust on SMM activities and BE in the banking sector in Bangladesh, which was rarely tested in prior studies. Hence, the findings will add value to the nascent literature of BE from an SMM perspective.
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After a period of initial scepticism, luxury-branded companies now understand the necessity of integrating digital technologies into their marketing actions. Therefore, most luxury companies approach emerging digital tools commencing from communication strategies. The direct consequence is the adoption of social media such as blogs, applications (apps), and social networking as new communication tools alongside and in conjunction with traditional media. The purpose of this chapter lies in seeking to understand the extent to which luxury brand consumers appreciate the contents of luxury brand communications and in comparing digital and traditional ranges. In addition, the chapter investigates the existence of a correlation between the level of satisfaction perceived by luxury consumers and the dimension of customer brand equity according to the Aaker model. In this endeavour, this study is an attempt to provide academics and practitioners with insight about the expectation of luxury brand consumers from contents delivered, comparing digital and traditional platforms.
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With the challenges presented by new media, shifting media patterns, and divided consumer attention, the optimal integration of marketing communications takes on increasing importance. Drawing on a review of relevant academic research and guided by managerial priorities, the authors offer insights and advice as to how traditional and new media such as search, display, mobile, TV, and social media interact to affect consumer decision making. With an enhanced understanding of the consumer decision journey and how consumers process communications, the authors outline a comprehensive framework featuring two models designed to improve the effectiveness and efficiency of integrated marketing communication programs: a "bottom-up" communications matching model and a "top-down" communications optimizationmodel. The authors conclude by suggesting important future research priorities.
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This research investigates the antecedents of social media advertising value, and the effect of this advertising value on online purchase intention in transitional economies in Southeast Asia. Moreover, the moderating effect of different types of social media on the relationships between the predictors and social media advertising value is also explored. The field study is conducted in Vietnam, a representative of Southeast Asian transitional economies in the current study. The results show that, in Southeast Asian transitional economies, the three social media advertising beliefs - i.e. informativeness, entertainment and credibility have positive effects on consumers' perceived value of social media advertising, which in turn positively influences their online purchase intention. Additionally, on social networking websites, the effects of advertising informativeness and entertainment on advertising value are weaker than those on content community websites. Nevertheless, there is no difference in the effect of advertising credibility on advertising value in both types of social media. Based on the findings presented, theoretical and managerial implications are drawn.
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The unprecedented popularity of social media outlets have forced scholars to inquire about their marketing effectiveness, especially in the hotel industry. This study attempted to explore the marketing effectiveness of two different social media sites (Facebook and Twitter) in the hotel industry. Integrating the attitude-toward-the-ad (Aad) model with the concepts of attitude-toward-social-media-page, the study proposed a theoretical model of hotel social media marketing effectiveness. Based on the data collected from an online survey, the goodness of fit of the model implied that the Aad model provides an appropriate theoretical framework to explain the marketing effectiveness of social media in the hotel industry. The results revealed that hotel customers’ social media experiences influence their attitudes-toward-social-media-site, which in turn influences their attitudes-toward-hotel-brand, and that hotel customers’ attitudes-toward-hotel-brand affects their hotel booking intentions and, in turn, intentions to spread electronic word of mouth. The study also indicated that different social media sites demonstrate the same marketing effectiveness, suggesting that hotel managers use the same marketing tactics for Facebook and Twitter marketing.
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This paper reports the results of two studies examining the potential for advertising to enhance a product's perceived trustworthiness. We find that prior experience is not an essential prerequisite for the seeds of trust to be planted, as advertising with a simple trust appeal for an unknown brand was able to enhance the perceived trustworthiness of the advertised brand. It is interesting to note that advertising was able to enhance a brand's perceived trustworthiness even in the absence of any overt trust claims. Finally, the effectiveness of simplistic trust appeals was found to be contingent on the presence of additional advertising claims about the brand's competency and benevolence.
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This study explores the relationships between selected marketing mix elements and the creation of brand equity. The authors propose a conceptual framework in which marketing elements are related to the dimensions of brand equity, that is, perceived quality, brand loyalty, and brand associations combined with brand awareness. These dimensions are then related to brand equity. The empirical tests using a structural equation model support the research hypotheses. The results show that frequent price promotions, such as price deals, are related to low brand equity, whereas high advertising spending, high price, good store image, and high distribution intensity are related to high brand equity.
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Purpose Brand authenticity has emerged as a strategic imperative for many firms. The purpose of this paper is to empirically examine the effect of consumer perceptions of brand marketing communications on brand authenticity of fast-moving consumer goods. Design/methodology/approach Direct and indirect pathways from brand marketing communications to brand authenticity were conceptualized. Data were collected from US energy drink consumers and analysed using structural equation modelling. Multiple marketing mix variables and context-relevant covariates have been controlled for. Findings Direct and indirect pathways to building brand authenticity have been observed. The total effect of brand marketing communications on brand authenticity is strong, thereby highlighting the predictor’s overall effectiveness in shaping the ultimate outcome. Research limitations/implications The focus on consumer-perceived authenticity as opposed to objective authenticity complements the prior literature. An integrative perspective on brand marketing communications is offered, specifying it as an antecedent of perceived brand authenticity. Practical implications An important implication is that investments into brand marketing communications will likely influence perceived brand authenticity. Such investments may also have favourable implications for the clarity of brand positioning. Overall, brand marketing communications are effective tools for building consumer-perceived brand authenticity. Originality/value A need to outline managerially controllable drivers of authenticity was addressed. How consumer perceptions of brand marketing communications influence brand authenticity via direct and indirect mechanisms was demonstrated. The existence of authenticity in fast-moving consumer goods was also demonstrated.
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Knowing that nowadays many companies are integrating social media in their online marketing communication strategies, it is important to determine whether its usage has the ability to influence the consumers’ perceptions towards brands. Starting from the assumption that social media marketing communication can influence the consumers’ trust, affect and loyalty towards brands, this article aims to investigate the relationships between these four main concepts. The research developed for this purpose was conducted on a sample of 314 respondents and in order to validate the proposed conceptual model, the data analysis used structural equation modeling, based on variance method. The results point out that the importance given to the characteristics of social media marketing communications are directly related to brand trust and brand affect, the two main determinants of brand loyalty, as shown in the conceptual model. © 2016, Bucharest University of Economic Studies. All rights reserved.
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Drawing on social identity theory (SIT), this research investigates the role of university content strategies on student experiences in social media brand communities (SMBCs). A netnography of a university’s SMBCs sought to grasp the influences of identity cues, narratives, and marketer traits on member reactions. It was revealed that social media content plays an important sensegiving role in meeting members’ need to understand themselves, feel distinctive and positive about themselves, and feel supported and connected. The findings contribute to our understanding of the social media marketing phenomenon and inspire practice in the design of meaningful customer experiences in social media.
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While the traditional marketing literature typically illustrates consumers as passive recipients of products and services, social media enables consumers to actively participate in cocreation during new product launch periods. Building on Tuten and Solomon’s Zones of Social Media framework, the authors show how Twitter can be leveraged to create social community and social publishing opportunities. Using an exploratory study investigating the new product launches of the PlayStation 4 and Xbox One video game consoles, the authors show that shared language and personalized communication cultivated through these opportunities can enhance new product launch efforts by facilitating learning and knowledge cocreation.
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The objective of this research is to identify two harvestable word-of-mouth (WOM) proxies and test their construct validity. Bivariate measures of association of user-generated content (UGC) data compiled from Facebook.com on sixty-one firms across nine markets suggest the WOM proxies were positively correlated, maintaining varying relationships with firms’ stock market performance. Study two uses time-series analysis to demonstrate that these WOM proxies change in tandem with stock prices, implying that they are sensitive to firm behaviors and that UGC is a leading indicator of stock market performance. As such, the findings provide managers with a tool to more accurately assess impressions of the firm.
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A lack of a consensus regarding what constitutes engagement in the context of social media has made it difficult for scholars to generate theory in this area and has created challenges for managers attempting to demonstrate positive outcomes stemming from social media marketing. To address this issue, qualitative studies are undertaken with marketing practitioners and consumers to provide clarification and to formulate a formal definition of engagement in this context. The studies reveal it to be a psychological state of mind operating independently from interactive behaviors such as “liking” and sharing content. The findings offer new insight into consumer consumption of social media content and sow the seeds for future exploration.
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The rise of social media as a marketing channel, and the research that has supported it, has left open questions as to its impact on actual brand performance. The current authors sought to fill the gap of knowledge on the relationship between social media and real-world conversations and outcomes for brands. Building on a decade’s worth of research, they used four key metrics—volume, sentiment, sharing, and influence—to study the potential for correlations between online and offline conversations about brands. There were, in fact, almost no correlations, which suggests the need for marketers to develop separate digital and offline social influence strategies. © 2017, World Advertising Research Center. All rights reserved.
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The statistical tests used in the analysis of structural equation models with unobservable variables and measurement error are examined. A drawback of the commonly applied chi square test, in addition to the known problems related to sample size and power, is that it may indicate an increasing correspondence between the hypothesized model and the observed data as both the measurement properties and the relationship between constructs decline. Further, and contrary to common assertion, the risk of making a Type II error can be substantial even when the sample size is large. Moreover, the present testing methods are unable to assess a model's explanatory power. To overcome these problems, the authors develop and apply a testing system based on measures of shared variance within the structural model, measurement model, and overall model.
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Purpose The present research investigates the influence of brand-based social media marketing (SMM) activities on metrics of consumer-based brand equity (CBBE). Specifically, the study examines the role of consumer-brand social media experiences on attitude toward SMM activities of brands and its consequent impact on brand perceptions. Design/methodology/approach Paper-and-pencil surveys were administered to undergraduate students in a Southwestern university in exchange for extra credit. Survey questions were adapted from previously validated scales, and measurement adaptations were minimal and only related to the context of questions to assure their relevance with the context of this study. Bi-variate correlation, bootstrapping technique, Sobel test, ANOVA and linear regression were used to test the hypotheses. Findings The results indicate that brand-based SMM is essential in impacting consumers’ attitudes toward brands and consequently, CBBE reflected via perceived value for the cost, perceived uniqueness and the willingness to pay a price premium for a brand. Additionally, the main reason for individuals to use social media impacts their attitudes toward and receptiveness of SMM activities of brands. Research limitations/implications This study used a sample of college students to address the research questions. Considering the higher adoption rate and interest in social media among younger consumer groups, the results may not be representative of the entire population. Much of the existing research on social media, however, has focused on undergraduate college students and is primarily based on studies utilizing the similar research population. Originality/value The present research is one of the few studies that empirically examine the impact of consumer-brand interactions/experiences on consumers’ attitudes toward SMM activities of brands, as well as brand-related knowledge and perceptions as reflected by CBBE. The results indicate that the CBBE model of the twenty-first century should incorporate the role of brand-based SMM activities as facilitators of brand knowledge (i.e. brand awareness and brand image) by reinforcing or even shaping important brand-based associations.
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Scant evidence is available on of how social media marketing activities influence brand equity creation and consumers' behavior towards a brand. This research explores these relationships by analyzing pioneering brands in the luxury sector (Burberry, Dior, Gucci, Hermès, and Louis Vuitton). Based on a survey of 845 luxury brand consumers (Chinese, French, Indian, and Italian), who follow the five brands studied on social media, the study develops a structural equation model that helps to address gaps in prior social media branding literature. Specifically, the study demonstrates the links between social media marketing efforts and their consequences (brand preference, price premium, and loyalty). The study measures brands' social media marketing efforts as a holistic concept that incorporates five aspects (entertainment, interaction, trendiness, customization, and word of mouth). Another contribution of the study is that it finds that SMMEs have a significant positive effect on brand equity and on the two main dimensions of brand equity: brand awareness and brand image.
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Brand equity has been criticized by some for an alleged lack of managerial relevance. This paper reports a study which operationalizes brand equity and empirically tests a conceptual model adapted from the work of Aaker (1991) and Keller (1993) considering the effect of brand attitude and brand image on brand equity. The results indicate that brand equity can be manipulated at the independent construct level by providing specific brand associations or signals to consumers and that these associations will result in images and attitudes that influence brand equity. The results suggest that focusing on the constructs that create brand equity is more relevant to managers than trying to measure it as an aggregated financial performance outcome.
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The brand value chain offers a holistic, integrated approach to understanding the value created by brands. According to the model, brand value creation begins with the firm's marketing activity. This influences customers who, in turn, affect how the brand performs in the marketplace and is ultimately valued by the financial community. Three important multipliers moderate the extent of transfer between these value stages: the program quality multiplier, the marketplace conditions multiplier, and the investor sentiment multiplier.
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Product design is a source of competitive advantage for companies and is an important driver of company performance. Drawing on an extensive literature review and consumer interviews, the authors define product design and its dimensions. Using data from three samples (6,418 U.S. consumers and 1,083 and 583 European consumers), the authors develop and validate a new scale to measure product design along the dimensions of aesthetics, functionality, and symbolism. In addition, they investigate the impact of these design dimensions on purchase intention, word of mouth, and willingness to pay. The results indicate that the design dimensions positively influence willingness to pay and also have a positive effect on purchase intention and word of mouth, both directly and indirectly through brand attitude.
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This article presents managers with a framework for measuring the strength of a brand. It specifically examines ten sets of measures grouped into five categories: loyalty, perceived quality, associations, awareness, and market behavior. Employing these measures can be difficult and their results must be used carefully. However, they have the capacity to provide managers with a set of important and extremely useful measurement tools.
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To help marketers to build and manage their brands in a dramatically changing marketing communications environment, the customer-based brand equity model that emphasizes the importance of understanding consumer brand knowledge structures is put forth. Specifically, the brand resonance pyramid is reviewed as a means to track how marketing communications can create intense, active loyalty relationships and affect brand equity. According to this model, integrating marketing communications involves mixing and matching different communication options to establish the desired awareness and image in the minds of consumers. The versatility of on-line, interactive marketing communications to marketers in brand building is also addressed.
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Social media are becoming ubiquitous and need to be managed like all other forms of media that organizations employ to meet their goals. However, social media are fundamentally different from any traditional or other online media because of their social network structure and egalitarian nature. These differences require a distinct measurement approach as a prerequisite for proper analysis and subsequent management. To develop the right social media metrics and subsequently construct appropriate dashboards, we provide a tool kit consisting of three novel components. First, we theoretically derive and propose a holistic framework that covers the major elements of social media, drawing on theories from marketing, psychology, and sociology. We continue to support and detail these elements — namely ‘motives,’ ‘content,’ ‘network structure,’ and ‘social roles & interactions’ — with recent research studies. Second, based on our theoretical framework, the literature review, and practical experience, we suggest nine guidelines that may prove valuable for designing appropriate social media metrics and constructing a sensible social media dashboard. Third, based on the framework and the guidelines we derive managerial implications and suggest an agenda for future research.
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The dynamic, ubiquitous, and often real-time interaction enabled by social media significantly changes the landscape for brand management. A deep understanding of this change is critical since it may affect a brand's performance substantially. Literature about social media's impact on brands is evolving, but lacks a systematic identification of key challenges related to managing brands in this new environment. This paper reviews existing research and introduces a framework of social media's impact on brand management. It argues that consumers are becoming pivotal authors of brand stories due to new dynamic networks of consumers and brands formed through social media and the easy sharing of brand experiences in such networks. Firms need to pay attention to such consumer-generated brand stories to ensure a brand's success in the marketplace. The authors identify key research questions related to the phenomenon and the challenges in coordinating consumer- and firm-generated brand stories.
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Can event marketing contribute to brand equity? A field study with consumers participating in different types of events (trade shows, street events, pop-up shops and sponsored events) indicates that event attendance has a positive impact on brand equity Our analysis reveals that brand experience, an antecedent of brand attitude, mediates the relationship between pre-event and post-event brand equity in all types of events. Brand attitude, on the other hand, mediates this relationship only in some cases (trade shows and street events). Implications of the results for event theory and practice are discussed.
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The article examines the use of social media by Internet users related to advertising and marketing, called "consumers' online brand-related activities (COBRA)." Interviews are conducted with such Internet users through instant messaging as to their motivations for engaging with brands and brand name products through social media. It was found that a desire for information, a desire for entertainment and the possibility of reward were the primary motivations for COBRA activity by Internet users, with entertainment being the primary motivation for the generation of brand-related social media content.
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In light of a growing interest in the use of social media marketing (SMM) among luxury fashion brands, this study set out to identify attributes of SMM activities and examine the relationships among those perceived activities, value equity, relationship equity, brand equity, customer equity, and purchase intention through a structural equation model. Five constructs of perceived SSM activities of luxury fashion brands are entertainment, interaction, trendiness, customization, and word of mouth. Their effects on value equity, relationship equity, and brand equity are significantly positive. For the relationship between customer equity drivers and customer equity, brand equity has significant negative effect on customer equity while value equity and relationship equity show no significant effect. As for purchase intention, value equity and relationship equity had significant positive effects, while relationship equity had no significant influence. Finally, the relationship between purchase intention and customer equity has significance. The findings of this study can enable luxury brands to forecast the future purchasing behavior of their customers more accurately and provide a guide to managing their assets and marketing activities as well.
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Two experimental studies (a lab experiment and a study involving a real usage experience over time) reveal the existence of a strong, positive impact of customer satisfaction on willingness to pay, and they provide support for a nonlinear, functional structure based on disappointment theory (i.e., an inverse S-shaped form). In addition, the second study examines dynamic aspects of the relationship and provides evidence for the stronger impact of cumulative satisfaction rather than of transaction-specific satisfaction on willingness to pay.
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Purpose – The purpose of this paper is to investigate the relative impact of brand communication on brand equity through social media as compared to traditional media. In a juxtaposition of different industries it aims at: investigating whether both communication instruments have an impact on consumer‐based brand equity; comparing the effect sizes of these two communication instruments; and separating the effects of firm‐created and user‐generated social media communication. Design/methodology/approach – A total of 393 data sets from three different industries, namely tourism, telecommunications, and pharmaceuticals, were generated using a standardized online‐survey. Structural equation modeling was used in the analysis of the data obtained to investigate the interplay of social media and traditional media in general, as well as in an examination of industry‐specific differences. Findings – The results of the empirical study show that both traditional communications and social media communications have a significant impact on brand equity. While traditional media has a stronger impact on brand awareness, social media communications strongly influence brand image. Firm‐created social media communication is shown to have an important impact on functional brand image, while user‐generated social media communication exerts a major influence on hedonic brand image. Furthermore, the present study highlights significant differences between the industries under investigation. Originality/value – The research described in this paper is pioneering in that it juxtaposes the impacts of social media and traditional media on brand equity – a topic of increasing interest to firms in the era of Facebook and Twitter but so far largely uninvestigated. Moreover, the differentiation between firm‐created and user‐generated social media communication, which is gaining increasingly in importance, as companies see their brand marketing power devolve to the consumer through social media platforms, offers valuable insights to marketing practitioners and academics.