The Impact of Social Media Marketing Activities on Consumer Equity: Evidence from Luxury Brand

Abstract

Most of the studies have examined the concept of social media marketing activities in the context of customer intention or on customer satisfaction while the role of customer equity when examining the impact of social media marketing activities on consumer intention is limitedly deliberated. Thus, this paper aims to examine how social media marketing efforts influence consumer equity and the intention of luxury brand users in Pakistan. The data were collected from two hundred fifty respondents and Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to estimate the complex relationship models. The results showed that social media marketing has a positive and significant relationship with value relationships and brand equity. Moreover, all three drivers such as value, relationship, and brand equity have a positive and significant relationship with purchase intention and consumer equity. Thus, the study gives valuable implications to key individuals in such fields including brand managers and marketers. This paper can help in the examination of the potential and strength of marketing strategies and actions. Moreover, the study proposes strategies that can help improve brand performance by explaining factors related to purchasing intention and customer equity. Furthermore, the results can help the marketers in forecasting customer purchasing intention and manage social activities accordingly.