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Social media
The influence of perceived marketing
social media marketing activities
Abstract
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Purpose – The purpose of this paper is to investigate the impact of social media marketing activities on
brand loyalty, value consciousness and brand consciousness.
Design/methodology/approach – A self-administered questionnaire was developed and administered to a
convenience sample of 346 undergraduate students
Findings – The findings of this research indicated that social media marketing has a significant effect on
brand loyalty; brand consciousness and value consciousness mediate the relationship between social media
marketing and brand loyalty.
Originality/value – This study confirms the growing importance of social media marketing. It also provides
insights for marketers on envisioning brand loyalty.
Keywords Brand consciousness, Brand loyalty, Social media marketing, Value consciousness
Paper type Research paper
Introduction
Social media is defined as “a group of internet-based applications that build on the ideological
and technical foundations of Web 2.0, and that allow the creation and exchange of user
generated content” (Kaplan and Haenlein, 2010, p. 61). Those applications take a variety of
forms, including weblogs, social blogs, microblogging, wikis, podcasts, pictures, video, rating
and social bookmarking. In January 2014, 74 percent of online adults worldwide use social
networking sites (Duggan et al., 2015). Social media platforms play a big part in the daily lives
of their users (Okazaki, 2009). Moreover, social media allow users to connect with peers by
adding them to networks of friends, which facilitates communication, particularly among peer
groups (Ahuja and Galvin, 2003; Zhang and Daugherty, 2009). Globally, more than 50 percent
of social media users follow brands on social media (van Belleghem et al., 2011) and 29 percent
follow trends and find product reviews and information, and 20 percent comment on what is
hot or new or to review products (Gallup, 2014). In Malaysia social media penetration is
64 percent, which is considered one of the highest in Asia pacific region – second only to
Singapore. Marketers view the social media landscape in Malaysia as vibrant, with most of the
Malaysian population turning to social media platforms (www.marketing-interactive.com/
state-social-media-malaysia/, 2016).
Consumers use social media to find information about desired products with the best
prices. Social media have inexorably changed how consumers and marketers communicate
(Hennig-Thurau et al., 2004; Nambisan and Baron, 2007). Social media gives consumers a
voice, and allows them to interact and share their experiences with any person anywhere in
Asia Pacific Journal of Marketing
the world (Kozinets et al., 2010). In general, consumers have different orientations when and Logistics
making purchase decision. Consumers are either brand conscious who view brands as Vol. 29 No. 1, 2017
pp. 129-144
symbols of status and prestige, or value conscious, who use social media to check and © Emerald Publishing Limited
1355-5855
compare the prices of different brands, to get the best value for their money. Businesses are DOI 10.1108/APJML-10-2015-0154
APJML joining social media to target those two types of consumers and actively perform less costly
29,1 integrated marketing activities. An overwhelming majority of marketers worldwide
97 percent are participating in social media marketing to market their business
(Stelzner, 2014). More than half of marketers 54 percent chose Facebook as their most
important platform. Social media being used as a marketing tool mainly for four purposes:
market research and feedback generation; publicity, branding, and reputation management;
130 business networking; and customer service and customer relationship management
(Thoring, 2011). Although businesses have joined social media to increase brand awareness
and acquire more customers, the question still remains of how brand loyalty can be built and
strengthened through social media? Understanding how social media marketing activities
influence brand loyalty is important for strategic marketing. Another question that
is addressed in this study is: what is the effect of perceived social media marketing activities
on brand- and value-conscious consumers? The current study is attempting to address this
knowledge gap by developing a research model to test the relationships among social
media marketing activities, brand consciousness, value consciousness and brand loyalty.
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The paper is organized as follows. The next section describes the hypotheses on the
relationships among perceived social media marketing activities, brand loyalty, brand
consciousness and value consciousness. Then, methodology and empirical results will be
presented, and finally the conclusion and limitation of the study.
H1. Perceived social media marketing activities will have a positive effect on brand loyalty.
Brand consciousness. Brand consciousness refers to the mental orientation to select products
that are well-known and highly advertised brand name (Sproles and Kendall, 1986).
Consumers often express personal characteristics and preferences through brand (Manrai
et al., 2001). Those consumers with high levels of brand consciousness tend to buy more
expensive and well-known brands (Liao and Wang, 2009; Sproles and Kendall, 1986). They
use the brands as symbols of status and prestige (Escalas and Bettman, 2005; Jamal and
Goode, 2001). They gain confidence in constructing their own self-identity and present such
an identity to others (Phau and Teah, 2009; Wang et al., 2009). Therefore, they are willing to
pay a price premium for a well-known brand’s product (Liao and Wang, 2009; Sproles and
Kendall, 1986). Despite its importance, the impact of perceived social media marketing
activities on brand consciousness remains relatively unknown. Previous studies showed
that the traditional instruments (TV, radio and magazines, etc.) of marketing
communications have a positive impact on different constructs such as brand loyalty,
brand association and brand awareness (Yoo et al., 2000). Consumers, nowadays, are
turning away from traditional media and are increasingly using social media to search for
information (Mangold and Faulds, 2009) because it is regarded as a more trustworthy source
of information than those traditional instruments of marketing communications used by
companies (Foux, 2006). For example, one of many venues that have been gaining
considerable attention from consumers is Instagram. Members of the Instagram community
share photos and videos. Photo-sharing could be a good way to draw follower’s attention to
the brand and inspire participation and discussion from users and ultimately contribute to
brand consciousness. Thus, it is assumed that perceived social media marketing activities
will positively influence brand consciousness:
H2. Perceived social media marketing activities will have a positive effect on brand
consciousness.
Symbolic self-completion theory (Wicklund and Gollwitzer, 1981) posits that individuals use
material possessions and other indicators as socially recognized symbols to communicate
this identity to others. A symbol can be defined as “any facet of the person that has the
potential to signal to others (who understand the symbol as related to the identity) that one
possesses the identity in question” (Braun and Wicklund, 1989, p. 164). The symbolic
self-completion theory supports the notion that consumers use brands as a means to protect
their self-identity. For example, highly brand conscious consumers may buy expensive
brands and remain loyal to the brand not because of quality perceptions per se, but because
APJML others may perceive them as socially positive due to the high price (Bao and Mandrik, 2004).
29,1 Thus, this study proposes that brand consciousness is related to brand loyalty:
H3. Brand consciousness will have a positive effect on brand loyalty.
Value consciousness. Not all consumers believe that acquiring goods is a driver of happiness
and signals of social status. Frugal consumers are more value conscious (Lichtenstein et al.,
132 1990); they carefully use resources and avoid waste (De Young, 1986, p. 285). Value
consciousness is defined as “a concern for paying low prices, subject to some quality
constraint” (Lichtenstein et al., 1990, 1993, Ailawadi et al., 2001). Value-conscious customers
tend to be concerned equally about low prices and product quality (Sharma, 2011). They are
also more likely to habitually use social media platforms to shop for the lowest cost which
brings a number of significant benefits; i.e. saving money by enabling them to achieve
lowest price, identifying the right products to satisfy their needs and compare other prices
from different brands. For example, price comparison website priceline.com Facebook page
has more than 600,000 followers. Customers who have liked this page are signaling that
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they are interested in the products and services they offer. Therefore obtaining goods at
lower prices is relatively important than product quality or brand image in purchasing
decision (Batra, 1997; Cui and Liu, 2001). Therefore:
H4. Perceived social media marketing activities will have a positive effect on value
consciousness.
According to Russo (2014), 78 percent of consumers admit they are not loyal to any
particular brand. In a price competitive and dynamic marketplace such as internet, value-
conscious consumers are less likely to engage in routinized brand choice behavior
(Garretson et al., 2002). While searching the “web” for products, value-conscious consumers
are motivated to purchase products based on the price, if the price is too high, a consumer
may dismiss his/her choice entirely and seek a brand with a better price. Therefore, value
consciousness negatively influences brand loyalty:
H5. Value consciousness will have a negative effect on brand loyalty.
Mediation effects. As stated earlier, social media platforms offer brands opportunities to
develop and increase brand consciousness. Similarly, perceived social media marketing
activities contribute to brand consciousness and in turn, brand loyalty will exist when the
consumer is highly conscious about the brand. In the same vein, social media marketing
activities may boost value consciousness and value consciousness will negatively be
associated to brand loyalty. Therefore, the following hypotheses put forward:
H6. Brand consciousness will mediate the relationship between perceived social media
marketing and brand loyalty.
H7. Value consciousness will mediate the relationship between perceived social media
marketing and brand loyalty.
The research model to guide the objective of this first study is presented in Figure 1.
It is argued that perceived social media marketing is related to brand loyalty, brand
consciousness and value consciousness. Additionally, value consciousness and brand
consciousness have a direct effect on brand loyalty (see Figure 1).
Methodology
Context
Asia Pacific region accounts for 52.2 percent of global social media users. Asia is central to
Facebook growth; the region has more than 426 million monthly active users. Time spent on
Social media
Value
marketing
Consciousness activities
H5
H4 133
Social Brand
Media Loyalty
Marketing H1
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H3
H2
Brand
Consciousness
Figure 1.
Research model
social media (hours per day) in Malaysia is 3:24 h. Malaysia is ranked number three after
Indonesia and Vietnam in the Asia Pacific region to use Facebook, 94 percent of its online
population (19 million according to US census bureau) use Facebook, whereas 59 percent use
twitter (http://wearesocial.net/tag/malaysia/, 2015).
Data analysis
To estimate the relationships in the model, structural equation modeling with AMOS
17.0 and maximum likelihood estimation is used. Confirmatory factor analysis (CFA) is
conducted to assess the psychometric properties of the scales and test the discriminant
validity of the measures. Following the procedures outlined by Byrne (2001), the first step
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Results
Two items (using social media to look for the brand I am considering to buy is fun and
I would like to share contents from social media with my friends) were removed from the
scales measuring perceived social media marketing activities construct, because their
loading factors were less than 0.5 after CFA first run. Test statistics indicate that the
measurement model represents a good fit to the data. The overall model were
CMIN ¼ 217.215, df ¼ 98, p ¼ 0.0, CMIN/df ¼ 2.216. The fit indices were CFI ¼ 0.96,
GFI ¼ 0.93 TLI ¼ 0.95 and RMSEA ¼ 0.059. Internal consistency reliability, the most widely
used reliability method, was measured using Cronbach’s α. The reliability of the scales
ranged from 0.81 to 0.89 (see Table I). Following the widely recognized rule of thumb of
using a reliability level of 0.5 (Hair et al., 2006), the analysis indicated that the measurement
scales are highly reliable.
The next step is to assess convergent validity by checking the factor loadings of each
item and the values of average variance extracted (AVEW0.5). The factor loadings of the
measurement items are significant and substantial, i.e. p W0.5 (Hair et al., 2006), as
well as composite reliabilities of each of the constructs and average variance extracted
(see Table III) average variances extracted were W0.50. Thus, the convergent validity of the
latent constructs was confirmed. Discriminant validity was investigated following Fornell
and Larcker’s (1981) suggestion. According to them, the average variance extracted must
exceed the corresponding squared interconstruct correlations estimate between the two
constructs. In the current study, all the variance extracted estimates were greater than the
corresponding interconstruct squared correlation estimates; the correlation matrix of latent
variables is in Table I.
Moreover, assessment of nomological validity is based on the correlation matrix
(Hair et al., 2006) provided in Table I. The results support that these constructs are positively
related to one another and these relationships simply make sense. The structural model
1 2 3 4
Mediating effects
Bootstrapping procedures were implemented to obtain estimates of the indirect effects and
to test their significance by using confidence intervals. If a zero is not included in the
95 percent confidence interval of the estimate, it means that the indirect effect is statistically
significant. As there was more than one mediating effect in the structural model, in order to
separate the indirect effects and test the significance of each of the mediating effects,
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phantom variables and bias-corrected bootstrap method were used. The researcher
requested AMOS to generate 1,000 bootstrap samples and selected bias-corrected bootstrap
method with 95 percent confidence intervals (Mallinckrodt et al., 2006). The first phantom
model was created in which the indirect effect was found significant with 0.001 p-value and
point estimate 0.161. The bias corrected lower and upper confidence interval are 0.076 and
0.284 which means that there is no zero in between therefore brand consciousness mediates
the relationship between perceived social media marketing and brand loyalty. The total
effect is 0.288, with 0.002 p-value o0.001, significant and direct effect is 0.078 with p-value
0.224o0.001, significant. The second phantom model showed that the indirect effect was
found significant with 0.001 p-value and point estimate 0.115. The bias corrected lower and
upper confidence interval are 0.067 and 0.189 which means that there is a zero therefore
R 2 = 0.13
Value
Consciousness
–0.35***
0.33***
R 2 = 0.35
Perceived Social
Brand Loyalty
Media
0.15*
Marketing
Activities
0.54*** 0.30***
Brand
Consciousness
2
R = 0.29 Figure 2.
Validated model
Notes: *p < 0.05; ***p < 0.001
APJML value consciousness mediate the relationship between perceived social media marketing and
29,1 brand loyalty. The total effect is 0.212, with p-value o0.001 and direct effect is 0.218 with
p-value o0.001. Table III shows the mediating effects of brand consciousness on the
relationship between perceived social media marketing and brand loyalty as well as the
mediating effect of value consciousness on the relationship between perceived social media
marketing activities and brand loyalty. From the bias-corrected bootstrap test result, it was
136 confirmed that brand consciousness and value consciousness significantly mediated the
influences of perceived social media marketing activities on brand loyalty.
component analysis with varimax rotation According to this technique, if a single factor
emerges from the factor analysis or one “general” factor accounts for more than 50 percent
of the covariation in the variables, CMV is present. The analysis revealed that there is no
single factor in the factor structure. Therefore, it does not appear to be a common method
bias concern in the present study. Another test was run to check the CMV in the data set
using common latent factor, whereby a common latent factor was added to the CFA model
and then the standardized regression weights of that model were compared to the
standardized regression weights of the model without common latent factor. The results
showed that all the differences were less than 0.2 so common method bias was not a major
threat in the data set (Tables II and III).
Discussion
The findings of this study confirmed that perceived social media marketing activities will
assist marketers in conceiving brand loyalty, brand consciousness and value consciousness.
The current research supports the idea that perceived social media marketing activities is a
H1: perceived social media marketing activities will have a positive 0.15 7.13 Accepted
effect on brand loyalty
H2: perceived social media marketing activities will have a positive 0.54 8.64 Accepted
effect on brand consciousness
H3: brand consciousness will have a positive effect on brand loyalty 0.30 2.10 Accepted
Table II. H4: perceived social media marketing activities will have a positive 0.33 4.10 Accepted
Summary of effect on value consciousness
Study 1 results H5: value consciousness will have a negative effect on brand loyalty −0.35 5.72 Accepted
Independent Test
Hypotheses variables Effect Significancea results
Consumers searching for clothing, cosmetics, shoes, perfumes, fashion accessories or other
products are exposed to a plethora of social media marketing activities in addition to the
traditional media such TV commercials and other promotional activities, this exposure
makes consumer well informed about their brands. In a nutshell, the social media marketing
is good strategy for brand consciousness. It is considered as an informative tool for
customers to get up-to-date details about the products. The contribution of current study
findings to theory is that the extension of marketing communication tools to incorporate
social media and its impact on brand consciousness.
The study has also examined the mediating effect of brand consciousness on the
relationship between social media marketing and brand loyalty. Whether it is a customer
reaching out to a company or a company sharing information with its followers, this
constant communication is ideal for encouraging brand consciousness which, in turn
enhances brand loyalty as demonstrated in the current study. This study also yields a new
insight into how perceived social media marketing activities influence value consciousness
consumers. Based on the above findings, the conceptual model has shown a direct positive
effect of perceived social media marketing activities on value consciousness. That means
social media marketing has been influential to the brand followers who are value conscious.
Value-conscious consumers are of a great importance to marketers to target in today’s
uncertain economy, whereby everyone is considered a value shopper. According to
Forrester Research, price is becoming a more important driver in the purchasing decisions
of consumers (Dunnhumby, 2014). The findings of this study have shown that social media
value-conscious consumers are not brand loyal, as value consciousness and brand loyalty
variables are negatively related.
The results also showed that value consciousness I negatively related to brand loyalty.
They have personal experience with the product and willing to share their opinions and
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Appendix Social media
marketing
activities
Cronbach’s Composite
Item Constructs Mean SD Loadings α AVE reliability
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