Do social media marketing activities enhance customer equity? An empirical study of luxury fashion brand

Angella J. Kim, Eunju Ko

Research output: Contribution to journalArticle

534 Citations (Scopus)

Abstract

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.

Original languageEnglish
Pages (from-to)1480-1486
Number of pages7
JournalJournal of Business Research
Volume65
Issue number10
DOIs
Publication statusPublished - 2012 Oct 1

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All Science Journal Classification (ASJC) codes

  • Marketing

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