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Effect of Social Media Marketing of Luxury Brands on Brand Equity, Customer Equity and Customer Purchase Intention

Author

Listed:
  • Rizwan Raheem Ahmed

    (Faculty of Management Sciences, Indus University, Karachi, Pakistan)

  • Erum Zahoor Zaidi

    (Faculty of Management Sciences, Shaheed Zulfikar Ali Bhutto Institute of Science and Technology, Karachi, Pakistan)

  • Syed Hasnain Alam

    (Karachi Institute of Economics and Technology, Karachi, and Karachi University Business School, University of Karachi, Karachi, Pakistan)

  • Dalia Streimikiene

    (Lithuanian Sports University, Kaunas, Lithuania)

  • Vishnu Parmar

    (Institute of Business Administration, University of Sindh, Jamshoro, Pakistan)

Abstract

The study conducted primarily examined the effect of Social Media Marketing Effect on Brand equity in creating Purchase Intention and Customer equity. For this purpose, we employed structural equation modeling using Smart-PLS 3.0, the data of 312 respondents were collected through structured questionnaire. The findings show a significant positive relationship between Social Media Marketing and Brand Equity. The role of social media marketing efforts through Brand equity directly affects customer equity: The role of social media marketing efforts through Brand equity has a direct significant effect on Purchase Intention. Brand equity relates positively to customer equity. Brand equity relates positively and significantly to purchase intention. Brand equity has a significant and positive mediating effect on the relationship between marketing efforts on social media (SMMEs) and consumer equity. The study unfolds an exciting dimension that social media marketing, a hype in the haute couture and Preto Porte have a significant impact on purchase intention and Customer Equity in the Pakistani market. A more comprehensive marketing strategy has to be adopted in the Pakistani market. The Pakistani customer is more influenced to purchase haute couture by testing and trial sessions besides purchasing online. There are few online Brand communities in the Pakistani market where customers can interact with other users who share common interests and can talk about luxury brands. Theoretically, this study ascertains the customer lifetime value of luxury brands. The intense competition in luxury fashion brands also leads to strong customer equity created by Social Media Marketing.

Suggested Citation

  • Rizwan Raheem Ahmed & Erum Zahoor Zaidi & Syed Hasnain Alam & Dalia Streimikiene & Vishnu Parmar, 2023. "Effect of Social Media Marketing of Luxury Brands on Brand Equity, Customer Equity and Customer Purchase Intention," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 25(62), pages 265-265, February.
    • Handle: RePEc:aes:amfeco:v:25:y:2023:i:62:p:265
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    References listed on IDEAS

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    Cited by:

    1. Rizwan Raheem Ahmed & Munwar Hussain Pahi & Shahid Nadeem & Riaz Hussain Soomro & Vishnu Parmar & Fouzia Nasir & Faiz Ahmed, 2023. "How and When Ethics Lead to Organizational Performance: Evidence from South Asian Firms," Sustainability, MDPI, vol. 15(10), pages 1-29, May.

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    More about this item

    Keywords

    social media marketing efforts; brand equity; purchase intention; customer equity; brand satisfaction; haute couture; structural equation modeling.;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment
    • M3 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising

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