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Modelling the Effects of Social Media–based Brand Communities on Brand Trust, Brand Equity and Consumer Response

Author

Listed:
  • Chandan A. Chavadi
  • Monika Sirothiya
  • Sindhu R. Menon
  • Vishwanatha M R

Abstract

Social media platforms help brands connect with their customers online, and a social media -based brand community (SMBBC) enable brand attachments to particular brands. These brand communities enhance consumer relationships, increase customer advocacy, discover customer problems, and generate unique product and marketing ideas. In the context of Social Identity Theory and SOR framework (stimulus-organism-response), the present study explored the influence of customer-centric elements (the four relationships) on an online brand community that affect and provoke members’ conscious brains to get into action. The study further examines the impact of SMMBC on brand trust and brand equity variables (brand awareness, perceived quality, brand association and brand loyalty) and, consequently, on customer response (purchase intention, response to brand extension and willingness to pay a premium). A self-administered online survey was conducted to collect data on all selected brands. The brands were selected using a stratified sampling method, and the stratum used was the number of fans following the brands. The top three brands with the highest fan following from 15 sectors were picked. The study selected 384 final responses after the data screening procedure. SPSS version 26 and AMOS graphics were used for testing hypothesised relationship. Exploratory factor analysis (EFA) was conducted to ensure that the selected scale items were appropriately loaded, followed by measurement model’s reliability and validity testing using Confirmatory factor analysis (CFA). The findings of SEM analysis conclude that customer-centric elements are significant determinants of the online brand community. The results also confirmed that strengthening SMBBC leads to higher brand trust and positively influences all brand equity dimensions. In addition, the research study found that positive brand equity results in favourable consumer responses. This study contributes theoretically to past studies on brand community and customer response, mainly in social media. The findings are helpful for managers to design and manage their online brand communities effectively and to elicit more positive responses.

Suggested Citation

  • Chandan A. Chavadi & Monika Sirothiya & Sindhu R. Menon & Vishwanatha M R, 2023. "Modelling the Effects of Social Media–based Brand Communities on Brand Trust, Brand Equity and Consumer Response," Vikalpa: The Journal for Decision Makers, , vol. 48(2), pages 114-141, June.
    • Handle: RePEc:sae:vikjou:v:48:y:2023:i:2:p:114-141
    DOI: 10.1177/02560909231172010
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