The impact of brand communication on brand equity through Facebook

Abstract

Purpose: The purpose of this study is to fill the gap in the discussion of the ways in which firm-created and user-generated social media brand communication impacts consumer-based brand equity metrics through Facebook. Design/methodology/approach: We evaluated 302 data sets that were generated through a standardized online-survey to investigate the impact of firm-created and user-generated social media brand communication on brand awareness/associations, perceived quality, and brand loyalty across 60 brands within three different industries: non-alcoholic beverages, clothing, and mobile network providers. We applied structural equation modeling techniques (SEM) to investigate the effects of social media brand communication on consumers’ perception of brand equity metrics, as well as in an examination of industry-specific differences. Findings: The results of our empirical studies showed that both firm-created and user-generated social media brand communication influence brand awareness/associations; whereas, user-generated social media brand communication had a positive impact on brand loyalty and perceived brand quality. Additionally, there are significant differences between the industries being investigated. Originality/value: This article is pioneering in that it exposes the effects of two different types of social media brand communication (i.e., firm-created and user-generated social media communication) on consumer-based brand equity metrics, a topic of relevance for both marketers and scholars in the era of social media. Additionally, it differentiates the effects of social media brand communication across industries, which indicate that practitioners should implement social media strategies according to industry specifics to lever consumer-based brand equity metrics