Mohd - Sarwar Alam
Mohd - Sarwar Alam
Mohd - Sarwar Alam
Key Words: Social Media, Brand Equity, Social Media Communication, User Generated Content,
Firm Created Content, Word of Mouth, Electronic Word of Mouth
Introduction
The decision of Consumers in Buying Process is being largely affected by the
number of ways of marketing and communication done by a particular brand. An
increasing number of consumers are embracing the internet and spend more time
searching for information as well as shopping online. Social Media Marketing has
emerged as the most popular and effective tool of marketing and communication.
The companies are using social media campaigns to attract the prospects and making
the existing customers brand loyal. As the usage of social media is increasing at a fast
pace, in addition to existing social networkers, private business firms and government
bodies are also using the platforms as communication tools (Kim and Ko, 2012).
Now, firms are not the only source of brand communication as social media allows
the consumers or prospects to communicate with many other consumers from all
corners of the world. More importantly, consumers are losing their interest from
traditional media such as TV, radio, or magazines and are increasingly using social
media platforms for searching the information (Mangold and Faulds, 2009). The viral
dissemination of information among the people through social media is much stronger
than the traditional media such as TV, radio, and print advertisements (Keller, 2009).
AIMA Journal of Management & Research, November 2015, Volume 9 Issue 4/4, ISSN 0974 – 497
Copy right© 2015 AJMR-AIMA. Page 1
Social media has helped the marketers to build up an interactive communication
environment where they can enhance existing relationships with consumers. The
platform can take various forms like Weblogs, Social blogs, Micro blogging, Wikis,
Podcasts, Pictures, Video, Rating and social bookmarking (Kim and Ko, 2012). The
product reviews by consumers on social media can produce a positive or negative
brand buzz and the messages on these virtual platforms affect consumer buying
decisions (Vij and Sharma, 2013). Everson (2014) suggests that Brands should have a
social analytics team which can properly monitor and engage target audiences on
social media platforms especially because community managers cannot fight this
battle alone. The increased usage of the Social Media has changed the way people
interact and communicate. It has become very easy for the Brands to promote and
advertise their Products through Social media networks. The communication gets
exposure to a large base of Social media users in a very short span of time. With
ever-increasing prevalence, social networking sites are being used by consumers to
connect with one another, and increasingly to connect consumers with brands and
vice versa (Wolny and Mueller, 2013). In addition, social media activities of brands
can help to reduce preconception and misunderstanding toward brands, and to
increase brand value by providing an online platform to the people for exchanging
ideas and information (Kim and Ko, 2012).
This study has first identified individual studies related to social media, electronic
word of mouth, and brand equity. Then, it has classified the key dimensions of social
media communication which can create E-WOM. Further, the study has identified the
dimensions of brand equity to see how E-WOM can be related to these brand equity
dimensions as well as how these dimensions contribute to the overall brand equity of
any brand.
The structure of the paper is as follows. Firstly, the paper presents the basic
definitions and theories about social media, electronic word of mouth, and brand
equity. Then the paper describes how the literatures have been identified to include in
the study. This is followed by review of various studies. Finally, the paper proposes a
conceptual framework and a set of propositions showing the impact of social media
on brand equity. The study concludes with the discussion about the implications and
limitations of the conceptual framework for future theoretical and empirical
investigations.
1. Social Media
Richter & Koch (2007) define Social media as “online applications and platforms
which aim to facilitate interactions, collaborations and sharing of content". Social
media is the medium to socialize. Neti (2011) defines social media as “any website
which allows user to share their content, opinion, views and encourages interaction
and community building”. Further, she explains in her study that the term ‘Social
media’ can be derived from two words namely ‘social’ and ‘media’ which constitute
it. Social refers to the communication or interaction of individuals within a group or
community and Media generally refers to advertising where the communication of
ideas or information takes place through publications or channels. Safko and Brake
(2009) define Social media as “activities, practices, and behaviours among
communities of people who gather online to share information, knowledge, and
opinions using conversational media”. Social media refers to the communication
platforms which are generated and supported by the social interaction of people
AIMA Journal of Management & Research, November 2015, Volume 9 Issue 4/4, ISSN 0974 – 497
Copy right© 2015 AJMR-AIMA. Page 2
through the specific medium or tool (Neti, 2011). They use internet based technology
for quick sharing of knowledge and information to a large number of web users. They
allow creation and exchange of user-generated content. The Social media concept
involve the use of Internet based applications and services for communication,
collaboration, creation and exchange of contents by individuals and groups (Mangold
and Faulds, 2009; Kaplan and Haenlein, 2010). According to Robinson (2007), social
media are the tools used for communication that have Web 2.0 attributes like
participation, collaboration, knowledge sharing and web tools to empower the internet
users. Social media has come with a new form of consumer socialization where the
peer communication has significant impact on consumer decision making. The
platforms i.e. social networking sites may be an important source of consumer
socialization by providing people a virtual space to communicate through the internet
(Vinerean, Cetina, Dumitrescu, and Tichindelean, 2013). Although the main focus of
the social media is interpersonal relationships, Gillin and Schwartzman (2011)
suggest that social media can offer social capital to firms and organisations which
help in collecting marketing intelligence and opportunity identification by studying
and monitoring the target market as well as customer or prospect behaviours on social
media platforms.
3. Brand Equity
Brand Equity is defined as the difference in consumer choice between the focal
branded product and an unbranded product given the same level of product features
(Yoo and Donthu, 2001). Aaker (1991) defines Brand Equity as a “set of brand assets
and liabilities linked to a brand, its name and symbol that add to or subtract from the
value provided by a product or service to a firm and/or to that firm’s customers”.
AIMA Journal of Management & Research, November 2015, Volume 9 Issue 4/4, ISSN 0974 – 497
Copy right© 2015 AJMR-AIMA. Page 3
Brand equity can be defined both from consumer and firm based perspectives
(Atilgan, Akinci, Aksoy & Kaynak, 2009). The consumer based aspect is mainly
about consumer mind-set which can be described using constructs like attitudes,
awareness, associations, attachments and loyalties (Keller and Lehmann, 2001).
The firm based aspect talks about Product market outcomes such as price premium,
market share, relative price, and financial market outcomes such as brand’s purchase
price and discounted cash flow of license fees and royalties (Ailawadi, Lehmann, and
Neslin, 2003; Keller and Lehmann, 2001). Punj & Hillyer (2004) suggest in their
study that consumer-based brand equity is said to be a set of brand-related
associations held by the consumer in memory. In this context, brand equity can be
taken as being largely attitudinal in nature comprising of beliefs, affect, and other
subjective experiences related to the brand like brand attitude and brand image. Keller
(1993) proposes the definition of customer-based brand equity as “the differential
effect of brand knowledge on consumer response to the marketing of the brand”.
Consumer based brand equity constructs measure the awareness, attitudes,
associations, attachments and loyalties of consumers related to a particular brand
(Keller and Lehman, 2006). Therefore, the two main frameworks that can explain
brand equity in an appropriate manner are those of Aaker (1991) and Keller (1993).
According to Aaker (1991), brand equity is a multidimensional concept with first four
core dimensions as brand awareness, perceived quality, brand associations and brand
loyalty. Keller’s (1993) brand equity concept focuses on brand knowledge with its
two components namely brand awareness and brand image.
5. Review of Studies
Social media is an emerging trend among marketers as well as academicians due to its
potential to influence the marketing elements. It is being used for branding purpose
extensively. Such emerging topic has attracted the researchers and academicians from
all corners of the world to debate over this. Though this field of research is in its
introduction stage, researchers are opting to conduct studies in the particular field. On
the other hand, electronic word of mouth is the result of the internet based
AIMA Journal of Management & Research, November 2015, Volume 9 Issue 4/4, ISSN 0974 – 497
Copy right© 2015 AJMR-AIMA. Page 4
communications taking place on social media platforms. It is of equal importance and
very much responsible for branding like creating brand equity. Social media
communication and electronic word of mouth complement each other. There are
many studies showing the relationship between social media and electronic word of
mouth, social media and brand equity, electronic word of mouth and brand equity.
Table I shows some relevant studies conducted in the field along with their constructs
and findings as concluded by the researchers.
AIMA Journal of Management & Research, November 2015, Volume 9 Issue 4/4, ISSN 0974 – 497
Copy right© 2015 AJMR-AIMA. Page 5
on customer equity.
Schiviniski, B., & User generated social User generated
Dabrowski, D. (2014) media communication, communication has
Firm created social media positive impact on brand
communication, Brand equity and brand attitude.
equity, Brand attitude and Firm created content has
Purchase intention. positive impact on brand
attitude.
Brand attitude positively
influences brand equity
and purchase intention.
Brand equity has positive
impact on purchase
intention.
Severi, E., Ling, K.C., Electronic word of mouth E-WOM has a significant
Nasermoadeli, A. (2014) (E-WOM), Brand equity, impact on brand
Brand awareness, Brand awareness, brand
association, Perceived association, brand loyalty,
AIMA Journal of Management & Research, November 2015, Volume 9 Issue 4/4, ISSN 0974 – 497
Copy right© 2015 AJMR-AIMA. Page 6
quality, Brand loyalty, brand image and perceived
Brand image. quality.
Yoo and Donthu (2000) Brand loyalty, Perceived Brand loyalty, Perceived
quality, Brand awareness, quality, Brand awareness,
associations, Overall brand and associations
equity significantly influence
Overall brand equity.
6. Conceptual Framework
There are many studies showing the relationship between social media and brand
equity like Bruhn et al (2012); Vries & Carlson (2014); Kim and Ko (2012);
Schiviniski & Dabrowski (2014); Kapoor, P.S. Jayasimha, K.R, & Sadh, A. (2013)
and Christodoulides et al (2012) etc. Some studies have shown this relationship
through electronic word of mouth which is the ultimate result of social media
communications like Wolny & Mueller (2013); Bambauer-Sachse, S., & Mangold, S.
(2011); Yasin and Zahari (2011) and Murtiasih et al (2013) etc. Bruhn et al (2012)
have used the term social media communication for social media as it is mainly the
communications which take place on social media platforms. The marketers or brand
managers mainly aim for communication objectives on social media platforms. Hence
Bruhn et al (2012) and Schiviniski & Dabrowski (2014) have used the dimensions of
social media communication as firm created content and user generated content.
Godes and Mayzlin (2009) suggest that firms try to create WOM among the
consumers which can be called as firm created WOM. As these WOM are firm
initiated, it can be said that firm created content engineers the WOM on social media
platforms. Further, Cheung and Thadani (2012) suggest that it is the nature of online
review platforms which influences the electronic word of mouth (E-WOM). The
platform can consist of firm created content as well as user generated content. Hence,
the study derives the following propositions;
P1: Firm created content has a significant impact on electronic word of mouth (E-
WOM).
AIMA Journal of Management & Research, November 2015, Volume 9 Issue 4/4, ISSN 0974 – 497
Copy right© 2015 AJMR-AIMA. Page 7
P2: User generated content has a significant impact on electronic word of mouth (E-
WOM).
The two main frameworks that can explain brand equity in an appropriate manner are
those of Aaker (1991) and Keller (1993). According to Aaker (1991), brand equity is
a multidimensional concept with first four core dimensions as brand awareness,
perceived quality, brand associations and brand loyalty. Keller’s (1993) brand equity
concept focuses on brand knowledge with its two components namely brand
awareness and brand image. The study focuses on Aaker’s concept of brand equity as
this is widely accepted and used by the researchers. Various literatures suggest that
there is a strong relationship between E-WOM and brand equity dimensions.
According to the studies of Yasin and Zahari (2011); Murtiashih, Sucherly, &
Siringoringo (2013); Severi, Ling, & Nasermoadeli (2014); Rezvani, Hoseini, &
Samadzadeh (2012), it is evident that E-WOM significantly influences the brand
equity dimensions namely brand awareness, brand association, perceived quality and
brand loyalty.
Brand equity dimensions further contribute to the overall brand equity. According to
the study of Yoo, Donthu & Lee (2000), the brand equity dimensions namely brand
awareness, brand association, perceived quality and brand loyalty significantly
influence overall brand equity. Hence the study derives the following propositions;
Based on the propositions, the study develops a conceptual model showing the
dimensions of social media communication influencing electronic word of mouth
which further influences the brand equity dimensions and finally the dimensions of
brand equity contribute to the overall brand equity. Figure 1 shows the conceptual
model.
Brand
Firm
Awareness
created
Over all
E-WOM
Brand Brand
User Association
Equity
generated
Content Brand
Loyalty
AIMA Journal of Management & Research, November 2015, Volume 9 Issue 4/4, ISSN 0974 – 497
Perceived
Copy right© 2015 AJMR-AIMA. Page 8
Quality
Figure 1: Conceptual Model
References
Aaker, D.A (1991). Managing Brand Equity. New York: The Free Press.
Atilgan, E., Akinci, S., Aksoy, S., & Kaynak, E. (2009). Customer-Based Brand
Equity for Global Brands: A Multinational Approach. Journal of Euromarketing,
18(2), 115-132.
Bambauer-Sachse, S., & Mangold, S. (2011). Brand equity dilution through negative
onlineword-of-mouth communication. Journal of Retailing and Consumer Services,
18, 38–45.
Bruhn, M., Schoenmueller, V., & Schafer, D.B. (2012). Are social media replacing
traditional media in terms of brand equity creation? Management Research Review,
35 (9), 770-790.
AIMA Journal of Management & Research, November 2015, Volume 9 Issue 4/4, ISSN 0974 – 497
Copy right© 2015 AJMR-AIMA. Page 9
Cheung, C M.K., Thadani, D R. (2012). The impact of electronic word-of-mouth
communication: A literature analysis and integrative model. Decision Support
Systems, 54: 461-470.
Duana, W., Gu, B., & Whinston, A. (2008). Do online review matter? An empirical
investigation of panel data. Journal of Decision Support System, 45(4).
Everson, A. (2014, Jan 8). Five Big Social Media Trends for 2014. MarketingProfs.
Retrieved Jan 19, 2014 from
http://www.marketingprofs.com/articles/print/2014/24085/five-big-social-media-
trends-for-2014
Hawkins, D. I., Best, R., & Coney, K. A. (2004). Consumer behavior: Building
marketing strategy (9th ed). Boston: McGraw-Hill.
Kaplan, A.M., & Haenlein, M. (2010). Users of the world, unite! The Challenges and
opportunities of social media. Business horizon, 53, 59-68.
Keller, K.L. (1993). Conceptualizing, measuring, and managing customer based brand
equity. Journal of Marketing, 57(1), 1-22.
AIMA Journal of Management & Research, November 2015, Volume 9 Issue 4/4, ISSN 0974 – 497
Copy right© 2015 AJMR-AIMA. Page 10
Keller, K. L., & Lehmann, D. R. (2001). The brand value chain: Linking strategic and
financial performance. Working paper, Tuck School of Business, Dartmouth College,
Hanover, New Hampshire.
Keller, K.L., & Lehmann, D.R. (2006). Brands and branding: research findings and
future priorities. Marketing Science 2006, 25(6), 740–59.
Kim, A. J., & Ko, E. (2012). Do social media marketing activities enhance customer
equity? An empirical study of luxury fashion brand. Journal of Business
Research, 65(10), 1480-1486.
Mangold, W.G. and Faulds, D.J. (2009). Social media: the new hybrid element of the
promotion mix. Business Horizons, 52(4), 357-65.
Neti, S. (2011). Social media and its role in marketing. International Journal of
Enterprise Computing and Business Systems, 1(2), 1-15.
Richter, A., & Koch, M. (2007). Social software: Status quo und Zukunft (pp. 1-49).
Fak. für Informatik, Univ. der Bundeswehr München.
Severi, E., Ling, K C., Nasermoadeli, A. (2014). The Impacts of Electronic Word of
Mouth on Brand Equity in the Context of Social Media. International Journal of
Business and Management, 9(8).
Schivinski, B., & Dabrowski, D. (2014). The effect of social media communication on
consumer perceptions of brands. Journal of Marketing Communications, (ahead-of-
print), 1-26.
AIMA Journal of Management & Research, November 2015, Volume 9 Issue 4/4, ISSN 0974 – 497
Copy right© 2015 AJMR-AIMA. Page 11
Vij, S., & Sharma, J. (2013, January). An Empirical Study on Social Media Behaviour
of Consumers and Social Media Marketing Practices of Marketers. In 5th IIMA
Conference on Marketing in Emerging Economies.
Vinerean, S., Cetina, I., Dumitrescu, L., & Tichindelean, M. (2013). The effects of
social media marketing on online consumer behavior. International Journal of
Business and Management, 8(14), p66.
Vries, N. J. D., & Carlson, J. (2014). Examining the drivers and brand performance
implications of customer engagement with brands in the social media environment.
Journal of Brand Management, 21(6), 495-515.
Wolny, J., & Mueller, C. (2013). Analysis of fashion consumers’ motives to engage in
electronic word-of-communication through social media platforms. Journal of
Marketing Management, 29 (5-6), 562-583.
Yasin, N M., Zahari, A R. (2011). Does Family and Viral Marketing have any effect
on Brand Equity. Contemporary Marketing Review, 1(9), 19-31.
Yoo, B., Donthu, N., & Lee, S. (2000). An examination of selected marketing mix
elements and brand equity. Journal of the Academy of Marketing Science, 28(2), 195–
211.
AIMA Journal of Management & Research, November 2015, Volume 9 Issue 4/4, ISSN 0974 – 497
Copy right© 2015 AJMR-AIMA. Page 12