Sci.Int.

(Lahore),31(6),911-915,2019 ISSN 1013-5316;CODEN: SINTE 8 911

IMPACT OF SOCIAL MEDIA MARKETING ON BRAND BUILDING:

A CASE STUDY OF OLX, PAKISTAN
Arman Khan, Ishfaque Ahmed, Muhammad Hafeez and Javed Ahmed
Department of Business Admiration, Shaheed Benazir Bhutto University, Shaheed Benazir Abad, Pakistan
Corresponding author’s email: [email protected]
ABSTRACT: The purpose of this paper was to analyze the impact of social media marketing on brand building with reference
to OLX (online exchange), Pakistan. Prior to the field survey, the authors constructed a theoretical model for clear
identification of how social media marketing can build the brand. Data from 106 respondents were collected who used social
OLX channel for purchasing. For the purpose, simple random sampling was adopted and information from 106 respondents
was collected through well-designed questionnaire. The collected data were analyzed using binary logistic regression analysis.
The results of the study indicate that social media marketing had significant positive impact in brand building. The study
recommends that in order to reach out the targeted groups with social media marketing and to build greater brand equity, the
company should focus on multiple social media platform. Further, the case company’s brand building actions in social media
marketing were also examined to help the company to clarify their social media marketing plan.

Keywords: Brand building, brand equity, brand awareness, social media, Pakistan

INTRODUCTION The study by [4] documented that social media advertisement

From the last several years, social media has gained massive is influencing consumer’s behavior, awareness, information,
popularity throughout the world and has rapidly changed the perceptions, attitudes, buying culture, feedback, as well as
means of communication and impacted the means of product’s durability. Initially, there were just two options
marketing [1, 2]. Social media is an online community available to get the consumer’s attention: first, to assign
established on internet technology that operates as an advertisement task to well-reputed advertising agency.
interactive plat form between the company and the customers Secondly, to deal with the third party of the media.
[3]. The study by [4] documented that recently effective Nowadays, the marketing environment and their rules of
communication between companies and customers about the business have totally been changed. The social media
product quality has been made easy and possible by the advertisement is completely different from the traditional
emergence of internet-based social media. As a part of the advertisement’s practices conducted through television,
company’s social media marketing, organization must create newspapers, and radio etc. [8] reported that the organizations
useful and tempting content, indicate vibrant actions that have developed new rules of marketing and strengthening
make each customer want to follow the product’s page, personal relationship with the customers and these all things
should respond rapidly to all requests, and focus to customers are happening because of social media.
remarks [5]. Like other countries, online advertisement strategies are
In fact, social media includes different variety of online rapidly growing in Pakistan and firms are allocating a huge
word-of-mouth forums and have categorically changed into a amount of budget to advertise the product. In addition, there
major feature in influencing characteristics of consumer is a huge increase in online shopping due to free packages
purchasing decision-making behavior such as attitudes, offered by various mobile companies. In Pakistan, social
awareness, information acquisition, opinions, purchase media is the best platform to make a brand. Among
behavior, and post-purchase communication and evaluation.
The development of meaningful relationships with brand and
others, OLX, Pakistan is one of the leading brands
customers is the core of social media marketing which can used by online users, which is a free online
often be observed in a long-term outlook. According to the classified site, having a discouraging challenge
study by [6], some of the researchers still debate about the with international ambitions. Considering the role
outcome and effectiveness of social media on consumer of social media on brand building the authors
behavior. They further reported that most of the organizations therefore critically analyzed its impact on different dimension
face difficulties in measuring the added value of the efforts of brand building. The research questions are as follows:
that usually made for marketing. a. Is social media marketing has impact on brand awareness.
In the existing literature, nexus between brand building and b. Is social media marketing has impact on brand loyalty.
social media marketing have received a substantial amount of c. Is social media marketing has impact on brand equity.
attention. The recent studies in marketing focus on utilizing Theoretical Framework: Social Media Marketing and
social media on different indicators of brand building such as Brand Building
awareness, equity, and loyalty. In this research, besides social Prior to the field survey, the authors designed a coherent
media marketing, the authors identified different factors that theoretical model to investigate the role of social media
may affect brand building [7]. Social media particularly marketing on different dimensions of brand building. In the
provide the information about the product durability, price, first step, the authors linked the role of social media on
use etc. that attract the customers to buy the product. different indicators of brand building. Several studies [9, 1]
Nowadays, many organizations are advertising their product indicate that use of social media does positively affect brand
or services using online social media channels such as awareness, brand loyalty, and brand equity and had indirect
Facebook, LinkedIn, Tumble, YouTube, Twitter etc. effect on brand building. In a similar study by [10] noted that
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912 ISSN 1013-5316;CODEN: SINTE 8 Sci.Int.(Lahore),31(6),911-915,2019
brand awareness and brand loyalty is an outcome of engagement have positive correlation with brand awareness,
customer's frequent engagement with social media. However, loyalty, and equity in the context of social media marketing.
the study by [11], argued that word-of-mouth has direct and In the second step, the authors linked awareness, loyalty, and
positive relationship with customers awareness about brand. equity with brand building. In fact, these three indicators are
Above findings of different authors supported the theoretical directly involved in brand building of any product .
framework of this study that suggests that customers’

Brand
Awareness
Social
Media
Brand Loyalty Brand Building
Marketing

Brand Equity

Figure 1: Relationship between social media marketing and brand building

Material and Methods X5= Trust (If the respondents trust on product then 1,
Customers of OLX, Pakistan were selected as there otherwise 0)
presentative of online social media. For the purpose of X6=Behavior
collecting primary data, the authors used simple random X7=Satisfaction
sampling technique considering the under lying advantages as X8=Social Media Marketing
this technique improves the accuracy and reduce the cost of =
social survey results [12]. Karachi Division was divided into Y= Brand loyalty (if Yes then 1, otherwise 0)
three strata as Zone-I, II and III, from each stratum two X1= Age of the respondents
districts were randomly selected and out of each district, X2= Gender of the respondents (If Male then 1, otherwise 0)
customers were selected randomly who used OLX as a mean X3= Education level of the respondents (years of Schooling)
of purchasing. After analyzing all scatter diagrams the X4=Personality (If the respondents viewed online posting
authors decided to use the binary logistic regression analysis then 1, otherwise 0)
for the purpose of data analysis. As per theoretical X5= Accessibility (If the respondents have easy accessibility
framework, three different models were designed to critically then 1 otherwise 0)
investigate the role of social media marketing on three X6=Emotional connection
different dimensions of brand building. The econometric X7= Social Media Marketing
forms of these models are as under: REGRESSION ANALYSIS OF HYPOTHESIZES
= Nexus between Social Media Marketing and Brand
Y= Awareness of respondents about brand (if yes then 1, Awareness
otherwise 0) The results of the binary logistic regression analysis are
X1=Age of the respondents presented in the Table I. The intercept of the model is 1.428,
X2=Gender of the respondents (If Male then 1, otherwise 0) which represents the expected increase in the brand
X3=Education level of the respondents (years of Schooling) awareness, when all inputs are zero.
X4=Online traffic (If the respondents viewed online posting The coefficient of the age of the respondents is 0.001. The
then 1, otherwise 0) coefficient of gender is 0.047. The coefficient of education
X5= External link (If the respondents have external link then level of respondent is 0.151. This coefficient indicates that
1, otherwise 0) brand awareness will increase by 0.151 percent by increasing
X6=Community Reach 1 percent of education level. The coefficient of social
X7=Social Media Marketing engagement is 1.454 percent. This coefficient indicates that
= brand awareness will increase by 1.454 percent by increasing
Y= Brand equity (if yes then 1, otherwise 0) the social engagement by 1 percent. Subsequently, the most
X1= Age of the respondents important variable i.e., social media marketing is significant
X2= Gender of the respondents (If Male then 1, otherwise 0) at less than 5 percent level of significance. This coefficient
X3= Education level of the respondents (years of Schooling) indicates that brand awareness will increase by 0.384 percent
X4=Quality (1, otherwise 0) by increasing the social media marketing by 1 percent. The
overall significance of the model can also be judged from the
2 ISSN 1013-5316;CODEN: SINTE 8 Sci.Int.(Lahore),31(6),911-915,2019
value of coefficient of Cox & Snell R Square i.e., 0.158. indicates that about 22.5 percent of the total change in brand
Similarly, the value of Nagelkerke R Square is 0.225 which awareness is explained by the independent variables.

Table I:Nexus between Social Media Marketing and Brand Awareness

Variable Coefficient S.E. Sig.
Age 0.001 0.019 0.039
Gender 0.047 0.492 0.064
Education 0.151 0.052 0.003
Traffic 1.352 0.561 0.016
External Link -0.448 0.519 0.389
Social Engagement 1.454 0.552 0.008
Community Reach 0.171 0.489 0.727
Social Media Marketing 0.384 0.513 0.054
Constant 1.428 1.228 0.024
-2 Log likelihood = 109.885, Cox & Snell R Square = 0.158,
Nagelkerke R Square = 0.225

Nexus between Social Media Marketing and Brand percent. The coefficient of behavior is 0.406. This coefficient
Loyalty indicates that brand loyalty will increase by 0.406 percent by
The results of the binary logistic regression analysis are increasing the sellers’ behavior by 1 percent. The main
presented in the Table II. The intercept of the model is 0.912, variable of this model is social media marketing which is
which represents the expected increase in the brand loyalty significant at less than 5 percent level. This coefficient
when all inputs are zero. indicates that brand loyalty will increase by 0.560 percent by
The coefficient of the age of the respondents is 0.008. The increasing the social media marketing by 1 percent. The
coefficient of gender is 0.0131. The coefficient of education overall significance of the model can also be judged from the
is 0.057. This coefficient indicates that brand loyalty will value of coefficient of Cox & Snell R Square i.e., 0.087.
increase by 0.057 percent by increasing 1 percent of Similarly, the value of Nagelkerke R Square is 0.116 which
education level. The coefficient of quality is 0.745 percent. indicates that about 11.6 percent of the total change in brand
This coefficient indicates that brand loyalty will increase by loyalty is explained by the independent variables.
0.745 percent by increasing the quality of product by 1

Table II:Nexus between Social Media Marketing and Brand Loyalty

Coefficient S.E. Sig.
Age 0.008 0.017 0.024
Gender 0.013 0.441 0.097
Education 0.057 0.038 0.014
Quality 0.745 0.422 0.077
Trust 0.371 0.431 0.389
Behavior 0.406 0.456 0.037
Satisfaction 0.245 0.429 0.567
Social Media Marketing 0.560 0.467 0.031
Constant 0.912 1.022 0.037
-2 Log likelihood = 136.359, Cox & Snell R Square = 0.087,
Nagelkerke R Square = 0.116

Nexus between Social Media Marketing and Brand percent. The coefficient of emotional connection is 0.504.
Equity This coefficient indicates that brand equity will increase by
The results of the binary logistic regression analysis are 0.504 percent by increasing the emotional connection by 1
presented in the Table III. The intercept of the model is percent. The main variable of this model is social media
0.084, which represents the expected increase in the brand marketing which is significant at less than 5 percent level.
equity when all inputs are zero. This coefficient indicates that brand equity will increase by
The coefficient of the age of the respondent is 0.007. The 0.175 percent by increasing the social media marketing by 1
coefficient of gender is 0.023. The coefficient of education is percent. The overall significance of the model can also be
0.012. This coefficient indicates that brand equity will judged from the value of coefficient of Cox & Snell R Square
increase by 0.012 percent by increasing 1 percent of i.e., 0.022. Similarly, the value of Nagelkerke R Square is
education level. The coefficient of personality is 0.067 0.030 which indicates that about 3 percent of the total change
percent. This coefficient indicates that brand equity will in brand equity is explained by the independent variables
increase by 0.067 percent by increasing the personality by 1
.
Sci.Int.(Lahore),31(6),911-915,2019 ISSN 1013-5316;CODEN: SINTE 8 1
Table III: Nexus between Social Media Marketing and Brand Equity
Coefficient S.E. Sig.
Age 0.007 0.017 0.069
Gender 0.023 0.414 0.215
Education 0.012 0.037 0.075
Personality 0.067 0.434 0.877
Accessibility -0.161 0.418 0.699
Emotional Connection 0.504 0.415 0.052
Social Media Marketing 0.175 0.458 0.002
Constant 0.084 0.873 0.092
-2 Log likelihood = 140.007, Cox & Snell R Square = 0.022,
Nagelkerke R Square = 0.030

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