Enhancing Brand Equity through Social Media
The significance of social media (SM) has become undeniable, as evidenced by the latest data stated in the Digital 2023: Global Overview Report. While there is a slight decreasing trend in the overall time users spend online, SM does not follow this trend with its continuous growth. Digital users are spending more time on SM platforms, engaging, communicating, and even conducting e-commerce. This indicates that SM remains an important channel among other online platforms. Additionally, the total expenditure on SM advertising, promotions, and purchases continues to rise, highlighting its increasing importance for businesses in the digital world (Kemp, 2023).
The emergence of SM has been transforming the business environment and the way how companies look at brand building and interaction with their customers (Bruhn, Schoenmueller, & Schäfer, 2012, de Vries, Gensler, & Leeflang, 2012).
Hence, businesses must thoroughly comprehend the role of SM and tailor their strategies accordingly. SM provides a direct and interactive channel for engaging with the target audience, helping drive sales, creating a lasting impact, and establishing themselves as trusted and respected entities. Understanding the role of SM can positively impact the overall value and perception of the company, particularly its brand equity (BE).
Diverse Perspectives on Brand Equity
Within the literature, diverse definitions of BE exist based on whether the financial or customer perspective is taken into consideration (Pappu, Quester and Cooksey, 2005). Considerable research attention toward the concept of BE is dated back to the 1990s, followed by a transition to quantitative research methodologies in the subsequent decade and is focus on customer perspective largely (Shariq, 2018).
From the customer’s perspective, BE refers to the intangible value generated by the brand and perceived consciously or unconsciously by the customer. (Shariq, 2018). Chieng and Goi (2011) defined BE as “consumer response to a brand name” (Chieng, Goi, 2011) and based on Keller (1993) BE is defined as “the differential effect of brand knowledge on consumer response to the marketing of the brand” (Keller, 1993).
As may be considered a complex concept, the literature defines diverse dimensions and variables that potentially form BE. Aaker (1992) determined five pivotal dimensions of BE: brand loyalty, brand awareness, perceived quality, brand association, and other proprietary brand assets (Aaker, 1992). Kapferer (1994) introduced a different perspective by defining brand assets, encompassing elements such as brand awareness, brand reputation, perceived brand personality, perceived brand values, reflected customer imagery, brand preference or attachment, as well as patents and rights (Kapferer, 1994, as cited in Shariq, 2018).
While it is possible to examine diverse perspectives on BE, it remains crucial for businesses to be focused on its systematical development, ensuring its credibility and delivering it with the utmost effectiveness in all stages of interaction with customers including the direct and indicrect communicaitona on SM.
The Role of Social Media in Enhancing Brand Equity
Without being confined by limitations of time or location, SM has become crucial for both individuals and businesses to interact with others. Simultaneously, undervaluing the strategic potential of SM has limited businesses in appropriately leveraging its potential (Jayasuriya et al., 2018). Concurrently, businesses must acknowledge that a SM presence can impact BE not only positively but also negatively through the respective variables (Relling et al., 2016).
Despite extensive research on the impact of SM on BE, there are persisting research gaps attributed to newly emerging variables such as advertising tools, content formats, precise targeting options, content personalization, advanced reporting and analytics options or AI-generated content. These factors may have a significant impact on the dimensions and assets of a brand, influencing its overall BE.
Additionally, the evolving landscape of content management and tone-of-voice, reflecting demographic shifts in Generation Z and Generation Alpha, further contributes to these research gaps. With the continuous evolution of the SM, it becomes crucial to consider and address emerging topics, including but not limited to digital advancements or ESG practices. A comprehensive understanding of these multifaceted dynamics is essential for navigating the intricate landscape that influences BE in contemporary digital contexts.
Emerging Topics: Environmental Sustainability and Societal Topics
Finally , there is currently a growing emphasis on topics related to green BE, which is tied to a brand’s commitment to environmental sustainability and environmentally friendly practices as is research of Chuang, Chen (2022). This includes the perception of consumers towards a brand’s efforts in promoting sustainability, minimizing environmental impact, and supporting eco-friendly initiatives. Green BE reflects the positive reputation and consumer loyalty that brands gain by demonstrating their dedication to environmental responsibility. This emerging focus highlights the importance of sustainable practices in shaping brand perception and consumer preferences in today’s environmentally conscious market.
Recent research indicates that customers prefer to form relationships with brands that actively address both environmental and societal concerns (Du and Wu, 2019). Consequently, the comprehensive examination of overall ESG business policies and strategies, and their influence on the respective BE dimensions and assets, may be a subject for further research.
To summarize it, the further research may identify new key factors, such as advertising tools, content formats, precise targeting options, content personalization, advanced reporting and analytics options, AI-driven communication and ESG factors, that significantly influence BE.
The Importance of Brand Equity in Financial and Banking Sector
Further research is needed also in specific areas that have received limited attention, particularly in the financial and banking sectors. Those sectors are undergoing significant digitization, making it distinct in terms of services offered. With minimal differences in products, services and regulatory influences, financial institutions are increasingly prioritizing customer loyalty, customer experience, brand building, and overall BE (Owino et al., 2016).
The further research may expand existing knowledge and models by examining the unique challenges and opportunities faced by the financial and banking industry. Further research may provide practical implications for banks and financial institutions to strengthen their brand positioning and loyalty in the highly digitized and regulated environment.
References
- Bruhn, M., Schoenmueller, V., Schäfer, D.B., 2012. Are social media replacing traditional media in terms of brand equity creation? Management Research Review 35, 770–790. https://doi.org/10.1108/01409171211255948
- Chuang, H.-M., Chen, C.-I., 2023. The Role of Two-Way Influences on Sustaining Green Brand Engagement and Loyalty in Social Media. Sustainability 15. https://doi.org/10.3390/su15021291
- Du, K., Wu, S.-J., 2019. Does External Assurance Enhance the Credibility of CSR Reports? Evidence from CSR-Related Misconduct Events in Taiwan. AUDITING: A Journal of Practice & Theory 38, 101–130. https://doi.org/10.2308/ajpt-52418
- Fayrene Yew-Leh Chieng, 2011. Customer-based brand equity: A study on interrelationship among the brand equity dimension in Malaysia. Afr. J. Bus. Manage. 5. https://doi.org/10.5897/AJBM10.1385
- Jayasuriya, N., Azam, S.M., Khatibi, A., Dharmaratne, I., 2018. The Role of Social Media Marketing on Brand Equity-A Literature Review. Global Journal of Management and Business Research XVIII.
- Keller, K.L., 1993. Conceptualizing, Measuring, and Managing Customer-Based Brand Equity. Journal of Marketing 57, 1–22. https://doi.org/10.1177/002224299305700101
- Kemp Simon, 2023. DIGITAL 2023: GLOBAL OVERVIEW REPORT.
- Owino, J., Cherotich, M., Karuri, W., Gitonga, V.M., Kimuya, L., Kaumbulu, K., 2016. The Influence of Social Media on Brand Equity in Kenyan Banking Industry.
- Pappu, R., Quester, P.G., Cooksey, R.W., 2005. Consumer‐based brand equity: improving the measurement — empirical evidence. Journal of Product & Brand Management 14, 143–154. https://doi.org/10.1108/10610420510601012
- Relling, M., Schnittka, O., Sattler, H., Johnen, M., 2016. Each can help or hurt: Negative and positive word of mouth in social network brand communities. International Journal of Research in Marketing 33, 42–58. https://doi.org/10.1016/j.ijresmar.2015.11.001
- Shariq, M. (2018). Brand equity dimensions — a literature review // International Research Journal of Management and Commerce. Vol. 5. Issue 3. P. 312–330.
- Smith, D.C., Aaker, D.A., 1992. Managing Brand Equity: Capitalizing on the Value of a Brand Name. Journal of Marketing 56, 125. https://doi.org/10.2307/1252048
