Social Media

Topics: Marketing, Brand, Branding Pages: 26 (6928 words) Published: December 4, 2012
Journal of Business Research 65 (2012) 1480–1486

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Journal of Business Research

Do social media marketing activities enhance customer equity? An empirical study of luxury fashion brand☆
Angella J. Kim a, 1, Eunju Ko b,⁎

University of Minnesota, College of Design Department of Design, Housing, and Apparel, 346 McNeal Hall, 1985 Buford Avenue St. Paul, MN 55108, USA University, College of Human Ecology Department of Clothing and Textiles, 262 Seongsanno, Seodaemun-gu, Samsung Hall 318, Seoul 120-749, Republic of Korea



Article history:
Received 1 December 2010
Received in revised form 1 June 2011
Accepted 1 August 2011
Available online 28 October 2011
Luxury brands
Perceived social media marketing (SMM)
Value equity
Relationship equity
Brand equity
Customer equity
Purchase intention

In light of a growing interest in the use of social media marketing (SMM) among luxury fashion brands, this study set out to identify attributes of SMM activities and examine the relationships among those perceived activities, value equity, relationship equity, brand equity, customer equity, and purchase intention through a structural equation model. Five constructs of perceived SSM activities of luxury fashion brands are entertainment, interaction, trendiness, customization, and word of mouth. Their effects on value equity, relationship equity, and brand equity are significantly positive. For the relationship between customer equity drivers and customer equity, brand equity has significant negative effect on customer equity while value equity and relationship equity show no significant effect. As for purchase intention, value equity and relationship equity had significant positive effects, while relationship equity had no significant influence. Finally, the relationship between purchase intention and customer equity has significance. The findings of this study can enable luxury brands to forecast the future purchasing behavior of their customers more accurately and provide a guide to managing their assets and marketing activities as well.

© 2011 Elsevier Inc. All rights reserved.

1. Introduction
The luxury market has attained maturity, along with the gradual expansion of the scope of its market and a rapid growth in the number of customers. Luxury market is a high value-added industry basing on high brand assets. Due to the increased demand for luxury in emerging markets such as China, India, and the Middle East, opportunities abound to expand the business more than ever. In the past, luxury fashion brands could rely on strong brand assets and secure regular customers. However, the recent entrance of numerous fashion brands into the luxury market, followed by heated competition, signals unforeseen changes in the market. A decrease in sales related to a global economic downturn drives luxury businesses to change. Now they can no longer depend solely on their brand symbol but must focus on brand legacy, quality, esthetic value, and trustworthy customer relationships in order to succeed. A key element to luxury industry becomes providing values to customers in every way possible.

☆ The authors gratefully acknowledge the reading and revision suggestions by C. Anthony Di Benedetto and Rajan Nataraajan to an earlier draft. The authors alone are responsible for all limitations and errors that may relate to the study and the paper. ⁎ Corresponding author. Tel.: + 82 2 2123 3109.

E-mail addresses: (A.J. Kim), (E. Ko). 1
Tel.: + 1 612 624 2254.
0148-2963/$ – see front matter © 2011 Elsevier Inc. All rights reserved. doi:10.1016/j.jbusres.2011.10.014

As a means to constitute customer assets through effective communication with consumers, luxury brands have tilted their eyes toward social media. Marketing communication using social media such as Twitter, Facebook, and YouTube...

References: DEI Worldwide. The impact of social media on purchasing behavior. Engaging Consumers Online. available at
20ConsumersOnline-Summary.pdf, 2008.
L2 Think Tank. L2 Digital IQ index: luxury. available at
luxury2010digitaliq/luxury2010digitaliq.pdf, 2010.
and mobile internet lifestyle. Unpublished master 's thesis, Yonsei University, 2007.
LVMH. 2009 annual report. available at
rub=10&srub=3&str_annee=2009, 2010.
Samsung Design Net. Luxury fashion business using technology. available at http://, 2009.
Yun SY. A study on measuring and defining customer equity of fashion brand. Unpublished master 's thesis, Yonsei University, 2006.
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