This research develops an under-investigated aspect of the business literature regarding firm-created and user-generated social media communication and their influence on purchase intention of endorsed fashion products. The results indicate that (i) brand equity mediates the relationship between social media communication and purchase intention of endorsed fashion products, and (ii) the mediational role of brand equity is further moderated by the consumer’s self-congruity with fashion brands.
This research has adopted Word-of-Mouth (WOM) and social support theory along with a social media (SM) perspective to investigate why consumers enjoy using SM and interacting with luxury brand. Focusing on fundamental human needs, this study aims to examine fulfilment of which type of needs enhances interactivity on SM, encouraging in turn WOM adoption and brand-self connection. Our results have shown that consumers’ cognitive and integrative needs drive social interactivity and lead to WOM adoption and brand-self connection. However, no relationship is found between social needs and interactivity. Such relationship can only be strengthened with the presence of emotional support as perceived from the company and its brand.
Introduction
The fashion business is known as one of the major industries that is suffering from rising concerns about the consumption of its product, which led to a reorganization of the fashion supply chain to become more sustainable three decades ago. The interest in the concept of sustainability and demand for sustainable marketing activities is gradually growing in the fashion industry due to the negative image and press it receives. Within the luxury fashion segment, the three main themes that are recognized to contribute to sustainability are exclusivity, craftmanship and limited production. However, luxury brands are increasingly shifting their attention and commitment towards environmental and social issues to be incorporated in the concept of sustainability. Yet, the majority of consumers has little understanding or misunderstands the concept of sustainable fashion and marketing, which leads to a gap between attitudes towards sustainability and actual behavior. As a result, fashion brands are trying to leverage their brand by making sustainability a key marketing strategy to raise awareness about social, environmental, economic and cultural issues. Extant research has not explored this recent trend to understand how consumers evaluate fashion brands with a sustainable marketing communication, especially in the context of luxury brands. This study investigates how luxury and mass fashion brands can utilize sustainable marketing contents in social media communication to reach their target group and enhance their equity with sustainability associations.
Theoretical Development
Associative network models of memory have served as a fundamental framework for a wide range of studies related to the formation and transfer of associations. According to associative network theory, brand knowledge is represented in form of an associative network of memory nodes connected to each other. Nodes are activated when cues, such as advertising, are presented. Mere exposure to cues was shown to be sufficient to active associations and facilitate association transfer. While brands are continuously attempting to make use of associative power to leverage brand equity, extant research has provided compelling reasons to accept that association transfer can also result in brand dilution when a retrieval of conflicting or negative associations occurs. Especially in the context of luxury brands consisting of very unique associations and being different from mass brands in many regards, managing the brand’s associative network is a crucial task in order to send the right signals to consumers and maintain exclusivity. This study investigates how social media communication of different sustainability dimensions affects brand attitude and how it ultimately impacts behavioral outcomes in an attempt to build brand equity for mass and luxury fashion brands.
Method and Data
The hypotheses are tested with 273 respondents who participated in an online experiment. They were first asked to state their involvement with the category fashion. Subsequently, subjects were presented with a brand post either for the mass or luxury brand including claims related to one of the four sustainability dimensions or no claims for the control group respectively. The experiment consisted of a 2 (brand: mass or luxury) x 5 (sustainability dimensions: none, cultural, economic, environmental, social) factorial design. The measures that followed included attitudinal as well as behavioral constructs related to the brand, sustainability as well as social media use. Analysis of covariance is applied to test for main effects and interaction effects.
Summary of Findings
This study provides evidence that social media communication of a sustainable brand affects the purchase intention of consumers. The findings indicate a significant difference between the mass and the luxury brand used for this study. The mass brand exhibits the potential to leverage associations with cultural, economic, and environmental sustainability. However, the results only reveal a marginally significant higher purchase intention when cultural sustainability is communicated compared to when the brand does not provide any sustainable associations. In contrast, the luxury brand suffers from significant brand dilution across all four sustainability dimensions resulting in a decline in purchase intention.
Key Contributions
The findings reveal that sustainability communication exerts a diverging influence depending on the type of brand that is involved. This study suggests that mass brands are able to benefit from sustainability communication in an attempt to leverage brand equity. However, for a luxury brand this type of associations rather presents a liability that might dilute the brand. The findings of this study provide important insights for brand managers. Since mass brands are currently increasing efforts into sustainable communication in the fashion industry, the results suggest that this might be a promising investment. However, luxury brands are advised to carefully manage the communication of salient content related to sustainability as it might harm the invaluable and unique associations inherent in a luxury brand.
Why are CEOs not active on social media? It is increasingly critical for CEOs to not only be physically present at work but also be virtually present in the digital sphere. However, many CEOs are still reluctant to adapt social media or struggle to find the efficient approach to incorporate the tools into their communication strategy. The study explores how CEOs orient themselves in the digital world and make sense of social media. In particular, based on the view of impression management and institutional work, the research examines how CEOs translate their understanding into communication and selfpresentation strategies and activities. The results from 31 in-depth interviews with Chinese and Dutch CEOs suggest that leadership communication on social media is still going through the process of legitimisation in both institutions. Despite the growing popularity of personal branding, most CEOs do not interpret social media as the outlet for their personal and private use or independent from the organisational identities. While most CEOs champion the necessity of digital transformation for their organisations, they do not see clearly how their personal digital habits could potentially influence the process, despite their leadership roles. They typically identify social media as the functional platforms for information circulation and network connection. Multiple narratives and orientations do, however, coexist and they dictate social media decisions simultaneously depending on the context. There is also a prominent difference between the narratives of social media in the Netherlands and in China. Most Dutch CEOs wish active engagement from the organisations but practice passive roles themselves, while most Chinese CEOs are active for both personal and organisational use pressured by the intuitional norms. The research highlights the significance of cultural context regarding leadership communication even on social media. Given most platforms are designed, and arranged to have an international audience, CEOs and companies should be aware of distinctive norms and beliefs they are operated in the different societal institutions.
This study aims to assess the effectiveness of backstage storytelling in luxury brands’ social media communication and examine a psychological mechanism that elucidates how luxury brands’ backstage storytelling influences consumers’ attitudinal and relational outcomes. The theory of narrative transportation (Escalas, 2004) was employed as a theoretical lens. Focusing on the effects of visual storytelling in a social media platform, this study proposed that photos of a luxury brand’s backstage images offer a greater level of narrativity than staged images of products and models. Additionally, this study proposed VIP emotions and perceived intimacy as mediators between transportation to photo narrative and attitudes toward the brand, brand evaluation and self-brand connection. In addition, the effectiveness of social media for luxury brands’ visual storytelling was tested by testing the role of telepresence in viewers’ information processing. This study selects Instagram, a visual-oriented social media platform, as the study context; Chanel, a luxury fashion brand, was selected to develop the study stimuli. Two Instagram accounts for Chanel were created as study stimuli through a pre-test: one account with frontstage brand photos and one account with backstage brand photos. Students from two universities in the Southeast and Midwest were recruited and randomly assigned to one of the two experimental conditions, frontstage (n=118) or backstage (n=134) Chanel Instagram account. Manipulation checks confirmed that respondents perceived the experimental conditions as intended. Our results revealed that viewers in the backstage condition experienced higher levels of transportation than those in the frontstage condition; VIP emotions and perceived intimacy mediate the relationship between transportation and attitudes towards a brand’s Instagram, brand evaluations, and self-brand connection. Additionally, ANCOVA results confirmed the interaction effects of telepresence on transportation is significant only in the backstage condition. Findings from this study shed light on the effectiveness of luxury fashion brands’ visual storytelling in social media communication.
Introduction
Social media communication has become a popular way for firms to engage with customers. Research shows that firms/brands engagement with fans or customers on social media is effective to improve brand equity (Kim & Ko, 2012), drive sales (eMarketer, 2015), and enhance both transactional and relational customer behaviour (Kumar, Bezawada, Rishika, Janakiraman, & Kannan, 2016). Given the influences of social media communication, how brands effectively engage with fans or followers on social media is an important question for marketers. Most research on this topic is from the applied psychology and consumer behaviour literature, whose theories and content are dominantly tested in laboratory setting. Very few research (e.g., Lee, Hosanagar, & Nair, 2017) applied real behaviour data of field settings to study this issue. Additionally, existent research primarily focuses on social media like Facebook and Twitter in developed counties. To our knowledge, no research examines global brands social media communications in developing country, like China. Due to the policy constraints, people in mainland China have no access to foreign social media platforms. There is a local social media platform in China, named Weibo. Weibo is a NASDAQ-listed company and has nearly 100 million active users monthly. Many brands, both global and local ones, have created Weibo accounts and keep engaging with their fans. For example, there are 1,452 luxury brands and 3,707 beverage brands or firms on Weibo (Weibo Data Centre, 2017). This paper focuses on global brands’ communication practices on Weibo. The purpose of this paper is to analyse how brand posts that global brands put on their social media page are correlated with fan engagement. By using real data form Weibo, we answer the following questions: (1) what attributes of brand posts on Weibo do affect fan engagement with global brands? (2) how do these attributes affect fans engagement behaviour (i.e. liking, sharing, and commenting) differently?
Conceptual Framework
We decompose the attributes of global brand social media posts into five aspects, which are proposed to affect fans engagement. The first two aspects, interactivity and vividness, are derived from computer-mediated-communication research (Frotin & Dholakia, 2005; Hoffman & Novak, 1996). The next two, informative and emotional attributes, are developed from the literature of advertising (Hong, Muderrisoglu, & Zinkhan, 1987; Geuens, Pelsmacker, & Faseur, 2011). The last one is localization-related attributes, which is from global marketing communication literature (Kanso & Nelson, 2002) to capture the special characteristics of global brand posts on a local social media platform. We argue that all these five aspects of global brand posts affect fans engagement on brand page. Fans engagement is conceptualized as fans behavioural response to brand posts, which will influence attitude and behaviour of other fans. There are three kinds of fans responses on brands social media page, i.e., liking, sharing and commenting. We do control the time and date of post issued, the text length of post, whether having celebrity in post, whether related to a remarkable event, the number of followers of brand on Weibo, and product category.
Interactivity
Interactivity is defined as “the degree to which two or more communication parties can act on each other, on the communication medium, and on the messages and the degree to which such influences are synchronized” (Liu & Shrum 2002, p.54). Interactivity requires two-way interaction between not only customers and companies, but customers themselves (Hoffman & Novak, 1996). Brand posts on Weibo differ in the degree of interactivity. Some posts only have text, picture, or video to deliver messages of brands, which has no possibility to interact with fans. Some posts include a link that fans can click to get more information, which enhances the interactivity of communication. Other posts have questions, which stimulate interaction with fans and followers. There are posts inviting people to indicate their like or comment on social media, which are considered as high interactivity as well. Advertising research has found the positive correlation between interactivity of ads and consumers’ attitude (Coyle & Thorson, 2001). De Vries, Gensler and Leeflang (2012) found interactivity of brand post on brand fan pages partially positively related to brand popularity (measured by number of likes and comments). Empirical research (Lee et al., 2017) using Facebook data showed that having links negatively associated with customer engagement, and having questions increased comments but reduced likings. For the inconsistent findings in the literature, we re-examine this relationship by focusing on global brands on a not well-examined Chinese social media, Weibo.
Vividness
Vividness refers to the format richness of the message (Daft & Lengel, 1986; Fortin & Dholakia, 2005). As for brand posts, vividness is reflected by the number of sensory dimensions and senses presented (text, colours, pictures, and videos, etc.). The degree of vividness influences what and how multiple senses are stimulated (Coyle & Thorson, 2001). For example, a picture post will activate more senses than a text post because the former has colour that stimulates sight more vividly than the later. Vividness is related to but differs from interactivity. Interactivity focuses on the characteristic of two-way interaction of the communication, while vividness stands for the multiple senses stimulated by the communication. Some advertising research found that a vivid web advertisement results in higher attention and more clicks (Lohtia, Donthu, & Hershberger, 2003). As a result, we differentiate vividness of each post and predict that more vivid post associated with higher customer engagement. A vivid post attracts more likes, shares and comments. Localization-related
attributes
Localization-related attributes are symbols that posts have reflecting the characteristics of local culture and people. The debate of globalization (standardization) versus localization has lasted several decades. Even though a global standardized marketing strategy saves money and gains scale economy, the localization approach (Keegan, 1969) is supported by the reality that each market has unique tastes. In the international advertising literature, some scholars found that many multinational firms “plan globally and act locally” (Blackwell, Ajami, & Stephan, 1991). “Global-local dilemma” exists when global luxury brands internationalize into the Chinese market (Liu et al., 2016). The marketing communication research found that it is not advised for global brands to use the same appeals and symbols in advertising across different countries (Kanso & Nelson, 2002). In other words, the combination of global advertising theme and local communication expertise can result in enhanced effectiveness. We propose, on Weibo, people are more actively engaged to like, share, or comment global brand posts when Chinese elements, such as Chinse handwriting, Chinese festivals, and Chinese celebrity spokespeople, are present.
Informative attributes
Besides interactivity and vividness, which capture the format characteristics of global brand posts, content-related attributes are associated with customer engagement as well. Informative content is an important side of content attributes. One important function of brand posts is to deliver messages to customers. Research shows that on social networks people tend to have positive attitudes towards informative ads (Taylor, Lewin, & Strutton, 2011). Global brand posts with specific information should result in higher customer engagement than less informative posts. Additionally, global brand posts on social media may have different types of marketing information, such as product, price, promotion and placerelated ones respectively. The posts with varying degree of informative content may change customer engagement as well.
Emotional attributes
Emotional attributes are another side of the content characteristics of brand posts besides informative ones. Advertising research shows that using emotion appeal in ads is an effective way to gain people attention and generate actions (Holbrook & Batra, 1987). Emotional connections between customers and brands are considered more stable than cognitive association (Heath, Brandt, & Nairn, 2006). Some scholars find that emotional appeal on banner advertising result in positive effects on click-through rates in both B2B and B2C contexts (Lohtia et al., 2003). Empirical research (Lee et al., 2017) on Facebook shows that perceived emotion in brand posts strongly boost users’ likes and comments. Similarly, we propose that emotional attributes of global brand posts on Weibo are correlated with fans engagement. We conceptualize emotional attributes with three elements, emotional tone, emotional icon and emotional core. Emotional core reflects the type of emotions, such as humour, happiness, and love, etc. Emotional tone stands for the strength of emotion, i.e. the emotion is weak or strong. Emotional icon refers to whether the content of posts has emotional symbols, which can take form of icons or net slangs.
Research Design
Operationalization
Dependent variables
Customer engagement is operationalized as three variables, the number of likes, the number of shares, and the number of comments of each global brand post.
Independent variables
Vividness. Vividness is operationalized as four categories standing for different vividness degree, text only, (text and) static picture, (text, static and) animated picture, (text, picture and) video. Interactivity. Interactivity is operationalized as five 0-1 variables, having link, having question, having invitation/incentive to like, having invitation/incentive to share, having invitation/incentive to comment. Localization-related attributes. This part is operationalized as four 0-1 variables, having Chinese culture image, having Chinese culture colour, having Chinese festival, and having Chinese celebrity spokespeople (we include celebrity as a control variable). Informative attributes. This part is operationalized as seven 0-1 variables, whether a post having information of (1) brand name, (2) promotion/trial, (3) price, (4) segmentation, (5) product lunch time, (6) purchase distribution, and (7) public relation event. Emotional attributes. This part is operationalized as three variables, (1) emotional icon, a 0- 1 variable, having emotional symbols or not, (2) emotional core, a categorical variable, different type of emotions identified by surveyed respondents, and (3) emotion tone, a scalerating variable from 1 to 3, standing for none, weak and strong emotion. Control Variables. There are five control variables, (1) time of posts, including date and hour; (2) length of posts, i.e., the number of Chinese characters; (3) celebrity, whether there is a celebrity in a post; (4) event, whether a post is related to a remarkable event; (5) the number of fans of brand, and (6) product category (3 dummy variables to differentiate four categories).
Data
We chose 6 global brands across five product categories, specifically, beverage (Coca-cola and Starbucks), cosmetics (Olay and L’Oréal), and sports (Nike and Adidas). All these global brands created Weibo account before 2012 and have cumulated a large number of followers. We select the posts from Sept. 1, 2016 to Feb. 28, 2017, within 6 months. This time duration is long enough to get analytical data. This period covers main Chinese traditional festivals, such as Mid-Autumn Festival, National Day, and Chinse New Year, which results in more variances in localization-related variables. Data were collected through two stages. The first stage was to download raw data from Weibo’s brand pages with Internet worm program directly. Each brand has its page which contains all posts it issued and the number of people’s likes, shares, and comments for each post. The second stage is to code content and get the final dataset. Most of 0-1 variables, such as interactivity, localization-related attributes, and informative attributes were coded by two research assistants. Variables of vividness were also coded by them. Variables of emotional attributes were coded by a survey to ask 500 Weibo users. This survey-based coded method is well applied in published research (e.g., Kumar et al., 2016; Lee et al., 2017).
Model
The three dependent variables, the numbers of likes (y1), shares (y2), and comments (y3), are count data with a Poisson distribution. As a result, the basic model is as following:
𝑦ij = 𝛼 + 𝑒𝑥𝑝(Σ3p=1 𝛽1p 𝑣𝑖𝑣𝑖𝑑pj + Σ5q=1 𝛽2q 𝑖𝑛𝑡𝑒𝑟qj + Σ4r=1 𝛽lr 𝑙𝑜𝑐𝑎𝑙rj +
Σ7s=1 𝛽4s 𝑖𝑛𝑓𝑜sj + Σ3p=1 𝛽5t 𝑒𝑚𝑜𝑡tj + 𝛽6 𝑑𝑎𝑡𝑒j + 𝛽7 ℎ𝑜𝑢𝑟j + 𝛽8 𝑙𝑒𝑛j + 𝛽9 𝑐𝑒𝑙𝑒j +
𝛽10 𝑒𝑣𝑒𝑛𝑡j + 𝛽11 #𝑓𝑜𝑙𝑙𝑜𝑤j + Σ4u=1 𝛽12u 𝑝𝑟𝑜𝑐𝑎𝑡uj) + 𝜀ij (1)
Expected Results
This research is among the first initiative to examine social media communication in China. We are still working on the data analysis so far. We intend to identify the influence of global posts on fans engagement, which are from not only the content of posts (informative and emotional attributes), but also the design of posts (vividness and interactivity), and especially the localization considerations. We expect to find that the content foci differ fans engagement. Posts of sales promotion should be more effective to enhance fans engagement than those of product demonstration. We can identify what form of posts stimulates fans participation more effectively. We will know whether a video post is more effective than a picture post. Most interestingly, we will know how the posts combined with Chinese cultural elements on social media are responded. For example, we could compare the difference between posts having foreign and local celebrity people. We will know how different customer engagement behaviour influence by the same characteristic of posts. We can identify the most influential factors to each of three customer responses (liking, sharing, and commenting). Comparing with the research using data from Facebook or other social media outlets, we can obtain implications guiding global brands to implement social media strategy across countries.
Using the framework of social support, we aim to examine factors influencing social Word-of-Mouth (WOM) adoption. The proposed research model will be tested among customers who are active in the existing active social media platforms and have had experience in engaging with the activities of luxury brand communications.
Introduction
Today the most promising communication environment for reaching and interacting with stakeholders is the social media ecosystem (Hanna, Rohm and Crittenden, 2011). The social media has grown so rapidly in the past years that now impact the business processes and models (Henning-Thurau, Hofacker and Bloching, 2103). Many Brands begin to take advantage of the fluidity between social media and WOM for creating brand experiences that merge real and digital conversations, cutting through in incredibly powerful ways. However, the recent research (Godey, Manthiou, Pederzopli, Rokka, Aiello, Donvito and Sigh, 2016) suggest that luxury brands performing well in social media engagement. However, they are often lagged behind in WOM performance. Despite growing interest in examining the influence of social media marketing on consumer’s responses through brand equity creation (Godey et al., 2016; Jim and Ko, 2012), studies about social media in luxury brand communications remain to be scarce. An investigation of customer’s motivation behind participation in social media is timely and relevant which can help luxury brands unleash its potential. Moreover, development of an effective social WOM adoption model can help to provide a better picture of consumer interactions in online luxury brands communities, thus strengthen customerfirm relationship in longer term. Specifically, this research intends to answer the following two questions: 1) What are the major determinants of social WOM adoption in luxury brands communications? 2) Whether social support affects a. perceived source credibility; b. perceived information quality; c. user experience?
Literature review
Social media interactivity
The concepts of social exchange (Blau, 1964) and the norm of reciprocity (Gouldner, 1960) have long been used by Marketing researchers to describe the motivational basis behind customer behaviours and the formation of positive relational attitudes (e.g., Wulf; Gaby; Iacobucci, Dawn, 2001; Rafiq; Fulford and Lu 2013). More recently these concepts have been used to explain why customers enjoy interacting with each other in social media (Liang, Ho, Li and Turban 2012; Godey et al., 2016). Social media interactivity is social interaction of people in social networking sites by Web 2.0 technologies such as Facebook, Instagram (Hajli, 2016). For instance, Facebook has more than two billion monthly active users which is a great example of a platform. In fact, people love to interact with each other. When they favourite and like each other’s posts that would reinforce the closeness.
Online social support
Recent research has found that social interaction can bring social value to their users and that the social media is a powerful vehicle for an individual to build close relationships with others and to enhance the individual’s well-being (Liang et al., 2012; Eastin and LaRose, 2005; Obst and Stafurik, 2010; Shaw and Grant, 2002; Xie, 2008). Social support has been found to be a major social value that social media users can obtain from an online interactions (Eastin and LaRose, 2005; Obst and Stafurik, 2010; Huang, Nambisan and Uzuner, 2010). Social support is a multidimensional construct which refers to an individual’s experience of being cared for, being responded to, and being helped by people in that individuals’ social network (Cobb, 1976). Schaefer, Liang et al.(2012) claim that , online social support consists both tangible (e.g. instrumental and appraisal support) and intangible elements (e.g. informational and emotional support). Given the specific context, this study mainly focuses on the latter. Informational support refers to providing messages, in the form of recommendations, advice, or knowledge that could be helpful for solving problems. By contrast, emotional support refers to providing messages that involve emotional concerns such as caring, understanding or empathy. These two types of messages are the major support mechanisms for social interactions (Hajli, 2016).
Antecedents of social WOM adoption
Information adoption can be defined as the process of engaging purposefully in consuming information (Cheng and Thadani, 2012). Informational support provided through social interaction of individuals in social media can be in the form of ratings, review, recommendations or referrals. Therefore, when consumers search for information provided by other users to make a better decision for their purchasing, they are adopting information. From a marketer’s perspective, this process also helps to build long-term advocacy. This research argues that social media provides more opportunities to the individual to adopt WOM. The existing literature has identified several antecedents of social WOM adoption and most of these studies focused on travelling websites (Filieri; Alguezaui and McLeay,2015; Hajli, 2016). Beldad, De Jong, Steehouder (2010) have categorized the major antecedents of social WOM adoption in the literature into three categories namely customer-based antecedents (e.g. user’s experience during the social interactions); website based antecedents (e.g. perceived information quality) and company based antecedents(e.g. perceived source of credibility). Source of credibility is considered as fundamental predictors of consumers’ acceptance of a message in traditional WOM adoption (McGinnies and Ward, 1980). To facilitate the evaluation of credibility of a source, more and more social platforms require contributors to create a web profile upon their registration. Customers need to provide personal information (e.g. profile picture, personal preference). Furthermore, many social media website utilise reviewer reputation systems to enable customers to assess the credibility of reviewers. Zhang and Watt (2008) argue that the higher source credibility of message perceived in online social media, the higher level of information adoption would be. Moreover, the quality of information in online reviews is perceived as a very important cue for consumers to assess the website (Filierri, et al., 2015). Krishnan; Biswas and Netemeyer (2006) point out that concrete information provided by the website such as detailed features of the product/service is likely to be perceived as more credible than those from abstract information like peripheral description of the product/service. Finally, in marketing literature user experience is strongly related with trust (Yoon, 2002). In an online context customers’ negative experience is likely to affect their trust about the company. As a consequence, they are likely to engage in negative WOM. Research shows that user experience has a strong impact on the social WOM adoption (Liang et al., 2012).
Method
Structural Equation Modeling (SEM) will be employed for examining the research objectives of this research. The questionnaire for this study will be created through a professional online-based survey tool. As this research focuses on the factors influencing social WOM adoption in relation with luxury brands communications, the proposed research model will be tested among customers who is active in the existing active social media platforms and has had experience in engaging with the activities of luxury brand communications such as posting review or comment other’s post).
Result and conclusion
This research has adopted the electronic WOM theory and the social media support theory along with a social media perspective to investigate how customer’s interaction in social media affects their behaviour in relation to luxury brands consumption. The results show that social WOM facilitates the evaluation by customers about the luxury products using social media. Moreover, WOM has emerged with broad accessibility and the capability to be evaluated and measured easily by other consumers. This study gives practical implications on how to use social media to develop online communities for luxury brands. In conclusion, when going online, luxury brand should consider the importance of converting the online brand strategy into an interactive and engaging experience for their users and online communities.
In the current digital word, social media represent a relevant tool for marketing and communications strategies, which create new opportunities for firms to engage with their customers (Leeflang, Verhoef, Dahlström, & Freundt, 2013; Lemon & Verhoef, 2016; Libai et al., 2010). Among the sectors that leverage on social media in their communications, the luxury industry represents a main one. As previous research has mainly analyzed the consumer-side (Godey et al., 2016; Jin, 2012; Kim & Ko, 2012) overlooking the firm-side, the aim of this study is to investigate the cross-cultural issues faced by foreign luxury brands in implementing their social media strategies in China by carrying out a qualitative inquiry. China is the setting of analysis as it represents an increasingly relevant luxury market, characterized by the role of digital media as main communications and sales channel. Data collected consist of semistructured interviews with managers from foreign luxury brands operating in China in order to understand the issues faced and the strategies implemented. Moreover, an analysis of their social media presence on Chinese platforms such as WeChat and Weibo is conducted by considering the type of response activated among users. As pointed out by Belk (2017), qualitative advertising research can provide a better understanding of consumer response to advertising also in the rapidly growing field of social media, which have been mainly unexplored by qualitative approaches (Hadija, Barnes, & Hair, 2012). Moreover, an analysis on the firm-side will fill a gap in the existing literature and provide relevant managerial implications for international firms that operate in China.
In an increasingly digital and interactive global marketing landscape, social media
marketing is emerging as one of the most important strategic tools for brand
communication. This is especially true in the luxury fashion context, which
traditionally exploited virtual environments as an effective communicational tool of
brand-related content and product usage information all over the world. A
contemporary consumer cohort that exhibits digital- and virtual-oriented behaviors
are Millennials, which represent the digital native generation highly inclined to
Internet interaction and, thus, a relevant strategic opportunity for social media
marketers in the luxury industry. While the literature reports a positive relationship
between Millennials’ social media usage and purchase intention towards luxury
brand, scant attention has been paid to the underlying mechanisms explaining such a
relationship. To fill this gap, the current research proposes and tests a conceptual
model to provide three main contributions to the social media and brand
communication literature: first, consumers’ perceptions of interactivity – a
multidimensional construct comprised of real-time conversation, no delay/timing,
and engaging/navigation – is hypothesized as an antecedent of social media usage. In
this way, relevant theoretical and practical implications are provided to online luxury
marketers interested in embracing virtual environments for brand communication.
Next, two significant constructs of consumer behavior such as materialism –
comprised of success, hedonism, and happiness – and morality – comprised of moral
judgment and moral intensity – are hypothesized as mediating variables of the
relationship between social media usage and purchase intention towards luxury
brands. Particularly, these materialistic and ethical decision making processes
emerge as relevant for Millennials’ online purchasing activities, with the expectation
of transparent and effective brand-related information through social media. Finally,
these mediating influences are hypothesized to be moderated by two other relevant
constructs in the brand communication process—consumers’ motivation to use social
media and advertising skepticism. In fact, a better assessment of Millennials’
motivation and skepticism toward social media marketing communication result as
crucial for modern strategic marketers. Such hypotheses are tested using
bootstrapped moderated mediation analysis on a sample of 297 Millennials actively
following luxury brand social media activities. Our results confirm the proposed
hypotheses, particularly both materialism and idealism partially mediate the
relationship between social media usage and purchase intention. Moreover,
motivation to use social media improves the effect of social media usage on materialism, whereas advertising skepticism reduces the effect of idealism on
purchase intention. These findings contribute to the social media and brand
communication literature, providing interesting avenues for future research.
Introduction
Recently global luxury brands have put their effort into strengthening their businesses online. This can be seen as an effort to overcome their stagnant growth by focusing on steeply increasing online markets as their target. In the midst of global recession, online luxury brands have continued to show rapid growth each year. Bain & Company (2017) has forecasted offline growth of global luxury brands at the annual average growth of 2~3% by 2020 while the online markets would show the average growth of 15% annually by 2020. Moreover, due to the expansion of importers with official copyright to the online sales and stabilization of e-payment system, online markets have gained consumer trust leading to the increased rate of consumers purchasing luxury brand online more. McKinsey Consulting (2017) has forecasted online sales of luxury brand would reach up to 28% of the total sales by 2025. Reflecting such expectations, luxury brands are in the process of proposing multiple channels of online sales and communicating through Social Network Service (SNS) marketing as their core strategies. As consumer usage of SNS, such as Facebook, tweeter, or Instagram, have increased, so the value of consumer toward luxury brands has changed. Since the introduction of the standing characteristic of social media-communication to the luxury brand market, the luxury brands not only became a privilege of the high minority group but also became available for anyone to easily purchase with absolute information availability of price, quality, location, etc.
Theoretical Development
Consumers are using social media sites to search for information and deviating from traditional media (e.g., television, radio, and magazines) (Mangold and Faulds 2009). The emergence of social media has changed communication method from one-way communication to multi-dimensional, two-way, peer-to-peer communication (Berthon, Pitt, and Campbell 2008). Social media platforms offer a chance for brand to familiarized interact with consumers. Also, consumer can be interacted with another consumer through social media. The most important factor for luxury brands to establish an online business strategy is communication with their consumers. Luxury brands that are most accustomed to communicating with their limited consumers in their offline stores providing high quality services, it is inevitable for them to fear the lack of face-to-face interaction with their consumers in online markets. Social media began to serve the luxury brands as the alternative communication channel within the online markets. Moreover, social media has proven effective in drawing consumer’s voluntary Word of Mouth(WOM) since social media interaction is important motivation for consumer to creating user-generated contents (Daugherty al., 2008). The social media provides the consumers with a platform to meet and communicate with others with similar interests in specific brand goods and services that makes target marketing easier than before (Muntinga et al., 2011). Furthermore, the social media platforms provide the consumers with restriction-free comments on a certain brand to other interested parties, the users voluntarily taking the role of eWOM (Kim & Ko, 2012; Vollmer & Precourt, 2008). Luxury brands also seek to take this advantage of social media. The extent of spreading word of mouth is at the most viral through social media platforms, influencing the consumer’s purchasing behaviors to a great extent as proven in many previous researches (Lau and Ng 2001; Nabi and Hendriks 2003). Thus, the purpose of this study is to examine the impact of the consumer’s multidimensional value towards luxury brands on social media WOM intention and purchase intentions at the same time. Moreover, through extensive literature review with qualitative interview on consumers’ perceived value on luxury brand/product, consumer value dimensions on the luxury brands are categorized into six value factors (e.g. conspicuous value, status value, materialistic value, hedonic value, uniqueness seeking value, price-quality perceptions).
Research Design
The study conducted a thorough literature review and focus group interview to develop a comprehensive model of understanding the importance and dimensionality of customer value on luxury brand. After analyzing qualitative data on consumer value perception on luxury brands/product, online survey was performed using a customer sample in the United States. A web-based online survey was conducted using an online research panel service. After filtering and cleaning data collected, a final usable sample of 287 were analyzed to test hypothesized model. Measures for luxury brand on perceived values (including conspicuous value, status value, hedonic value, materialistic value, uniqueness seeking value, price-quality perceptions), social media word-of-mouth intention, and purchase intentions for luxury products were rated on a 7-point Likert scale ranging from strongly disagree to strongly agree.
Result and Conclusion
The result show that the relationship between conspicuous value, hedonic value, uniqueness and price-quality perceptions with social media WOM were found to be significant impact. However, social media WOM were not affected by status value and materialistic value of luxury brand. Conversely, status value and materialistic value had a considerable influence on purchase intention for luxury brand online. And social media word-of-mouth had a significant positive effect on consumer purchase intentions for luxury brand. In the era where digital importance is at its peak, the expansion of the luxury brands to online business has become requirements and not optional consequences. It is not easy for luxury brands with their unique styles and identity, as well as high brand awareness to settle in an online market where variety of lifestyles and cultures coexist. For this reason, the study on the multidimensional consumer value on luxury brands holds its contribution to the academia and industry practitioners. This study empirically examines the influence of consumers’ perceived multidimensional value on the luxury brands to WOM and purchase intentions through social media. This paper has revealed that the consumer’s WOM intention on luxury goods does not necessarily correlate with the purchase intention. However, the consumer who has developed WOM intention through social media has shown to possess positive influence on the purchase intention. This results also indicated the importance of the exposure of the unique luxury brand image by the luxury brand managers to the social media in order to generate voluntary consumer WOM. Furthermore, in order to increase their social status, the necessity of online consumer community for sharing their special experiences is ever more present. Such online consumer community would serve to expand the communication channel between the brand and the consumers, thus leading to increase intimacy between two parties. The study was carried out to the American consumers; following study should be carried out to Chinese consumers or developing countries where luxury brands are exposed to the rapidly growing luxury brand markets. Moreover, an in-depth study on strengthening effective marketing strategy by segmenting consumer value on luxury brands should be conducted consequently.
With the tremendous development of social media in recent years, luxury brands have welcomed social media with open arms as a means to engage with their customers. How luxury brands can make good use of social media marketing strategy is a top priority for both academicians and partitions but has not been well investigated. Many significant research gaps are present in this area warranting further explorations. For example, there is little research on the effectiveness of celebrity endorsement on social media (except for Chung and Cho’ (2017) study), even less for luxury brands. In addition, previous research on social media marketing mainly focuses on western-based platforms such as Facebook and Twitter.
Given the mentioned research gaps, this study builds on social media marketing and celebrity endorsement literature and aims to investigate the key factors influencing the effectiveness of celebrity-based social media marketing efforts for luxury brands. In particular, China market and Sina Weibo are selected as our research setting. We propose the message characteristics, celebrity characteristics, celebrity-brand relationship and brand characteristics have impact on customer engagement in celebrity-based social media marketing activities. We combined two data sources to generate the key variables. First, we derived posts on the brand pages of 12 luxury brands (e.g., Cartier, Tiffany, BVLGARI and PIAGET) that were published on Sina Weibo from September 2016 to March 2017 on the middle of December 2017. Then celebrity-related posts were all picked out. The final sample includes more than five hundred celebrity-related brand posts. For each post, it contains three kinds of engagement measures (i.e., the number of Likes, Retweets and Comments) observed on Sina Weibo. They are dependent variables in our model. We built up regression models to test the hypotheses. To generate those variables that cannot be derived directly from the posts, a set of independent coders was recruited to quantify those variables. The exploratory results show that posts related to celebrities (e.g., brand ambassador/spokesman) take a significant part of posts on Sina Weibo brand pages.
According to industry reports, a CEO’s strong social presence has a tremendous impact on the company’s reputation and their own image. However, despite being considered as digital influencers, most C-suite leaders fail to establish their own personal brand online. This under-development leads to the following questions: What are CEOs currently doing with their social media and why are CEOs (not) using social media? Interviewing 16 Dutch CEOs, this study explores the impact of the leadership style (transactional or transformational) and leaders' perception of narcissism in online impression management on CEOs’ social media activities. By investigating these relationships, the research further clarifies CEOs’ leadership communication strategies on social media and establishes the drivers and barriers for social media engagement to pave the ways for interested social CEOs.
The results suggest that leadership styles may detect the content strategies and motivations of social media usage. The activity level, however, is determined by the perceptions of self-image and degree of a narcissistic impression on using social media. With this finding, we propose CEO social media activities can be typified into four categories: thought leader, storyteller, professional networker and selective performer. Transformational leaders tend to emphasize on being accessible and transparent to their audience. When they are positive about being narcissistic on social media, they are more likely to be a storyteller where they strive for charismatic and authentic content building. Conversely, a more reserved transformational leader would be a selective performer where they only publicize their stories in front of a selected group of audience, mostly through internal platforms. On the other hand, transactional leaders tend to focus on professionalism and efficiency in using social media. The ones who see the benefits of social media and are confident in sharing their own ideas tend to be thought leaders among their professional networks. On the contrary, the reserved transactional leaders rather using social media to connect with their professional network to obtain information than broadcasting their own voices. The study provides insights in how CEOs formulate their leadership communication online; further research should continue exploring the impact of various strategies on corporate performance and stakeholder engagement.
This paper aims to explain how storytelling becomes interlinked with social media and the conceptual consequences this development implies. In recent years the interest in storytelling has increased within the marketing discipline. Parallel to this development, the traditional media landscape has been subjected to change as a result of digitization and particularly the expansion of social media. Even though the social nature of these media and its associated electronic word of mouth seem to be well aligned with storytelling, extant literature exhibits few attempts to review the storytelling concept in relation to social media. Based on such a review, the contribution of this paper is condensed into six theoretical propositions that point out how storytelling is expected to become increasingly common and dynamic in social media. Therefore, storytelling is suggested to represent a managerial challenge with regard to professional organizations’ marketing approaches but simultaneously allow for increased customer intimacy for those actors who develop successful ways of attracting the interest and engagement of social media users.
Launched in 2008 and 2010 respectively, Instagram and Pinterest are two of the fasted growing social media platforms with 220 million users combined (Leverage 2014, Techcrunch 2014, Loren & Swiderski 2012). Their success is due to their simplicity and a focus on visuals rather than text, furthermore they are described as platforms with strategic potential for fashion brands (Wired 2012). Despite this, many fashion brands have been slow to engage with them. However the Huffington Post (2012) suggests that the visual social media has a wide appeal with respect to both brand positioning and increasing awareness. Recent research by Mashable (2014) highlights that referral traffic and spend is higher from Pinterest users than Facebook users, and this contributes to the rationale for study. The aim of this reseach is twofold, firstly it is to explore the reasons for the utilisation of visual social media platforms within a fashion brands marketing planning cycle, and second it seeks to identify the strategic and operational ways in which fashion brands can use them. For the purpose of this paper only Instagram and Pinterest are investigated. Using a qualitative and inductive approach, the study will use in-depth elite interviews with 6 UK fashion brands (2 Luxury, 2 mid-market, 2 value) alongside content analysis of their platforms. This will enable the research to also consider how each platform can be harnessed at different levels of the market therefore contributing to the lack of empirical applied research in this area.