Introduction
The research focuses on the impact of social media marketing activities on brand equity and reuse intention within China's rapidly expanding logistics industry. The increasing number of internet users in China (over 1 billion by June 2022) and the significant growth of the logistics market (exceeding 335 trillion yuan in 2021) make social media a crucial marketing channel. Customer retention is prioritized over acquisition, underscoring the importance of reuse intention. The study addresses a gap in the literature by examining the influence of various social media marketing activities (entertainment, interaction, trendiness, customization, and electronic word-of-mouth), along with trust, on brand equity and ultimately, reuse intention, within the framework of the stimulus-organism-response (S-O-R) model. The primary research question is: What is the influence of social media marketing activities on brand equity and reuse intention in the logistics service industry in China?
Literature Review
The study grounds its theoretical framework in the S-O-R model, examining how social media marketing activities (stimuli) influence consumers' cognitive and emotional states (organism) leading to behavioral responses like trust, brand equity, and reuse intention. While prior research has explored social media marketing's impact on various outcomes, limited studies specifically focus on the logistics industry and the mediating role of brand equity in the context of reuse intention. The review examines the existing literature on social media marketing activities, brand equity (from both consumer and financial perspectives), trust, and reuse intention, highlighting the need for a comprehensive model integrating these elements within the logistics sector. The literature also reveals the importance of each component in social media marketing activities, like entertainment, interaction, trendiness, customization, and electronic word-of-mouth, in contributing to customer equity and the influence on brand equity and reuse intentions.
Methodology
The study employed an online survey using WeChat and QQ, targeting Chinese adults with weekly experience using logistics services. A purposive sampling method yielded 932 valid responses. The questionnaire, translated into Chinese and back-translated for accuracy, comprised two parts: demographic information and measures for constructs including entertainment, interaction, trendiness, customization, electronic word-of-mouth, brand equity, trust, and reuse intention. A seven-point Likert scale was used for all variables. To address common method bias, a full-collinearity test was conducted. Given non-normality detected using the Web Power online tool, partial least squares structural equation modeling (PLS-SEM) using SmartPLS 4.0 was employed for data analysis. This included assessing the measurement model (reliability and validity) and testing the structural model (direct and indirect effects, mediation). Necessary condition analysis (NCA) was also conducted to identify essential conditions for achieving specific outcomes. The sample consisted of 932 participants, with a balanced gender distribution and a predominantly highly educated sample. The study participants came from diverse age groups, employment statuses, income levels, and geographical regions across China. The high response rate (95.08%) was attributed to persistent reminders.
Key Findings
The measurement model demonstrated strong reliability and validity. PLS-SEM results showed that interaction (β=0.138, p < 0.01), trendiness (β= 0.111, p<0.05), customization (β=0.119, p<0.01), electronic word-of-mouth (β= 0.169, p < 0.01), and trust (β= 0.336, p <0.01) significantly and positively predicted brand equity. However, entertainment showed no significant effect (p=0.019, p>0.05). Brand equity significantly and positively predicted reuse intention (β=0.345, p<0.001), as did trust (β=0.514, p<0.001). Mediation analysis revealed that brand equity significantly mediated the relationship between interaction, trendiness, customization, electronic word-of-mouth, and trust, and reuse intention. NCA indicated that customization and entertainment were necessary conditions for brand equity. To achieve 50% brand equity, customization needed to be above 64.4% and trust above 32.2%. For 50% reuse intention, trust needed to be above 32.2%.
Discussion
The findings largely support the hypotheses, confirming the significant influence of several social media marketing activities on brand equity and reuse intention. The mediating role of brand equity emphasizes its importance as a key driver of customer loyalty and repeat business. The insignificant role of entertainment in the logistics context suggests a need for tailored strategies focusing on other, more relevant aspects of the customer experience. The strong influence of trust highlights the critical role of building and maintaining trust among customers. The results suggest that logistics companies should prioritize interaction, trendiness, customization, and electronic word-of-mouth in their social media marketing activities to build brand equity and enhance reuse intention.
Conclusion
This study provides valuable insights into the dynamics of social media marketing and its impact on brand equity and reuse intention within the logistics industry. It underscores the importance of focusing on interaction, trendiness, customization, electronic word-of-mouth, and trust to enhance brand equity, thereby increasing customer loyalty and reuse intention. Future research could explore the moderating roles of demographic factors, examine the longitudinal effects, investigate the nuances of entertainment's influence on brand equity, and employ more diverse sampling methods to increase generalizability.
Limitations
The study uses a cross-sectional design, limiting the ability to establish causal relationships. The sample, while large, is limited to Chinese consumers, potentially limiting generalizability to other cultures. The reliance on self-reported data might introduce bias. Future research should address these limitations by using longitudinal studies, employing diverse sampling methods, and incorporating objective measures to enhance the robustness of the findings. The model also did not include moderating variables like age, sex, occupation, and monthly income, which might influence customer decision-making.
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