How trust moderates social media engagement and brand equity

Abstract

Purpose The purpose of this paper is threefold: first, to develop and measure customer engagement scale in context to social media (SM); second, to elucidate the variables that impact customers’ brand engagement on SM and its impact in building customer-based brand equity; and finally, to examine the moderating role of trust in SM brand engagement and brand equity relationship. Design/methodology/approach The data were collected from 767 SM users working in multinational corporations of Gurgaon city, using purposive sampling technique. Exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) were undertaken to analyze the data. Findings The paper outcomes indicated SM brand engagement as a bi-dimensional construct comprising information interest and personal interest. Both social factors and consumer-based factors significantly influence customers’ SM brand engagement. Specifically, results depicted that tie-strength and social identity (social factors); and opportunity seeking and product selection (consumer-based factors) strongly influence customers’ SM brand engagement in comparison to other factors. Research limitations/implications The research has two major limitations. First, it is limited to Gen Y only. How older and younger consumers interact with brands via SM can stimulate theoretical development as well as furnish potentially valuable strategic opportunities to brand managers in future research. Second, relationship between SM brand engagement and brand equity is examined using trust as a moderating variable. Thus, the effect of other moderating factors like perceived risk and gender can be investigated in the future. Originality/value The paper makes a maiden attempt to examine the moderating role of trust in the relationship between SM brand engagement and brand equity. It adds value to the marketing literature in the development of SM brand engagement scale for Gen Y.