The Effects of Social Media Communication and e-WOM on Brand Equity: The Moderating Roles of Product Involvement

Abstract

As brand equity (BE) is a valuable, but intangible, asset of any firm, understanding BE represents a primary task for many organizations. Factors that influence the development of BE are of inordinate academic and practical significance and a source of continuous investigation. While the current literature on social media communication (SMC) and BE provides a wealth of information, our study pioneers the most recent processes of mediation and moderation of electronic word-of-mouth and product involvement (PI) in BE research. Accordingly, the results of this work will likely become one of the key sources of information in sustainable marketing planning and in the development of strategies. To accomplish this goal, we assessed the structural relationships among SMC, electronic word of mouth (e-WOM), PI, and BE. A questionnaire survey was administered concerning consumer brands in China. In this survey, due to the need for social distancing during the COVID-19 pandemic, the questionnaire was distributed and collected via the internet. A total of 369 data sets were analyzed by partial least squares structural equation modeling (PLS-SEM). The results of our investigation reveal that: (a) social media firm- and user-generated content have a positive impact on e-WOM, (b) social media firm- and user-generated content have a positive impact on BE, (c) e-WOM has a positive impact on BE and serves as an intermediary role between SMC and BE, and (d) PI exerts specific moderating effects between SMC and BE.