Impact of social branding on purchase intention:

An empirical study of social media websites

Writer

Jahanzeb Khan

SPARKLES SOFT

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I. Introduction

Social media is regarded as the phenomenon that has drawn attention of individuals

and companies for interacting with each other. However, when the term social media is

considered, understanding of its definition is minimal within literature. In this respect,

researchers and practitioners have different opinion on how social media is different

from other internet media and user generated content (Kaplan and Haenlein, 2010).

Despite of the vagueness of definition of social media among researchers, it is a reality

that it has revolutionized in the last decade. This revolution of social media has

tremendously changed the way individuals and companies used to communicate with

each other (Hutter et al, 2013). Simply, it can be said that social media revolution has

changed the marketing communication aspects within organizations. Within the

increasing popularity and importance of social media networks such as Facebook,

YouTube and Twitter, consumers’ preferences and modes of communication with the

organizations have changed to a great extent. Several previous studies have noted that

with increasing money spending by consumers on social media reveals that increasing

communication occurs on social media networking websites (Barwise and Meehan,

2010). In perspective of marketing communication, it reveals that brand related

exposure and interaction takes place on social media networking websites by

organizations to an increasing level. In this way, it is evident that increasing

communication on social media has transformed traditional passive communication

mode of consumers to active influencers and creators (Kozinets et al., 2008; and Merz

et al., 2009). In this way, power shift has occurred from brands to consumers

(Constantinides and Fountain, 2008). In the same manner, Bernoff and Li (2008) also

suggested that increasing influence of users of social media in terms of customer power

and culture shift has resulted in customer centric brand communication.

In the current era, companies have started to rely on information available regarding

customer profiles for promoting their products and services in a diverse market (Kaplan

& Haenlein 2012). The increasing popularity of social media networking websites can be

assessed in a way that large and famous brands as well as small brands seek to

develop relations with customers by connecting with them through Facebook, Twitter

and other social media websites.

Traditionally, organizations used to communicate with customers through one-way

communication that has transformed into multidimensional and two-way communication

between the two. This new mode of communication has resulted in new opportunities

and challenges to companies as customers have started to rely on social media to a

great extent for taking their purchase decisions (Hinz et al., 2011). This implies that

social media plays an important role in customer decision making process. In this way,

social media websites have become very important partners in deciding branding

activities. Despite of increasing importance of social media communication, the

outcomes of social media are still vague and disputed in the eyes of researchers and

practitioners (Hoffman and Fodor, 2010). Previous researchers have suggested that

social media activities and practices do have certain negative impacts such as negative

word of mouth and information overload (McCoy et al., 2007). Hence, the impacts of

social media on brand awareness and customer decision making are yet to be explored

largely.

In this article, better understanding of social media has been explored while assessing

its influence on brand awareness and purchase intentions of customers. Specifically,

Facebook has been chosen to determine social media communication. For assessing

the aim of this study, the article has been organized in a specific structure. The first

section of the article presents a critical review of literature regarding social media

communication and branding. In the next section, methodology and data chosen for this

study has been described and justified. Next to this section is the analysis of data for

evaluating impact of social media on brand awareness and purchase intentions of

customers. Finally, an appropriate conclusion and future prospects of study have been

presented.

Objectives

The aim of the study is to “analyse impact of social branding on purchase intention in

leading fashion brands of Pakistan”.

Specifically, the researcher has focused fashion brands of Pakistan. The first objective

of study is to analyse theoretical propositions regarding social media communication

and brand awareness. Secondly, the theoretical propositions have been applied to

social media users of Pakistan. Finally, the quantitative Impact of social branding on

purchase intention has been found.

II. Literature Review

In this section of article, literature regarding social media websites, social media

communication and brand awareness has been critically analyzed to derive a

conceptual framework.

Social media and brand communication

In the current decade, latest technologies and devices have been changing lifestyles

and corporate communication modes. Within this scenario, organizations have started

to understand the importance of internet for undertaking marketing activi ties (Berthon et

al. 2012). Some researchers suggest that organizations have started to take

involvement and interest in online communications for promotion of their products and

services (Shankar & Batra, 2009; and Winer, 2009). Chen et al (2012) suggest that

emergence of Web 2.0 technologies have delivered internet users an exposure of online

environment through social media networking websites.

Social media offers organizations and customers to communicate and engage with each

other. It has been suggested by previous researchers that social media have become

one of effective mass media tools having wide demographical demand among

traditional communication sources (Kaplan & Haenlein, 2010). By incorporating social

media communication strategy, companies expect to engage with loyal customers for

spreading information, influencing their opinions and perception regarding products and

services, and also about learning beliefs and interests of target audience (Brodie et al.,

2013). It is important to note that social media spread viral information to wide

population in a quick manner. This can be one of the reasons of wide popularity of

social media. This is also approved by previous researchers that social media can reach

huge population than traditional media such as radio, newspapers, and television

(Hutter et al, 2013). At the same time, users have also been shifting from traditional

media to contemporary and interactive media such as internet and social networking

websites.

Kaplan and Haenlein (2012) suggested that social media is appropriate media for

creating and sharing content with others. From perspective of marketing, content

created on social media may involve information about products, services and brands.

In this way, traditional ways have no longer been the primary source of brand

communication for companies. Regarding trust on social media, several studies have

noted that social media is trustworthy source of information as compared with the

traditional modes of marketing communication (Karakaya & Barnes, 2010; and Hutter

et al , 2013). Hence, brand managers may assume that social media communication

enhances brand communication that ultimately results in enhancing brand awareness

(Smith et al. 2012).

Brand page commitment

Brand page commitment represents the psychological attachment of participants with

the efforts of a brand for bui lding community on social media environment such as

YouTube community and Facebook Fan page (Kim et al., 2005). In this way, brand

page commitment can be represented as the psychological and active involvement of

customers with the social media communication practices of a brand. Within this

perspective, Hutter et al (2013) suggested that when customer enjoyment and

commitment on social media turns into annoyance, the customers are more likely to turn

away quickly. However, they further suggested that social media marketing tactics are

less annoying and less disturbing as compared to other traditional media marketing

tools. The main reason behind this is that customers have control on their exposure to

social media contents that is not possible in case of traditional marketing

communication. For that reason, companies have been using social media channel to

remain entertaining towards customers to get their attention. Tamborini et al (2010)

have pointed that enjoyment is the pleasurable response of customers towards

entertainment media whereas annoyance is the unpleasant reaction of customers

towards a certain media because of overexposure. This suggests that annoyance and

enjoyment are totally different responses of customers towards a particular media.

Specific to annoyance, McCoy et al (2007) also suggested that it is unwanted exposure

of individuals to advertisements. This implies that companies need to remain diligent to

reach customers and target them with entertaining advertisements to avoid annoyance.

Kim et al (2008) also pointed that social media contents that disturb customers are more

likely to produce negative effects on brand performance and purchase intentions of

customers.

Brand awareness

When it comes to branding, two important aspects are critical. One is to produce

labeling through marketing tactics whereas the other one is to make customers aware of

the brand. Keller (2008) explains brand awareness as the strength of brand in the minds

and memory of customers that reflects their ability to identify a brand among

competitors in different conditions. Alternatively it can be said that brand awareness is

the extent that describes how strong the image of a brand in the minds of customers is.

Brand awareness is created by any factor such as promotion, advertising, public

relations or publicity that can make customers to experience the brand. In this respect,

social media is the effective way to expose customers with a particular brand, hence

creating strong brand awareness. Hutter et al (2013) also noted that more customers

engage with the social media communication of a brand i.e. higher brand page

commitment, higher is the brand awareness.

Previous studies have noted that strong brand awareness is more likely to positively

influence purchase intentions of customers (Hutter et al, 2013). Others noted that

enhancing brand awareness increases likelihood that brand will be considered by

customers while making purchase decisions (Chakravarti et al., 2003). Hutter et al

(2013) also found that customers are more likely to purchase well known brands.

Specific to low involvement situations, Hutter et al (2013) have suggested that brand

awareness alone can be adequate to impact the choice of brands by customers.

Purchase intention

Hutter et al (2013) defined purchase intentions as likelihood of customers to purchase a

particular product of service. On the other hand, others defined this concept as the

mental stage of customers in decision making process when they are willing to

purchase a particular product (Wells et al., 2011). When it comes to marketing

communication, its main goal is to develop an intention to purchase a particular product

or service (Hutter et al., 2013). In perspective of social media communication, the same

goal is obvious. Several authors have noted that social media communication tactics of

companies are more likely to positively influence purchase intentions of customers

(Kapferer, 2008; and Hutter et al., 2013).

Theoretical Framework

On the basis of above literature review, following theoretical framework has been

developed:

This framework suggests that social media communication and brand page commitment

effect brand awareness and purchase intentions of customers.

III. Type of Research

This particular study is based on the evaluation of impact of social branding on

purchase intention by taking the case of Facebook fan page of leading fashion brands in

Pakistan. For undertaking this study, quantitative research methods have been chosen.

The qualitative research required numerical data from target population. This data is

specifically in the numerical form that is appropriate for finding quantitative impact of

social branding on purchase intention of fashion brands in Pakistan. This study is

quantitative research that has determined statistically that whether social media

communication of leading fashion brands of Pakistan impact purchase intentions of

customers.

Purchase intention

Brand awareness

Social brand communication

Brand page commitment

Type of Data

In terms of basic type of data, primary and secondary data have been used in this

article for getting in-depth analysis of impact of social branding on purchase intention.

On the other hand, specifically quantitative data has been collected from participants of

study regarding research aims and objectives. The quantitative or numerical data has

been collected from participants of study to find quantitative relationship between

variables.

Data Collection Method

For collecting quantitative data from participants of study, the researcher has developed

a close ended questionnaire. This questionnaire has given closed options to participants

for answering questions. The questionnaire has been divided into two parts. The first

part deals with the demographics of participants whereas the second part deals with the

opinion of participants about impact of social branding on purchase intention. For

collecting data, the researcher self administered questionnaire so that higher response

rate can be attained.

4.3 Sample and Population

The target population of this study is composed of social media users. Specifically, the

users of social media pages of leading fashion brands have been chosen in this study.

From this target population, the researcher chose a sample of 300 users for conducting

survey. This sample was chosen by applying convenience sampling technique. Through

this technique, only those participants were chosen who were easily accessible.

IV. Results and Analysis

In order to analyse research aims and objectives, a survey was conducted with a

sample of 300 users of social media fan pages of famous fashion brands in Pakistan. A

response rate of 93% was achieved in this study. Here is the analysis of the result of

survey.

Gender of Respondents

From survey results, it was found that most of respondents were females. From total

respondents of 279, it was found that 163 were females (58%) whereas 116 were males

(41%). Here is the tabular representation of results:

Gender # of Respondents % of Respondents

Male 116 41.577061

Female 163 58.422939

Total 279 100 Table 1: Gender of Respondents

Age of Respondents:

Regarding frequency distribution of survey results, it was found that most of

respondents were young. The results of survey revealed that 22% respondents were

less than 20 years of age. There have been 29% respondents who were between 21-30

years. 20% respondents were between 31-40 years of age. There have been 18%

respondents who were between 41-50 years of age. The rest of the respondents were

above 50 years of age. Here is the tabular representation of results:

Age of Respondents

Age # of Respondents % of Respondents

Less than 20 years 64 22.939068

21-30 years 82 29.390681

31-40 years 58 20.78853

41-50 years 51 18.27957

Above 50 years 24 8.6021505

Total 279 100 Table 2: Age of Respondents

Years of Using Social Media:

Respondents were asked to mention time span for which they have been using social

media for variety of purposes. In response to this question, it was found that 20%

respondents had been using social media for less than 6 months. There have been 38%

respondents who were using social media for last two years. 28% respondents were

using social media for last 3 years. There had been almost 9% respondents who were

using social media for last 5 years. The rest of the respondents had been using social

media websites for more than 5 years. Here is the tabular representation of results:

Years of using Social media

Years # of Respondents % of Respondents

Less than 6 months 56 20.071685

For last 2 years 108 38.709677

For last 3 years 79 28.315412

For last 5 years 25 8.9605735

For more than 5 years 11 3.9426523

Total 279 100 Table 3: Years of Using Social Media

Descriptive results

In order to analyse the results of survey, descriptive analysis has been performed.

Specifically, mean, standard deviation and standard error mean have been calculated

for all variables of the study.

Standard Standard Variables N Mean deviation error mean

Social brand communication 279 26.36 2.30 0.225 Brand page commitment 279 21.14 1.65 0.165

Brand awareness 279 26.48 2.26 0.215 Purchase intention 279 16.62 2.21 0.248

Table 4: Descriptive results

Regression Analysis

For developing statistical analysis of the study, the researcher has calculated regression

for all variables. Specifically, T-test has been performed on survey data to assess the

impact of social branding on purchase intention. The regression analysis reveals that

social media communication effects purchase intentions of customers in a positive

manner. Here is the statistical analysis of results:

Variables F Significance t df

Significance (two-

tailed)

Social brand communication 1.193 0.271 18.30 203.25 0.001 Brand page commitment 91.52 0.001 11.81 338.85 0.000

Brand awareness 0.612 0.571 0.324 229.59 0.000

Table 5: Regression Analysis

Dependent Variable: Purchase intentions

From above statistical analysis, it is clear that social media communication practices of

brand and brand page commitment of customers influences brand awareness and it

ultimately affects purchase intentions of customers. It is evident from value of

significance in this table that is less than 0.05. This low value represents that significant

positive relationship occurs between social media communication efforts of brands,

brand page commitment and brand awareness that influences purchase intentions of

customers.

V. Conclusion

This particular study specifically focused on evaluating the impact of social branding on

purchase intention. On the basis of statistical and descriptive results of study, it has

been concluded that social media communication efforts of brands do have positive

impact on purchase intentions of customers. From perspective of Pakistan, it was found

that most of young individuals use social media for their respective interests and

purposes. Findings of article conclude that having customers engaged on the social

media fan pages, brand awareness is enhanced. When customers have high brand

awareness, they are more likely to select it for making purchase decisions. In this way,

results of this study specifically establish positive association between social media

communication and purchase intentions.

The results of this study are limited to a small sample of 300 individuals that generated

response rate of 93%. This small sample is unlikely to generalize results. In addition,

results are based on the opinion of customers of five fashion brands. In this way,

findings of this study refer to these five fashion brands only. Moreover, the researcher

did not use qualitative approach for collecting information. These research methods

have not provided in depth information regarding research aims and objectives.

The results of study can be implemented by marketers to enhance brand awareness

and purchase intentions. It has been recommended that fashion brands need to target

wide customer groups through social media communication efforts to engage wide

customer base and influencing customers to buy a particular brand.

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Appendix: Questionnaire

Dear Respondent,

I have been conducting a study to analyse that how social media communication of

brands influence brand awareness. I need you to fulfill this questionnaire as per your

honest opinion. Your cooperation will be highly appreciated.

To which gender you belong to?

Male

Female

To which age group you belong to?

Less than 20 years

21-30 years

31-40 years

41-50 years

Above 50 years

For how many years, you have been using social media networking websites?

Less than 6 months

For last 2 years

For last 3 years

For last 5 years

For more than 5 years

To accomplish the study, I need you to fulfill following questionnaire as per

following scale:

Strongly agree= 1, agree= 2, neutral, 3, disagree, 4 and strongly disagree=5

1 2 3 4 5

Social media Communication

I am satisfied with the social media communication of the brand

Social media communication practices of brand meet my expectations

Social media communication efforts of the brand are attractive

As compared to competitors, the social media communication efforts of

company are well developed

The social media content generated by other users on company’s fan pages is

effective

Brand page commitment

I get informed about new offers and news of the brand frequently

I feel like the part of community of the brand

I have close relationship with other users of brand on social media page

Very often, I participate on activities of the brand page

If I do not visit brand’s fan page regularly, I miss important things

It is always a fun for me to inspire other users of brand on social media page

Brand awareness

Because of continuous engagement on social media page of brand, I always

consider myself as member of the brand community

I know all variants of the brand

I can distinguish this brand among competitors

I can recognize this brand among competitors

Whenever I see brand, several characteristics of this brand come into my mind

Purchase intention

I would purchase this product as compared to other brands

I am willing to recommend this brand to others as compared to other brands