Brand Equity Creation through a Moderated Mediation Model in the Luxury Brand Industry

Abstract

This research gauges the role of brand experience and perceived social media marketing activities in the creation of consumer based brand equity using a stimulus organism response model. The data was collected through a structured questionnaire focused on luxury fashion brands. The sample, consisting of 243 usable responses, was analyzed using structural equation modelling in Smart PLS4. Our results show that perceived social media activities play a vital role in the creation of brand equity. Brand experience partially mediates the association between consumer based brand equity and perceived social media marketing. Interestingly, high brand trust contributes to higher consumer based brand equity. This study is adds value to the literature by focusing on the role of perceived social media marketing activities in the creation of consumer based brand equity through a second stage approach to moderated mediation using brand experience and brand trust. The study also has valuable managerial implications that could help businesses enhance their consumer based brand equity. Luxury fashion brands should maximize customer experience through social media activities and engagement. Fashion brands should also invest in personalized recommendation engines on social media platforms to improve consumer experience.