Abstract
This paper examines cross-country heterogeneities and over-time changes of the role of social media marketing (SMM) in the luxury fashion industry. A comprehensive literature review is conducted on customer value, purchase intention, and engagement motivation to understand the causes and effects of SMM. Based on the survey data in China and the United Kingdom, probit and oprobit regressions are employed to estimate the models of SMM. Results show that affectional and cognitive motives are the two primary drivers of SMM engagement in both countries. Chinese customers are more susceptible to SMM than their British counterparts, suggesting significant potential benefits of developing SMM strategies in China. Over time, SMM has become an irreversible trend of luxury brand management after the coronavirus disease 2019 pandemic. Identified heterogeneities and changes call for differentiated international marketing strategies in different countries at different times.
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