Effects of Facebook advertising on sustainable brand loyalty and growth: case of Thai start-up businesses

Abstract

Facebook presents an excellent opportunity and flexible way for firms to improve their interactions with new and potential customers, business contacts, and grow their businesses. This study investigated the use of Facebook advertising by Start-ups to promote their products and improve sustainable brand loyalty and growth. Survey data from 225 start-up firms from food and fashion industry has been analysed by SmartPLS. Results show that engagement of potential customers, Facebook’s marketing capabilities, page authority, and page update significantly influence the sustainable brand loyalty and growth of small businesses. Potential customers' engagement and Facebook page updates were found to have a partial mediation effect of Facebook's marketing capabilities on sustainable brand loyalty and growth. The Facebook promotional campaign has a full mediation effect on sustainable brand loyalty and growth. Based on the findings, start-up businesses should consider investing in using Facebook as a marketing tool for their brand loyalty and growth.