How consumers’ brand experience in social media can improve brand perception and customer equity

Abstract

Purpose The purpose of this paper is to investigate factors driving consumers’ social media brand experience and its effect on customer equity and customer lifetime value (CLV). A conceptual model is proposed including the variables of product attributes, brand experience, brand attachment, brand trust, customer equity and CLV. Design/methodology/approach The proposed research model is analyzed using a survey of 708 South Korean and Chinese consumers. Findings The results indicate that utilitarian and hedonic values influence brand experience, and that brand experience directly influences brand attachment, brand trust and customer equity drivers. There is a positive relationship between brand attachment and trust. As a customer equity driver, brand equity has a positive effect on CLV. Originality/value This study sheds light on how brand experience in social media can improve customer equity. It contributes to the theory of brand experience and customer equity as well as smartphone product marketing strategies. From a managerial perspective, guidelines are provided for firms to implement value communication activities using social media, and to maintain and increase their CLV.