Impact of social media activity outcomes on brand equity

Abstract

Purpose Firms are increasingly using social media platforms to engage with individuals, as it is recognized that a firm’s social media activity outcomes, such as number of user comments, followers or likes, impact brand equity. This study aims to evaluate both the extent that these social media activity outcomes relate to brand equity and the classification of firms which benefit from the various types of social media activity outcomes. Design/methodology/approach This study identifies various components of social media activity and then captures specific social media activity outcomes for Fortune 500 firms. This study then performs a hierarchical regression analysis to assess the impact of the various social media activity outcomes on brand equity. Findings The results show significant relationships of social media activity outcomes with brand equity. The activity outcome measures of social networking and content communities platform are significantly related to a firm’s brand equity. This study also found that the social media activity outcome levels of various types of social media platforms are contingent upon a firm’s brand country of origin and industry classification type. Practical implications The results help firms gain a clearer view of potential applications of social media platforms, thus improving their understanding of the impact of social media. This study can enhance social media strategy and design tactics to improve brand equity. The findings can also guide firms in evaluating which social media activity outcomes enhance brand equity. Originality/value The results highlight that activity outcomes in a firm’s selected content communities platform and social networking platform are related to brand equity.