Power of Social Media Marketing: How Perceived Value Mediates the Impact on Restaurant Followers’ Purchase Intention, Willingness to Pay a Premium Price, and E-WoM?

Abstract

The introduction of social media in the restaurant sector has changed the manner in which customers communicate with businesses. Social media marketing activities (SMMAs), such as customization, entertainment, trendiness, and interaction may have a substantial impact on followers’ perceived value and consumer behavioral intentions. Therefore, this research aims to investigate the impact of SMMAs on restaurant social media followers’ purchase intentions (PUR), willingness to pay a premium price (WPP), and e-WoM. Additionally, drawing on the Stimulus-Organism-Response (S-O-R) model, we seek to explore the mediation impact of perceived value (PV) in these relationships. To achieve this, an online questionnaire was developed for data collection from a convenience sample of casual-dining restaurant followers in Saudi Arabia. A sample of 433 social media followers was studied using PLS-SEM for testing the study hypotheses. The findings highlighted the significant positive impact of SMMAs on followers’ PV, PUR, e-WoM, and WPP. Further, PV partially significantly mediated the relationship between SMMAs and their consequences. Consequently, providing relevant, up-to-date, and entertaining content; responsiveness to customer needs and feedback; and positive brand engagement significantly contributed to enhancing restaurant followers’ perceived value, which sequentially improves their purchase intention, boosts positive e-WoM, and promotes the possibility of WPP for restaurant products and services. This research provides restaurant operators and marketers with valuable insights into how SMMAs influence followers’ behavioral intentions and enhances their understanding of how perceived value can be utilized to capitalize on the benefits of social media.