Abstract
During the past few years, adoption of e-commerce in Indonesia has been increasing along with other trends in information , communication and technology sector such as widespread use of smartphones and social media. To promote its services, e-commerce firms have also embraced social media and carry out social media marketing activities. This study is aimed to test the influence of social media marketing activities toward customer loyalty through customer equity drivers (i.e. Value Equity, Brand Equity, dan Relationship Equity.). A survey was conducted using convenience sampling technique to select respondents. A total of 161 usable responses were used in the main data analysis. This study found support for the five dimensions of social media marketing activities suggested from previous study. Furthermore, this study found that social media marketing activities affect value equity, brand equity and relationship equity. This study also found that two customer equity drivers (brand equity and relationship equity)had a positive effect on customer loyalty, while value equity had a positive effect on customer loyalty, but it was not significant. Discussion and managerial implications were also discussed in this study
Highlights
Firms are increasingly keen on using social media to build presence and connect with their stakeholders (Chatterjee & Kumar Kar, 2020)
Yadav & Rahman (2018) propose that social media marketing's link with brand loyalty is mediated by brand equity drivers that follow the stimulus-organismresponse (S-O-R) that was reconceptualized by Jacoby (2002)
And table 2, the structural model indicated that all paths from social media marketing activities (SMMA) to the three customer equity drivers (H1-H3) were found significant at p < 0.01
Summary
Firms are increasingly keen on using social media to build presence and connect with their stakeholders (Chatterjee & Kumar Kar, 2020). This trend has been fueled primarily by the large number of active social media users that have reached 3.80 billion active social media users as of January 2020 (Kemp, 2020). Gruzd, & Hernández-García (2020) summarized the various use of social media to support firms' marketing, such as to promote and sell products, share information, encourage user engagement, build a relationship and long-term relations, etc. Social media can aid marketers to achieve brand loyalty since social media has the potential to build engagement and relationship (e.g., Barger, Peltier, & Schultz, 2016; Hudson, Huang, Roth, & Madden, 2015; Lee, Hosanagar, & Nair, 2018; Liu, Shin, & Burns, 2019). Yadav & Rahman (2018) propose that social media marketing's link with brand loyalty is mediated by brand equity drivers (value equity, brand equity and relationship equity) that follow the stimulus-organismresponse (S-O-R) that was reconceptualized by Jacoby (2002)
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