IMPACTS OF SOCIAL MEDIA MARKETING EFFORTS TOWARDS VALUE EQUITY, RELATIONSHIP EQUITY, BRAND EQUITY AND PURCHASE INTENTION OF ACCESSIBLE LUXURY FASHION PRODUCTS

• Main Author: Kintan (19015101), Salsabilla
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/30783
• Institution: Institut Teknologi Bandung

Introduction - In contrast with the past, modern consumers believe that shopping is not only <br /> <br /> about acquiring needed goods and services where the activity of shopping is always based on the <br /> <br /> value of money. Shopping has become inseparable from satisfying one’s psychological needs <br /> <br /> especially in terms of purchasing luxury goods. Introduction of luxury goods to the middle and <br /> <br /> upper-middle class has become one of leading factors of the growth of luxury market since <br /> <br /> Indonesia is a country with the third biggest middle class in the world. Along with the increasing <br /> <br /> number of social media users in the world including Indonesia, a proliferation of social media has <br /> <br /> created a whole new era for luxury fashion brands. Luxury fashion brands have been forced to <br /> <br /> work toward interactive ways to reach and engage with their consumers as social media has <br /> <br /> become a new marketing channel for luxury fashion brands. Consequently, social media has <br /> <br /> become a new battlefield for luxury fashion brands to build their reputation and deliver their value <br /> <br /> to the consumers. This study aims to investigate and analyze the impacts of social media <br /> <br /> marketing efforts towards value equity, relationship equity, brand equity, and purchase intention of <br /> <br /> accessible luxury products. <br /> <br /> Method – Model and variables used in this research are developed from previous studies by <br /> <br /> combining construct from studies of social media marketing efforts. Dimensions of social media <br /> <br /> marketing efforts used in this research are entertainment, interaction, trendiness, customization, <br /> <br /> and informativeness. In order to measure impacts of social media marketing effects, value equity, <br /> <br /> relationship equity, brand equity and purchase intention are used as predicting variables. 395 <br /> <br /> questionnaires are distributed by using judgmental sampling where targeted respondent are people <br /> <br /> with middle to higher-class income, which can be categorized as potential buyers of luxury fashion <br /> <br /> brands in Bandung. Data gathered in this research are processed by using SPSS and SmartPLS. <br /> <br /> Findings – Social media marketing efforts of accessible luxury fashion brands create difference on <br /> <br /> value equity, relationship equity, brand equity, and purchase intention. In evaluating its impact on <br /> <br /> these variables, informativeness and trendiness are found to affect more variables compared to <br /> <br /> another social media marketing efforts dimensions. However, other two dimensions of social <br /> <br /> media marketing efforts, which are entertainment and interaction, also seem to bring moderate <br /> <br /> effect on variables tested.