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How do customers' SNS participation activities impact on customer equity drivers and customer loyalty? Focus on the SNS services of a global SPA brand

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  • Heeju Chae
  • Eunju Ko
  • Jinghe Han

Abstract

As SNS services develop, consumer participation becomes more important in the process of service production and delivery, especially in the service marketing field. Consumer participation contributes to increases in companies' productivity and service quality. Therefore, the roles played by consumers include co-producer or co-operator of products or services, as well as contributor to increased quality of product, satisfaction and values. In addition to using SNS to share their opinions, thoughts and experiences, consumers have taken a step further, also using SNS to sell and buy products and to share promotions and reviews about the products. Therefore, the purpose of this study is to define constructs of customers' SNS participation activities in global SPA brands. Measurement items were extracted from previous studies and from in-depth interviews. The study examines the effects of customers' SNS participation activities on customer equity drivers - value equity, brand equity and relationship equity - in global SPA brands. Data are analyzed by factor analysis, frequency analysis, correlation and structural equation modeling using SPSS 18.0 and AMOS 18.0. The results of this study are as follows: first, there are six constructs of customers' SNS participation activities - request, e-WOM, helping, cooperation, new media seeking and sharing. Second, there are two constructs of customers' SNS participation activities - e-WOM and cooperation that have a positive influence on value equity and brand equity. E-WOM, especially, also affects relationship equity. Third, customer equity drivers have an impact on customer loyalty. This study provides evidence of difference between customer participation activities in offline and online circumstances. Moreover, it shows how customers' SNS participation activities have powerful effects on drivers of customer equity drivers and customer loyalty. This study, therefore, suggests the important role of customers' SNS participation activities in increasing customer equity toward fashion brand industries.

Suggested Citation

  • Heeju Chae & Eunju Ko & Jinghe Han, 2015. "How do customers' SNS participation activities impact on customer equity drivers and customer loyalty? Focus on the SNS services of a global SPA brand," Journal of Global Scholars of Marketing Science, Taylor & Francis Journals, vol. 25(2), pages 122-141, March.
  • Handle: RePEc:taf:jgsmks:v:25:y:2015:i:2:p:122-141
    DOI: 10.1080/21639159.2015.1012809
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    Citations

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    Cited by:

    1. Sangmi Chai & Bomi Choi & Minkyun Kim & T. C. E. Cheng, 2023. "Why do people speak about products online? The role of opinion leadership," Information Technology and Management, Springer, vol. 24(1), pages 1-17, March.
    2. Song, Tae Ho & Kim, Sang Yong & Kim, Ji Yoon, 2016. "The dynamic effect of customer equity across firm growth: The case of small and medium-sized online retailers," Journal of Business Research, Elsevier, vol. 69(9), pages 3755-3764.
    3. Zhang, Ruijin & Li, Guoxin & Wang, Zhengpei & Wang, Haiyan, 2016. "Relationship value based on customer equity influences on online group-buying customer loyalty," Journal of Business Research, Elsevier, vol. 69(9), pages 3820-3826.
    4. Chae, Heeju & Ko, Eunju, 2016. "Customer social participation in the social networking services and its impact upon the customer equity of global fashion brands," Journal of Business Research, Elsevier, vol. 69(9), pages 3804-3812.
    5. Yang Sun & Eunju Ko, 2016. "Influence of sustainable marketing activities on customer equity," Journal of Global Scholars of Marketing Science, Taylor & Francis Journals, vol. 26(3), pages 270-283, June.
    6. Xue, Zhebin & Li, Qing & Zeng, Xianyi, 2023. "Social media user behavior analysis applied to the fashion and apparel industry in the big data era," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    7. Yoo, Jinyoung Jinnie, 2023. "Visual strategies of luxury and fast fashion brands on Instagram and their effects on user engagement," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    8. Kamboj, Shampy & Sarmah, Bijoylaxmi & Gupta, Shivam & Dwivedi, Yogesh, 2018. "Examining branding co-creation in brand communities on social media: Applying the paradigm of Stimulus-Organism-Response," International Journal of Information Management, Elsevier, vol. 39(C), pages 169-185.
    9. Yoo, Changsok & Cha, Kyoung Cheon & Kim, Sang-Hoon, 2020. "A quantile regression approach to gaining insights for reacquition of defected customers," Journal of Business Research, Elsevier, vol. 120(C), pages 443-452.
    10. Kang, Yeu-Jin & Park, Seong-Yeon, 2016. "The perfection of the narcissistic self: A qualitative study on luxury consumption and customer equity," Journal of Business Research, Elsevier, vol. 69(9), pages 3813-3819.
    11. Wang, Huanzhang & Ko, Eunju & Woodside, Arch & Yu, Jihye, 2021. "SNS marketing activities as a sustainable competitive advantage and traditional market equity," Journal of Business Research, Elsevier, vol. 130(C), pages 378-383.
    12. Khoirina Kencana Ningrum & Ratna Roostika, 2021. "The influence of social media marketing activities on consumer engagement and brand knowledge in the culinary business in Indonesia," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(5), pages 34-45, July.
    13. Hwang, Joon Ho & Chung, Jaiho & Kim, Jae Wook & Lee, Dongwon & Yoo, Weon Sang, 2016. "Antecedents to loyalty point redemption: Implications for customer equity management," Journal of Business Research, Elsevier, vol. 69(9), pages 3731-3739.
    14. Waqar Nadeem & Mari Juntunen & Nick Hajli & Mina Tajvidi, 2021. "The Role of Ethical Perceptions in Consumers’ Participation and Value Co-creation on Sharing Economy Platforms," Journal of Business Ethics, Springer, vol. 169(3), pages 421-441, March.
    15. Raithel, Sascha & Taylor, Charles R. & Hock, Stefan J., 2016. "Are Super Bowl ads a super waste of money? Examining the intermediary roles of customer-based brand equity and customer equity effects," Journal of Business Research, Elsevier, vol. 69(9), pages 3788-3794.

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