Brand equity in social media-based brand community

Abstract Purpose: The main purpose of

this

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research

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is to examine the effects of social media-based

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brand

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community

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(

SMBBC

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) markers on

customer

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-based

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brand

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equity

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(

CBBE

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).

Moreover

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,

this

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research

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evaluates the mediating

effect

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of

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brand

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community

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commitment

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, and moderating

effect

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of

customer

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gender

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. Design

/

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methodology

/

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approach:

This

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research

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collected data from a questionnaire survey with the

participants who

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participants, who

are the members of

Xiaomi

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Community

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in Vietnam on Facebook (XCVF).

Finally

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, 512 valid and usable questionnaires were tested by applying structural equation modelling (SEM) approach. Findings: The results showed that three components of

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brand

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community

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markers significant influence

two

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aspects of

CBBE

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.

Moreover

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,

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brand

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community

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commitment

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plays the mediating

role

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in the

relationship

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of shared consciousness, ritual and traditions and

CBBE

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.

In addition

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, the influence of

SMBBC

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on

CBBE

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is stronger for women in

comparison

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with men.

Research

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limitations

/

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implications: The sample selected

is limited

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limits

for only members of XCVF, which may have an inadequate view in

comparison

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with other

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brand

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communities.

This

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research

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can eliminate some other important variables that can contribute to

this

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relationship

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. Originality

/

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value

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:

This

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research

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is among the

first

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works that have focused on the

importance

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of

SMBBC

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markers on

CBBE

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, the mediating

role

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of

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brand

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community

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commitment

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, as well as the moderating

effect

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of

customer

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gender

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. Keywords: social media;

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brand

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community

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;

customer

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– based

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brand

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equity

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;

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brand

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community

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markers;

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brand

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community

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commitment

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. 1. Introduction “

Xiaomi

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is a

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brand

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making effective use of online

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brand

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community

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marketing.

Xiaomi

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has gained the benefit of a new media era. “Born for enthusiasm” is the

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brand

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concept and behind the large sales figures, as the company is very successful in fostering a

fans

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fan

culture. Its fans, self-proclaimed as “MI fans” which sounds like

mifen

an alkaloid narcotic drug extracted from opium; a powerful, habit-forming narcotic used to relieve pain

morphine

muffins

muffin

(米粉 rice noodle) in Chinese, have become an important force making the

Xiaomi

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brand

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popular.

Xiaomi

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stimulates its fans’

participation spirit

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participation, spirit

and satisfies their self-realization needs by constructing a virtual space, MIUI (MI User Interface) forum”

.

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.

The advance of technology in the Internet age has totally changed our daily life and firms’ activities as well.

For instance

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, with the

development

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of social media, marketing activities are much more complicated in

comparison

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with conventional marketing (

Habibi

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et al., 2016). Recently, the concept “social media-based

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brand

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community

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” (

SMBBC

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) has frequently used to express

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brand

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community

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that is

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created on the social media platforms

such

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as Facebook, Weibo (

Habibi

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et al., 2014).

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Brand

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community

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relates to specialized, non-geographically bound

community

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, based on a structured set of social relations among admirers of a

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brand

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(Muniz and O'

Guinn

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, 2001). Nowadays, with the evolution of Web 2.0 platforms, customers’

role

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was transformed

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were transformed

from passive in Web 1.0

platform

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platforms

to active.

Hence

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, social media supports

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brand

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community

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members creating

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members, creating

content themselves as called “user-generated content” (Kumar et al., 2016) or

customer

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co-creation

value

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(Hidayanti et al., 2018) that was confirmed as the determinants of word-of-mouth (Chu and Kim, 2011), which in turn, influenced on

customer

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engagement, buyer-seller

relationship

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quality

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(Sashi, 2012a), as well as

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brand

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awareness

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,

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brand

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loyalty

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and purchase intention (Jamali and Khan, 2018).

Moreover

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, previous

research

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indicated that

SMBBC

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stimulated

customer

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satisfaction,

customer

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relationship

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capabilities, and firms performances as well (Clark et al., 2017).

Furthermore

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, owing to

SMBBC

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,

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customer

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customers

the customer

can

significant

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significantly

sign

participate in the

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brand

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value

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co-creation process (Merz et al., 2018). But previous

research

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also

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showed the necessary to

clearer

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clear

understand

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understanding

the

role

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of

SMBBC

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in the marketing field because of its

value

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for the firms in the Industry 4.0 (Merz et al., 2018).

SMBBC

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comprises people who like specific

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brand

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(s) of firms, are the members of the

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brand

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community

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created by firms or by the subsidiary/ agent of firms in a country (Munnukka et al., 2015). With

this

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important significance,

SMBBC

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has recently gained great attention from marketing scholars and practitioners (Munnukka et al., 2015;

Habibi

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et al., 2014; Hur et al., 2011;

Kamboj

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and Rahman, 2018; Islam et al., 2018).

For instance

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, (

Kamboj

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and Rahman, 2018) asserted principal antecedents and the outcomes of

SMBBC

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as well as the possible moderators and mediators. They

also

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showed a lot of

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gaps and called for

further

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research

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in terms of other possible determinants and/ or outcomes. In the same line, other researchers stated the

importance

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of deeper evaluating the effects of customers’

perception

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and

behavior

manner of acting or controlling yourself

behaviour

on

CBBE

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(

Habibi

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et al., 2016; Munnukka et al., 2015).

CBBE

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refers to the customers’

perception

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regarding the overall betterment of a

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brand

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in

comparison

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with other related brands (Hassan and Luis V. Casaló Ariño, 2015).

This

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research

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gaps

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gap

is needed for

further

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and

deeper examining

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deeper, examining

because it is crucial for companies in building and maintaining the competitive advantage of their brands in new technology based business as suggested by (Palazon et al., 2018),

Kamboj

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& Rahman, 2018. Based on the literature review,

this

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research

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propose

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proposes

and utilize

two

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aspects of

CBBE

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, namely,

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brand

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awareness

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and

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brand

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loyalty

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.

Moreover

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, the

development

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of social media

platforms challenges

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platforms, challenges

firms to establish and manage their

SMBBC

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. Through

SMBBC

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firms can understand more about their customers’ demands or suggestions to optimize their products, their adaptability and competitiveness (Cui and Wu, 2015; Kang et al., 2016; Carlson et al., 2018).

Moreover

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,

SMBBC

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facilitates customers in searching and understanding information concerning products and services of the firms, as well as experiences, feedbacks of other customers. Well managed

SMBBC

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can lead customers to be

more

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more loyal

loyalty

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to the firms (Poulis et al., 2018) to form citizenship

behavior

manner of acting or controlling yourself

behaviour

.

Although

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such

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importance

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, a lot of firms have not adequately apprehended the

role

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of

SMBBC

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yet.

In addition

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, most customers still lack the willingness to participate actively (

Kamboj

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and Rahman, 2018; Jain et al., 2018; Kaur et al., 2018).

Furthermore

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, previous scholars regard the social, economic, psychological and functional motivation of customers as the factors influencing

CBBE

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(Poulis et al., 2018; Godey et al., 2016), but overlooking the impact of

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brand

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community

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commitment

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.

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Brand

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community

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commitment

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is not innate, but can be influenced by the markers of

SMBBC

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and establishing a sense to firm

belonging

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belongs

. So that, the

research

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of

CBBE

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should proceed from the markers of

SMBBC

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, and in-depth analysis with the mediating

effect

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of

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brand

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community

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commitment

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.

Thus

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shaping a systematic analysis, the

research

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has important significance for obtaining

CBBE

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. Recently, (Hook et al., 2018) suggested that future researchers need to

deeper examine

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deeper, examine

long – term consequences of

customer

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brand

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community

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participation. They

also

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indicated the necessary to investigate the terms “

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brand

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community

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markers” and “

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brand

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community

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commitment

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” together, rather than researching in separation. In the same vein, (

Kamboj

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& Rahman, 2018) showed that it is necessary to

further

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examine the new mediating variables

such

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as

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brand

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community

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commitment

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.

Moreover

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, because of the

different

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difference

differences

in biology,

previous

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previously

indicated the necessary to differ in

behaviors

manner of acting or controlling yourself

behaviour

between male and female customers (Correa et al., 2010).

Therefore

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,

this

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work attempts to answer to the

research

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questions as

follow

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follows

: RQ1: How do

SMBBC

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markers influence

CBBE

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? RQ2: Which component of

SMBBC

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markers is more significant related to specific aspects of

CBBE

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? RQ3: How does

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brand

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a brand community commitment

community

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commitment

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mediate the

relationship

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between

SMBBC

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markers and

CBBE

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? RQ4: Does

customer

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gender

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moderate the

relationship

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between

SMBBC

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markers and

CBBE

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? To answer the above questions,

this

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paper proposes and empirical tests a

research

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model to clarify the correlation between

SMBBC

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markers and

CBBE

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directly and indirectly via

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brand

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community

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commitment

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and

customer

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gender

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. The remains of

this

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research

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is organized

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are organized

as

follow

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follows

.

This

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research

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starts with theoretical background and

research

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design, which followed by the data analysis results and conclusion. 2. Theoretical background and hypothesis

development

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2.1. Social media based

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brand

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community

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The notion of

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brand

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community

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was proposed by (Muniz and O'

Guinn

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, 2001) and relates to the organized social

relationship

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based on

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brand

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admirers, a specialized

community

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organization without geographical boundaries.

This

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concept provides a better way to solve the

two

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challenges of one-to-one

customer

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relationship

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management and

customer

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classification faced by firms. With the rapid

development

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of

Internet

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the Internet

which is one of the most important innovations of human life, the

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brand

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community

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is easier than ever in terms of

timely

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timing

timeliness

time

, geographical restrictions. Its application forms and implementation technologies are constantly evolving. Many firms are gradually building

SMBBC

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on the basis of computer cyberspace, social media and other virtual platforms.

In

Suggestion

On

one hand,

SMBBC

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is the combination of social media and

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brand

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community

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(Algesheimer et al., 2005) or

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brand

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communities created on the platforms of social media (

Habibi

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et al., 2014; Kaur et al., 2018; Zaglia, 2013).

In

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On

the other hand, (Arnone et al., 2010) indicated that

SMBBC

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relates to customers gathered together because of similar

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brand

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preferences or ideas, and sharing

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brand

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experience as well as values through social media platforms.

Although

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a wide

types

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type

of social media platforms, scholars all agreed that shared consciousness, shared rituals and traditions and obligation to

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community

Suggestion

the community

are the components of

SMBBC

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(

Habibi

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et al., 2014; Muniz and O'

Guinn

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, 2001;

Habibi

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et al., 2016).

Therefore

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,

this

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research

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inherits their assertion to test the

relationship

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with their consequences. In which, shared consciousness relates to connection among members of a

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brand

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community

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that decide the difference between its members with outsiders (Zhou et al., 2012).

Besides

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it, shared rituals and traditions refers to the social responsibility of members towards the

community

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and its members (Muniz and O'

Guinn

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, 2001).

Moreover

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, obligation to

community

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indicates that members think about and act for the benefits of the

community

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and its members.

This

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can explain the reason of willingness to mutual help of members in a

community

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(Muniz and O'

Guinn

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, 2001).

In addition

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, previous researchers considered that

SMBBC

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is based on a series of relationships among members with brands, products and firms to form four kinds of

relationship

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(

Habibi

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et al., 2016; James H.

McAlexander

Suggestion

et al., 2002). In the reality, many firms have established

SMBBC

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not only for establishing and maintaining the above four relationships and

also

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stimulating members to share

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brand

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experience and innovative ideas to improve the

quality

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of products or services (Casaló et al., 2010; See-To and Ho, 2014). Because through the knowledge acquisition

from

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of

social media, firms can improve the

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brand

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innovation strategy (Bang et al., 2015).

Moreover

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,

SMBBC

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influences on

customer

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satisfaction, trust, and

loyalty

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with the

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brand

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(Algesheimer et al., 2005; Zhou et al., 2012; Tsai et al., 2012). Obviously,

SMBBC

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also

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has some negative effects, called “dark side”,

such

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as leading to normative pressure on members, thereby reducing

community

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identification, recommendation and participation as well (Poulis et al., 2018). 2.2.

Customer

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– based

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brand

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equity

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Brand

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equity

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refers to the

perception

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of the customers about the overall betterment of a

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brand

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when they compare to other related brands (Hassan and Luis V. Casaló Ariño, 2015). In the perspective of customers,

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brand

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equity

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relates to

CBBE

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(

Yoo

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et al., 2000; Datta et al., 2018). That means customers acquaint with certain

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brand

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and revoke uniqueness of

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brand

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the brand

such

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as its name, logo and motto (Torres et al., 2015). These factors stimulate

customers’

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the customers’ perception

perception

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of the

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brand

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and other factors of the

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brand

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such

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as its

importance

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or positioning (Keller, 1993).

CBBE

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is an interesting and important topic that recently has gained the attention of researchers and practitioners in marketing (Poulis et al., 2018;

Yoo

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et al., 2000; Datta et al., 2018). But to date, its dimensions are still

in disputable

not open to question; obviously true

indisputable

.

For instance

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, (Godey et al., 2016) divided

customer

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based

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brand

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equity

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in

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brand

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awareness

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and

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brand

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image; (Chahal and Rani, 2017) considered

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brand

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awareness

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,

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brand

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image and

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brand

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loyalty

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as the dimensions of

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brand

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equity

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;

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brand

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awareness

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,

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brand

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loyalty

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, perceived

quality

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of

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brand

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and

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brand

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association (Sasmita and Norazah Mohd Suki, 2015);

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brand

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awareness

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,

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brand

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quality

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and

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brand

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loyalty

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(Guzmán and Davis, 2017);

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brand

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associations,

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brand

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image, perceived

quality

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and

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brand

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credibility (Vogel and Watchravesringkan, 2017). Among the different approaches, most of researchers highlighted that

CBBE

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combines

two

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main components, namely,

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brand

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awareness

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and

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brand

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loyalty

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(Poulis et al., 2018). For

this

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reason, by inheriting and utilizing these

two

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dimensions of

CBBE

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,

this

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research

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develops and tests a new framework to clarify the related relationships. In which,

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brand

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awareness

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relates to the power of

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brand

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existence and

perception

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in the

customer

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’s head and thinking (Molinillo et al., 2017).

Hence

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, customers can easily distinguish a specific

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brand

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among other brands in term of logo, name and motto.

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Brand

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awareness

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can be created and maintained through marketing communication

such

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as advertising or through social media platforms (Barreda et al., 2015; Sasmita and Norazah Mohd Suki, 2015; Bruhn et al., 2012; Schivinski and Dabrowski, 2014) Along with

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brand

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awareness

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,

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brand

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loyalty

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relates to the customers’

first

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choice of a specific

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brand

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among other brands (

Yoo

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et al., 2000). Previous

research

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confirmed that

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loyalty

Suggestion

loyal

customers even may not consider buying other brands (Aaker, 1996) or selecting as their default preferred

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brand

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(

Yoo

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et al., 2000). In a sense,

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brand

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loyalty

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refers to one of the main goals for marketing activities which in turns can increase sales and market share (Schivinski and Dabrowski, 2014).

Likewise

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,

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brand

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loyalty

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affects the purchase decisions of the customers to the same product (Huang et al., 2010). Previous

research

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showed that social media is a type of communication that acts as an important

role

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in promoting

customer

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engagement (Hollebeek et al., 2014; Sashi, 2012b). They

also

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showed that

SMBBC

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significant correlates with

customer

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- based

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brand

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equity

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(Godey et al., 2016; Sasmita and Norazah Mohd Suki, 2015; Jiao et al., 2018). In the

next

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section, the authors clarify the

relationship

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between

SMBBC

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markers and

CBBE

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.