Do social media marketing activities enhance customer equity? A case study of fast-fashion brand Zara

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Volume Title

School of Business | Bachelor's thesis

Date

2017

Department

Major/Subject

Mcode

Degree programme

(Mikkeli) Bachelor’s Program in International Business

Language

en

Pages

48

Series

Abstract

Objectives The main objective of this study was to investigate if social media marketing activities enhance fast-fashion company’s customer equity, by means of a quantitative examination. This was done by identifying the customer equity drivers and furthermore evaluating the influence of perceived social media activities on customer equity and purchase intention. Summary Social media marketing’s usage is increasing within the fashion industry. Social media marketing is more efficient than traditional marketing as it enables companies to communicate with customers as well as gather information to establish a relationship between the brand and the customer. Prior studies that focus on brands operating in luxury fashion and automotive industries have shown that social media marketing activities perceived by consumers influence a brand’s future profits and its brand, value and relationship equity and thus overall, it’s customer equity. To re-examine these relationships in the new industry of fast-fashion, a case study and questionnaire on fast-fashion brand Zara were conducted. The results were found to be significant. Conclusions This study found that concerning fast-fashion industry, particularly the fast-fashion brand Zara, social media marketing activities have a positive influence on brand equity, value equity and relationship equity. Moreover, brand equity, value equity and relationship equity are positively related to purchase intention.

Description

Thesis advisor

Shukla, Paurav

Keywords

marketing, social media, fashion, fashion industry

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