Exploring the Role of Social Media in Shaping Brand Equity: The Influence of Diversity and Value Perception

Abstract

Digital transformation has profoundly influenced businesses' marketing strategies, particularly in promoting products on a global scale. This shift has led to enhanced sales and the development of online communities, which often surpass traditional marketing mediums in effectiveness. The role of social media in forming these communities remains contentious; some scholars argue it fosters relationship building for companies, while others disagree. In light of this debate, this paper aims to investigate the impact of societal and individual diversity on the brand equity of high versus low involvement products, with social value and content value serving as mediating factors. This study is significant as it sheds light on a crucial aspect of brand equity in the digital age. A survey was conducted with 600 members of social media communities in Karachi, utilizing SmartPLS for data analysis. The findings reveal that consumers with extrinsic, extroverted, and collectivist traits tend to prioritize social value. Conversely, those with intrinsic, introverted, and individualist characteristics favor content value in social media communities. Both social and content values significantly influence brand equity and its dimensions, directly and as mediators. Therefore, businesses can enhance brand equity by encouraging consumer engagement in social media communities, fostering a diverse environment that promotes cultural exchange.