Social Media Influence on Consumer Purchase Intention and Brand Equity as Mediator:

Evidence Form the UK Fashion Market

Abstract

Social media plays a vital role in increasing the purchase intention of fashion consumers. Brand
equity as a mediator also plays a prominent role in these two variables. Hence, the current study
will try to answer the two research questions: whether social media affects the purchase intention
of UK fashion consumers and whether brand equity as a mediator can play any role. The study is
based on a quantitative research design, and a deductive approach will be used. Primary data will
be collected form UK based consumers of fashion products through online surveys. The data
collected will be analysed by applying SEM. It is recommended that companies should focus on
their content and advertisements while targeting consumers.

Introduction

The advent of social media has brought about a significant transformation in the methods of data
and information acquisition, communication, and global business operations. According to
Sorensen et al. (2017), the intensity of social media has caused a revolution in marketing
communication over the past two decades, creating various opportunities for interaction between
brands and users. According to Tran et al. (2020), web 2.0 technology enables businesses and
consumers to easily generate and showcase content, exchange information, and provide product
recommendations to fellow users.

Karunasingha and Abeysekera (2022) view social media as a valuable resource for businesses
seeking to establish and maintain customer relationships, enhance brand equity, and boost overall
organisational performance. The concept of brand equity holds significant importance in
comprehending the goals, mechanisms, and overall influence of marketing endeavours (Zollo et
al., 2020). Aaker (1991) described brand equity as the set of benefits and harms of risks
associated with a specific brand name, logo or symbol. Each of these elements may add to or
diminish a product's or service's worth to a business and its clients. Tiwari (2010) defined brand
equity as , “the perception or desire that a brand will meet a salient promise of benefits”.
According to Pitta and Kastsanis (1995), brand equity generates sustainable competitive
advantages and adds value for customers. Brand equity may be developed through several tools
and techniques such as advertising, sales teams, public relations, slogans, and symbols (Buil et
al., 2013). Godey et al. (2016) confirm that social media-based marketing initiatives have
emerged as a potent marketing strategy for establishing brand equity in the contemporary digital
landscape. Resultantly, while pursuing their marketing plans, fashion companies have integrated
social media marketing to enhance and strengthen the relationship between the company and
customers (Shawky et al., 2020).

The topic of social media's role in establishing brand equity within the fashion industry has
received limited research attention (Kim and Ko, 2012). Social media users often base their
purchasing decisions on the recommendations of their peers, making brand-user interactions
more important (Stojanovic et al., 2018). User-brand engagement has been shown to influence
purchase decisions (Chan, 2019). Both Kumar et al. (2016) and Stojanovic et al. (2018) claim
that today's companies understand the significance of social media communication on
consumers' brand perceptions. Previous studies have investigated consumer social media
usage (Swaminathan, 2016). Consumer engagement with fashion companies, however, is a topic
that has received little attention in the research (Stojanovic et al., 2018). Besides, limited
research studies (Mujeeb et al., 2020) have been conducted where social media effect on
consumer purchase intention and brand equity has been investigated in South Asian Context.
While the evidence is available from South Asian perspectives (Hafez, 2021; Karunasingha and
Abeysekera, 2022; Vo and Van Nguyen, 2022), scholars posit that brand love, brand trust, and
relationship quality serve as mediators. By 2023, the United Kingdom's online fashion retail
sector is expected to be worth $56,865.0 million, or 34.1% of the country's entire eCommerce
market. Over the next several years, it should rise. By 2023, the United Kingdom's online fashion
retail sector is expected to be worth $56,865.0 million, or 34.1% of the country's eCommerce
market. Over the next several years, it should rise. The anticipated market volume in 2027 is
US$78,151.9 mln, representing a CAGR of 8.3% over the following four years (2023-2027).
ecommerceDB (2022) classifies apparel, bags & accessories, and footwear as distinct verticals
within the Fashion industry (Satista.2022).
Problem Statement

Despite the extensive body of literature on the relationship between social media and brand
equity (Majeed et al., 2021; Vo and Van Nguyen, 2022), there remains a scarcity of research
exploring the impact of social media on brand equity and purchase intention among Instagram
users in the UK. As of January 2023, 57.1 million people in the United Kingdom (UK) were
actively using social media. It meant that 84.4% of the British population was online. The United
Kingdom has a higher rate of social media use than any other country and ranks 22nd globally
(Statista, 2022).

Hence, this research aims to determine how brand equity affects the relationship between social
media and consumer purchase intention. This study aims to analyse the impact of social media
on the purchase intention of the UK based consumers of fashion products.

Research questions

i. Does social media significantly affect consumer purchase intention in UK Fashion Industry?

ii. Does brand equity mediate the relationship between social media and consumer purchase
intention in UK Fashion Industry?

2. Literature review

2.1. Theory of planned behaviour

Ajzen (1985) established the Theory of Planned Behaviour (TPB) as an expansion of Fishbein
and Ajzen's (1975) Theory of Reasoned Action (TRA). To what extent a person has a favourable
or unfavourable opinion of certain conduct is how Bojei and Abu (2016) defined TPB.
According to King (2019), TPB implies that businesses should be able to anticipate their
customers' conduct based on their intentions, and that such activity may be planned in advance.
Since purchase intentions are a subset of behavioural intents, the Theory of Planned Behaviour
(TPB) provides a solid foundation for understanding the study's outcome variable (Ahmed,
2014). According to TPB, a person's desires underlie their actions, as stated by Lin and Chen
(2010). There is a lack of new insights into social media (SM) research at the moment since the
majority of previous studies have been undertaken in Asia (Lee & Ma, 2012) and the United
States (Choi, 2016).

2.2. Social Exchange Theory

The present study's theoretical framework is based on the Social Exchange Theory (SET)
(Emerson, 1962), which posits that the outcome is a function of the difference between the costs
incurred and the benefits received. This study facilitates an examination of the diverse
dimensions that customers perceive as benefits and costs when opting for a sustainable lodging
facility. Furthermore, it aids in enhancing the accuracy of our prognostication of their genuine
buying inclinations. Zeithaml (1988) argues that although situational or contextual variables
influence the creation of perceived value, individual values play a vital role in guiding consumer
choices. It has been shown empirically (Manaktola & Jauhari, 2007) that there is a positive
association between environmental concern and the desire to make environmentally friendly
purchases. Additionally, environmental concern plays a crucial role in shaping the perception of
green-related benefits as well as reducing perceived costs (Granzin and Olsen, 1991).

Social Exchange theory was developed to assess the human beavhiour and attitude (Coyle-
Shapiro & Diehl, 2018). Social commerce (Kwon et al., 2020), social networking (Ghafari et al.,
2019), and other related phenomena have all benefited from its over period of time (Chou & Hsu,
2016). As per the findings of SET theory, the obligation to reciprocate is dependent on certain
conditions in a mutually beneficial association (Coyle-Shapiro & Diehl, 2018). According to
Huang et al. (2018), SET theory suggests that the economic advantages associated with an
exchange relationship have an impact on human behaviour. According to Ho and Rezaei's (2018)
assertion, Social Network Analysis (SNA) is suitable for analysing networks and behaviour. This
phenomenon is because individuals who frequently interact with each other derive advantages
from sharing and exchanging viewpoints (Shiau & Luo, 2012).The present research employed
Social Exchange Theory (SET) to elucidate the mutual advantages anticipated by individual
consumers in the context of their online social shopping activities, leading to financial gains
through the transactional dynamics between retailers and consumers. In a social commerce
setting, the identities of various parties, including consumer reviewers, remain undisclosed.
Furthermore, tangible exchanges exist among the involved entities in the transaction, and the
transaction lacks regulation.The aforementioned sources include the works of Hsu et al. (2018),
Isa et al. (2020), and Sembada & Koay (2019). The lack of trust among consumers can be
attributed to the potential for network deception and risks associated with online transactions.
Consequently, individuals are dissuaded from engaging in online and social platform-based
purchasing decisions (Al-Adwan, 2019).

Social media

A study by Dovidio et al.(2017), "social media" encompasses a wide range of websites and
online forums where people may meet and talk to one another and share their thoughts, ideas,
and knowledge with others around the globe. Social media encompasses a wide variety of online
communities, including but not limited to Facebook, weblogs, wikis, LinkedIn, Twitter, podcasts,
and many more (Yazdanparast et al, 2016). According to Harrigan and Miles (2014), social
media presents substantial prospects for companies to interact with customers on an individual
basis. According to Pena's (2019) assertion, social media serves as an engagement platform that
facilitates the establishment of trust, which is a crucial factor in brand equity development.
According to Alalwan, Rana, Dwivendi, and Algharabat (2017) have found that a company's
marketing goals and tactics, including customer communication, CRM, and customer
engagement, benefit significantly from the use of social media. Majeed et al. (2021) have
identified various attributes of social media use, including entertainment, rumination,
surveillance, information sharing, and social interaction, which have an impact on purchase
intention.

Online purchase intention

According to Martins et al. (2019), the manifestation of the willingness to buy is denoted as
purchase intention. Numerous scholarly articles have been published on purchase intention on
online platforms (Rahim et al, 2016). According to Kim and Ko (2012), purchase intention is a
composite construct encompassing the consumer's inclination towards and probability of
acquiring the product. Kim and Ko (2010) propose that predicting a buyer's future behaviour can
be achieved through the use of the PI model, which considers the buyer's attitudes. Social media
platforms facilitate the exchange of information, ratings, and responses among users, which can
foster trust and mitigate insecurities. This, in turn, may increase consumers' willingness to
purchase a firm's products (Bong Ko and Jin, 2017). Typically, consumers engage in a series of
activities such as product evaluation, research, and analysis before committing to a purchase
decision (Lim et al., 2016). The impact of online stimuli can be influenced by the intentions of
online buyers, as noted by Shaouf, Lu, and Li (2016). According to Martins et al. (2019), the
purchase behaviour can be demonstrated based on the PI.

Brand Equity

During the 1990s, the concept of brand equity was introduced. According to Couto and Ferreira
(2017), the establishment of brand equity is a multifaceted procedure. According to Sasmita and
Suki's (2015) observation, a brand is the most valuable asset and strength possessed by all firms.
Brand equity, despite being intangible, confers value to the firm by fostering customer loyalty,
generating and broadening opportunities, establishing a competitive edge, enhancing bargaining
power, and increasing profit margins (Perera et al., 2019). Colicev et al. (2018) found that social
media was a significant predictor of brand equity for both low- and high-involvement goods and
services. Hence, their findings confirm the relationship between social media and brand equity.
This study's examination of consumer brand equity dimensions is based on Nunan et al (2018)
classification, which encompasses brand quality, loyalty, awareness, and association.

Conceptual framework

Brand equity

Social Media Marketing Purchase intention

Source: Majeed et al.2020

3. Quantitative research design

The research design of the current research study is quantitative. The researcher will use a
deductive approach in which the hypotheses will be developed from the theory and tested
empirically.
Population and sample information

The study population will consist of the online users who purchase fashion industry products
including clothes and apparel. These users will be those from different areas of UK, mainly from
the large or metropolitan cities.

Sample

In order to bring generalizability, a total of 450 individuals will be selected for the present study.
These include students, office workers, males, and females. The sample will be comprised.

Research Strategy

Keeping in view the nature of the research study and research design survey approach will be
used. In the survey approach, the questionnaire will be sued for data collection. The details of the
questions will be mentioned in the subsequent section of “Measurement of scales” in the
following.

Time horizon

The time horizon of the study will be cross-sectional. In this method, the data will be collected in
a single time frame in a single time period.

Measurement of scales

The data will be collected on questionnaires adopted from previous studies.

Items on surveillance and social interaction were drawn from works by Sung et al. (2016),
information sharing from Kim and Johnson (2012), and remuneration from Fuller (2006).
purchase intention will be measured form on the scale used by Majeed et al.(2021). Brand equity
is adopted form (Schivinski et al., 2016) which was also used by Majeed et al. (2021). The data
will be collected on 5-point Likert scale with 1 representing strongly disagreeing and 5
representing strongly agreeing.

Data collection techniques and procedures

The data from the respondents will be collected through using online surveys. The Google survey
form will be developed and sent to the users on their emails or social media accounts.
Data analysis techniques

The data will be collected and analysed using Structure Equation Modeling. The specially
designed software i.e, SMART-PLS will be used for data analysis.

4. Summary

This study aims to examine how social media use affects the purchase intention of UK fashion
goods consumers. Besides, brand equity's moderating effect on the relationship between social
media and desire to buy will also be evaluated. The current research study will utilize a
quantitative research design and deductive approach. The current study will have certain
limitations such as the data collection will be only from major cities of UK. Secondly, the study
will rely only on primary data, which sometimes causes common bias error. Besides, there are
certain other mediating variables such as brand trust, brand loyalty which should also be
investigated, however, not considered in the current proposed study.

Based on the research design and problem of the study, companies should focus on their contents
and advertisements while targeting consumers. Companies should try to develop a sense of trust
and integrity while propagating the message. Companies should develop a comprehensive social
media marketing plan to connect its customers.

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