Академический Документы
Профессиональный Документы
Культура Документы
BY
ROBBY AKBAR
雄光耀
A THESIS
Presented as Partial Fulfillment of the Requirements
To obtain the Bachelor Degree in Management
In the School of Business
Nanjing Xiaozhuang University, 2018
Nanjing, Jiangsu.
ii
ACKNOWLEDGEMENTS
Assalamu’alaikum Warahmatullahi Wabarakatuh.
Bismillahirahmanirrahim, all praises to Allah, the Lord of the universe and the Creator
of everything inside it, for always giving us blessings in our life. Peace and Salaam upon
noble prophet, Muhammad (PBUH), who was deliver God teachings and lead us from
the darkness era to the brightness of Islam.
Alhamdulillahirabbil’alamin, this thesis entitled “How Social Media Brand
Communication Affects Company’s Brand Equity in Fashion Industry” as a partial
requirement to obtain the bachelor degree in Management International Department,
Faculty of Economics, Universitas Islam Indonesia and in Management International
Department, Faculty of Economics and Business, Nanjing Xiaozhuang University is
finally finished.
I realize that this cannot be done without my own hard work, helps and supports from
people around me. Hopefully, this thesis will be the start of other studies and lead to other
new knowledge. Through this occasion, I would like to address my gratitude and regards
for:
1. Allah Subhaanahu Wa Ta’aala, who has been giving his endless blessings so I
am able to overcome all problems and hard times and finish my thesis in time.
2. Nabiullah Muhammad Peace Be Upon Him, who has guide me to the rightful teachings
and could comply Allah orders as a Muslim.
3. My dear father and mother, whom always give me support and always put me in
their praying during good and bad time, teach me to be strong person, also always
encourage me to seize every opportunity and to chase my dream. The best parents
for here and after, always.
4. Mrs. Sophie Mou, the person that become a mother, the one who always helps
and support me during my study time in China. The one who give me affections,
supporting advices, and new opportunity for myself. I wish I can be like you
someday. Till we met again, Ci.
5. Mrs. Zhao Xing, as my thesis advisor who always giving me his best advices,
guidance, lessons, and knowledge in completion of this thesis. Thank you for
sparing time to guide me in writing thesis and resolving problem related to it.
6. To my roommates Yongki and Jerrel for making “such a nice place” to stay.
7. To all my beloved friends while in China Chufan, Goes, Calvin, Birin, Alwi,
Viardi, Bryan, Nia, Shierly, Farah, Pinky, Nica, Oci, Salsa, Sinta, Jenifer, Dian,
Dina, Oji, Wahyuni.
8. To all my “sahabat” back in Jogja, Serge, Dito, Seta, Hadi, Robot, Ayik Adhiya,
Anan, Miftah, Henry, Nur, Ayang, Dina, Avi, Midut, Agiv, Astrid, Citra, Upit,
Asya and especially to Betmen and DD who are waiting for me to celebrate
graduation together.
9. Last but not least thanks to Kezia, the one who supported during my thesis wiring,
the one who give me moral support when I’m down. Thank you for being there
when I need it.
10. All parties whom I could not mention one by one for all supports, helps, and
motivations.
iii
Hope Allah grants us blessing and sincerity in doing His commands and accepts our good
deeds. I also hope this study will give positive contribution and improvement in present
and future time.
Wassalamu’alaikum Warrahmatullahi Wabarakatuh
iv
TABLE OF CONTENT
CHAPTER I .................................................................................................................................. 1
INTRODUCTION ........................................................................................................................ 1
1.1. BACKGROUND OF STUDY ...................................................................................... 1
1.2. PROBLEM FORMULATION ..................................................................................... 2
1.3. RESEACH OBJECTIVE .............................................................................................. 3
1.4. RESEARCH CONTRIBUTION................................................................................... 3
1.5. SYSTEMATIC OF WRITING ..................................................................................... 4
CHAPTER II ................................................................................................................................ 5
REVIEW OF RELATED LITERATURE .................................................................................... 5
2.1 THEORITICAL REVIEW ........................................................................................... 5
2.1.1. SOCIAL MEDIA .................................................................................................. 5
2.1.2. BRAND EQUITY................................................................................................. 6
2.1.3. WORD OF MOUTH AND ELECTRONIC WORD OF MOUTH
MARKETING ...................................................................................................................... 8
2.2. HOW DOES SOCIAL MEDIA AFFECTS BRAND; THEORITICAL
FRAMEWORK ...................................................................................................................... 10
2.3. HYPOTHESIS FORMULATION .............................................................................. 11
CHAPTER III ............................................................................................................................. 13
RESEARCH METHODOLOGY ............................................................................................... 13
2.1. RESEARCH METHOD ............................................................................................. 13
2.2. POPULATION AND SAMPLE ................................................................................. 13
2.3. DATA COLLECTION METHOD ............................................................................. 13
2.4. RESEARCH DATA ANALYSIS ............................................................................... 14
2.4.1. DESCTRIPTIVE STATISTIC ........................................................................... 14
2.4.2. VERIFICATION TESTING ............................................................................... 15
2.4.3. NORMALITY TESTING ................................................................................... 16
2.4.4. HYPOTHESIS TESTING .................................................................................. 16
2.4.5. COEFFICIENT ANALYSIS OF DETERMINATION (R2) ............................... 16
CHAPTER IV ............................................................................................................................. 17
RESEARCH FINDING AND DISCUSSION ............................................................................ 17
4.1. DESCRIPTIVE STATISTIC ANALYSIS ................................................................. 17
4.1.1. THE RESULT OF CORRESPONDENT CHARACTERISITIC ....................... 17
4.1.2. THE RESULT OF DESCRIPTIVE ANALYSIS OF VARIABLE .................... 20
4.1.1. THE SUMMARY RESULT OF DESCRIPTIVE ANALYSIS .......................... 22
4.2. VERIFICATION ANALYSIS .................................................................................... 23
v
4.2.1. VALIDITY ANALYSIS ..................................................................................... 23
4.2.2. REABILITY TEST ............................................................................................. 25
4.3. NORMALITY TEST .................................................................................................. 25
4.4. HYPOTHESIS TEST ................................................................................................. 28
4.4.1. T TEST ............................................................................................................... 28
4.5. COEFFICIENT ANALYSIS OF DETERMINATION (R2) ...................................... 30
CHAPTER V .............................................................................................................................. 31
CONCLUSION, RESEARCH LIMITATION AND RECOMMENDATION .......................... 31
5.1. CONCLUSION........................................................................................................... 31
5.2. RESEARCH LIMITATION ....................................................................................... 32
5.3. RECOMMENDATION .............................................................................................. 33
REFERENCES ........................................................................................................................... 34
vi
CHAPTER I
INTRODUCTION
1.1. BACKGROUND OF STUDY
In the era of globalization where everyone connected through internet is something that
can be capitalized. Internet could be use as the platform for company to build their brand.
The relationship of brand with their audience have change drastically due to the
widespread adoption of social media. Thus, information is easily spread.
Social media is the trend and for business, its marketing opportunity to connect and
engage company with their current and potential customer. This is one of the reason why
most company like Apple and Starbucks and even small business are now involving and
engaging with their customer through social media.
Online or in real life, word of mouth is a way to spread information between people to
people. With the widespread adoption of social media, it makes even easier for
information to spread. Word of mouth also the way people discovering new brand, people
discover new brands from their friend on regular basis. As an example, Game of Thrones
series, lot of people discover the series from friend who share and talk on social media
about how good the series is.
Now imagine using social media as a platform to build company’s brand equity, it can
be very power full. A brand’s online presence and their social presence can be an asset
in building brand equity, the adding the value to the brand and consumer.
The concept of brand equity was born in the 1990s and can be regarded as managerial
concept to define financial intangible asset or as a customer-based concept from the
perspective of the individual consumer. Since then lots of marketing researcher put their
effort trying to define, measuring and understanding the consequence of building strong
brand.
Stephen King of WPP London said that "A product is something that is made in a factory;
a brand is something that is bought by a customer. A product can be copied by a
competitor; a brand is unique. A product can be quickly intervening outdated; a
successful brand is timeless". I can draw the conclusion that brand equity is a premium
value issued by the consumer to purchase a specific product of a specific brand. Brand
1
equity will distinguish the product from its generic equivalent. Brand equity can be
formed by making a product memorable, superior in quality and reliability. Mass
marketing campaigns can also play a role in shaping the brand equity. Brand equity is an
important part when building a business. And a successful business fully understand how
important brand equity to business is. But to build the brand equity of a business is not
easy, it takes effort and time. However, if the business successfully established a good
brand equity, this course will give an extraordinary effect on the company.
Based on the background above, brand equity is very important for company to build and
one way to build it can be achieved through social media. Thus, this is the sole reason
for the author to conduct a study entitled with “How Social Media Brand
Communication affects Company’s Brand Equity in fashion industry”
Based on the background on the problems above, so the formulation in this research are
as follows:
2
1.3. RESEACH OBJECTIVE
The purpose of this study is to analyze and find some information if the social media
brand communication will positively influence brand awareness/brand association
Generally, this study is to get information and then this information can be applying
properly by the user. Different user may get different benefit. Below listed specify of the
benefit:
The manager or company will be benefitted by the information from this research. The
information can be use in marketing so that the effort can be executed efficiently and
effectively.
This study can be some valuation addition information for the next researcher who needs
similar information in the future, this study can be reference.
3
1.4.3. For the reader
The benefit for reader is to gain some knowledge. By analyze this study, the readers are
expected to gain new knowledge and can use the information properly.
Chapter – II: Review of Related Literature. This chapter reviews the existing literature
on the concept of brand equity. It also contains reviews of journals and articles, and
earlier thesis related to the subject.
Chapter – III: Research Methodology. This chapter expresses the way and technique of
the study applied in the research process. It includes research design, population and
sample, data collection procedure and processing, tools and method of analysis.
Chapter - IV: Analysis and Interpretation of Data. In this chapter collected and processed
data are presented, analyzed and interpreted with using financial tools as well as
statistical tools.
4
CHAPTER II
Richter & Koch (2007) define Social media as “online applications and platforms which
aim to facilitate interactions, collaborations and sharing of content". Social media is a
platform to socialize either with people you already know or not there is no boundaries
to it. Based on Neti (2011) social media is “any website which allows user to share their
content, opinion, views and encourages interaction and community building”. Further
she explained that the word social media can be derived from two words. Media typically
related to promotion, advertising and communicating ideas through a platform. Social
implies an interaction made by one individual or group to another individual or group.
Combine social media can be interpret as interpersonal interaction of individual of group
through particular medium or platform.
Neti (2011) said that the term of social media can be explained by define the two words
constitute it. Media, generally relates to advertising and the communication of ideas or
information through publication or channel. Social indicate the interaction between
people to people in group or community. Put together social media can be defined as the
interaction of a person or a group in one community using specific medium or tool.
Wikipedia has a general definition of the term: Social Media is the democratization of
information, transforming people from content readers into content publishers. It is the
shift from a broadcast mechanism to a many-to-many model, rooted in conversations
between authors, people, and peers.
Social media as activities, practices, and behaviors among communities of online people
who share their opinion, idea, information and knowledge using platform that enable
5
them to communicate each other. Social media can be referred to the communication
platforms which are generated and supported by the social interaction of people through
specific media or tools.
Social media has changed the way consumer and brands interact each other, the old and
traditional communication has changed, now consumer enabled to make positive as well
as negative influence on brand equity (Zailskaite-Jakste, Kuvykaite, 2013). Further in
their study Zailskaite-Jakste, Kuvykaite, (2013) stated that social media have a lot of
advantages to brands: it allows to secure the reputation of a brand, increase sales, involve
consumers in brand creation process expand brand awareness, provide more positive
associations and increase consumer loyalty.
Brand Equity is the distinguish factor that separated a product for a consumer when
choosing one product to another similar product which could offer the same functionality.
Aaker (1991) defines Brand Equity as a “set of brand assets and liabilities liked to a brand,
its name and symbol that add to or subtract from value provided by a product or service
to a firm and/or to that firm’s customer”. Generally, brand equity can be defined both
from customer and firm perspective. The consumer perspective typically related about
how a consumer think or perceive about a particular brand, included attitudes, awareness,
association, attachment, and loyalties. Consumer-based brand Equity is the unique added
value in a product or service, attributed to the consumer’s favorable knowledge and
association with a brand (Keller, 1993). On the other hand, the firm-based brand equity
is the aspect like product market outcomes such as premium price, market share, relative
price, and financial market outcomes such as brand’s purchase price and discounted cash
flow of license fees and royalties. Consumer-based brand equity is the attribute associate
in the consumers mind. In this context, brand equity can be described as largely
attitudinal in nature comprising of beliefs, affect, and other subjective experience related
to the brand like brand attitude and brand image.
Tuominen (1999) expressed that brand can implicitly show status, increase image and
augment lifestyle that will help company to stand their way in the crowded market. The
6
basic notion here is that brands placed in the minds of customer which with some effort
can be changed or influenced or even controlled by marketers (Keller, 1993). There is
something that connecting the sensory content (input) and brand choice (output) (Tilde
Heding, 2009).
In general terms, brand equity can be defined as the unique effect of marketing effort to
the attribute of brand. Thus, different outcomes may fort to the brand depends on how
marketing effort of a product or service because of its brand elements, as compared to
the same product or service that doesn’t have brand identification. Many scholars
expressed their view about brand equity, but in general brand equity can be expressed as
the “added value” attached to the product or service as a result of investment in marketing
effort for the brand.
in the current era, brands are very important in order to achieve a good result in business.
Finding out the reason behind the way consumer choose particular brand would be the
foundation for a business in developing the business strategies, in order to obtain the
loyal consumer who are will to spend more for a branded product. Its enables to have
more in-depth work understanding of brand equity and its instrument.
In addition, brand equity can create stronger customer loyalty, reduced price elasticity of
demand, increase marketing effectiveness, opportunities for licensing agreements, as
well as brand extension and stronger competitive position (Keller, 1993).
Since the idea of brand equity emerged, marketing research and marketing practices have
put their time and effort to the process related to how to build a strong relationship
between brand and consumer, and most of them believed that brand is the most valuable
assets for a company. The idea of brand equity is a subject matter to consumer. As matter
of fact, brand equity reflects the value of a brand in the perspective of consumer and
7
organization. For the consumer, this added value emerged as the attributes and indicator
of desirable of a brand.
8
eWOM informant are known to the receiver thereby the credibility of the communicator
and the message is known to the receiver (Cheung, Thadani, 2012)
Westbrook (1987) described that electronic word of mouth (E-WOM) as all informal
communication done by consumer talking about products, services, or the sellers through
internet-based platform. By this means including the communication between producer
and consumer as well as consumer and consumer.
A brand community is a “social entity” made by several people in a group of people who
likes brands and made communication through internet-based platform (Heding et al.,
2009). Present’s consumers are like storyteller and brand ambassador, they often sharing
various information (Goodman et al, 2011) thus emitting greater exposure to the brand.
Lipsman et al (2012) said that friends of fans could provided as much as 35 times bigger
than what company can achieve in isolation. This known as digital tribalism where
people on social media share content from like-minded, longstanding peers of certain
social-classes.
Thus, the impact of E-Word-of-Mouth itself is much greater than the traditional media
(Kapferer and Kotler, 2008) as consumer today are much more depending on social
media to look up an information before they make the actual purchase. It is important to
understand that once a message is going through the internet it will add to the brand
image and creating impression in consumer’s mind. For that reasons marketer must find
a way to defend against negative comment as Electronic Word of Mouth is cheaper, faster,
and less controllable (Zailskaite-Jakste andKuvykite, 2013)
9
2.2. HOW DOES SOCIAL MEDIA AFFECTS BRAND; THEORITICAL
FRAMEWORK
Social media has outstripped traditional means by providing an array of benefits for the
marketers. It transforms customer from traditional concept as only a recipient to more
influential activist. Brand that exist on social media are theoretically preferred by the
consumer since social media as a medium provides enough content for consumer when
making purchasing.
Social media as platform offers medium for company and consumer to interact with each
other. Company hope interact with their current and potential consumer and influence
them about their product, shares information, and learn from their audience (Brodie, Ilic,
Juric and Hollebeek, 2013). Compare to traditional media of communication, social
media has established its own reputation due to its appeal in wide demographic (Kaplan
and Haenlein, 2012). One of the very reason why social media grow so fast is because
social media has the ability to spread information rapidly. Additionally, social media
offers feature that enables its user to create and share content (Kaplan and Haenlin, 2012).
The content created by the user could be vary including brand and product, making
companies is not the only primary resource of brand communication. Studies have shown
that the social media are more trusted and generally accepted as the source to look up an
information that needed before consumer make purchase (Karakaya and Barnes, 2010).
Thus, marketing and brand managers may assume that brand communication will
increase through user-generated social media communication.
10
management and user-created social media communication is independent and is not
under company’s management.
In the topic firm-created social media brand communication mainly focus about word of
mouth (WOM) and electronic word of mouth (eWOM) marketing (Chu and Kim, 2011).
Firm-created WOM may be the combination between traditional advertising and
consumer word of mouth, which initiated and implemented by consumer (Godes and
Mayzlin, 2009).
On the other hand, internet has provided the medium that empowered proactive consumer
behavior (Burmann and Arnhold, 2008). User-generated social media communication
becoming popular nowadays as the result social media’s rapidly growing. This type of
social media communication has been referred to in literature such as vigilant marketing,
user-generated branding (UGB) and user-generated content (UGC). In this study, the
authors using UGC terminology. Based on the definition provided by the Organization
for Co-Operation and Development (OECD, 2007), UGC defined as “a) content that is
made publicly available over the internet, b) content that reflects a certain amount of
creative effort and c) content created outside professional routines and practices”.
11
H1a. Firm-created social media brand communication positively influences
brand awareness
BRAND
AWARENESS
FIRM - CREATED
USER -
GENERATED
PERCEIVED
QUALITY
12
CHAPTER III
RESEARCH METHODOLOGY
In this research, the researcher using quantitative method to analyze the data and samples
that already gathered. Quantitative method is a method that addresses research objectives
through empirical assessment that involve numerical measurement and analysis.
This study is conducted to analyses the effect of social media brand communication to
brand equity in fashion industry. This study conducted by collecting data and information
to from the respondent and the analyzed through statistical application which is SPSS
version 21 to interpret and explain the data obtained.
Population is the group of people or entities that the researcher wants to draw conclusion
about once the research study is finished. Identifying the target population requires the
specifying criteria that determined which individuals or entities are included and which
are not included. In other words, what is the characteristic must individual or entity must
have included in the target population? In this study, a person that have been exposed by
brand communication either from firm-created or user-generated is eligible to be a valid
respondent. The size of the sample is limited to 52 peoples, once the data collected, the
questionnaire distribution will be stopped.
In this research, the researcher will be using questionnaire method to collect the data
needed to complete this research. The questionnaire is distributed to Indonesian’s student
that lives in Nanjing, China. The questionnaire will be designed as closed questionnaire
using Likert scale ranging from 1-5. Likert scale used to measure attitude, opinion, and
perception of a group or individual. The answer of a respondent will be based on Likert
13
scale ranging from Very agree to Very disagree. Below listed the full list of how Likert
scale looks like:
14
No Scale Information
1 1.00 – 180 Very low
2 1.81 – 2.60 Low
3 2.61 – 3.40 Medium
4 3.41 – 4.20 High
5 4.21 – 5.00 Very High
Table 2. wide scale of value.
15
2.4.3. NORMALITY TESTING
This testing is to assume normally distributed data to determine whether the data fit the
criterion. There are a number of ways to check the normality of the research data, which
one of them is the Kolmogorov-Smirnov test. The Kolmogorov-Smirnov test reported in
the SPSS procedure can be used to test the hypothesis that the distribution is normal. This
study used Kolmogorov-Smirnov test for the normality test which the data said to be
normal if Sig > alpha. Alpha used for this testing is 0.05 so that data can be said normal
if Sig > 0.05.
16
0% indicates that the model explains none of the variability of the response data around
its mean.
100% indicates that the model explains all the variability of the response data around its
mean.
In general, the higher the R-squared, the better the model fits the data. Below listed on
how interpretations of R-squared:
CHAPTER IV
17
a. Age
The table 4 shows that the age of respondent is 51 peoples (98.07%) in the range of 18-
24 years old and there are only 1 (1.93%) respondent that in the range of age 35-44.
Based on the data, the respondent were mostly young peoples.
b. Occupation
From the table 5 shows that mostly the respondent is student making 48 (92.30%) of
them, and 1 (1.93) is self-employed, and employed consist of 3 (5.76) people. Based on
the data collected, we can draw a conclusion that most of the respondent of this research
is student.
18
c. Method of brand exposed
From the table 6 shows that there are 27 (51.92%) of respondent that exposed to the brand
by the effort of company in their social media brand communication and the other 25
(48.08%) got exposed to the brand for the first time from user-generated social media
brand communication. Based on that data, we can draw conclusion that social media
brand communication either done by the company or the user have almost the same
amount of result in number of exposure by the consumer.
d. Favorite brand
From the table 7 shows that respondent’s favorite brand, there are 12 (23.08%)
respondents choose Zara as their favorite brand, 14 (26.92%) respondents choose H&M
as their favorite brand, 11 (21.15%) respondents choose Uniqlo as their favorite brand
and 15 (28.85%) respondents choose Forever 21 as their favorite brand. The result
suggests that the differences between each brand is minimal.
19
4.1.2. THE RESULT OF DESCRIPTIVE ANALYSIS OF VARIABLE
From the table 8 the highest mean value is 3.87 with questionnaire question “I am
satisfied with the company’s social media brand communication”, and the lowest mean
is 3.71 with question “the company’s social media brand communication performs well”.
From this data we can draw a conclusion that firm-created social media brand
communication in fashion industry is attractive
Frequency of Answers
No. item N Total Score Mean Category
VA A N D VD
UG1 7 25 17 3 0 52 192 3.69 High
UG2 4 27 19 2 0 52 189 3.63 High
UG3 7 28 17 0 0 52 198 3.81 High
UG4 2 30 18 2 0 52 188 3.62 High
UG5 2 30 20 0 0 52 190 3.65 High
Table 9. descriptive analysis of user-generated social media brand communication variable
From the data shown on table 9 the highest mean value is 3.81 with the question “the
content generated by other users about this brand is very attractive”, and the lowest mean
is 3.62 with question “the content generated on social media sites by other users performs
20
well”. From this data we can draw conclusion that user-generated social media
communication is very attractive to consumer.
From the data shown on the table 11 the highest mean value is 3.65 with the question “I
intent to remain as the company’s customer” and the lowest mean value is 3.15 with the
question “the prospect of lower price would not make me choose another brand’s
21
product”. From this data we can draw conclusion that brand loyalty in fashion industry
is pretty low.
From the data shown on the table 12 the highest mean value is 4.21 with the question
“product from this company is comfortable” and the lowest mean is 3.94 with the
question “product from this brand are worth their price”. From the data we can draw
conclusion that consumer believed the product is good but its actually maybe little bit
expensive.
From the data shown on the table 13 we can draw conclusion that each variable on this
research resulted on average of high, which means each variable contribute positively to
22
brand equity. From the data we can see that brand awareness have mean value 4.12 which
is the highest and brand loyalty have mean value 3.40 which fall in to medium category.
23
Variable Item r table r (count) information
FC1 0.237 0.579 Valid
FC2 0.237 0.390 Valid
Firm-created social media
FC3 0.237 0.583 Valid
brand communication
FC4 0.237 0.483 Valid
FC5 0.237 0.564 Valid
UG1 0.237 0.641 Valid
User-generated social UG2 0.237 0.455 Valid
media brand UG3 0.237 0.626 Valid
communication UG4 0.237 0.671 Valid
UG5 0.237 0.595 Valid
BA1 0.237 0.568 Valid
BA2 0.237 0.727 Valid
Brand awareness BA3 0.237 0.666 Valid
BA4 0.237 0.595 Valid
BA5 0.237 0.559 Valid
BL1 0.237 0.679 Valid
BL2 0.237 0.487 Valid
Brand loyalty BL3 0.237 0.649 Valid
BL4 0.237 0.691 Valid
BL5 0.237 0.527 Valid
PQ1 0.237 0.337 Valid
PQ2 0.237 0.405 Valid
Perceive quality PQ3 0.237 0.688 Valid
PQ4 0.237 0.521 Valid
PQ5 0.237 0.489 Valid
Table 14. the result of validity test
Based on the data shown on the table 14 we can see that all the questionnaire from each
variable is valid since r count on each question is more that r table = 0.237.
24
4.2.2. REABILITY TEST
Table 4.2.2
Variable Cronbach’s alpha Information
Firm-created social media brand communication 0.761 Reliable
User-generated social media communication 0.745 Reliable
Brand Awareness 0.836 Reliable
Brand Loyalty 0.798 Reliable
Perceived Quality 0.717 Reliable
Table 15. the result of validity test
Based on the data shown on table 15, we can draw conclusion that the questionnaire is
reliable and/or good since the value of Cronbach alpha in each variable exceed the value
that has been set which is 0.70.
Then the next step is to process the data with SPSS statistical program to obtained the
data desired.
25
One-Sample Kolmogorov-Smirnov Test
Unstandardized
Residual
N 52
Normal Parametersa,b Mean .0000000
Std.
.75179079
Deviation
Most Extreme Differences Absolute .152
Positive .076
Negative -.152
Kolmogorov-Smirnov Z 1.096
Asymp. Sig. (2-tailed) .181
a. Test distribution is Normal.
b. Calculated from data.
Table 16. the result of normality test of brand awareness variable
Based on the data shown in the table 16 we can see that the value of Asymp Sig (2-tailed)
is 0.181 which is more than 0.05, this data can be interpreted as Ho is accepted and Ha
is rejected, on the other words the data residual is normally distributed.
Unstandardized
Residual
N 52
Normal Parametersa,b Mean .0000000
Std.
1.30850565
Deviation
Most Extreme Differences Absolute .111
Positive .070
Negative -.111
Kolmogorov-Smirnov Z .804
Asymp. Sig. (2-tailed) .538
a. Test distribution is Normal.
b. Calculated from data.
Table 17. the result of normality test of brand loyalty variable
26
Based on the data shown in the table 17 we can see that the value of Asymp Sig (2-tailed)
is 0.538 which is more than 0.05, this data can be interpreted as Ho is accepted and Ha
is rejected, on the other words the data residual is normally distributed.
Unstandardized
Residual
N 52
Normal Parametersa,b Mean .0000000
Std.
1.42223553
Deviation
Most Extreme Differences Absolute .126
Positive .058
Negative -.126
Kolmogorov-Smirnov Z .912
Asymp. Sig. (2-tailed) .377
a. Test distribution is Normal.
b. Calculated from data.
Table 18. the result of normality test of perceived quality variable
Based on the data shown in the table 18 we can see that the value of Asymp Sig (2-tailed)
is 0.377 which is more than 0.05, this data can be interpreted as Ho is accepted and Ha
is rejected, on the other words the data residual is normally distributed.
27
4.4. HYPOTHESIS TEST
4.4.1. T TEST
Hypothesis T Table Std Sig. T Count Sig. Result
Firm-created social media communication
positively influences brand awareness 2.01 0.05 2.433 .019 Accepted
User-generated social media communication
positively influences brand awareness 2.01 0.05 5.015 .000 Accepted
Firm-created social media communication
positively influences brand loyalty 2.01 0.05 5.524 .000 Accepted
User-generated social media communication
positively influences brand loyalty 2.01 0.05 4.649 .000 Accepted
Firm-created social media communication
positively influences perceived quality 2.01 0.05 1.814 .076 Rejected
User-generated social media communication
positively influences perceived quality 2.01 0.05 4.173 .000 Accepted
Table 18. the result of T test
The result of T test using SPSS, a = 0,05 and n = 52 (sample) with formula df = n – k (df
= 52 -5 = 47), T table = 2,01. To check the relation between Variable Brand awareness
to Firm-created social media brand communication and User-generated social media
brand communication.
H1a. Firm-created social media brand communication positively
influences brand awareness
Based on the data shown on the table 18 we can see that Firm-created social media
communication have positive influence to brand awareness, proven by sig value that
smaller than 0,05 and T value 2.433 that exceed T table which is 2.01. Which means the
hypothesis H1a is positive and accepted.
H1b. User-generated social media brand communication positively
influences brand awareness
Based on the data shown on the table 18 we can see that user-generated social media
communication have positive influence to brand awareness, proven by sig value 0.000
that smaller than 0.05 and T value 5.015 that exceed T table which is 2.01. on the other
word, hypothesis H1b is accepted.
28
The result of T test using SPSS, a = 0,05 and n = 52 (sample) with formula df = n – k (df
= 52 -5 = 47), T table = 2,01. To check the relation between Variable Brand loyalty to
Firm-created social media brand communication and User-generated social media brand
communication.
H2a. Firm-created social media brand communication positively
influences brand loyalty
Based on the data shown on the table 18 we can see that Firm-created social media
communication have positive influence to brand loyalty, proven by sig value 0.000 that
smaller than 0,05 and T value 5.524 that larger than 2.01. Which means the hypothesis
H2a is Accepted.
H2b. User-generated social media brand communication positively
influences brand loyalty.
Based on the data shown on the table 18 we can see that user-generated social media
communication have positive influence to brand loyalty, proven by sig value 0.000 that
smaller than 0.05 and T value 4.649 that exceed T table which is 2.01. on the other word,
hypothesis H2b is Accepted.
The result of T test using SPSS, a = 0,05 and n = 52 (sample) with formula df = n – k (df
= 52 -5 = 47), T table = 2,01. To check the relation between Variable Perceived quality
to Firm-created social media brand communication and User-generated social media
brand communication.
H3a. Firm-created social media brand communication positively
influences perceived quality
Based on the data shown on the table 18 we can see that Firm-created social media
communication have no positive influence to perceived quality, proven by sig value
0.076 that larger than 0,05 and T value 1.814 that smaller than 2.01174. Which means
the hypothesis H3a is Rejected.
H3b. User-generated social media brand communication positively
influences perceived quality
Based on the data shown on the table 18 we can see that user-generated social media
communication have positive influence to brand loyalty, proven by sig value 0.000 that
29
smaller than 0.05 and T value 4.173 that exceed T table which is 2.0117. on the other
word, hypothesis H3b is accepted.
Model Summary
Std. Error
Adjusted of the
Model R R Square R Square Estimate
1 .952a .906 .902 .76698
a. Predictors: (Constant), TotalUGX, TotalFCX
Table 19. the result of R2 test of brand awareness variable
Based on the data shown on the table 19 R square value is 0.906, it shows that the variable
brand awareness has very high relationship with firm-created social media brand
communication and user-generated social media brand communication. The number
suggest its relationship is 90.6 percent related, this number supported by the value of R
which is 0.952 so brand awareness has very high relationship firm-created social media
brand communication and user-generated social media brand communication.
Model Summary
Std. Error
Adjusted of the
Model R R Square R Square Estimate
1 .842a .709 .698 1.33494
Based on the data shown on the table 20 R square value is 0.709, it shows that the variable
brand loyalty has high relationship with firm-created social media brand communication
and user-generated social media brand communication. The number suggest its
relationship is 70.9 percent related, this number supported by the value of R which is
0.842 so brand loyalty has high relationship with firm-created social media brand
communication and user-generated social media brand communication.
30
Model Summary
Std. Error
Adjusted of the
Model R R Square R Square Estimate
1 .825a .681 .668 1.45097
a. Predictors: (Constant), TotalUGX, TotalFCX
Table 21. the result of R2 test of perceived quality variable
Based on the data shown on the table 21 R square value is 0.681, it shows that the variable
perceived quality has high relationship to firm-created social media brand
communication and user-generated social media brand communication. The number
suggest its relationship is 68.1 percent related, this number supported by the value of R
which is 0.825 so perceived quality have high relationship with firm-created social media
brand communication and user-generated social media brand communication.
CHAPTER V
5.1. CONCLUSION
The advent social media has brought a new way for company to communicate their brand.
It is very important for a company to understand the difference between firm-created and
user-generated content on social media and find out the effect of these two categories on
social media separately. Firm-created content on social media is under firm and manager
control where user-generated contents are independent and cannot be interfere by the
firm. Thus, it is really important to understand the role of each category of social media
communication in brand equity creation.
Firm-created and user-generated content on social media have their own effect on brand
equity creation thus, the firm and manager need to understand these two categories of
social media content namely firm-created and use-generated and their effect toward
brand equity creation.
The result of the effect of social media brand communication on costumer-based brand
equity construct that firm-created social media brand communication influences only
brand awareness, despite the effort spent by the firm in social media marketing,
31
consumers are still reluctant to value what the firm created. This type of social media
communication only showed positive influences to brand awareness and not showing
direct influences to brand loyalty and loyalty.
On the other hand, the other type of social media communication which is user-generated
showed that it has the ability to positively influences brand awareness, perceived quality
and brand loyalty. The positive valuation given by other users of the product perceive by
consumers perceived to more trustworthy and reliable. Based on the respondent’s
respond they are heavily rely on the opinion of other user before making purchase of a
product. They tend to seek for more information from other users on the internet, friends
and family regarding the quality of the product provided by the firm. Another aspect to
look up from this research is that consumers are consciously differentiate the two form
of social media communication and have their own opinion on each of them.
To conclude, social media platform offers unlimited ways for consumer to interact,
express, share and create content about brands and product. Thus, maximizing the two
form of social media communication offers a lot of opportunity for a firm in brand equity
building. The firm’s brand manager should manage to incorporated social media brand
communication in their marketing campaign. The firm needs to acknowledge that social
networking sites is important part of the internet, and many current and their potential
consumers are spending lot of time on it in their daily routines. Social network site offers
the firm a way to interact and engage or even influence their current and potential
consumer. Furthermore, the firm should integrate the finding of this research in to their
strategies in order to execute the performance the branding enhancement.
32
5.3. RECOMMENDATION
Based on the result of this research the there are some key result that can be use by
company, brand manager, or any party that may be benefitted from this research.
Recommendations are as follow:
1. Traditional marketing may still have its place, but social media is a huge platform
to ignore, company’s needs to hire professional to manage their social media
brand communication.
2. User’s review can give huge impact, many consumers today does not have the
confident to buy a product just based on the company’s advertisement, they tend
to search more information from the other user. Thus, giving product to
influencer to get reviewed may give additional info for consumer, and also
chance to get exposed by new potential consumer.
33
REFERENCES
A. Richter, M. K. (2007). Social software: Status quo und Zukunft. Journal of Service Science
and Management.
Aaker, D. A. (1991). Managing Brand Equity: Capitalizing on the Value of a. New York: The
Free Press.
Allan J. Kimmel, P. J. (2014). Word of mouth and social media. Journal of Marketing
Communications.
Andrew Lipsman, G. M. (2012). The Power of "Like" How Brands Reach (and Influence) Fans
Through Social-Media Marketing. Journal of Advertising Research.
Angella J. Kim, E. K. (2012). Do social media marketing activities enhance customer equity?
An empirical study of luxury fashion brand. Journal of Business Research.
Fahri Karakaya, N. G. (2010). Impact of online reviews of customer care experience on brand
or company selection. Journal of Consumer Marketing.
34
Manfred Bruhn, M. B. (2012). Are social media replacing traditional media in terms of brand
equity creation? Management Research Review.
Manfred Bruhn, V. S. (2012). Are social media replacing traditional media in terms of brand
equity creation? Management Research Review.
Neti, S. (2011). Social Media and Its Role In Marketing. International Journal of Enterprise
Computing and Business Systems.
Paula Rodrigues, F. V. (2016). Perceptual and behavioural dimensions: measuring brand equity
consumer based. Journal of Fashion Marketing and Management: An International.
Sri Murtiasih, S. S. (2014). Impact of country of origin and word of mouth on brand equity.
Marketing Intelligence & Planning.
35