Page 938 - MARSIUM'21 COMP OF PAPER
P. 938

939                                        Teo & Dr Adaviah (2021)

            HERMS C Enterprise fails to develop and manage substantial brand equity on social media. HERMS C Enterprise has its brand, yet it
            could not compete with the competitors in the market. The company spends around RM20,000 on social media advertising. However, it does
            not work where the company still faces low brand equity in the social media market and fails to attract customers'  repurchase intention
            toward the brand. When HERMS C Enterprise launches a new product on social media, the success rate of the new product might be low due
            to its lack of brand trust and credibility to convenience customers repurchase on the new product. Apart from that, HERMS C Enterprise
            faces difficulty attracting customers to repurchase its products as low brand equity will influence the choice of customers where the customers
            would choose the brand with strong brand equity. The impact of brand equity on customer retention, retention, and profit margin primarily
            looked at the relationship between the brand's value and the consumer's lifetime value (Stahl, Heitmann, Lehmann, and Neslin, 2012).
            However, there has been limited research on this issue. In addition, there is still insufficient research study on customers' repurchase intention
            toward activewear brands on social media platforms which influence by e-WOM and brand equity. Therefore, this research will focus on the
            factors that influence customers' repurchase intention toward activewear brands and the importance of brand equity on social media platforms.


            1.2 RESEARCH QUESTIONS

            This study listed four main research questions:

            RQ1: Does user-generated social media communication positively affect the electronic word-of-mouth communication (e-WOM) of HERMS
            C Enterprise?
            RQ2: Does firm-generated social media communication positively affect the electronic word-of-mouth communication (e-WOM) of HERMS
            C Enterprise?
            RQ3: Does electronic word-of-mouth communication (e-WOM) positively affect brand equity of HERMS C Enterprise?
            RQ4: Does brand equity positively affect customers' repurchase intention toward HERMS C Enterprise?


            1.3 RESEARCH OBJECTIVES

            This study listed four main objectives:

            RO1: To identify the significant relationship between user-generated social media communication and electronic word-of-mouth
            communication (e-WOM).
            RO2: To identify the significant relationship between firm-generated social media communication and electronic word-of-mouth
            communication (e-WOM).
            RO3: To identify the effect of electronic word-of-mouth communication (e-WOM) on brand equity of HERMS C Enterprise.
            RO4: To identify the effect of brand equity on customers' repurchase intention toward HERMS C Enterprise.

            ■  2.0 LITERATURE REVIEW

            2.1 INSTAGRAM AS SOCIAL MEDIA COMMUNICATION TOOL

                   Social media users can broadcast their ideas and opinions throughout the world with a single click on social media. The message
            may be addressed specifically to someone, but it is difficult to determine who the author is (Bertot, Jaeger, P.T., et al., 2012). All the social
            media users may share their thoughts and openly express themselves on social media. Therefore, various brands extend their businesses via
            social media to reach out to more users about their brands. Marketers may reach out to customers in their social communities and develop
            more intimate relations with the users via social media (Kelly, Kerr, & Drennan, 2010). People and businesses are connected through the
            Internet and social media, including Instagram, and interactions with less dependent on time and place. In order to build and sustain brand
            equity, the social media marketing strategy needs to be unique to attract Instagram users' attention. Instagram have made it incredibly easy
            for the business to market and advertise the products. According to a survey reported in BBC News (2012), a significant percentage of the
            world's top businesses use Instagram as part of their marketing strategies.


            2.2 DEFINITION OF BRAND EQUITY

                   Brand equity is a combination of assets and liabilities associated with a business, its name and symbols that contribute to or detract
            from the value supplied by a service or product to a company and its consumers (David A. Aaker, 1991, p.15). Brand equity refers to the
            value that a company gains from its product with a distinctive name compared to its competitors (Liao & Cheng, 2014).  According to Goi
            & Goi (2011), an organization that undergoes a rebranding revolution generally wants to increase its brand equity. Improved levels of brand
            equity are frequently translated into higher cash flows and enhanced competitiveness (Baalbaki & Guzmán, 2016). Brand equity




                                                                                                                939
   933   934   935   936   937   938   939   940   941   942   943