The Influence of Social Media Activities on Brand Loyalty: The Mediating Role of Brand Equity with the S-O-R Model on Netflix Customers

Febby Gracea Ekklesi; Oliandes Sondakh

doi:10.60076/ijeam.v1i6.1128

Authors

Febby Gracea Ekklesi Universitas Pelita Harapan
Oliandes Sondakh Universitas Pelita Harapan

DOI:

https://doi.org/10.60076/ijeam.v1i6.1128

Keywords:

Entertainment, Interactivity, Trendiness, Customization, EWOM

Abstract

In recent years, the internet has become increasingly popular in Indonesia, transforming individual behavior and creating new habits that were impossible with traditional media. The rise of the internet has also revolutionized global communication and entertainment, particularly through social media and SVOD platforms like Netflix, which has now become the world's most popular entertainment application. This study aims to analyze the influence of Entertainment, Interactivity, Trendiness, Customization, and EWOM on Brand Equity, as well as the role of Brand Equity in shaping Brand Loyalty among Netflix customers in East Java. The findings are expected to contribute to marketing theory development and assist Netflix in evaluating the impact of these variables on Brand Equity and Brand Loyalty.This study employs a quantitative method with data processing conducted through Smart PLS®4. Data were collected from 188 respondents aged 18-58 years, who are Netflix users residing in East Java and following Netflix's Instagram account. The results indicate that Brand Equity has the most significant impact on Brand Loyalty (0.614), followed by Trendiness on Brand Equity (0.434), EWOM on Brand Equity (0.203), and Customization on Brand Equity (0.185). Meanwhile, Entertainment and Interactivity have almost no influence on Brand Equity, with values of 0.001 and 0.000, respectively.This study contributes to theory, practice, and strategic aspects of social media marketing. Theoretically, it enriches the literature on brand equity and brand loyalty through elements such as entertainment, interactivity, and EWOM. Practically, the findings help Netflix develop a more personalized and interactive digital marketing strategy. From a strategic perspective, this study supports the optimization of big data and engagement marketing campaigns to enhance customer engagement and strengthen brand equity

References

Pengguna Internet di Indonesia Tembus 213 Juta Orang hingga Awal 2023. (2023). Databoks.Katadata.Co.Id. https://databoks.katadata.co.id/datapublish/2023/09/20/pengguna-internet-diindonesia-tembus-213-juta-orang-hingga-awal-2023

Agnes Z Yonatan. (2024). Menilik Perkembangan Netflix dalam 10 Tahun Terakhir. Goodstats.Id. https://data.goodstats.id/statistic/menilik-perkembangannetflix-dalam-10-tahun-terakhir-I8MRp

Malarvizhi, C. A., Al Mamun, A., Jayashree, S., Naznen, F., & Abir, T. (2022). Modelling the significance of social media marketing activities, brand equity and loyalty to predict consumers’ willingness to pay premium price for portable tech gadgets. Heliyon, 8(8), e10145. https://doi.org/10.1016/j.heliyon.2022.e10145

Bougie&Sekaran. (2019). Research Methods For Business: A Skill Building Approach, Wiley.

Hair, F. J., Ringle, M. C., Hult, M. T. G., & Sarstedt, M. (2022). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Researchgate. https://doi.org/10.1016/j.lrp.2013.01.002

Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203

Chin, W. W., & Newsted, P. R. (1998). The partial least squares approach to structural equation modeling. Modern methods for business research. Statistical Strategies for Small Sample Research, April, 295-336.

Zollo, L., Filieri, R., Rialti, R., & Yoon, S. (2020). Unpacking the relationship between social media marketing and brand equity : The mediating role of consumers ’ benefits and experience. Journal of Business Research, 117(April), 256–267. https://doi.org/10.1016/j.jbusres.2020.05.001

Nur, Y., & Hartono, A. (2023). The Effect of Somethinc ’ s Instagram Social Media Marketing Activities on Brand Awareness and Customer Loyalty. 23(15), 121–136. https://doi.org/10.9734/AJEBA/2023/v23i151021

Wantini, E., & Yudiana, F. E. (2021). Indonesian Journal of Islamic Economics Research Social media marketing and brand personality to brand loyalty with brand trust and brand equity as a mediator. Indonesian Journal of Islamic Economics Research, 3(1), 1–14. http://ejournal.iainsalatiga.ac.id/index.php/ijier