The effect of firm created content and user generated content evaluation on customer-based brand equity

Abstract

The purpose of this paper is to investigate social media communication and its impact on customer-based brand equity. Compare two social media communication tools that are firm created content and user generated content. A total of 114 data sets developed through a standard online survey to investigate the impact of firm created content and user-generated content evaluation in social media on brand awareness / association, perceived quality and brand loyalty to the cosmetics industry in Indonesia. A mini survey was conducted to find out the types of cosmetic brands that do not perform ad campaigns in traditional media such as television to see clearly the influence of brand communication in social media against brand awareness and association. The author applies Structural Equation Modeling (SEM) techniques to investigate the effect of communication on social media on customer-based brand equity. The findings of this study indicate that evaluation of firm created content has a positive and significant impact on brand association / awareness, perceived quality and brand loyalty. Meanwhile, evaluation of user-generated content has significant effect only on brand awareness / association and perceived quality. In the dimensions of customer-based brand equity, only perceived quality is significantly influenced by brand awareness / association. This research is relevant for marketers for the development of corporate strategy, especially in the cosmetics industry that uses social media as a medium of communication to customers.