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Social media marketing for luxury brands: parasocial interactions and empowerment for enhanced loyalty and willingness to pay a premium

Tao Zha (UCSI Graduate Business School, UCSI University, Kuala Lumpur, Malaysia)
Eugene Cheng-Xi Aw (UCSI Graduate Business School, UCSI University, Kuala Lumpur, Malaysia)
Omkar Dastane (UCSI Graduate Business School, UCSI University, Kuala Lumpur, Malaysia)
Angeline Gautami Fernando (Great Lakes Institute of Management, Dr Bala V. Balachandar Campus, Chennai, India)

Marketing Intelligence & Planning

ISSN: 0263-4503

Article publication date: 19 September 2023

Issue publication date: 7 November 2023

3389

Abstract

Purpose

This research aims to unravel the intricate relationship between luxury brands' social media marketing strategies (i.e. communication and engagement) and their impact on consumers' willingness to pay a premium and brand loyalty.

Design/methodology/approach

A large online consumer panel was used to conduct an online survey of 381 consumers. Partial least squares structural equation modeling was adopted for hypothesis testing.

Findings

The study's outcomes indicated that (1) perceived interactivity and perceived openness positively influence social media brand communication, (2) social media brand communication and engagement are positive determinants for consumer empowerment and parasocial interactions, (3) consumer empowerment and parasocial interactions positively influence willingness to pay a premium and (4) parasocial interactions (but not consumer empowerment) positively influence brand loyalty.

Research limitations/implications

The study offers significant theoretical implications by unraveling the mechanism of social media marketing for luxury brands, which is under-researched in the current literature. More specifically, the study reveals the process of how social media brand communication and engagement reinforce luxury brand outcomes through parasocial interactions and consumer empowerment. In addition, the study provides empirical evidence to delineate the role of interactivity and openness in enhancing social media brand communication. Moreover, the study extends past research that emphasized initial adoption outcomes such as attitude and purchase intention by probing luxury brand loyalty and willingness to pay a premium.

Practical implications

By effectively strategizing social media marketing, luxury brand marketers can promote brand loyalty and willingness to pay a premium. Luxury brand marketers should concentrate on establishing parasocial interaction with consumers by designing optimal social media brand communication and engagement. To this end, luxury brand marketers should consider integrating the elements of interactivity and openness in their communication with consumers.

Originality/value

The study offers valuable insights for luxury brand marketers aiming to capitalize on the potential of social media marketing to enhance their revenue generation and customer retention. The study advances past luxury branding research by validating the role of consumer empowerment and parasocial interactions in luxury brands' social media marketing.

Keywords

Citation

Zha, T., Aw, E.C.-X., Dastane, O. and Fernando, A.G. (2023), "Social media marketing for luxury brands: parasocial interactions and empowerment for enhanced loyalty and willingness to pay a premium", Marketing Intelligence & Planning, Vol. 41 No. 8, pp. 1138-1161. https://doi.org/10.1108/MIP-05-2023-0192

Publisher

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Emerald Publishing Limited

Copyright © 2023, Emerald Publishing Limited

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