Efficacy of Social Media Marketing in Creating Customer-based Brand Equity for Start-ups in Emerging Markets

Abstract

This study explores the implications of social media marketing (SMM), focusing on Facebook, for entrepreneurs aiming to engage the millennial demographic effectively. As a tech-savvy, socially connected, and influential generation, millennials represent a critical audience for businesses seeking sustainable growth in increasingly competitive and dynamic markets. The study is structured into three sections. The first section develops a comprehensive theoretical framework for understanding the paradigm of SMM, integrating insights from prominent theories in marketing, sociology, and philosophy. This framework establishes a robust foundation for analyzing the interplay between SMM strategies and consumer behavior. The second section presents empirical evidence from a cross-sectional online survey of 314 randomly selected millennial Facebook users in Pakistan. This analysis is further enriched by a preliminary investigation of popular Facebook influencers, called "Gurus," who play a pivotal role in shaping consumer perceptions and behaviors. The findings reveal a strong positive correlation among millennials between SMM and Customer-Based Brand Equity (CBBE). Using Confirmatory Factor Analysis (CFA), the study examines the impact of SMM on key constructs such as behavioral loyalty, attitudinal attachment, brand trust, hedonic brand image, sense of community, and active engagement. The third section offers actionable insights for entrepreneurs and marketers, providing strategic guidelines for integrating SMM into start-up marketing plans. It also proposes a dashboard to measure the effectiveness of SMM initiatives and outlines strategies to maximize outcomes. This study highlights the transformative potential of SMM in building brand equity and fostering meaningful customer relationships in emerging markets.