Digital Effect: Relationship between Brand Media Image and Company Performance
Abstract
The primary trend of the ongoing digital transformation is the rapid socialization of the Internet. The crucial role in those processes is assigned to social networks. Integrating companies representing goods and services into social networks makes implementing a marketing strategy in a virtual environment urgent. Our literature review looked at the goals of a brand's social media presence and the expected benefits of that presence. Using a correlation-regression analysis, we have established the relationship between the media image of several global companies on social networks and the sales dynamics, value, and awareness of their brand. The hypotheses put forward were partially confirmed. However, the results showed no strong relationship between brand activity and brand audience in a social network and brand value and awareness. On the other hand, there wass a noticeable relationship between the size of the audience in a social network and the dynamics of the brand's revenue. Still, this influence turned out to be the opposite. Thus, the media image of a brand signifies the emergence of a kind of "digital effect" accompanied by concomitant phenomena of the relationship between the parameters of the audience size, revenue, value, and brand awareness. This constitutes the prospect of further research to clarify stable patterns.
References
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Yapa, U.A.S. (2017). The impact of social media on brand awareness (with special reference to Facebook use in fast moving consumer goods in Sri Lanka). International Journal of Engineering and Management Research, 7(5), 262–272.
Anderson, W. (1998). Customer satisfaction and word of mouth. Journal of Service Research, 1(1), 5–17. doi:10.1177/109467059800100102
Ardiansyah, F., & Sarwoko, E. (2020). How social media marketing influences consumers purchase decision? A mediation analysis of brand awareness. JEMA: Jurnal Ilmiah Bidang Akuntansi dan Manajemen, 17(2), 156–168. doi:10.31106/jema.v17i2.6916
Ashley, C., & Tuten, T. (2015). Creative strategies in social media marketing: An exploratory study of branded social content and consumer engagement. Psychology & Marketing, 32(1), 15–27. doi:10.1002/mar.20761
Beatty, S., & Smith, S. (1987). External search effort: an investigation across several product categories. Journal of Consumer Research, 14(1), 83–93. doi:10.1086/209095
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Bilgin, Y. (2018). The effect of social media marketing activities on brand awareness, brand image, and brand loyalty. Business & Management Studies: An International Journal, 6(1), 128–148. doi:10.15295/bmij.v6i1.229
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Chekmarev, S.G. (2019). Social Networks for Business in Russia. Moscow: Omega-L.
Chen, P., Wu, S., & Yoon, J. (2004). The impact of online recommendations and consumer feedback on sales. Association for Information Systems, 12, 711.
Choi, Y., & Kroff, M.W. (2018). User-to-brand social media behavior directed at brands and its impact on electronic word-of-mouth and purchase intentions: an abstract. In N. Krey, & P. Rossi (Eds.), Boundary Blurred: A Seamless Customer Experience in Virtual and Real Spaces. AMSAC 2018. Developments in Marketing Science: Proceedings of the Academy of Marketing Science (p. 535). Springer, Cham. doi:10.1007/978-3-319-99181-8_174
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Dülek, B., & Saydan, R. (2019). The impact of social media advertisement awareness on brand awareness, brand image, brand attitude and brand loyalty: a research on university students. International Journal of Contemporary Economics and Administrative Sciences, 9(2), 470–494.
Grishkina, Yu.E. (2018). Marketing in social networks (SMM) as the main tool for doing business on the online platform. Chronoeconomics, 5(13), 71–76.
Gubanov, D.A., Novikov, D.A., & Chkhartishvili, A.G. (2009). Models of Influence in social networks. Managing Large Systems, 27, 205.
Henningsen, G., Henningsen, A., & Henning, C.H.C.A. (2015). Transaction costs and social networks in productivity measurement. Empirical Economics, 48, 493–515. doi:10.1007/s00181-014-0882-y
Hu, H., & Zhu, J.J.H. (2017). Social networks, mass media and public opinions. Journal of Economic Interaction and Coordination, 12, 393–411. doi:10.1007/s11403-015-0170-8
Iblasi, W.N., Bader, D.M.K., & Al-Qreini, S.A. (2016). The impact of social media as a marketing tool on purchasing decisions (case study on SAMSUNG for electrical home appliances). International Journal of Managerial Studies and Research (IJMSR), 4(1), 14–28.
Instagram. (2021). Retrieved May 22, 2021, from https://www.instagram.com/
InstaHero. (2021). Retrieved June 3, 2021, from https://instahero.pro
Interbrand. (2021). Best Global Brands. Retrieved May 22, 2021, from https://interbrand.com/best-global-brands/
Ishkhanyan, M.V., & Karpenko, N.V. (2016). Econometrics: A Tutorial. Part 1. Pair Regression. Moscow: Russian University of Transport (MIIT).
Krylova, D.S. (2017). The impact of social networks on the growth of small and medium-sized businesses. Business Strategies, 12(44), 19–25.
Lebedeva, I.S. (2016). Electronic network interaction as a decisive factor in promoting modern business in the area of circulation. Economics and Management Problems, 11(63), 47–50.
Leskovec, J., Adamic, L.A., & Huberman, B.A. (2008). The dynamics of viral marketing. Information Systems Research, 19(3), 273–290.
Liu, X., Shin, H., & Burns, A.C. (2020). The influence of luxury brands’ firm engagement on customer engagement on social media: an abstract. In S. Wu, F. Pantoja, & N. Krey (Eds.), Marketing Opportunities and Challenges in a Changing Global Marketplace. AMSAC 2019. Developments in Marketing Science: Proceedings of the Academy of Marketing Science. Springer, Cham. doi:10.1007/978-3-030-39165-2_240
Llano, C., & de la Mata, T. (2016). Modeling the effect of social-network on interregional trade of services: how sensitive are the results to alternative measures of social linkages. In R. Patuelli, & G. Arbia (Eds.), Spatial Econometric Interaction Modelling. Advances in Spatial Science (The Regional Science Series) (pp. 365–414). Cham: Springer. doi:10.1007/978-3-319-30196-9_15
Manthiou, A., Rokka, J., Godey, B., & Tang, L. (2016). How social media marketing efforts influence brand equity creation and its consequences: the case of luxury brands. In M. Obal, N. Krey, & C. Bushardt (Eds.), Let’s Get Engaged! Crossing the Threshold of Marketing’s Engagement Era. Developments in Marketing Science: Proceedings of the Academy of Marketing Science. Cham: Springer. doi:10.1007/978-3-319-11815-4_169
Mayorova, E.A., Nikishin, A.F., & Pankina, T.V. (2016). Social networks in the retail trade organisation activities. Economics. Business. Banks, 3(16), 57–67.
Meadows, C.Z., & Meadows, C.W. (2016). Corporate reputation on mass media, public opinion, and YouTube: examining the factors influencing reputation of Fortune 500 companies. Corporate Reputation Review, 19, 345–356. doi:10.1057/s41299-016-0011-2
Melati, K., & Febianty, F. (2016). The effect of social media on the brand awareness at hotels in Kuta Area. Journal of Business on Hospitality and Tourism, 2(1), 9. doi:10.22334/jbhost.v2i1.80
Michaelidou, N., Siamagka, N.T., & Christodoulides, G. (2011). Usage, barriers and measurement of social media marketing: an exploratory investigation of small and medium B2B brands. Industrial Marketing Management, 40(7), 1153–1159. doi:10.1016/j.indmarman.2011.09.009
Neff, J. (2007). OMD proves the power of engagement. Advertising Age, 78, 3.
Park, D., Lee, J., & Han, I. (2007). The effect of online consumer reviews on consumer purchasing intention: The moderating role of involvement. International Journal of Electronic Commerce, 11(4), 125–148. doi:10.2753/JEC1086-4415110405
Petty, C., Cacioppo, J.T., & Schumann, D. (1983). Central and peripheral routes to advertising effectiveness: The moderating role of involvement. Journal of Consumer Research, 10, 135–146. doi:10.1086/208954
Piskorski, M. (2018). Account. Reactive Promotion on Social Networks. Moscow: Eksmo.
Prasetya, H.A., & Murata, T. (2020). A model of opinion and propagation structure polarisation on social media. Computational Social Networks 7, 2. doi:10.1186/s40649-019-0076-z
RepTrak Company. (2021). 2021 Global RepTrak 100. Retrieved June 3, 2021, from https://clck.ru/WB6VD
Russian Public Opinion Research Centre. (2018). Each Age Gets Its Networks. Retrieved June 24, 2021, from https://wciom.ru/analytical-reviews/analiticheskii-obzor/kazhdomu-vozrastu-svoi-seti
Sarboini, S. (2016). Performance of Employees and Impact on Promotion of Position. Jurnal Ilmiah Peuradeun, 4(1), 103-114. doi:10.26811/peuradeun.v4i1.89
Sitorus, M. (2018). The Influence of Election Supervisory Behavior on the Performance of the Regional Head Election Organizer in North Sumatera Province. Jurnal Ilmiah Peuradeun, 6(1), 67-84. doi:10.26811/peuradeun.v6i1.181
Sergeeva, Yu. (2021). All Statistics of the Internet and Social Networks for 2021 – Numbers and Trends in the World and in Russia. Retrieved June 24, 2021, from https://www.web-canape.ru/business/vsya-statistika-interneta-i-socsetej-na-2021-god-cifry-i-trendy-v-mire-i-v-rossii/
Smart Insights. (2017). How Businesses Use SocialMedia. Retrieved June 24, 2021, from https://www.smartinsights.com/social-media-marketing/social-media-strategy/businesses-use-social-media-2017-report/
Sorensen, A.T., & Rasmussen, S.J. (2004). Is Any Publicity Good Publicity? A Note on the Impact of Book Reviews. Working Paper. Stanford University.
Spiegel Research Center. (2017). How Online Reviews Influence Sales. Retrieved June 25, 2021, from https://www.digitalmarketingcommunity.com/researches/how-online-reviews-influence-sales-jun-2017-globally-spiegel-research-center/
Statista. (2021). Brand Value of the Sports Company Adidas Worldwide from 2016 to 2020. Retrieved June 3, 2021, from https://www.statista.com/statistics/632260/adidas-brand-value/
Syuntyurenko, O.V. (2015). Network technologies for information warfare and manipulation of public opinion. Scientific and Technical Information Processing, 42, 205–210. doi:10.3103/S014768821504005X
Tretyakova, O. V. (2021). Internet advertising redefines the performance of companies. Media Watch, 12(2), 276-287. doi:10.15655/mw/2021/v12i2/160152
Tuten, T., & Bosnjak, M. (2001). Understanding differences in web usage: The role of need for cognition and the five factor model of personality. Social and Personality: An International Journal, 29(4), 391–398. doi:10.2224/sbp.2001.29.4.391
We Are Social. (2018). Digital in 2018. Retrieved December 20, 2020, from wearesocial.com/blog/2018/01/global-digital-report-2018
Westbrook, R., &Fornell, C. (1979). Patterns of information source usage among durable goods buyers. Journal of Marketing Research, 16, 303–312. doi:10.2307/3150704
Yapa, U.A.S. (2017). The impact of social media on brand awareness (with special reference to Facebook use in fast moving consumer goods in Sri Lanka). International Journal of Engineering and Management Research, 7(5), 262–272.
Published
2022-05-30
How to Cite
KUZMIN, Evgeny A. et al.
Digital Effect: Relationship between Brand Media Image and Company Performance.
Jurnal Ilmiah Peuradeun, [S.l.], v. 10, n. 2, p. 491-508, may 2022.
ISSN 2443-2067.
Available at: <https://journal.scadindependent.org/index.php/jipeuradeun/article/view/785>. Date accessed: 24 jan. 2025.
doi: https://doi.org/10.26811/peuradeun.v10i2.785.
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Articles
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