1 The Impact of Interactive Social Media Advertising on Brand Resonance in South Africa Pinda Qutywa 1505809 A research report submitted to the Faculty of Commerce, Law and Management, University of the Witwatersrand, in partial fulfilment of the requirements for the degree of Master of Management in Strategic Marketing Supervisor: Dr Yvonne Saini Johannesburg, 2020 Wits Business School 20 April 2020 2 ABSTRACT Interactive Social Media advertising offers our population many benefits, whether it be entertainment, news, education, customer service or even networking. Social media is changing the rules of branding. Brands can be noticed with smaller investments as they can tap into social media to amplify their brand message. The ever-evolving impact of social media on branding is shifting the very essence of brand management. Social media binds together communities that once were geographically isolated. Insights from various social networks enable marketers to understand what customers want, and when they want it, how they want to experience it and who they want to experience it with, all of which will enable messaging that they want to hear. On the World Wide Web, the brand is the experience and the experience is the brand. Although branding has been a subject of research for many years, the subject of social media is new and emerging, therefore the scope of research has widened, creating opportunities to expand on existing knowledge and theory. Largely, research specific to brand advertising and brand resonance has not incorporated social media particularly in the emerging market context such as South Africa. There is a lack of academic research revealing how social media, advertising and brand resonance interconnect in the South African skincare market context. The purpose of this study was to investigate influence of social media advertising interactivity on brand resonance. The brand resonance construct is measured from the perspective of its four dimensions namely, loyalty, attachment, community and engagement. An online survey was administered to 3,000 respondents. Out of that, 1959 completed the survey in full. The respondents were regular users of social network sites and they were sourced mainly from university students, a smaller percentage of the group consisted of university staff and other members of the public. Data was analyzed using the R-software version 3.6.3, to determine if the items correlate with their unique constructs. The conceptual model elements were analyzed using exploratory factor analysis. The study showed that interactive social media advertising has a positive and significant impact on brand loyalty, brand attachment, brand community and brand engagement. The study gives marketers insights into how to effectively use social media as an 3 advertising medium, but most importantly how to use social media to create brand resonance. Key words: Brand, Brand Knowledge and related constructs of Brand Awareness and Brand Image, Brand Resonance and its related constructs i.e. Brand Loyalty, Brand Attachment, Brand Community, Brand Engagement, Brand Relationship, Digital Marketing, Social Media, and Facebook Advertising. 4 DECLARATION I, Landelwa Pinda Qutywa, declare that this research report is my own work except as indicated in the references and acknowledgements. It is submitted in partial fulfilment of the requirements for the degree of Master of Management in Strategic Marketing in the University of the Witwatersrand, Johannesburg. It has not been submitted before for any degree or examination in this or any other university. Landelwa Pinda Qutywa Signed at 22 Riverside Estate, Emnotweni Avenue, Nelspruit, Mpumalanga On the 20 day of April 2020 5 CONTENTS ABSTRACT……………………………………………………………………………2 DECLARATION………………………………………………………………………4 LIST OF TABLES…………………………………………………………….………8 LIST OF FIGURES………………………………………………………………….. 9 CHAPTER 1. INTRODUCTION…………………………………………………………… 10 1.1 PURPOSE OF STUDY…………………………………………………………………………10 1.2 CONTEXT OF STUDY………………………………………………………………………...12 1.3 PROBLEM STATEMENT……………………………………………………………………. 15 1.3.1 Main Problem………………………………………………………………………………………….…......16 1.3.2 Sub-Problem……………………………………………………………………...……………......................16 1.3.3 Research Objective…………………………………………………………………………………………...16 1.3.4 Research Questions…………………………………………………………………………………………. .16 1.4 SIGNIFICANCE OF THE STUDY…………………………………………………………… 17 1.5 Delimitations of the study………………………………..…………………………………… 17 1.6 Definition of Terms……………………………………………………………………………. 18 1.7 Assumptions………………………………………………………………………………….. 19 CHAPTER 2. LITERATURE REVIEW……………………………………20 2.1 Introduction……………………………………………………………………………………..20 2.2. Concept/Empirical Reviews...………………,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,…………………..20 2.2.1 Digital Marketing…………………………………………………………………………20 2.2.2 Social Media Advertising…………………………………………………………………22 2.2.3 Social Media Research……………………………………………………………………25 2.2.4 Consumer-based Brand Equity (Brand Resonance)………………………………………28 2.3 Brand Relationship Development………………………............................................................29 2.3.1 Brand Relationship Network……………………………………………….………………………………..30 2.4 Theoretical Background………………………………………………………………………...32 2.4 Brand Resonance Model: Customer Brand Relationship Approach…………………………...32 2.4.1 Interactive Social Media Advertising…………………….…………………………...32 2.4.2 Brand Resonance Model: Customer Brand Relationship Approach……………………………………………………………………………....35 2.4.3 Dimensions of Brand Resonance…………………………………………..………....37 2.5 Hypotheses Statements…………………………………………….…………………………...39 2.5.1 Brand Loyalty……………………………………………………………………………...….....39 2.5.2 Brand Attachment………………………………………………………………………………..42 2.5.3 Brand Community………………………….……………………………………………...……..45 2.5.4 Brand Engagement……………………….………………………………………………...…….49 2.6 Conceptual Framework of the Study…………………………………………………………...53 2.7 Conclusion of Literature Review…………………………………………………….………....54 6 CHAPTER 3. RESEARCH METHODOLOGY…….…………………… 56 3.1 Research Strategy……………………………………………………………………………. 56 3.2 Research Design……………………………………………………………………………... 56 3.3 Qualitative Research………………………………………….................................………... 57 3.4 Quantitative Research………..……………………………………………………………… 57 3.5 Population And Sample…………………………………………………………………….. 57 3.5.1 Population………………………………………………………………………… 57 3.5.2 Sample And Sampling Method……………………………….…………………... 58 3.6 The Research Instrument……………………………………………………………….…. 58 3.7 Procedure For Data Collection………………………………………………………........... 58 3.8 Pilot Research………………………………………………………………………………....58 3.8.1 Methodology of the Pilot Research………………………………………………….59 3.8.2 Results of the Pilot Research………………………………………………………...59 3.9 Limitations of the Study…………………………………………………………………… ..61 3.10 Validity and Reliability………………………………………………………………….... .. 62 3.10.1 External Validity…………………………………………………………………….62 3.10.2 Internal Validity………………………………………………………………….... 62 3.10.3 Reliability……………………………………………………………………………63 CHAPTER 4. PRESENTATION OF THE RESULTS……………………64 4.1 Introduction…………………………………………………………………………………..,64 4.2 Exploratory Factor Analysis………………………………………………………………….64 4.3 Descriptive Profile of Respondents…………………………………………………………..65 4.4 Measurement and Structural Models Assessment……………………………………………71 4.5 Structural Model……………………………………………………………………………...73 4.6 Hypothesis Testing and Results,,,,.…………………………………………………………...74 CHAPTER 5. DISCUSSSION OF RESULTS…………………………….76 5.1 Discussion on Hypothesis 1…………………………………………………………………..76 5.2 Discussion on Hypothesis 2…………………………………………………………………..76 5.3 Discussion on Hypothesis 3…………………………………………………………………..77 5.4 Discussion on Hypothesis 4…………………………………………………………………..78 CHAPTER 6. CONCLUSIONS & RECOMMENDATIONS………….…79 6.1 Introduction……………………………………………………………………………………79 6.2 Conclusion to the study………………………………………………………………………..79 6.3 Theoretical Contribution………………………………………………………………………80 6.4 Practical Implications………………………………………………………………………….81 6.5 Recommendations……………………………………………………………………………..81 REFERENCES………………………………………………………………………82 APPENDIX A………………………………………………………………………..94 Research Time Plan………………………………………………………………………………. APPENDIX B………………………………………………………………………..95 7 Research Cover Letter………………………………………………………………………………. APPENDIX C………………………………………………………………………96 Research Instrument………………………………………………………………………………. APPENDIX D………………………………………………………………………111 Ethical Consideration …………………………………………………………………………………… 8 LIST OF TABLES Table 1: Definition of Terms………………………………………………….……………….18 Table 2: Descriptive Statistics………………………………………………….………………65 Table 3: Exploratory Factor Analysis of Scale Items……………….………………………….70 Table 4: KMO and Bartlett’s Test……………………………….……………………………..71 Table 5: Construct Measurement…………………………..…………………………………...72 Table 6: Descriptive Statistics, Correlations and Discriminant Validity……..………………...73 Table 7: Summary of Hypothesis Testing………………….…………………………………..74 Table 8: Summary of Research Time Plan……………………………………………………..95 9 LIST OF FIGURES Figure 1: Social Media Advertising Audiences in South Africa in 2019……………………13 Figure 2: Facebook Audience Overview in South Africa in 2019…………………………..14 Figure 3: E-Commerce Activities in South Africa in 2019………………………………….14 Figure 4: E-Commerce Spend by Category in South Africa in 2019………………………..15 Figure 5: Brand Resonance Network………………………………………………………..31 Figure 6: Customer-based Brand Equity (Brand Resonance) Pyramid…………………......34 Figure 7: Dimensions of Brand Resonance …………………………………………………35 Figure 8: Brand Attachment – Construct, Consequences and Causes……………….………41 Figure 9: Conceptual Framework of Study………………………………………………….50 Figure 10: Number of Social Network Sites used by each respondent……………….…….63 Figure 11: Preferred Social Network Sites………………………….……………….……...64 Figure 12: Device used to access Social Media…………………….……………….………64 Figure 13: Time spent on Social Media…………………………………………….……….65 Figure 14: Gender Split…………………………………………………………….……….65 Figure 15: Occupation…………………………………………….……………….………..66 Figure 16: Favourite Skincare Brand……………………………..……………….………..66 Figure 17: Path Analysis of Conceptual Framework……………..……………….………..72 10 CHAPTER 1: INTRODUCTION 1.1 Purpose of the Study The purpose of the study was to investigate the influence of social media advertising interactivity on brand resonance. The brand resonance construct is measured from the perspective of its four dimensions, namely loyalty, attachment, community and engagement. The research sought to ascertain if there is a relationship between social media advertising interactivity and brand resonance. This research is important in guiding marketing and advertising practitioners in using social media advertising tools optimally, by getting a better understanding of how consumers receive and perceive online-based ad messages from brands in a social media context in South Africa. There has been numerous angles from which researchers have studied the behavioural characteristics of digital advertising. For example, Lambrecht and Tucker (2013) considered advertisement retargeting, this is when personalized recommendations based on prior web-browsing history are made when a consumer returns to a website. Schumann, von Wangenheim and Groene (2014) did a study on how negative reactions to personalization could be overcome with normative reciprocity appeals instead of utility appeals. The findings of the research done by Tucker (2014) was that personalized website adverts are more well received when consumers have a higher perception of being in control of their own information which is used for personalization. Some more research on digital advertising included research conducted by Dinner, Van Heerde and Neslin (2014) where they did a study on how digital display and search advertisements drive online and offline purchasing for a retailer. The findings revealed that digital advertisements are more effective than offline advertisements when it comes to driving online behavior. More research has been done in this digital advertising domain, such as research conducted by Goldstein, Siddharth and Preston (2014) where they studied ‘annoying’ (e.g., obtrusive, low quality) website advertisements. The researchers empirically demonstrated how these type of advertisements are costly economically for advertisers, but they also create cognitive costs for consumers. 11 Previous research has attempted to explore interactive advertising from limited angles, for example Rodgers and Thorson (2000) in their article, explored the Interactive Advertising Model. The authors posited that there are three approaches to interactive advertising, namely (1) structures of advertising, i.e. structural elements of internet ads such as characteristics of the message, the characteristics of the receiver, and the interaction of the message and the receiver. (2) The functionalist Approach, i.e. reasons for internet use; and lastly (3) information processing which is about how individuals perceive and process online ad-based messages. Pavlou and Stewart (2000) in their article, conducted research on measuring the effects and effectiveness of Interactive Advertising. The authors did an analysis of the traditional notions regarding the measurement of advertising effects with notions that recognize the active role of the consumer in interacting with advertising and the advertiser. Closer to home, Duffett (2015) conducted research on the effect of Gen Y’s affective attitudes towards Facebook marketing communications in South Africa. Duffett argued that little is known about the attitudes of consumers towards advertising in terms of the effect of various usage characteristics and demographic factors. His study investigated the influence of Facebook advertising on affective attitudes amongst Gen Y in South Africa. The findings revealed a generally positive predisposition towards Facebook advertising. In spite of previous studies conducted in the areas of social media and advertising, not much has been done in analysing the impact of interactive social media advertising on Brand Resonance. The advertising literature is limited in terms of research on the impact of advertising interactivity - which involves informativeness and entertainment - on consumers in a social media context. Moreover, how brand interactions on social media influence consumer brand attitudes, particularly in the skincare industry. Research done by Hudson, Huang, Roth, Madden and Hudson (2016) demonstrates that even though the subjects of branding and relationship building have been studied, and are vital to the overall academic body of research in matters of branding in the digital world, there is insufficient knowledge about the relationship between social media and consumers' relationships with brands, particularly skincare brands in the emerging market of South Africa. Hudson, Huang, Roth, Madden and Hudson (2016) also argue that there is insufficient knowledge on whether social media-based brand relationships are associated with desired outcomes such as customer satisfaction and 12 recommendations. The research that was undertaken in this study sought to address these gaps. The research also explores the relationship between Social Media Advertising and its impact on consumer perceptions of their relationship with the brands; and consequently how those interactions relate to desired marketing outcomes. From scanning through past research papers, it was evident that there is a need for research on how to improve brand resonance through social networks, particularly in the area of skincare brands in an emerging market. Therefore, this study intends to contribute to an academic body on brand resonance in the emerging context of South Africa. 1.2 Context of the Study Social media marketing is a system, which allows marketers to engage, collaborate, interact and harness intelligence crowd sourcing for marketing purposes. It therefore presents an opportunity for brands to adopt it strategically into their organisations. Social media has become a vital channel for global marketing communications and is commanding a larger share of advertising budgets. According to Bannister, Kiefer & Nellums (2013); Barreto (2013) as well as Hudson and Thal (2013), there is unanimity that online advertising can be appraised through elements such as brand awareness, product recall and attitudinal and behavioural changes,. Although there has been several studies recently, focused on measuring behavioural attitudes towards social media networks, these studies primarily conducted in more developed nations, Duffet (2015). Little research has explored the effect of Social Media advertising on brand relationships, Hudson, Huang, Roth, Madden and Hudson (2016). According to the Digital and Social Trends Report South Africa (2020), the statistics on internet usage revealed that over 31 million South Africans in 2019 used the internet (54% of the population); this shows a 0.2 million increase from 2018. The report also indicates that 86% of online South Africans use a smartphone to access the internet, While 79% use a personal desktop or laptop device. South Africans spend the sixth longest time online worldwide. As the average South African spends 8hours 25 minutes a day on the internet, (global average is 6hrs 41min). The main reasons cited in the report for using social media (based on 2019 SA population data) were: firstly, that 59% of South Africans use social media to stay in touch with what their friends are doing; 13 while 53% use social media to stay up-to-date with news and current events; lastly 48% of South Africans who use social media said they use it for general networking with other people. As of November 2019, the top Facebook pages in South Africa were Nelson Mandela, SuperSport Football, News24.com, Charleze Theron, and Trevor Noah, PopiMedia (2019). In the DataReportal.Com 2019 Digital Report on South Africa, the total number of active social media users in South Africa in 2019 was 23 million. That entire audience could be reached with adverts on Facebook in 2019. The report further unpacks the numbers in terms of social media advertising audiences and e-Commerce activities in South Africa as per the following four diagrams, which indicate the immensity of the market when it comes to social media advertising in the skincare industry. Figure 1: Social Media Advertising Audiences in South Africa - 2019 14 Figure 2: Facebook Audience Overview in South Africa - 2019 Figure 3: E-Commerce Activities in South Africa - 2019 15 1.3 Problem Statement The relationship that consumers develop with brands has become a topic of increasing interest and attention in the marketing literature. This interest stems from general acceptance of relationship principles in product and service marketing, as well as practitioner acceptance of the evidence of relationship benefits, Aaker (1995); Fournier (1998). According to Hudson, Huang, Roth and Madden (2016) companies are increasingly allocating more of their marketing spending to social media programs. Yet there is little research about how social media use is associated with consumer–brand relationships. The brand relationship concept has not been sufficiently examined from a social media perspective. A lot is still unknown about the influence of social media networks on brand resonance. Prior research has only examined the adoption of social media marketing in South African companies. Moreover, even though there has been research from the developed world on understanding customer-based brand equity (CBBE), no research has focussed on the influence of social media on CBBE in a South African context. Figure 4: E-Commerce Spend by Category in South Africa - 2019 16 To investigate the influence of Social Media advertising on brand resonance and its related dimensions (brand loyalty, brand attachment, brand community and brand engagement). The aim is to determine if there a relationship between Social Media advertising and Brand Resonance, and to also find out the extent to which Social Media advertising influence brand loyalty, brand attachment, brand community and brand engagement. As Smit, Bronner and Tolboom (2007) suggest, research is needed on the influence of marketing tools on brand relationships. Whether and how social media engagement is associated with customers' brand perceptions, and willingness to recommend them to others, are important questions this study seeks to address. As interest in the brand-building benefits of social media use grows, more research is needed to guide marketers in a digital world, Hudson, Huang, Roth, Madden and Hudson (2016). Sub Problems: a. To guide marketers in a digital world, research on the effect of Social Media advertising interactivity on brand loyalty is required. The first sub-problem explores whether there is a relationship between these two variables. b. The second sub-problem explores whether there is a relationship between Social Media advertising interactivity and brand attachment. c. The third sub-problem explores whether there is a relationship between Social Media advertising interactivity and brand community. d. The fourth sub-problem explores whether there is a relationship between Social Media advertising interactivity and brand engagement. 1.4 Research Objectives: This study seeks to achieve the following research objectives: a. To get an understanding of the nature of the relationship between social media advertising interactivity and customer-based brand equity (brand resonance) which has four dimensions, namely brand loyalty, brand attachment, brand community and brand engagement. b. To contribute towards expanding knowledge on building customer-based brand equity through social media, in an emerging market context. 17 1.5 Research Questions: a. Is there relationship between Interactive Social Media Advertising and Brand Loyalty? b. Is there a relationship between Interactive Social Media Advertising and Brand Attachment? c. Is there a relationship between Interactive Social Media Advertising and Brand Community? d. Is there a relationship between Interactive Social Media Advertising and Brand Engagement? 1.4 Significance of the Study Previous brand relationship studies have been mainly conducted in developed countries, not emerging markets. The present study will explain the dynamics involved in the relationship between social media and brand relationship in the emerging market context of South Africa. An important area not previously addressed in the original Customer Based Brand Equity research by Keller, is understanding the value of brands and branding in a digital world. With the profound diffusion and far-reaching daily usage of smart phones and with the Internet of Things; having an understanding of infusing digital into marketing and branding has become of primary concern to marketing and branding researchers, Yadav and Pavlou (2014). As firms are equipping themselves with technology and skills to continue being relevant in an increasingly digital world, consumers are also getting more and more empowered. Therefore, understanding branding in a digitally empowered world is critical to the success of any brand. Technological advances have given firms the ability to tap into social media to amplify their brand message, similarly the same technologies have enabled consumers to tap into social media to share opinions and express loyalty with others. 1.5 Delimitations of the Study  The research study was only conducted in South Africa. 18  The research participants were mainly students (undergraduate and postgraduate).  The study did not analyse the firm’s existing digital marketing strategies. 1.6 Table 1: Definition of Terms Term Evidence in Literature Brand Equity “The ‘added value’ with which a given brand endows a product” Farquhar (1989). High brand equity is considered a competitive advantage as it can lead to firms charging a premium for their products or services, Bendixen, Bukasa and Abratt (2004). “Brand Equity is a set of assets (and liabilities) linked to a brand’s name and symbol that adds to (or subtracts from) the value provided by a product or service to a firm and/or that firm’s customers, Aaker (1996). Brand equity provides value to customers by enhancing the customer’s processing of information, confidence in the decision, and use satisfaction, Bick (2009). Brand Equity represents the extent to which the firm influences the customer’s subjective evaluation of the firm’s offering. This gives the firm the ability to focus on building customer relationships, as brands come and go, Rust, Zeithaml & Lemon (2004). Brand Resonance The extent to which a consumer develops strong behavioural, psychological, and social bonds with the brands s/he consumes, Rindfleisch et al. (2006) The nature of the relationship that customers have with the brand and the extent to which they feel that they are “in synch” with the brands” Keller (2008). Brand Relationship Fournier (1998) defined brand relationship as when brands may become an active relationship partner for the consumer and provide meanings in a psycho-socio-cultural context. It is the relationship between the customer and brand, and it is related to personal identification of the customer with the brand. Brand Loyalty An intensely detained commitment of the customer towards a brand, to use or purchase it every time in the future, in spite of the influences of the marketing efforts and other situational influences having the ability to cause a switch in the purchase intention of the customer, Oliver (1997). 19 Brand Attachment Describes the strength of the bond connecting the consumer with the brand. It is critical because it should affect behaviours that foster brand profitability and customer lifetime value, Thomson, MacInnis and Park (2005). Brand Engagement According to Hausman, Kabadayi and Price (2014), consumer engagement refers to “behaviours that go beyond simple transactions, and may be specifically defined as a customer’s behavioural manifestations that have a brand focus, beyond purchase, resulting from motivational drivers”. This is a view that is supported by Van Doorn, Lemon, Mittal, Nass, Pick, Pirner & Verhoef (2010). Customer-brand engagement; is described by Hollebeek (2011) as the “level of an individual customer’s motivational, brand- related and context-dependent state of mind characterized by specific levels of cognitive, emotional and behavioural activity in direct brand relationships.” Brand Community McAlexander and Schouten (2002) define brand community as ‘communities whose primary basis of identification is either brands or consumption activities, that is, whose meaningfulness is negotiated through the symbolism of the marketplace. Muniz and O‟Guinn (2001) “define a brand community as a “specialized, non- geographically bound community, and based on a structured set of relationships among admirers or a brand”. 1.7 Assumptions The assumptions of this research study are:  Respondents agreed to answer interview survey questions honestly and accurately.  Respondents reflected normal perspectives and had sufficient experience to answer the questions.  Respondents were regular users (once a month or more often) of Social Media. 20 CHAPTER 2: LITERATURE REVIEW 2.1 Introduction The literature review serves as a scholarly review of the key areas of significance to the study. The research was limited to articles published in the English language predominantly using keywords, but not limited to: Brand, Brand Knowledge and related constructs of Brand Awareness and Brand Image, Brand Resonance and its related constructs i.e. Brand Loyalty, Brand Attachment, Brand Community, Brand Engagement, Brand Relationship, Digital Marketing, Social Media, and Facebook Advertising. The literature review serves as an empirical review of the listed variables under study. 2.2 Concept / Empirical Reviews 2.2.1 Digital Marketing “Marketing is the societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products of value with others”, Kotler & Keller (2009). Digital marketing has been defined as the process by which a firm employs, either partially or exclusively, digital tools, techniques and tactics to create value for its customers. Chaffey and Ellis-Chadwick (2012) define digital marketing as ‘achieving marketing objectives through applying digital technologies.’ Digital marketing can be applied in various ways such as being a relationship-building medium, an advertising medium, etc. Digital marketing is about embedding digital as an integral part of all marketing activities, in the entire marketing mix. For example, the advent of social media has transformed the means by which organizations communicate to their target audience. The introduction of the internet and most specifically Web 2.0 changed advertising by introducing features that allow a two-way (or multi-way) communication in an online platform characterized by user freedom, control and dialogue, Boateng and Okoe (2015). Web 2.0 brought about a new degree of interactivity and consumer involvement in advertising applications. Digital advertising is a major topic in the marketing literature and, with respect to consumer behaviour, considers how consumers respond to various aspects of digital ads. Warc's latest report, Global Advertising Trends: The Adspend Outlook (2020) has found that global advertising spend is set to rise by 7.1% to $660bn in 2020, lifted by 21 13.2% growth in internet investment. In social media, spend is forecast to rise by 19.5% to $102.4bn in 2020, which is 15.5% of global advertising spend. Facebook (including Messenger, Instagram and WhatsApp) is expected to draw 80.9% of this investment, or $82.9bn, though this share is down from 81.2% in 2019. Just over 42% or $35bn of Facebook's ad revenue will come from the US this year. According to the same report, Africa’s advertising spend is expected to rise 5.6% to $6.9bn this year, reversing a 1.5% dip in 2019. Social media’s role in the purchase journey continues to expand, with 43 percent of internet users around the world aged 16 to 64 now saying that they use social networks when researching things to buy. The role of digital in our lives has reached new heights, with more people spending more time doing more things online than ever before, Kemp (2020). The number of people around the world using the internet has grown to 4.54 billion, an increase of 7 percent (298 million new users) compared to January 2019. Worldwide, there were 3.8 billion social media users in January 2020, with this number increasing by more than 9 percent (321 million new users) since the same time last year. Globally, more than 5.19 billion people now use mobile phones, with user numbers up by 124 million (2.4 percent) over the past year. The new Digital 2020 reports published by DataReportal.Com in partnership with We Are Social and Hootsuite, shows that digital, mobile, and social media have become an indispensable part of everyday life for people all over the world. According to the report, there were 36.54 million internet users in South Africa in January 2020. The number of internet users in South Africa increased by 1.1 million (+3.1%) between 2019 and 2020. Internet penetration in South Africa stood at 62% in January 2020. There were 22.00 million social media users in South Africa in January 2020. The number of social media users in South Africa increased by 3.5 million (+19%) between April 2019 and January 2020. Social media penetration in South Africa stood at 37% in January 2020. There were 103.5 million mobile connections in South Africa in January 2020. The number of mobile connections in South Africa increased by 3.1 million (+3.1%) between January 2019 and January 2020. The number of mobile connections in South Africa in January 2020 was equivalent to 176% of the total population. https://wearesocial.com/ https://hootsuite.com/ 22 Social media is now considered a vital channel for global marketing communications; hence we see more advertising being channelled towards this medium. It is evident that many organisations, managers and academics are now focusing on advertising on social media such as Facebook, YouTube, LinkedIn and Twitter. 2.2.2 Social Media Advertising According to Montalvo (2011), “social media are scalable communications technologies that turn internet-based communications, i.e. smart phones, PCs, tablet computers, portable media players, etc.) into an interactive dialogue platform. Social media platforms, such as Facebook, LinkedIn, Twitter and You Tube all exist because of Web 2.0”. Gunawan and Huarng (2015) define social network and media (SNM) as a graph of relationships and interactions within a group of individuals, often mediating in spreading information, ideas and influence among the members. Saji, Chauhan and Pillai (2013) describe social networking through online media as a variety of digital sources of information that are created, initiated, circulated and consumed by internet users to educate one another about products, brands, services, personalities and issues; this is a view supported by Schivinski and Dabrowski (2016). The term social media is often used in a similar way to ‘social network sites’, however there are differences between the concepts. Social media is a broader term that includes multi-faceted online information-sharing formats, Gangadharbatla (2008) and applications, including blogs, virtual worlds, content communities (such as YouTube), collaborative projects (such as Wikipedia) and social network sites (such as Facebook). Common features among most social network sites include the creation of a profile; the addition of connections; private messaging features; the ability to comment on various user-contributed content; and photo and/or video-sharing capabilities, Boyd and Ellison (2007). Kim and Ko (2012) define social media as online applications, platforms and media, which aim to facilitate interactions, collaborations and the sharing of content. They take a variety of forms, including weblogs, social blogs, microblogging, wikis, podcasts, pictures, video, rating and social bookmarking. As their use increases exponentially, not only existing social networkers but also even business firms and governmental organizations are joining and using them as communication tools. Unlike individual 23 social networkers, these entities actively make use of the media for advertising and marketing. While commercial messages and interactions with consumers collaborate with media, events, entertainment, retailers, and digital services through social media, it is possible to perform integrated marketing activities with much less effort and cost than before. Social media interaction refers to “a consumer's proactive engagement with the brand on social media platforms such as following, replying, tweeting, sharing, liking, participating and so on”. Consumers' proactive interaction with the brand on social media can be viewed as “a customer's level of cognitive, emotional and behavioural investment in specific brand interactions”, Hollebeek (2011). In a research study which was conducted by De Wulf, Oderkerken-Schroder, and Iacobucci (2001) the findings revealed that the more the customers' relationship investment, the higher their commitment to maintain the relationship. Therefore, the more times consumers spent in social media interaction with the brand, this activity generated a higher relationship investment, resulting in a stronger Brand Relationship Quality. The research findings also revealed that during the interaction, consumers may get benefits from the brand by increasing their knowledge of the product and/or services, reducing the risk of consumption, and thus increasing their sense of trust. The findings revealed that two- way interaction often involves a response from a brand. According to De Wulf, Oderkerken-Schroder, and Iacobucci (2001), “since its emergence, social media, especially social networking sites, have introduced radically new means of interaction and engagement between consumers and brands. Consumers increasingly use social media not only to research products and services, but also to engage with the companies they purchase from, as well as other consumers who may have valuable insights about these companies. Brands are able to reach consumers using both their own communications and the communications of consumers.” People use the Internet to satisfy their social needs, the internet regarded as a very essential driver that stimulates individuals to belong to social media, Wang, Tchernev and Solloway (2012). Facebook is one of social networking sites that gives people the ability to stay connected with other people who share the same online communities, Rohani & Hock (2010). In a study conducted by Lee and Lee (2012), they investigated consumer’s motivations for watching online video advertisements, their research 24 findings revealed five motivations that drive this behaviour, these include social interaction, relaxation, information, escapism, pass time, and entertainment. Similarly, Papacharissi and Rubin (2000) researched the motives of using the Internet, the findings of their research showed five motives, namely interpersonal utility, information seeking, entertainment, convenience, and pass time. The research findings revealed that those motives were important indicators of whether or not consumers will use and respond to internet advertising. Using social network sites is fundamental to some individuals more than others. As indicated by Wang et al. (2012) individuals who belong to Facebook satisfy one of their most basic needs: belongingness. Belonging to certain online groups, being recognized and accepted by them, expressing themselves, and changing their ideas and opinions are the core values of many individuals especially at certain ages. According to Dehghani and Tumer (2015), “Facebook advertising offers users the opportunity to interact actively with the adverts on their page allowing them to ‘like’ and ‘share’ and also view who else or which friends liked or shared the same adverts.” This is a view is supported by Smock, Ellison, Lampe and Wohn (2011), who assert that Facebook creates wide platforms for viral online recommendation. This encourages advertisers whose organisations are willing to spend a reasonable portion of their budgets on analysing procedures to determine potential customers and target them with advertisements on Facebook, Falls (2009). Advertisers develop word of mouth through Facebook, which positions Facebook advertising as an effective means of enhancing the brand image of various goods and services, Kaplan and Haenlein (2010). “About 93 per cent of companies in SA use Facebook, with two-thirds using this platform as a core part of their marketing campaigns, and 47 per cent for customer lead generation”, Wronski and Goldstruck (2013). According to Celebi (2015), Facebook advertising has been described to include many forms of commercial content (e.g., video clip, e-mail, comment ads, word link ads) available on Facebook. “Engaged consumers are not only more likely to research products of the brands that they like, but also more likely to be satisfied with the brand and to continue using it in the future,” Wallace, Buil & De Chernatony (2012). In a study by Malhotra, Malhotra & See (2013), the research revealed that one brand post can receive thousands of comments from Facebook users interacting with the brand and other commenters, providing a channel of communication on social media from 25 which it is easy to ask for information, gain feedback and better understand the consumer. Therefore, it is not surprising to see the popularity of Facebook brand pages, where many consumers around the world use them as a key channel to reach out to brands directly, by liking and/or commenting on brands’ posts and messages. It is for that reason that Facebook brand pages and the engagement they enable have become fundamental to brands’ marketing and public relations campaigns. It has also been suggested that “likes on Facebook help companies increase brand awareness and engagement, and thus positively contributes to their return on investment”, Barnard and Knapp (2011). Getting the consumers to comment on a brand’s Facebook page is alternative form of engagement. When a consumer comments on a brand’s Facebook post, in addition to his/her friends on his/her own profile; anyone who views the brand’s post can also see the comment. This happens regardless of whether the consumer knows those viewers personally or not. Commenting behaviour allows consumers to share their sentiments with the content on the brand’s Facebook page, created by the brand itself or other visitors. In the context of a brand page on social network sites, liking and commenting behaviours are seen as a sign of affinity for a brand, item or product, Wallace et al. (2012). This type of functionality provides those who use the platform to provide support to a brand and influence their peers just by liking or commenting on the posts of that brand; this happens effortlessly. 2.2.3 Social Media Research Social network sites (SNS) offer many opportunities for brands - such as advertising, product development and market intelligence. Every day, an enormous amount of information is shared and received through SNS in real time. It is now possible for one person to communicate with thousands or even millions of people on SNS about different companies and what they offer. These internet-based platforms are increasingly affecting several aspects of consumer behaviour, such as awareness, attitudes, opinions, information acquisition, purchase behaviour and post-purchase communication and evaluation, Mangold and Faulds (2009). Duffet (2015) argues that social media is a vital channel of universal marketing communications, hence more and more advertising budgets are allocated to this medium 26 more so to reach young people. This is why social media advertising on the well-known social network sites seems to be getting the attention of organisations, managers and academics. The fast growth of social media platforms, is considered to have irreversibly changed the way countless consumers relate with each other and organisations. As a result, as Duffett (2015) posits, this has caused organisations to shift the way they attract and keep potential customers. In the past, marketers would create appealing advertising messages and buy space in the mass media hoping that consumers would pay attention to, and cultivate a preference to and consume the brand. However, social media is considered to have transformed marketing communications forever, by changing how consumers select, share and judge information. Social media is changing the rules of branding. Brands can get noticed with smaller investments as firms can tap into social media to amplify their brand message. The ever-evolving impact of social media on branding is shifting the very essence of brand management; for example, as Holt (2016) argues, social media binds together communities that once were geographically isolated, and the cultural influence of these communities has become direct and substantial, leading to the rise of ‘crowd cultures’ such as subcultures which incubate ideologies and practices. Research shows that consumers consider social media to be more reliable than firm-generated content and therefore are increasingly turning to social media to get more information about products and services, Foux (2006). To take advantage of the popularity of social media and their perceived trustworthiness, more and more organizations have social media presence to engage customers with their products and brands, Mangold and Faulds (2009). Nisar and Whitehead (2016) conducted a research study about improving consumer loyalty through social networking sites, the findings of the research revealed that a favourable brand image could help a company to not only gain competitive advantage but also inspire customers to keep coming back. According to Filo, Lock and Karg (2015), using social media platforms adds to the capability of firms to attribute customers to their own brands. Many authors have argued the key effect of marketing activities carry out over social media platforms on the branding recognition and brand personality. In a research study conducted by Muk and Chung (2014), they sought out to see which factors could persuade customers to follow a brand page. The findings of the research demonstrated that hedonic and functional values were the leading influences on customers signing up to the brand’s pages. Godey, Manthiou, Pederzoli, 27 Rokka, Aiello, Donvitto and Singh (2016) studied the social media marketing efforts carried out by luxury brands and demonstrated that these efforts significantly affected brand awareness and brand image. In a review of an analysis of existing literature on social media in marketing, Alalwan, Rana, Dwivedi and Algharabat (2017) examined and reviewed current studies that have been conducted on social media and marketing. The authors found that the main themes and trends covered included the role of social media in predicting advertising activities; how social media can influence the electronic word of mouth; how using social media could impact customer relationship management; brand issues over the social media platforms; how social media could predict consumer behaviour as a source of information; and other related themes. Yang (2012) investigated the impact of Facebook advertising on consumer decision- making behaviour and attitudes, the enquiry revealed that advertising messages provided by Facebook enhances consumers’ attitudes towards the brand and purchase intentions. In a study done by Kodjamanis and Angelopoulos (2013), their intention was to establish the extent to which Facebook advertising generated purchase intent, and whether or not Facebook advertising influences buying habits; the results of their survey disclosed that over half (53%) of the respondents believed that Facebook advertising had no impact on their purchasing intentions and buying habits, whereas 34% felt that it had a low influence. Persuad (2013) used a controlled experiment among 96 young adults to explore the impact of interactivity and product involvement on respondents’ attitudes towards brands on Facebook and their intention-to-purchase. The study revealed that high levels of interactivity on Facebook were positively correlated to intention-to-purchase and favourable attitudes towards the brand. In a study conducted by Mir (2013) the objectives of the study were to establish whether favourable attitudes towards social media (Facebook) advertising resulted in greater levels of clicking on the social media advertisements and, consequently, higher incidences of purchase. The study found that cognitive information leads to positive consumer attitudes towards social media advertising, which significantly influenced ad clicking and, consequently, had a favourable influence on buying behaviour. Some academic research has explored the 28 attitudes and perceptions of online advertising, and attitudes and perceptions of social media, McCarthy, Rowley, Ashworth and Pioch (2014). 2.2.4 Consumer-Based Brand Equity (Brand Resonance) Kevin Keller (1993; 2001; 2003) made a significant contribution to brand-building theory with his introduction of the concept of customer-based brand equity (CBBE) or brand resonance and the brand hierarchy. According to Keller, CBBE occurs when the customer is familiar with the brand and holds some favourable, strong, and unique brand associations in memory. It is brand equity from the perspective of the individual consumer, and it is defined as the differential effect of brand knowledge on consumer response to the marketing of the brand. There is strong support for why this research is focusing on Keller rather than Aaker’s model of brand equity. As Travis (2000) argues, it is a well-known fact that brands need to be understood from a customer’s perspective because a brand is like a bridge between the firm and its consumers, and a brand is not a brand until it develops an emotional connection with the consumer. The success of marketing efforts depends on how consumers respond; the response depends on the brand knowledge that has been created in their minds. Brand communication has been recognized as one of the determinants of brand equity, Yoo, Donthu and Lee (2000). The way to build a strong brand according to the CBBE model, is by following four sequential steps, each one representing a fundamental question that customers ask about brands: The first step is about ensuring the identification of the brand with a specific product category or need in the customer’s mind - who are you? The second step involves establishing the meaning of the brand in the customer’s mind by strategically linking tangible and intangible brand associations with certain properties - what are you? The third step is about eliciting customer responses to the brand identification and meaning - what about you? The fourth step is involved with converting the response into an active, intense and loyal relationship between the customers and the brand - what about you and me? Keller (2003) further explains that the CBBE model is built by sequentially establishing six ‘brand building blocks’ with customers, these blocks are assembled as a brand pyramid, namely the brand resonance pyramid. The first block which is brand salience, relates to the awareness of the brand. The second block is brand performance, which relates to the satisfaction of customers’ functional needs. Brand imagery relates to the satisfaction of customers’ psychological needs. Brand 29 judgments focus on customers’ opinions based on performance and imagery. Brand feelings are the customers’ emotional responses and reactions to the brand. The final block, representing the highest level of the pyramid is brand resonance, which is the relationship and level of identification of the customer with a brand. According to CBBE model, the strongest brands excel in all six of the brand-building blocks. The most valuable building block, brand resonance, occurs when all the other brand- building blocks are completely harmonious with customers' needs, wants, and desires. Simply put, brand resonance reflects a completely harmonious relationship between customers and the brand. A brand with the right identity and meaning can result in customer retention and brand advocacy. As Keller (2003) suggests, the strongest brands will be the ones to which those consumers become so attached that they become evangelists and actively seek means to interact with the brand and share their experiences with others. The model offers a yardstick by which brands can assess their progress in their brand building efforts as well as a guide for marketing research initiatives, Keller (2009). A carefully constructed and sequenced brand-building effort based on the CBBE model can help companies achieve brand resonance. Previous research that has used the CBBE model include research by Vazquez, Del Rio and Iglesias (2002) where they developed and validated a measurement instrument for CBBE. Firms that can achieve resonance and affinity with their customers should reap a host of valuable benefits, such as greater price premiums and more efficient and effective marketing programs. Keller (2001) posits that in using the CBBE model, marketers can better assess how brand-building efforts are progressing and can create successful marketing research initiatives. The brand-building goal is to reach the pinnacle of the pyramid where a harmonious relationship exists between customers and brand. 2.3 Brand Relationship Development Personal relationships were introduced in the marketing literature as a metaphor for the associations between customers and brands, Fournier (1998). Swaminathan, Page and Gurhan-canli (2007) posit that consumers are known to form strong relationships with those brands that have values and personality associations that are congruent with their 30 self-concept. In this way, brand relationships can be viewed as expressions of consumers’ identities. Even if product performance is impeccable and customers trust a brand implicitly, relationships do not always form. Relationship-formation is moderated by customer and product or brand attributes. Certain product categories, by their nature, lend themselves to relationship formation. This is particularly true in categories where product failure is costly and transactions imply lengthy interaction i.e. ownership period, or those in which brand-use is relatively exclusive. Brands with distinct traits that align with customer characteristics may promote relationships that are atypical for the product category, Fournier (1998). Barnes (2003) asserts that consumers establish close, meaningful relationships with many companies and brands. The extent to which meaning is present in a customer relationship depends entirely on the perceptions of the customer. As with so many concepts applied in marketing, such as service, quality and value, meaning exists in the mind of the customer. The strength of the customer relationship depends on the relative contribution of emotional and functional value created by the company or brand in the mind of the customer. In addition to the work done by Keller, Aziz and Yasin (2010) have done further research and recognised the brand resonance model as a tool to understand brand relationships. The model of brand resonance stresses the importance of understanding the cognitive and affective consequence of brand relationships. How consumers think, feel, and act, to guide research and planning for marketers. It also emphasizes a hierarchy in brand development and the importance of sequence steps in brand building. 2.3.1 Brand Relationship Network: The brand resonance network depicted below highlights the four fundamental relationships that have an impact on the four dimensions of brand resonance. 31 Figure 5: Brand Resonance Network (Source: Keller, 2009) (1) Consumer–Company Relationship: This association is about knowledge and feelings expressed by consumers toward the company behind the brand. It is also about how the company handles consumers. (2) Consumer–Consumer Relationship: This association is about the extent to which consumers relate with each other online and offline. This would include how they demonstrate their loyalty and note the loyalty of other users. (3) Company–Brand Relationship: This association concerns whether or not the company is seen as an upright brand agent and making certain that the brand lives up to its promise. This would also encompass how the company displays the true brand values in the marketplace; and how the company meets what consumers anticipate. (4) Consumer–Brand Relationship: This association concerns the extent to which consumers engage the brand. It also involves the extent to which consumers are attached to the brand. According to Keller (2009) it is vital for all the above-mentioned relationships to be managed effectively. Keller’s view is that consumer-brand relationship may be the most critical one from a marketer’s standpoint. This is not to say that the other relationships are not important. In fact, the other relationships are considered to have a significant 32 impact on the consumer-brand relationship. Keller further points out that reinforcement of every one of the associations and links separately or jointly boosts customer loyalty and brand resonance. 2.4 Theoretical Background 2.4.1 Interactive Social Media Advertising In their study titled The Social Media Advertising Model (SMAM): A Theoretical Framework; Ahmed and Raziq (2017) argue that advertising over social media is still considered as a new phenomenon and awaits for news insights, propagations and findings. They lament the lack of explicit theoretical foundation in this area. As a result their proposed study incorporates the Uses and Gratifications (U&G) Theory which is mass communication theory and the Theory of Reasoned Action (TRA) which is personal behavior theory. They argue that the combination of two theories into a well- integrated model provides new theoretical insights and adds to the depth of knowledge with respect to social media advertising. The U&G theory identifies the consumer’s gratification seeking beliefs & motives behind social media advertising, . On the other hand, the TRA element builds strong foundations for evaluating a consumer’s behavioral intentions after being exposed to advertising mediums over the social media. Their proposed study seeks to build an interactive “Social Media Advertising Model” (SMAM) through the combination of TRA & U&G. The proposed research provides an integrated social media advertising model (SMAM) which incorporates a consumer’s socio-psychological behavior. The amalgamation of the two theories creates additional knowledge and extends the advertising literature in terms of identifying the underlying personal, psychological, financial and social factors with respect to the role of social media. Their paper provides a conceptual model to be empirically tested. In terms of implications of their research, the authors contend that knowing the consumer responses to advertising on virtual communities will help practitioners in modifying their product offerings accordingly. Further it would assist in designing an engaging and appealing advertising content that matches the diverse needs and wants of consumers. 33 In their study aimed to examine the relation between social media engagement and social media advertising, Voorveld, Noort, Muntinga and Bronner 2018) postulate that on social media the context (i.e., the platform), not the content, of advertising is a key determinant of its effectiveness. They suggest that engagement with a social media platform spills over into how people engage with advertising within the platform and consequently affects advertising evaluations. In the study they adopted the engagement experience Framework, which is a framework that suggests that digital engagement develops from digital experiences and has three distinctive characteristics. First, the engagement experience framework fits the media engagement literature, explaining consumer– media interactions. Second, this approach differs from the more quantitative approaches that emphasize intensity of engagement or valence of engagement, allowing for context-specific, instead of a one-size-fits-all, measurement of engagement that can vary among social media platforms. Third, this conceptualization of engagement was demonstrated to be predictive of advertising effectiveness and thus advances knowledge of the relation between media engagement and advertising, or social media engagement and social media advertising more specifically. Their study makes four contributions. First, they advance research on digital engagement by giving insight into consumers’ engagement with eight social media platforms. Second, they demonstrate that digital engagement is highly context specific. Third, they map engagement with advertising on these platforms to show whether this is a key variable in learning how advertising on social media works. Finally, and most importantly, they connect the literatures on digital engagement and context effects. , and go beyond existing research that demonstrates the relationship between media engagement and advertising evaluation. They accomplish this by comparing how various types of experiences that constitute engagement with both social media platforms and advertising on these platforms affect evaluations of advertisements on various social media platforms. They present the following hypothesis: H1: Social media engagement experiences differ across social media platforms. H2: Social media advertising engagement differs across social media platforms. H3: Engagement with a social media platform is positively related to social media advertising evaluations, and this relationship is contingent on the social media platform. 34 H4: (a) Engagement with a social media platform is related to engagement with advertising on that platform, and (b) social media advertising engagement subsequently affects social media advertising evaluations. Conceptual model of social media advertising engagement. Their findings reveal the following practical implications, that engagement is highly context specific; it comprises various types of experiences on each social media platform such that each is experienced in a unique way. Moreover, on each platform, a different set of experiences is related to advertising evaluations. It is further shown that engagement with social media advertising itself is key in explaining how social media engagement is related to advertising evaluations. Their general conclusion is that there is no such thing as “social media.” As each digital platform offers users a unique experience, this experience carries over to the advertisements placed on that platform. Thus, to a substantial extent, the platform determines how an ad is evaluated. This finding has important managerial implications. It suggests that social media advertisers must select the right social medium for their brands’ purposes to enhance the effectiveness of their interactive advertising programs. Social media applications come and go; new applications appear almost daily. Because advertisers simply cannot be active on all digital platforms, selecting the proper platform is important. The current results provide advertisers with means to assess whether, what, and how to advertise on which platform, so that a decision to advertise is motivated by “should” rather than “could.” 35 2.4.2 Brand Resonance Model: Customer-Brand Relationship Approach: Conceptualizing, Measuring, and Managing Customer-Based Brand Equity, published in the Journal of Marketing in 1993, was one of the early thought pieces and review papers on branding in the field. At the core of customer-based brand equity is the concept of brand knowledge, Keller (2016). The consumer-based brand equity pyramid or brand resonance model provides chronological structure for building a strong brand and it includes four steps, each of which needs to be successfully accomplished to reach the next. The first step in building a strong brand - brand saliency refers to aspects of awareness of a brand such as the top-of- mind awareness of the brand, retrievability of the brand, and the overall strength of awareness. A brand with high saliency can characterize as a great amount of depth and breadth of brand awareness. Brand salience depends on the extent to which the brand is thought of easily and often, at all the right times, in all the right places, and in all the right ways, Keller (2016). A brand with high saliency is characterized by a great amount of depth and breadth of brand awareness. Brand awareness acts as the base position for building the meaning of the brand in the mind of the consumer, Keller (2001). Founded on the customer-based brand equity theory, ther are two main differences highlighted in the resonance model in its next two levels up on brand image and brand responses. The first main difference is in the dichotomy of brands, in terms of physical and mental associations linked to performance and imagery at the brand image level, and in terms of the rational and emotional responses that both types of information could induce as brand responses at the next level up, Keller and Lehmann (2006). Brand performance and brand imagery - crucial in realizing the second step of building a strong brand, are required to develop a product that meets or exceeds the functional and psychological or social needs of the consumer. This step incorporates building strong, favourable, and unique brand associations linked to the practical and realistic characteristics of the brand. Overall, greater amounts of brand knowledge will lead to a better understanding of the meaning of brands to consumers. According to Barnes (2003), in order for a firm to aspire to the creation of meaningful customer relationships, it must first have an appreciation for what contributes to such relationships, focusing largely on the creation of meaning through appropriate forms of 36 value for the customer. The meaning of the brand is what elicits responses to the brand on the part of the consumer, Keller (2008). The second step in the construction of a strong brand is brand meaning which refers to what you are. The two sides to brand meaning are brand performance - how well the product or service meets customers’ functional needs; and brand imagery – which includes the way in which the brand attempts to meet customers’ psychological or social needs. The key aspect of achieving this goal is to build strong, favourable, and unique brand associations related to the functional and experiential aspects of the brand. Overall, greater amounts of brand knowledge will lead to a better understanding of a brand‘s meaning to consumers. The meaning of the brand is what elicits responses to the brand on the part of the consumer. The third step in building a strong brand is eliciting consumer responses to the brand by means of brand judgments and brand feelings. Brand judgments which refer to customers’ own personal opinions and evaluations) and the cognitive evaluation of the overall superiority, quality, credibility, and consideration of the brand. This aspect of brand response evaluates the functional and symbolic aspects of the brand in reference to its competition to determine which product is superior. This step signifies the elicitation of an active response from the consumer. Brand feelings touch on how consumers feel about the brand. How consumers judge the brand and how they feel about the brand has a direct impact on their relationship with the brand. 37 Figure 6: Customer-based Brand Equity Pyramid (Source: Keller, 2001) The final step, brand resonance, refers to the nature of the relationship customers have with the brand. This step touches on the level of time and effort spent by the consumer’s consumption of the brand. It is the point at which consumers determine the kind of association they choose to have with a brand. Brand resonance – which is the most valuable brand-building block, occurs when all the other brand-building blocks are completely synchronized with customers’ needs, wants and desires. With true brand resonance, customers display a high degree of loyalty such that they actively seek means by which to interact with the brand and share their experiences with others, Keller (2001). Brand resonance stresses the importance of understanding the cognitive and affective consequence of brand relationships. How consumers think, feel, and act, to guide research and planning for marketers. It also emphasizes a hierarchy in brand development and the importance of sequence steps in brand building. 2.4.3 Dimensions of Brand Resonance Figure 7: Dimensions of Brand Resonance Source: Own illustration inspired by Keller (2008) 38 There are four dimensions to brand resonance; the first dimension, behavioural loyalty is about how often customers purchase a brand, and how much they purchase. Attitudinal attachment refers to when customers go beyond having a positive attitude to viewing the brand as being something special in a broader context. Sense of community – Where customers feel a kinship or affiliation with other people associated with the brand. Active engagement, which is the strongest affirmation of brand loyalty, refers to when customers are willing to invest time, energy, money, or other resources into the brand beyond those expended during consumption of the brand. In the case of active engagement, customers themselves become brand evangelists and ambassadors on behalf of the brand. The brand resonance model describes how marketers need to look beyond mere repeat buying (behavioural loyalty) instead the aim should be the creation of strong bonds between consumers and the brand (attitudinal attachment), as well as to each other and the company as a whole (sense of community). Brand engagement (Active engagement) happens when customers are willing to invest time, energy, money, or any other personal resources in the brand beyond those expended during purchase or consumption of the brand, Keller (2016). Therefore, strong brand attachment and brand community are typically necessary for brand engagement with the brand to occur, Keller (2001). Keller posits that behavioural loyalty is a starting point, but attitudinal attachment or a sense of community is typically needed for active engagement to occur. Keller recognises that the four dimensions of brand resonance have two distinct characteristics, namely intensity and activity. For example, the strength of attachment to the brand and with fellow consumers can be indicated by intensity. This refers to the gravity of the emotional bond that customers have with the company behind the brand and other brand users, this also refers to how strongly felt is the brand loyalty. Activity refers to any changes in behaviour as a result of this loyalty. Activity also refers to the frequency with which the brand is consumed, and the frequency with which customers participate in other activities not related to buying or consumption. All of this takes into account the extent to which the customer looks for information relating to the brand. The mental bond the consumer shares with the brand; as well as the intensity with which he or she intends to consume the brand, characterize brand loyalty (behavioural loyalty) and brand attachment (attitudinal attachment). Brand community (sense of 39 community) refers to the level of commitment that the principal consumer shares with other consumers of the brand. The engagement in these brand communities shows the like-mindedness and level of effort the consumer is willing to engage in, as a result of the brand. Brand engagement (active engagement) refers to the resources consumers are willing to invest in, on behalf of the brand, beyond purchase and consumption, Keller (2001; 2008). 2.5 Hypotheses Statements 2.5.1 Brand Loyalty Research Question: Is there a relationship between Social Media Advertising Interactivity and Brand Loyalty? Hypothesis 1 discussion: The relationship between interactivity of social media advertising and brand loyalty H10: There is no relationship between interactivity of social media advertising and brand loyalty H1a: There is a positive relationship between interactivity of social media advertising and brand loyalty The first dimension and most basic level of brand resonance is described as brand loyalty. Nemati et al. (2018) discuss that there are two types of brand loyalty; one is behavioural and other is attitudinal. A person who shops at the same place regularly is “behaviourally” loyal, while a person who tells others how great a product is, or simply feels really positive about the brand, is “attitudinally” loyal. Brand Resonance encompasses both types of loyalty and beyond, as it is the highest form of loyalty. Behavioural loyalty guarantees that consumers’ loyalty can be changed over into real buying practices. While attitudinal loyalty will not guarantee that clients would buy stock themselves. They, however, will help to make a positive picture of a business to others through word-of-mouth, Cheng (2011). Brand loyalty signifies repeat purchases and the share of volume ascribed to the brand because of behavioural loyalty. How often do customers purchase a brand and how much do they purchase? Jiang, Dev and Rao (2002) explained that the major reasons for customers being loyal is that they do not want to bear the cost of switching to other brand. Aaker (1991) and Keller (1993) 40 explained that the loyalty of customers towards a brand could be improved by creating a substantial and positive awareness of the brand in the minds of customers. Nemati et al. (2018) suggest that brand loyalty is influenced by factors including customers’ satisfaction, brand image, and brand awareness strategies of the marketers. According to Aaker (1991), the loyalty of customers towards a brand can be improved by creating a substantial and positive awareness of the brand in the minds of customers. Yoo and Donthu (2000) posited that loyalty meditates the relationship between brand awareness, brand associations and brand equity. This is in contrast to Keller (1993) study on customer-based brand equity, where brand loyalty did not feature at all as a dimension of brand knowledge. Aaker (1991) and Keller (1993) affirm that brand loyalty is one of the key factors, which affect the brand. The loyalty of customers towards a brand can be improved by creating a substantial and positive awareness of the brand in the minds of customers. According to Aaker (1991) brand loyalty, reflects how likely a customer will be to switch to another brand, especially when that brand makes a change, either in price or product features. Aaker also suggests that brand loyalty leads to brand equity, which leads to business profitability. What is the psychology behind the repeated purchase or consumption of a particular brand? The traditional answer invokes brand loyalty or some other positive brand relationship. When people develop a fondness for particular brands and form attachments to them, these favourable evaluations lead to repeat purchase and consumption. Often, people repeatedly purchase and consume out of habit, Lui- Thompkin and Tam (2013). According to Baldinger and Rubinson (1996), there is a strong relationship between behaviour and attitude; their study indicate that highly loyal buyers are more likely to continue purchasing a brand over the coming year that is influenced by their brand attitudes. Back and Parks (2003) investigated the mediating effects of attitudinal brand loyalty on the relationship between customer satisfaction and behavioural brand loyalty. They also found that low loyal or non-buyers are more likely to be converted if they have a positive view about products they have not yet bought. Kim, Jin-Sun and Hyun (2008) examined the relationship between hotel brand equity and guests’ perceived value and revisit intention. They found that brand loyalty has a significant relationship with the purchase intentions of the customers as it enhances the perceived value of the brand in the minds of the customers. For companies, customer 41 loyalty enhances brand equity by lowering vulnerability to competitive marketing actions, increasing margins, increasing marketing communication effectiveness, and possibly generating more brand licensing or extension opportunities, Keller and Aaker (1998). A study by Bain & Co. (Reichheld and Teal 2001) shows that a 5% increase in customer loyalty can increase a company’s profitability by 40 to 95%, and an increase in customer loyalty of 1% is the equivalent of a 10% cost reduction. Raj (1982) investigated different advertising effects on purchase behaviour of consumers of varying brand loyalty. The findings revealed that loyal users of a brand increased their volume of purchase in response to increased advertising, while non-loyal users did not increase their purchases in spite of the increased advertising. In a study involving product trial versus product advertising, Smith and Swinyard (1983), found that advertising can influence the formation of brand loyalty by establishing source credibility and setting up a predisposition for a favourable usage experience, which would have an effect on subsequent purchases. Most of the research on brand loyalty has been developed from the marketer‘s view and focused on the value of customer loyalty to the firm and how loyalty should be managed. Less work has been done on the consumer side asking why and how consumers become loyal to brands - Schultz and Bailey (2000). Brand loyalty is a relevant construct in the relationship marketing literature, which considers trust and commitment or loyalty to be key mediating variables in relational exchanges, Morgan and Hunt (1994). Facebook users can generate countless comments on a single brand post. They do this whilst networking with the brand and fellow commenters, providing a platform for discussion on social media from which it is easy to ask information, obtain feedback and get to know the consumer better, Malhotra et al. (2013). Hudson, Roth, Madden and Hudson (2015) suggest that the average user on Facebook has 130 friends, as a result when others get to know about a product or service from a friend; the rate at which they become a customer tends to be at a 15% higher than when they find out about it through other means. This is a view supported by Wallace et al. (2012) as they assert that liking and commenting let Facebook users informally indicate their affinity for a brand, item or product and share that with their own personal network on the social network site. The concept of customer loyalty has been extensively discussed in previous marketing literature; however, not many researchers have explored the 42 relationship between advertising and loyalty. Based on the above discussion, it is reasonable to conclude that Facebook Advertising has high levels of interactivity; however, we do not know if there is a direct impact on Brand Loyalty in emerging markets such as South Africa. Thus, the following hypotheses is proposed: H10: There is no relationship between interactivity of social media advertising and brand loyalty H1a: There is a positive relationship between interactivity of social media advertising and brand loyalty 2.5.2 Brand Attachment Research Question: Is there a relationship between Social Media Advertising Interactivity and Brand Attachment? Hypothesis 2 discussion: The relationship between interactivity of social media advertising and brand attachment. H20: There is no relationship between interactivity of social media advertising and brand attachment. H2a: There is a positive relationship between interactivity of social media advertising and brand attachment. Attachment denotes a psychological state of mind in which a strong cognitive and affective bond connects a brand with an individual in such a way that the brand is viewed as an extension of the self. Brand attachment is characterized by a connectedness between the brand and the self, Schultz et al. (1989). Emotional attachment is the consequence of longstanding relationships between service providers and customers, happens during the service experience, and is due to the company’s general marketing efforts, Levy and Hino (2016). Brand attachment more accurately predicts intentions to perform behaviours that use significant consumer resources (time, money, reputation), Park, McInnis, Priester, Eisingerich and Iacobucci (2010). Customers with a great deal of brand attachment to a brand may state they "love" it and describe it as one of their favourite possessions or view it as a "little pleasure" they look forward to. 43 As a construct that describes the strength of the bond connecting the consumer with the brand, attachment is critical because it should affect behaviours that foster brand profitability and customer lifetime value, Thomson, MacInnis and Park (2005). Brand attachment is the strength of the connection between the brand and person. A rich and accessible memory network that involves thoughts and feelings about the brand and the brand’s relationship to the self typifies the bond. Brand attachment accurately predicts intentions to perform behaviours that use significant consumer resources (time, money, reputation), Park, MacInnis, Priester, Eisingerich and Iacobucci (2010). The concept of brand attachment represents a specific kind of consumer-brand relationship. Psychology research focuses on individuals’ attachment to other individuals e.g. infants to mothers, or people in romantic relationships, Weiss (1988). Marketing research suggests that attachment can extend beyond the person to person relationship context. Research shows that consumers can develop attachment to gifts, place of residence, brands, Schouten and McAlexander (1995). Figure 8: Brand Attachment: Construct, Consequence and Causes (Source: Park et al., 2008) According to Park et al., (2008), brand attachment is developed through branding strategies, which use brand resources, such as name, image, etc. The branding resources 44 create trust, which leads to brand attachment. Past research shows that the stronger the consumer's attachment to a brand, the more willing they are to forsake personal resources to maintain an ongoing relationship with the brand. Highly attached consumers are more motivated to devote their own resources to the process of self- expansion, including paying more and devoting more time to the brand through brand communities and brand promotion through social media. Marketing efforts are no longer focussed on transaction-based associations but rather on the introduction, formation, and upkeep of lasting relationships with customers. Special weight is given on developing enduring connections with customers, to create trust, commitment, and loyalty, Morgan and Hunt (1994). As Levy and Hino (2016) contend, brands are devoting large financial resources in customers’ abiding wellbeing in order to build a unique sense of value and engender emotional brand attachment in customers. This has permitted great brands to form a strong emotional association with their customers. These emotional bonds go further than common service quality to creating solid customer-brand relationships. As Thomson et al. (2005) asserts, being emotionally involved means having a trust-based relationship with the brand, as well as being devoted to an ongoing steadfast affiliation with the brand. In a study about emotional attachment, conducted by Roma and Aloini (2019), their research found that the effects of advertising and brand-related marketing actions in social media depend on user content, generated in the context of the specific message and social media channel, for example, commentaries or Facebook ‘likes’ related to an advertisement in addition to the original message. Godey, Manthiou, Pederzoli, Rokka, Aiello, Donvito and Singh (2016), in their research on how social media marketing activities influence brand equity creation and consumers' behaviour towards a brand, , describe brand preference to mean that, when there are several competing brands on the market, consumers tend to prefer a brand on the basis of what they know and feel about it. They also explain that brand preference is commonly measured by asking consumers to indicate their favourite brands from a category or selection of brands. Although their research was focused on luxury brands, their study illustrates that social media marketing efforts have a significant positive impact on brand preference (among other variables, which were studied). 45 The term brand involvement sums up the individual’s attentiveness to the brand, reflecting its significance for the consumer. In this regard, Mitchell and Orwig (2002) found that when the customer has improved their knowledge of a product, that contributes to robust brand immersion, which, in turn, may result in amplified brand attachment. In their study on Brand Passion: antecedents and consequences, Albert, Merunka and Valette-Florence (2013) confirm the importance of brand identification as an antecedent of brand passion. This sense of identification from the consumer toward the brand appears to be critical for establishing a passionate feeling for the brand. Their results indicate the importance of the brand in terms of reflecting, participating in, or creating consumers' identity. As Bevan, Cummings,Kubiniec,Mogannam & Todd (2015) contend, that users have at their disposal a more appropriate setting to share personal events with their friends, like a diary, in a timely and cost effective manner due to the clear social networking nature of Facebook. This is also assisted by the recent trends toward richer, more visual and real-time features of the platform. Based on the above discussion, Facebook has the ability to create an environment for brands to interact and share experiences with consumers. Facebook also has the ability to provide users with an environment to share personal events with their friends. However, we do not know if there is a direct relationship between the interactivity of Social Media Advertising and Brand Attachment. Thus, the following hypothesis is proposed: H20: There is no relationship between interactivity of social media advertising and brand attachment. H2a: There is a positive relationship between interactivity of social media advertising and brand attachment 2.5.3 Brand Community Research Question: Is there a relationship between Social Media Advertising Interactivity and Brand Community? Hypothesis 3 discussion: The relationship between interactivity of social media advertising and brand community. 46 H30: There is no relationship between interactivity of social media advertising and brand community. H3a: There is a positive relationship between interactivity of social media advertising and brand community. Brand communities are almost certainly to be created around products that are consumed publicly and have consumers who share a high level of obligation to the brand, Muniz and O’ Guinn (2001). Brand communities are in all probability created around highly publicized brands that exist in highly competitive markets. Customers join and engage in brand communities to gain hedonic and utilitarian values from their participation in brand communities, Schau et al. (2009). By engaging in brand communities, customers gain pleasure by sharing their passion and acquire the needed information regarding their favourite brands, Zaglia (2013). Fournier (1998), indicates that people buy brands because they have established loyal, long-term, committed, affect-laden relationships with particular brands. Consumers not only form relationships with their brands, but also they form relationships with other consumers that have similar brand preferences. This network of consumer relationships is called a brand community or consumption community. Hollenbeck and Zinkhan (2006) asserts that brand communities are networks of consumer relationships that situate around a commonly used brand. These communities, which create a sense of belonging among consumers and the brand, become the central purpose and meaning for group interaction. The next generation of online business will be based on communities – a good tool for new customer attraction, Bagozzi and Dholakia (2002); Ridings and Gefen (2004). Online communities offer an opportunity to organisations to have a better customer relationship management system, Ridings and Gefen (2004). According to McAlexander, Schouten and Koenig (2002) the primary role of brand communities is to strengthen the relationship between consumers and the brand. Brand communities can cause a sense of belonging, as members share behaviours, attitudes and values – in addition to common interests, Zhang and Luo (2016). In today’s turbulent world, people are hungry for a sense of connection; and in lean economic times, every company needs new ways to do more with what it already has – Fournier and Lee (2009). Brand relationships are a result of consumers’ rapport with the brand and its 47 community members, Martínez-López, Anaya-Sanchez, Molinillo, Aguilar-Illescas, Esteban-Millat (2017); Shao and Ross (2015). Identification with the brand community may reflect an important social phenomenon in which the customer feels an affinity with other people connected with the brand, these could be users who also use the same brand, employees or the representative of the company. Coelho, Rita and Santos (2018) investigated the role of the brand in that relationship. They suggested a conceptual model in mass-market products in which consumers’ engagement in social media brand communities, brand identity, and consumer-brand identification are related to brand outcomes, such as trust and loyalty. Their findings indicated that in mass-markets, consumers engaged in social media brand communities may develop positive attitudes towards the brand, such as trust and loyalty, and that consumer-brand identification may have a fundamental role in transforming consumer- brand community interactions into consumer-brand relationships. McAlexander and Schouten (2002) demonstrate that, the strength of a brand community and an individual customer‘s integration lie in a web of relationships that customers perceive to have with a brand and its customers. Individual integration in a brand community constitutes a powerful form of customer loyalty with specific benefits to the marketer, including customer initiated marketing, repeat purchasing and higher tolerance for quality lapses. In a research study on online communities, Porter and Donthu (2008) found that a company's efforts in an online community can enrich trust in the company. When the brand networks with followers by replying to comments, inviting participation and solving problems - that leads to a feeling of connection from consumers who end up feeling a greater level of relationship quality. This is similar to recurrent social connections between two people, which often leads to greater interdependence and familiarity. This is a view advanced by Altman and Taylor (1973), who argue that relating with a brand through social media can amount to an interpersonal social interaction leading to an emotional attachment and a feeling of closeness. Hur et al. (2011) defined a brand community as a ‘‘group of people who possess a particular brand or who have a strong interest in a brand, and who are active both online and offline”. A brand community is considered as a meeting place for brand users connecting them to the brand and allowing them to interact with the content and with each other, Gummerus et al. (2012). Hur et al. (2011) confirms this by contending that 48 brand communities act as a means to enhance customer involvement in marketing dialogue with brands and to foster customer interactions with one another. Gutiérrez-Cillán, Camarero-Izquierdo and San José-Cabezudo (2017) assert that, with the fast circulation and prevalent use of social network sites, many firms are spending their money on social-network-site-based brand communities to build relationships and to encourage users to exchange knowledge about their experiences with the brand or the firm. The disclaimer is that this does not mean that all these communities are successful and that all their individual members are active participants even though millions of consumers are connected to their favourite brands through social networks. Social media has proven to be an effective channel through which to influence consumers’ brand perceptions and consumption behaviour, Marzocchi, Morandin & Bergami (2013). Social media are emerging as appropriate platforms through which through which relationships with consumers can also be built via online brand communities, but also where brands can be promoted and developed, this is a view by Chen, Xu & Whinston (2011). Social media present multiple means for communication and partnership among members and brands, Turri, Smith & Kemp (2013). Other studies have demonstrated that consumers who are emotionally attached to a brand, act as its supporters in a SNS context, Sashi, Brynildsen & Bilgihan (2019). In their research on Facebook brand community bonding, Sanz-Blas, Bigné and Buzova (2019) concluded that companies can reinforce the bond between their brands and consumers and eventually improve their online brand advocacy behaviour, by inspiring users to actively partake in the social network site community and by providing entertaining and informational content to their online brand communities. Celebi (2015) did a study on “how motives affect attitudes and behaviours toward internet advertising and Facebook advertising”. The findings of the research revealed that users with the drive for interpersonal value hold a favourable outlook and behaviour toward internet advertising. The reason for this was that people see efficacy to belong to a group, meet new people, express themselves and need for swapping information. Those who enjoy a sense of community and networking were more positive toward internet advertising both attitudinally and behaviourally. Findings from the research indicates that the online advertising industry should focus on creating a platform in which internet users may find peer community to whom they can discuss 49 their branding experiences. The findings also revealed that users with high interpersonal value spend more time on the internet to fulfil their needs. In the study, they also found that users with high information-seeking motivation had positive behaviour toward internet advertising, because of the apparent informativeness of internet advertising. The inspiration of information seeking led the people to search for different methods of information gathering and one of them was using the internet. The study conducted by Celebi (2015) concludes that individuals who have a need of belonging to groups and enjoying a sense of community hold positive attitude toward internet advertising and Facebook advertising. The concept of the relationship between Social Media Advertising Interactivity and Brand Community has not been tested in the emerging market of South Africa; therefore based on the above literature review, it is hypothesized that: H30: There is no relationship between interactivity of social media advertising and brand community. H3a: There is a positive relationship between interactivity of social media advertising and brand community. 2.5.4 Brand Engagement Research Question: Is there a relationship between Social Media Advertising Interactivity and Brand Engagement? Hypothesis 4 discussion: The relationship between interactivity of social media advertising and brand engagement. H40: There is no relationship between interactivity of social media advertising and brand engagement. H4a: There is a positive relationship between interactivity of social media advertising and brand engagement. Different disciplinary viewpoints have been used to analyse engagement; including psychology, organizational behaviour, marketing, management, education, sociology, information systems and political science. On the other hand, diverse jargon has been used to refer to different engagement subjects, for example, consumer engagement, customer engagement, employee engagement; or different engagement objects for 50 example, organizational engagement and brand engagement. All refer to a similar theory applied to different entities, Hollebeek (2011). Consumer engagement enlarges the traditional role played by consumers, including them in the value-creation process as co-creators. Sashi (2012) contents that consumers help to create value by helping companies understand their needs, participating in product development and delivery, providing feedback on products and becoming product advocates. Brodie, Hollebeek, Jurix and Ilic (2011) assert that consumer engagement can be contributory in building stronger emotional bonds in social exchanges and can contribute to the creation of higher levels of trust and commitment between consumers and companies, One way of creating value for organisations and for customers is through the collaborative activity of co-creation. Nysveen and Pe