Marketing Article Summary BQ 371 Advanced Statistics Spring

how statistics is a part of every field in business and also a crucial part of our society

Marketing Article Summary BQ 371 Advanced Statistics Spring

The area of interest in business that was researched was marketing. The article, “Do

social media marketing activities enhance customer equity? An empirical study of luxury fashion

brand” was written by Kim and Ko (Kim & Ko, 2012). The authors address the question stated

in the title about social marketing media (SMM). The goal was to research the identifying

characteristics of SMM and to explore the correlation among these characteristics in relation to

luxury fashion brands. The five main constructs were listed as; SMM activities, value equity,

relationship equity, brand equity, customer equity, and purchase intention. Five sub-constructs

were defined under SMM activities as entertainment, interaction, trendiness, customization, and

word of mouth. The authors defined these constructs very well in terms of the area of luxury

brands. A few of the luxury brands were listed in the literature review and survey as; Louis

Vuitton, Gucci, Burberry, and Dolce & Gabbana. Kim and Ko also discussed the “digital IQ” of

luxury brands and defined these as a rating scale on four different characteristics (p. 1482). Some

of the SMM mentioned were Twitter, Facebook, YouTube, live broadcasting blogs, and iPhone


The authors provided their well-defined ten hypotheses among the constructs listed above

(p. 1482). The measurements included; descriptive statistics, Cronbach’s α (test for reliability),

confirmatory factor analysis (CFA measures the validity of the constructs), correlation matrix

(measures the relationship among variables), and structural equation modeling (used to test the

hypotheses). All of the results were well described and summarized in convenient tables. All of

the tests reported the p-values, test statistics (t-values), and Beta levels (β) to determine

significant differences or no significant differences. Also, the results of the structural equation

model was diagramed as a figure in the article. This diagram was help to visually see the

relationships among the five main constructs of interest and their significance.

The statistical results gave the following conclusions to the research. The SMM activities

were over all significant and positive in terms of the three customer equity drivers; value equity,

relationship equity, and brand equity. The customer equity drivers and customer equity; brand

equity was negative effect, but value and relationship equity had no effect. Purchase intention

and customer equity; value and brand equity were significantly positive were relationship equity

had no effect. Lastly, purchase intention and customer equity were significant. Overall, the study

would be helpful for luxury brands to forecast future purchasing behavior of their customers

accurately and help lead them in managing assets and marketing activities.

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