The Influence of Social Media Platform Usage on Customer Equity

Manyang, Manyang Garang
Glynn, Mark
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Master of Business
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Auckland University of Technology

The abstract is aimed to illustrate the influences of social media platforms usage on customer equity and also to examine the roles of social media in entertaining people, advertising as well as buying and selling of the products online. Social media are online applications, platforms and media for interactions, and sharing of contents (Kaplan and Haenlein, 2010; Richter and Koch, 2007). Most of the companies utilise the social media platforms to increase their brand awareness and brand engagement. Specifically, companies are utilising the social media or social networking sites as communication channels to advertise their products or services to large potential consumers. In essence, the theoretical framework depicts the social media as an interacting place where the companies and consumers meet to communicate about the products or services online.

This research will examine ways social media or social networking sites improve customer equity. Therefore, it will use the literature review based on a basic approach to illustrate the customer equity and social media as an essential and effective methodology in analysing the three key drivers such as value equity, brand equity and retention/ relationship equity (Blattberg et al, 2001; Rust et al, 2001 and Rust et al., 2000). In examining literature review, the research will focus on the influences of social media platforms usage on customer equity and the roles of social media as a mean of marketing communication.

Customer equity , Social media , Loyalty programs , Social networking sites
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