SOCIALMEDIA IMPACT ON BRAND PERCEPTION AND CONSUMER BUYING DECISION IN THE LUXURYFASHION INDUSTRY1.0 Introduction1.1 Background Social Media has risen to become one of the most important marketing platforms for most FMCG companies and the fashion industry too has greatly benefitted from the large consumer presence on social media and the limited costs incurred in reaching out to them (Delloitte, 2015). Consumer behavior has been a major driver in shifting the focus of luxury fashion brands from conventional marketing to progressive investing in social media marketing. The attempt of luxury fashion brands is to generate brand loyalty by bringing customers closer to the brands through social media platforms such as Facebook and Instagram (Hilfer, 2015). Luxury fashion brands are subject to the challenges of maintaining brand exclusivity and integrity whilst attempting at incorporating social media marketing into the existing marketing mix (Brandwatch, 2015). The intriguing assumption that social media marketing will help the image of the luxury fashion brands could also be proven wrong as certain empirical claims of a devaluing impact in this case have also surfaced in the past (Brandwatch, 2015) (Ozeum & Tan, 2014). 1.2 Problem DefinitionLuxury fashion brands have tried keeping pace with the marketing activities that have changed over time. They have also ensured that the rare factor in luxury fashion products is not lost through their efforts of popularizing or commercializing the brand. As such, social media poses an opportunity as well as a threat to the image of the luxury fashion brand in front of the consumers. Social media marketing does commonalize the brand and bring a prospective consumer much closer to the brand. This works for most industries but the luxury fashion industry has been established on the exclusivity and elite quality that the products endorse. As such, using social media for marketing luxury fashion products and doing so in the interest of the brand has become a serious challenge for the luxury fashion brands. Few brands have not made their presence felt on social media platforms in order to keep their product and market niche (Ilyashov, 2015). However, the increasing activities on social media, the cost effective marketing tool that it has become and the increasing presence of potential customers has made it imperative for luxury fashion brands to utilize social media and incorporate SMM into their marketing mix. Therefore, the purpose of this research paper is to alleviate these concerns by understanding whether a luxury fashion brand receives positive or negative promotions by extending its marketing activities to social media platforms. 1.3 Research QuestionIn order to understandthe analyses to the problem stated above, answering the following researchquestions shall help in fulfilling the objective of this paper:How does social mediamarketing affect the perception and decision of consumers with respect toluxury fashion brands and products?Is social media marketinga positive or a negative contributing factor in helping the corporate aims andobjectives of luxury fashion brands?2.0 Literature Review This review ofliterature makes use of empirical research to understand the theory ofconsumption values that will be used in order to understand the research topic.Also, extensive work has been done by academicians and scholars inunderstanding the role played by social media with respect to the luxuryfashion industry. This research paper, however, seeks to answer those questionsthat have been left in ambiguity. 2.1 The Theory of Consumption ValuesThis theoryprimarily focuses on the buying decision of a prospective consumer. It tends toanswer whether a customer buys or does not buy a certain product and theninvestigate further into the factors that influence such a buyer in taking thisdecision (Sheth, Newman, & Gross,1991).This theory has been used to understand how the social media marketingtechniques of a luxury brand affects the buying intention, behavior anddecision of a prospective customer. This theory shall explain how the socialmedia presence of the luxury fashion brand affects the buying behavior ofcustomers. In order to alignthe social media marketing of luxury fashion brands with the consumer buyingbehavior, it is important to understand how initiatives taken by the luxuryfashion brands in promoting their products on social media are identified bythe consumers. It could either bring the customers closer to the brand or leadto erosion of the brand value and dignity. Even though this remains subjectivedepending on the way in which the brand promotes its brand and products onsocial media, a general idea of consumer perception and its effect on buyingbehavior can be analyzed through the research process. The theory ofconsumption values is one of the better models that explain the buyingintention of consumers by dividing the value created by the product into fivedifferent value propositions namely functional, conditional, emotional,epistemic and social values. The predominantvalue that a customer looks for in a product or a service is the need or desirethat it satisfies and the purpose it fulfils. This is known as the functionalvalue of the product. The functional value of a product constitutes theutility, performance, quality amongst other factors. The economic benefittheory comes closest to justifying the functional value of a product and holdsthe price and any other value attached as the most important decision makingfactor (Antonides & Raaij, 1998). The needs of theconsumers are the major drivers in giving rise to buying intention. However, inthe case of luxury fashion products, it is mostly the desires of consumers thatthese luxury brands seek to fulfill. The social value of a product holds a lot of relevance when luxury fashion products are subject of the case. This is mainly because these products carry an image of superiority, economic strength and social recognition and the same is lent to the consumers that buy these products. This, however, does not involve customers that follow luxury fashion products on social media pages but do not actually own any of them. However, the social value of a product is the social class or hierarchy the individuals with similar possessions are clustered or bundled into. The consumerbuying behavior as is being analyzed through the concept of social mediamarketing is to a large extent dependent on the peer groups and family circlesthat people are part of. The financial and educational strength of anindividual is a major contributor in shaping his preference for products andinfluencing his buying decision. The professional environment of individuals,in modern-day society, requires them to act, behave and function in a way as iscommanded by the social hierarchies and the social value of the product is attimes the most important factor shaping buying decisions and intentions of suchbuyers (Schiffman & Kanuk, 1997). It has beenempirically observed that the social media pages are frequently and closelyfollowed by people of similar attitudes, behaviors and social circles (Schiffman & Kanuk, 1997). One of the mainreasons behind the extent to which social media influences people is due to theemotional value it creates. The reason behind brands promoting their productsextensively on social media is that such marketing builds up an emotional value(either positive or negative) in the minds of the prospective consumer.Emotions such as excitement, satisfaction and loyalty initiate purchaseswhereas those of anger and guilt tend to distance consumers from brands andcompanies (Sheth, Newman, & Gross,1991).One of the mostimportant value propositions in a product that the modern-day consumer seems tobe very interested in is the epistemic value. The feeling of newness orinnovativeness that a product passes on to the consumer shapes the buyingintention to a great extent. Social media platforms are utilized as low-costmeans to market and promote the innovative features that products today arebeing launched into the market with. The switching behavior in such consumersis prominent whereas brand loyalty does not have a role to play in influencingdecisions (Katz & Lazarsfeld, 1955). The innovativenessin products is a very important facilitator and this study shall investigatefurther as to how the epistemic value is conveyed to the target market bycompanies and brands in order to drive sales at a premium price. This value is nottapped by social media platforms as this is subjective thereby differing fromperson to person and case to case (Kalafatis, Ledden, &Mathioudakis, 2010). However, social media presence forbrands is important in order for it to be able to stem conditional valueprospects in consumers. Time and place have been regarded as the most importantdeterminants in creating the conditional value for a product. The theory ofconsumption values is relevant only to understand the way in which consumersare influenced by different values that a particular product provides to them.This theory will be used in this research paper by aligning the same withsocial media and the role that is played by social media in building any or allof these values and hence, affecting the consumers buying behavior, brandperceptions and purchase decisions. This research is focused primarily atunderstanding how social media pages and platforms and the activity of luxurybrands therein shapes the perception of consumers and attracts or repels themfrom a particular luxury brand and product.2.2 Luxury, Luxury Products and Luxury Brands Luxury is definedas anything that provides comfort rather than fulfilling a need and isdifficult to obtain often when discussed in financial terms. Luxury productsare ones that are made to last for a considerably longer time and carry theimage of exclusivity for which a premium is charged by luxury brands (Kapferer & Bastien,2012).Luxury products have been used to create social distinctions in society anddraw hierarchies. In context of thisresearch paper, luxury has been interpreted from a Western culture perspectiveand speaks about the present-day ongoing in the luxury fashion industry. As far as thisresearch is concerned, luxury fashion customers are not restricted to just theones that buy luxury fashion products but also those that follow these brandsand their products on social media. Even though a part of these customersarent exactly buyers, they can be termed potential buyers that do fall underthe target population of such brands. 2.2.1 Social MediaSocial media canbroadly be defined as a collection of Internet-based applications that bringspeople together by creating and exchanging user generated content (Jahn, Kunz, & Meyer,2012).In this context, a luxury fashion brand is bound to bring together people whohave similar interests thereby using social media as a platform for thesecustomers to openly communicate and express themselves. 2.2.2 Application of Social Media in Luxury Fashion IndustryLuxury brands havecrafted their brand image solely on their own and the customers have been merespectators and receivers wherein they have been subject to the marketingpractices of these luxury brands (Jahn, Kunz, & Meyer,2012).Social media as transformed a one-way communication process into a two-waycommunication process wherein consumers dont just communicate with the brandbut within themselves too (Kim & Ko, 2010). Due to thesefactors that the social media concept has embedded in its core workingmethodologies, consumer behavior and perception towards luxury fashion brandsis being greatly influenced. Since social mediais a very broad concept analysis of which in its entirety is beyond the scopeof this paper, this research paper focuses mostly on the two widespread socialmedia platforms that are known to affect the luxury fashion industrypredominantly namely Facebook and Instagram. Luxury fashion brands andconsumers are known to frequent these social media platforms extensively. Ifmessaging applications like Whatsapp are ignored, Facebook and Instagram arethe most prominent social media platforms in the world. Not only do thesesocial media platforms boast of highest number of users, there are easilyadaptable by luxury fashion brands and are preferred within the fashionindustry (Morrison, 2015). Through the surveyconducted, it was found that Facebook and Instagram are the most preferredoptions for consumers as far as luxury fashion brands were concerned. Facebookhas 1.59 billion active users and is the most popular social media platform inthe world and is expected to grow and retain its rank amongst the socialnetwork sites. Even though Instagram has just 400 million active users monthly,the nature of the application has ensured that it becomes the most popularchoice for luxury brands to reveal and market their collections and events (Scott, 2015). Considering theframework of storytelling, use of photos and videos and attractivedemographics, these two social media platforms have been selected as the mostrelevant ones in order to base this research upon. In the context of thisresearch paper, the term social media implies Facebook and Instagram only. Social media hasbecome such a predominant part of peoples perceptions, decisions and evenlives that almost every luxury fashion brand has its presence in at least oneof the social media platforms. However, it is still unclear as to how usefulthese social media pages have been to the brand and the image it has. Theuncertainty regarding the outcome of such pages can be attributed to the factthat many of these luxury fashion brands do have a page but do not make use ofit in the right sense to promote the brand (Okonkwo, 2010). The way in which asocial media page is managed affects the image of the luxury brand to a greatextent. If strategically managed, a well-planned social media strategy canpromote the brand and products in the right sense whereas poor marketing onthese pages can lead to self-cannibalization. 3.0 MethodologyPrimary as well assecondary research has been used in order to understand consumer buyingbehavior and purchase decision in relevance to the social media presence andactivities of luxury brands. The author of this research paper is part of aneducational course that requires her to understand the luxury fashion market inthe contemporary sense and social media happens to be one of the most importantmarketing and promotion platforms for every company in modern-day globalizedworld. As such, this topic has been chosen to lend valuable insights into theway in which a prospective consumer interprets and perceives a particularluxury brand owing to the latters social media presence and marketingactivities. On-ground research has been done and the findings have been coupledwith literature retrieved from various data sources such as books, magazine,electronic journals, articles in periodicals and websites. Having carefullyunderstood each of the four theories that explain consumer behavior, the theoryof consumption values has been found to be the most comprehensive one thatadheres to the objective of this paper. The data collected from the primaryresearch has been put together to draw conclusions that happen to be the finaloutcome of this research paper. 3.1 Secondary Research Secondary researchhas been done in order to understand the concepts of luxury, social mediaand impact of social media on luxury brands. Empirical work done byresearchers and scholar with respect to the luxury fashion market and socialmedia and the dependability of the former on the latter has been used in theliterature review. The theory of consumption values (Sheth, Newman, & Gross,1991)has been used in order to understand the social media impacts towards consumerbrand perception and buying intention. The different facets of the theory ofconsumption values have been used to devise the online questionnaire and tounderstand how much of the decision making process is influenced by each valueproposition as professed by Sheth (1991).3.2 Primary ResearchPrimary researchhas been done by means of an online survey wherein the questions have beenattributed to the different facets of the theory of consumption values and thesame has been aligned with the objective of the paper. 3.2.1 Sampling StrategyThe data has beencollected from the young college-going population of the colleges inNottingham. Therefore, the results and findings represent the responses from aselect population in a target market. It has been ensured that 100 people havetaken the online survey and the findings have been based on the data collectedtherein. These questionnaires have been distributed in a strategic mannerthereby gaining respondents that have either bought luxury fashion products orhave been extensively active on social media platforms such as Facebook andInstagram in following luxury brands and their products. Even though thequestionnaire has been floated online, it has been ensured that the respondentsbelong to a target age group and are affected by similar socio-cultural andeconomic aspects. Students of the Nottingham Trent University and theUniversity of Westminster form a major part of the entire population ofrespondents. The sampling method ensures that the findings of this study can beheld true for a student population under 30 years of age that has been exposedto the luxury fashion world and is part of a developed economy. 4.0 Findings It has been foundthrough the results of this survey that social media has a predominant impactin shaping the brand perceptions and buying decisions of consumers. 78% of therespondents were of the view that social media activities of a particularluxury brand help them in creating an image about the brand, one that has alasting role to play in shaping their buying behavior. The negative outcomes ofsocial media marketing have been highlighted in this research paper but thefindings show that the positive outcomes of such marketing by luxury fashionbrands far outweighs the negative ones and that the luxury fashion brands thatstrategically promote their brand and products on social media have onlybenefitted from the same. 81% of therespondents were of the view that the social media page of a luxury fashionbrand increases brand loyalty and enhances consumer buying by bringing theconsumer closer to the brand, its products and every emotional and socialimpact that it creates. This proximity to the luxury fashion brand is createdbecause luxury fashion brands often reveal insights of their brands, underlyingstories and behind the scenes footage on social media to intrigue buyers. Thecollaborations of these brands with various events, excerpts from famouscelebrities and brand ambassador programs are all extensively featured onsocial media thereby giving insights into the luxury brand that is otherwisemissing from traditional marketing platforms such as television, newspapers,advertisements, billboards and sponsorships. The major findingsfrom the survey were:Facebook and Instagramare the most frequented social media platforms wherein consumers tend to followactivities of luxury fashion brands80% of the respondentsfollowed at least one social media page on either Facebook or Instagram89% of the respondentspreferred images and videos to text with respect to social media marketing forluxury fashion brands37% of the respondentslooked up to the emotional value of buying a luxury fashion product whereas 29%of the respondents felt that the social value created by the luxury brand onsocial media shaped their buying decisions63% of the respondentsfelt that social media marketing brought the consumers closer to the brand whereas27% felt that it did not affect their value for the brand45% of the respondentsfelt that Burberry was the luxury brand they were most educated about whereasonly 3% of the respondents claimed to have information about Saint Laurent.Burberry has excelled in the field of social media marketing whereas SaintLaurent has had very little social media presence5.0 AnalysisThe differentquestions asked as part of the primary survey helped in understanding differentfacets of the social media influence that was felt by consumers with respect toluxury fashion brands. It was found, through the survey, that users foundimages and videos highly engaging and influential as opposed to text mostlybecause the products and the aesthetics can be promoted best in the visualsense. It was also analyzed that consumers are not just interested in theproducts and their features but the surrounding activities that encapsulate theluxury brand. In order to ensure that a consumer is loyal to a brand throughsocial media activity, it is important that a lot more is promoted on socialmedia. Consumers are interested in knowing the values that the brand stands forand the background activities that go on. This can be aligned to the theory ofconsumption values wherein the emotional value of a product rates as a moreimportant facilitator to consumer perception as compared to the functionalvalue of the product. The assumptionmade early on in this research paper that a luxury brand might lose its senseof exclusivity by promoting its brand online does not hold true, if the resultsof the survey are to be believed. Only 11 per cent of the respondents felt thatsocial media advertising makes a luxury fashion brand lose its exclusivity. Themodern-day globalized world presents a market wherein every consumer willing topay a predefined price is able to own a product he/she desires or needs. Thisis in contrast to a few decades earlier wherein luxury items and goods werebelieved to be reserved for the upper sections of the society and economicprowess was the sole determinant to decide ownership of luxury items. In orderto remain profitable and grow with the growing market, the luxury fashionbrands find it imperative to target a wider section of the market and thisgives the power to the consumers to choose the products. The results of thesurvey have proven that bringing the brand closer to a consumer helps its imageand turns the prospective consumer into a brand-loyal consumer. Social mediamarketing educates the consumers about the brand from time to time and keepsthem updated about the ongoing in the luxury fashion market. Almost the entiregroup of respondents was of the view that their knowledge and understandingabout certain luxury fashion brands stems from their pursuits on social media.The respondents have very little or no idea about those luxury brands that havenot opted for social media marketing whereas they were updated on trends,collections, products and fashion lines for brands that had extensive socialmedia presence. Social media platforms such as Facebook and Instagram create apresent fan base while paving the way to find takers in future as thecontemporary society is influenced by social media to a great extent. This is apositive influence that social media creates with respect to the brandperceptions of prospective consumers with respect to luxury fashion brands. Most of therespondents in the survey were of the view that luxury brands should indulge insocial media marketing as it only helps the brand gain customer trust, loyaltyand appeal to a larger consumer base. Apart from being informative, socialmedia platforms such as Facebook and Instagram bring together people of similartastes and preferences in luxury products even though they are from differentethnicities, nationalities and backgrounds. Being a part of such a community isoften perceived as quite attractive by many consumers who wish to keepthemselves updated with social media ongoing in the luxury brand segment solelyto be a part of a certain social group. This highlights the social value of aluxury brand and product that the theory of consumption values professes (Sheth, Newman, & Gross,1991).From the resultsof the survey, it was found out that one of the key reasons social media helpedluxury fashion brands was that it brought the exclusivity of the brand closerto the lives of the consumers (Jahn, Kunz, & Meyer,2012).Some luxury brands have even failed in marketing their brand properly mainlybecause they have restricted the social media promotion to a one-waycommunication tool and have not realized the importance of consumers opinionswhen voiced on a social media platform. It was found that 75% of therespondents believed that they were more attracted to the brand when it allowedthem to comment and have a say on their platforms. Brand responsiveness towardspositive and negative feedback from consumers helped shape the buyingintentions of consumers in a positive way as they felt they belonged to thebrand family as long as they were heard. The theory ofconsumption values when applied to the results of the data collected gives usclear insights into the way in which social media marketing helps in shapingbrand perceptions of luxury fashion products. As can be seen from the results,only 45% of the respondents were interested in the functional value of theproducts. Most of the respondents were influenced by the social image of thebrand and the social recognition that the brand would bring to them if theirproducts were to be bought. Also, it was established that social mediamarketing when done strategically has a positive influence and there are littleor no negative impacts. Neither is there any erosion of the brand exclusivity.In fact, luxury fashion products, by making their brands available on socialmedia platforms, entice potential customers towards their product line by highlightingthe emotional value of luxury fashion products. With luxury fashion products,it was found that the epistemic value held little or no relevance as innovationwas not necessarily an attribute buyers looked for. The conditional valuecannot be explained by the scope of this research but it was found that many ofthe prospective customers followed social media pages of luxury fashion brandsto watch out for discounts and end-of-season sales. Hence, it can be concludedfrom the findings of this research that the emotional value and social value ofluxury fashion products influences the buyers predominantly and that thesevalues are highlighted on social media platforms by luxury fashion brands thathave managed to use this tool as an effective marketing weapon. 6.0 ConclusionThe objective ofthis research paper was to analyze the impact that social media platforms haveon the consumers brand perception of luxury fashion brands. For this purpose,Facebook and Instagram were the two popular social media platforms that wereconsidered. Secondary as well as primary research was used in order to answerthe research question. This research paper is an exploratory study that triesfinding out whether social media promotions erode the exclusivity of luxurybrands or bring consumers closer to the brand thereby creating a positiveimpact. The primaryresearch constituted an online survey that was conducted by means of aquestionnaire that received 100 respondents most of which were young collegegoing people that either followed social media pages of luxury brands or/andhad bought luxury fashion products before. The findings from this study werethat social media promotion has a positive impact on the image of the brand asit encourages two-way communication and enhances brand loyalty andtrustworthiness whilst educating and informing consumers from time to time.This economic means of promotion helped in popularizing a brand and few feltthat a brand lost its exclusivity due to its social media presence. It was alsofound that the social media marketing of a particular luxury fashion brandrevolves around highlighting the emotional and social value of the product andthe brand whereas the functional value hardly makes a very big difference toprospective buyers. This study alsorevealed that even for luxury fashion brands, one of the biggest drivers forsales and customer loyalty happened to be the interaction between consumers andthe brand. Social media happens to be a facilitating tool that engages userinteraction with the brands and this enhances customer loyalty. However, it wasfound that only those brands that strategically promoted their brand andproducts on social media found it helpful whereas the brands that did notallocate proper resources faced negative repercussions. 7.0 BibliographyAntonides, G., & Raaij, W. F. (1998). ConsumerBehaviour. A European Perspective. Chichester: John Wiley & Sons.Brandwatch. (2015). Social Insights on the LuxuryFashion Industry. Brandwatch.Bryman, A. (2008). Social Research Methods. NewYork, USA: Oxford University Press.Delloitte. (2015). The Luxury Opportunity. 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The LuxuryStrategy: Break the Rules of Marketing to Build Luxury Brands. In K. Page.London.Katz, E., & Lazarsfeld, P. (1955). PersonalInfluence: The Part Played By People In The Flow Of Mass Communications.The Free Press.Kim, A., & Ko, E. (2010). Impacts of Luxury FashionBrands Social Media Marketing on Customer Relationship and PurchaseIntention. Journal of Global Fashion Marketing , 164-171.Kim, G., & Kim, J. (2009). The Investigation of ChineseConsumer Values, Consumption Values, Life Satisfaction, and ConsumptionBehaviors. . Psychology and Marketing , 610-624.Long, M. M., & Schiffman, L. G. (2000). ConsumptionValues And Relationships: Segmenting The Market For Frequency Programs. Journalof Consumer Marketing , 214-232.Morrison, K. (2015). 91% of Retail Brands Use Two orMore Social Media Channels. Retrieved December 20, 2017, from Adweek:http://www.adweek.com/socialtimes/yesmail-retail-brands-social-media-channels/622117Okonkwo, U. (2010). Luxury online: Styles, Systems,Strategies. 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Journal of BusinessResearch , 159-170.Appendix 1Age?Below 30Above 30Gender?MaleFemaleHave you bought any luxury fashion products?YesNoDo you follow any social media pages for a luxury fashion brand?YesNoI dont knowWhich social media platform do you use most often for following luxury fashion brands online?FacebookInstagramYoutubePinterestSnapchatNoneOtherWhat type of content do you prefer to see on the social media page of luxury fashion brand?ImagesVideoTextWhat attracts you to a luxury fashion product when the same is promoted on a social media platform?The quality and comfort it providesThe happiness it brings into ones lifeThe way in which people socially perceive the productThe innovative features as and when promotedThe matter of chance when I see a product I need being marketed Rank (from 1 to 7 with 1 being the most preferred option) which of the following features attracts you the most in the social media page of luxury fashion brand. Information about the companyInteresting updates about the brand, upcoming events and the product
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