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IMPACT OF SOCIAL MEDIA MARKETING ON BRAND BUILDING: A CASE STUDY

OF OLX, PAKISTAN

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Arman Khan Ishfaque Ahmed

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Muhammad Hafeez Javed Ahmed Shaikh

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Sci.Int.(Lahore),31(6),881-884,2019 ISSN 1013-5316;CODEN: SINTE 8 881

IMPACT OF SOCIAL MEDIA MARKETING ON BRAND BUILDING:

A CASE STUDY OF OLX, PAKISTAN
Arman Khan, Ishfaque Ahmed, Muhammad Hafeez* and Javed Ahmed
Department of Business Admiration, Shaheed Benazir Bhutto University, Shaheed Benazir Abad *Putra Business School,
University of Putra Malaysia
Corresponding author’s email: armankhan@sbbusba.edu.pk
ABSTRACT: The purpose of this paper was to analyze the impact of social media marketing on brand building with reference
to OLX, Pakistan. Prior to the field survey, the authors constructed a theoretical model for clear identification of how social
media marketing can build the brand. Data from 106 respondents were collected who used social OLX channels for
purchasing. For the purpose, simple random sampling was adopted and information from 106 respondents was collected
through a well-designed questionnaire. The collected data were analyzed using binary logistic regression analysis. The results
of the study indicate that social media marketing had a significant positive impact on brand building. The study recommends
that in order to reach out to the targeted groups with social media marketing and to build greater brand equity, the company
should focus on multiple social media platforms. Further, the case company's brand-building actions in social media
marketing were also examined to help the company to clarify its social media marketing plan.

Keywords: Brand building, brand equity, brand awareness, social media, Pakistan
INTRODUCTION The study by [4] documented that social media advertisement
From the last several years, social media has gained massive is influencing consumer's behavior, awareness, information,
popularity throughout the world and has rapidly changed the perceptions, attitudes, buying culture, feedback, as well as the
means of communication and impacted the means of product's durability. Initially, there were just two options
marketing [1, 2]. Social media is an online community available to get the consumer's attention: first, to assign an
established on internet technology that operates as an advertisement task to a well-reputed advertising agency.
interactive platform between the company and the customers Secondly, to deal with the third party of the media.
[3]. The study by [4] documented that recently effective Nowadays, the marketing environment and their rules of
communication between companies and customers about the business have totally been changed. The social media
product quality has been made easy and possible by the advertisement is completely different from the traditional
emergence of internet-based social media. As a part of the advertisement's practices conducted through television,
company's social media marketing, the organization must newspapers, and radio, etc. [8] reported that the organizations
create useful and tempting content, indicate vibrant actions have developed new rules of marketing and strengthening a
that make each customer want to follow the product's page, personal relationship with the customers and these all things
should respond rapidly to all requests, and focus on are happening because of social media.
customers' remarks [5]. Like other countries, online advertisement strategies are
In fact, social media includes different variety of online rapidly growing in Pakistan and firms are allocating a huge
word-of-mouth forums and have categorically changed into a amount of budget to advertise the product. In addition, there
major feature in influencing characteristics of consumer is a huge increase in online shopping due to free packages
purchasing decision-making behavior such as attitudes, offered by various mobile companies. In Pakistan, social
awareness, information acquisition, opinions, purchase media is the best platform to make a brand. Among others,
behavior, and post-purchase communication and evaluation. OLX, Pakistan is one of the leading brands used by online
The development of meaningful relationships with brands users, which is a free online classified site, having a
and customers is the core of social media marketing which discouraging challenge with international ambitions.
can often be observed in a long-term outlook. According to Considering the role of social media on brand building the
the study by [6], some of the researchers still debate about the authors therefore critically analyzed its impact on a different
outcome and effectiveness of social media on consumer dimension of brand building. The research questions are as
behavior. They further reported that most of the organizations follows:
face difficulties in measuring the added value of the efforts a. Is social media marketing has an impact on brand
that usually made for marketing. awareness?
In the existing literature, nexus between brand building and b. Is social media marketing has an impact on brand
social media marketing have received a substantial amount of loyalty?
attention. The recent studies in marketing focus on utilizing c. Is social media marketing has an impact on brand
social media on different indicators of brand building such as equity?
awareness, equity, and loyalty. In this research, besides social Theoretical Framework: Social Media Marketing and
media marketing, the authors identified different factors that Brand Building
may affect brand building [7]. Social media particularly Prior to the field survey, the authors designed a coherent
provide information about product durability, price, use etc. theoretical model to investigate the role of social media
that attract the customers to buy the product. Nowadays, marketing on different dimensions of brand building. In the
many organizations are advertising their products or services first step, the authors linked the role of social media on
using online social media channels such as Facebook, different indicators of brand building. Several studies [9, 1]
LinkedIn, Tumble, YouTube, Twitter, etc. indicate that the use of social media does positively affect

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brand awareness, brand loyalty, and brand equity and had an customers' engagement have a positive correlation with brand
indirect effect on brand building. In a similar study by [10] awareness, loyalty, and equity in the context of social media
noted that brand awareness and brand loyalty is an outcome marketing. In the second step, the authors linked awareness,
of customers frequent engagement with social media. loyalty, and equity with brand building. In fact, these three
However, the study by [11], argued that word-of-mouth has a indicators are directly involved in the brand building of any
direct and positive relationship with customers' awareness product.
about the brand.
The above findings of different authors supported the
theoretical framework of this study that suggests that

Brand
Awareness

Social Media
Marketing Brand Loyalty Brand Building

Brand Equity

Figure 1: Relationship between social media marketing and brand building

MATERIAL AND METHODS =

Customers of OLX, Pakistan were selected as there Y= Brand equity (if yes then 1, otherwise 0)
presentative of online social media. For the purpose of X1= Age of the respondents
collecting primary data, the authors used a simple random X2= Gender of the respondents (If Male then 1, otherwise 0)
sampling technique considering the underlying advantages as X3= Education level of the respondents (years of Schooling)
this technique improves the accuracy and reduces the cost of X4=Quality (1, otherwise 0)
social survey results [12]. Karachi Division was divided into X5= Trust (If the respondents trust on the product then 1,
three strata as Zone-I, II and III, from each stratum two otherwise 0)
districts were randomly selected and out of each district, X6=Behavior
customers were selected randomly who used OLX as a mean X7=Satisfaction
of purchasing. After analyzing all scatter diagrams the X8=Social Media Marketing
authors decided to use the binary logistic regression analysis =
for the purpose of data analysis. As per the theoretical Y= Brand loyalty (if Yes then 1, otherwise 0)
framework, three different models were designed to critically X1= Age of the respondents
investigate the role of social media marketing on three X2= Gender of the respondents (If Male then 1, otherwise 0)
different dimensions of brand building. The econometric X3= Education level of the respondents (years of Schooling)
forms of these models are as under: X4=Personality (If the respondents viewed online posting
= then 1, otherwise 0)
Y= Awareness of respondents about the brand (if yes then 1, X5= Accessibility (If the respondents have easy accessibility
otherwise 0) then 1 otherwise 0)
X1=Age of the respondents X6=Emotional connection
X2=Gender of the respondents (If Male then 1, otherwise 0) X7= Social Media Marketing
X3=Education level of the respondents (years of Schooling) REGRESSION ANALYSIS OF HYPOTHESIZES
X4=Online traffic (If the respondents viewed online posting Nexus between Social Media Marketing and Brand
then 1, otherwise 0) Awareness
X5= External link (If the respondents have an external link The results of the binary logistic regression analysis are
then 1, otherwise 0) presented in Table I. The intercept of the model is 1.428,
X6=Community Reach which represents the expected increase in brand awareness,
X7=Social Media Marketing when all inputs are zero.

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Sci.Int.(Lahore),31(6),881-884,2019 ISSN 1013-5316;CODEN: SINTE 8 883
The coefficient of the age of the respondents is 0.001. The important variable i.e., social media marketing is significant
coefficient of gender is 0.047. The coefficient of the at less than 5 percent level of significance. This coefficient
education level of the respondent is 0.151. This coefficient indicates that brand awareness will increase by 0.384 percent
indicates that brand awareness will increase by 0.151 percent by increasing social media marketing by 1 percent. The
by increasing 1 percent of education level. The coefficient of overall significance of the model can also be judged from the
social engagement is 1.454 percent. This coefficient indicates value of the coefficient of Cox & Snell R Square i.e., 0.158.
that brand awareness will increase by 1.454 percent by Similarly, the value of Nagelkerke R Square is 0.225 which
increasing social engagement by 1 percent. Subsequently, the indicates that about
most 22.5 percent of the total change in brand awareness
is explained by the independent variables.
Table I: Nexus between Social Media Marketing and Brand Awareness
Variable Coefficient S.E. Sig.
Age 0.001 0.019 0.039
Gender 0.047 0.492 0.064
Education 0.151 0.052 0.003
Traffic 1.352 0.561 0.016
External Link -0.448 0.519 0.389
Social Engagement 1.454 0.552 0.008
Community Reach 0.171 0.489 0.727
Social Media Marketing 0.384 0.513 0.054
Constant 1.428 1.228 0.024
-2 Log likelihood = 109.885, Cox & Snell R Square = 0.158,
Nagelkerke R Square = 0.225

Nexus between Social Media Marketing and Brand quality of the product by 1 percent. The coefficient of
Loyalty behavior is 0.406. This coefficient indicates that brand loyalty
The results of the binary logistic regression analysis are will increase by 0.406 percent by increasing the sellers'
presented in Table II. The intercept of the model is 0.912, behavior by 1 percent. The main variable of this model is
which represents the expected increase in brand loyalty when social media marketing which is significant at less than 5
all inputs are zero. percent level. This coefficient indicates that brand loyalty
The coefficient of the age of the respondents is 0.008. The will increase by 0.560 percent by increasing social media
coefficient of gender is 0.0131. The coefficient of education marketing by 1 percent. The overall significance of the model
is 0.057. This coefficient indicates that brand loyalty will can also be judged from the value of the coefficient of Cox &
increase by 0.057 percent by increasing 1 percent of Snell R Square i.e., 0.087. Similarly, the value of Nagelkerke
education level. The coefficient of quality is 0.745 percent. R Square is 0.116 which indicates that about 11.6 percent of
This coefficient indicates that brand loyalty will increase by the total change in brand loyalty is explained by the
0.745 percent by increasing the independent variables.
Table II: Nexus between Social Media Marketing and Brand Loyalty
Coefficient S.E. Sig.
Age 0.008 0.017 0.024
Gender 0.013 0.441 0.097
Education 0.057 0.038 0.014
Quality 0.745 0.422 0.077
Trust 0.371 0.431 0.389
Behavior 0.406 0.456 0.037
Satisfaction 0.245 0.429 0.567
Social Media Marketing 0.560 0.467 0.031
Constant 0.912 1.022 0.037
-2 Log likelihood = 136.359, Cox & Snell R Square = 0.087,
Nagelkerke R Square = 0.116

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Nexus between Social Media Marketing and Brand percent. The coefficient of emotional connection is 0.504.
Equity This coefficient indicates that brand equity will increase by
The results of the binary logistic regression analysis are 0.504 percent by increasing the emotional connection by 1
presented in Table III. The intercept of the model is 0.084, percent. The main variable of this model is social media
which represents the expected increase in brand equity when marketing which is significant at less than 5 percent level.
all inputs are zero. This coefficient indicates that brand equity will increase by
The coefficient of the age of the respondent is 0.007. The 0.175 percent by increasing social media marketing by 1
coefficient of gender is 0.023. The coefficient of education is percent. The overall significance of the model can also be
0.012. This coefficient indicates that brand equity will judged from the value of the coefficient of Cox & Snell R
increase by 0.012 percent by increasing 1 percent of Square i.e., 0.022. Similarly, the value of Nagelkerke R
education level. The coefficient of personality is 0.067 Square is 0.030 which indicates that about 3 percent of the
percent. This coefficient indicates that brand equity will total change in brand equity is explained by the independent
increase by 0.067 percent by increasing the personality by 1 variables.
Table III: Nexus between Social Media Marketing and Brand Equity
Coefficient S.E. Sig.
Age 0.007 0.017 0.069
Gender 0.023 0.414 0.215
Education 0.012 0.037 0.075
Personality 0.067 0.434 0.877
Accessibility -0.161 0.418 0.699
Emotional Connection 0.504 0.415 0.052
Social Media Marketing 0.175 0.458 0.002
Constant 0.084 0.873 0.092
-2 Log likelihood = 140.007, Cox & Snell R Square = 0.022,
Nagelkerke R Square = 0.030
Academies International Conference, Proceedings of the
CONCLUSION Academy of Marketing Studies, 20(2):1-16
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