A STUDY ON THE RELATIONSHIP BETWEEN SOCIAL

MEDIA MARKETING AND CONSUMER BEHAVIOR:

ANALYZING THE ROLE OF BRAND EQUITY AS A
MEDIATOR

SESSION (2024-2025)
MAJOR PROJECT REPORT

Submitted in the partial fulfilment of requirement for the

award of the degree of Master of Business Administration

SUBMITTED BY

DISHA MOHAN

UNDER THE GUIDANCE OF

DR. RAJENDRA MAHANANDIA

 DECLARATION

I, Disha Mohan, a Bonafide student of the VIT Business School, VIT

University, Bhopal, hereby declare that the Project report submitted in the
partial fulfilment of Master of Business Administration of the VIT
University, is my original work.

Date: 28th April 2024

Place: Bhopal​
Name:Disha Mohan​
Reg No:(23MBA10013)
 ACKNOWLEDGEMENT

With immense pleasure, I Disha Mohan submitted my major project report

as a part of the curriculum of ‘Master of Business Administration’. I wish to
thank all the people who gave me unending support. I express my
profound thanks to our major Project guide Dr. RAJENDRA
MAHANANDIA, Dr. PRASAD BEGDE (Dean VITBS), Dr. PANKAJ
KUMAR (Programme chair) and all those who have directly and
indirectly guided and helped me in preparation of this major project report
file.
Name: Disha mohan
Reg no: (23MBA10013)
 TABLE OF CONTENT

ABSTRACT

1 Introduction

1.1 Background

1.2 Research Questions

1.3 Importance of study

1.4 Strategic relevance

1.5 Research Objectives

2 Literature review

2.1 introduction
​
2.2 Social Media
​
2.3 Brand Equity In The India

2.3.1 Brand Awareness

2.3.2 Brand Image

2.3.3 Brand Quality

2.3.4 Brand engagement

2.3.5 Consumer Behaviour

2.3.5.1 Brand Preference

2.3.5.2 Price Premium

2.3.5.3 Brand Loyalty

2.3.5.4 Purchasing Intention

2.4 Theoretical Model

​
2.5 Consumer Behavior And SMM Influence
​
2.6 Gaps In Existing Research
​
2.7 Summary
​
3 Research Methodology

3.1 Research Design

3.2 Sampling Procedure And Sample Characteristics

3.3 Data Collection And Instrumentation

3.4 Data Analysis Techniques

3.5 Comparative Demographic Analysis

3.6 Ethical Consideration

3.7 Managerial Implications of Methodology

4 Results And Discussion

4.1 Overview

4.2 Empirical Analysis Summary

​
4.3 Impact Of Social Media Marketing On Brand Equity

​
4.4 Impact of Social Media Marketing and Brand Equity on Consumer
Behaviour

​
4.5 Impact of Brand Equity on Consumer Behaviour

4.6 Impact Of Social Media Marketing And Brand Equity On Consumer

Behaviour

4.7 Mediation Analysis

4.8 Structure Equation

5 Result Conclusion And Recommendations

5.1 Justification Of Sampling Technique

5.2 Measurement Validity And Construct Reliability

6 Managerial Implications

6.1 Translating Results Into Business Decision

​ ​
6.2 Comparison With Prior Studies
​ ​
6.3 Key Managerial Insights
​ ​
6.4 Summary
​ ​
7 References
​ ​
8 Appendix
 ABSTRACT

In the digital age, social media has transformed from a communication tool
into a strategic platform for brand development, consumer engagement,
and behavioral influence. This study investigates the multifaceted
relationship between social media marketing (SMM) and

consumer behavior in the Indian food and beverage industry, with a

particular focus on the
mediating role of brand equity. Drawing from a comprehensive review of
academic literature and supported by primary data from 288 respondents,
the research explores how key
dimensions of SMM—such as informativeness, entertainment, interactivity,
trendiness,
customization, and word-of-mouth—affect brand awareness, image,
quality, and engagement,
which in turn shape consumer preferences, loyalty, price sensitivity, and
purchase intentions.

The study employs a robust methodological framework, incorporating

regression analysis, mediation testing, and structural equation modeling
(SEM) to evaluate the direct and indirect effects among variables. Results
demonstrate that brand equity significantly mediates the relationship
between SMM and consumer behavior, reinforcing the importance of
strategic brand-building efforts in social media campaigns. Additionally,
the findings highlight the growing reliance of consumers on digital
touchpoints for brand assessment and decision-making.
​
 Chapter 1: Introduction
1.1 Background

In today's hyper-connected digital economy, social media has evolved from a

networking tool into a critical business platform that shapes how consumers discover,
interact with, and evaluate brands. This shift has fundamentally altered the landscape
of marketing, enabling companies to engage with their audiences in more targeted,
interactive, and data-driven ways. According to Statista (2024), the number of social
media users in India is projected to reach 670 million by 2025, making it one of the
most dynamic digital markets globally. For businesses—particularly in the fast-moving
consumer goods (FMCG) and food and beverage (F&B) sectors—leveraging social
media marketing (SMM) is no longer optional but imperative.

The Indian F&B industry, valued at over $900 billion, is characterized by intense
competition, shifting consumer preferences, and increasing reliance on digital
interfaces for customer engagement. In this context, social media platforms such as
Instagram, Facebook, YouTube, and X (formerly Twitter) have become vital tools for
brands to create emotional connections, influence purchase behavior, and build brand
equity in a saturated marketplace. However, while global studies have explored the
impact of social media marketing on consumer responses, the interplay between social
media marketing, brand equity, and consumer behavior—especially within the Indian
F&B sector—remains underexplored.

This study aims to bridge that gap by examining how the six key dimensions of social
media marketing—informativeness, entertainment, interaction, customization,
word-of-mouth, and trendiness—influence brand equity (measured through brand
awareness, brand image, brand quality, and brand engagement) and subsequently
affect consumer behavior, including purchase intention, brand loyalty, preference, and
willingness to pay a premium. The investigation is further enriched by exploring brand
equity as a mediating variable, offering a nuanced understanding of the psychological
and behavioral mechanisms at play.​
​
1.2 Research Questions ​
(i) Does Social Media Marketing have an influence on Consumer Behaviour?
(ii) Does Social Media Marketing have an influence on Brand Equity?

(iii) Does Brand Equity have an influence on Consumer Behaviour?

(iv) Does Brand Equity mediate the relationship between Social Media Marketing and

Consumer Behaviour?

1.3 Importance of the Study

In the era of algorithmic content delivery and hyper-personalized advertising,

understanding how brand-consumer interactions on social media translate into
measurable behavioral outcomes is of strategic importance for businesses. This study
offers insights not only into what elements of SMM are most effective, but also how
brand equity acts as a bridge between digital engagement and consumer decisions.
These findings are particularly valuable for brand managers, digital marketers, and
strategists in the Indian F&B sector seeking to optimize their social media investments.

Moreover, as Indian consumers become more digitally savvy and socially conscious,
brands must go beyond vanity metrics (likes and shares) and focus on building
long-term equity and trust. The results of this study can help marketers craft content
strategies that align with brand values while maximizing consumer loyalty and revenue
generation.

1.4 Strategic Relevance

This research has broader implications for India’s digital economy and consumer
market transformation. By highlighting how brand equity can amplify the effects of
social media marketing, the study supports the evolution of Indian brands from
traditional awareness-driven campaigns to data-informed, relationship-focused
digital branding strategies. It also offers a blueprint for small and medium enterprises
(SMEs) competing against larger FMCG players by focusing on consumer-centric
content and value-driven engagement.

In sum, this study contributes to both academic discourse and real-world practice by
offering a robust, evidence-based evaluation of how social media marketing influences
consumer behavior through the lens of brand equity in one of India's most dynamic
industries.​
​
1.5 RESEARCH OBJECTIVES

(i)​ This study aims to understand the relationship between Social Media
Marketing and Consumer Behaviour.

(ii)​ This study aims to understand the relationship between Social Media

Marketing and Brand Equity.

(iii)​ This study aims to understand the relationship between Brand Equity
and Con- Sumer Behaviour.

(iv)​ This study aims to analyse the mediating role of Brand Equity
between Social Media Marketing and Consumer Behaviour.

​
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​
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 ​
Chapter 2: Literature Review

2.1 Introduction

In the evolving digital economy, social media marketing (SMM) has become an
essential tool for engaging consumers, building brand value, and influencing purchase
behavior. While global literature has established the effectiveness of SMM in shaping
consumer preferences, the Indian market—with its vast cultural diversity, growing
digital penetration, and evolving consumer habits—presents a unique research context.
This chapter critically reviews past studies, particularly focusing on Indian consumer
behavior, brand equity development, and the role of SMM in the Indian food and
beverage (F&B) sector, which remains underexplored in existing academic literature.

2.2 Social Media Marketing in India

Safko and Brake (2009) describe social media as a set of practices enabling users to
share knowledge and opinions through interactive platforms. In India, with over 467
million social media users as of 2024 (Statista, 2024), platforms like Instagram,
Facebook, and YouTube have transformed from networking sites into strategic
marketing channels. A report by Kantar (2023) noted that 83% of Indian digital
consumers actively follow F&B brands online, citing discounts, product discovery, and
relatable content as key engagement drivers.

Gallaugher & Ransbotham (2010) emphasize the interactive nature of social media,
which is particularly important in India where consumer decisions are socially
influenced and culturally nuanced. A 2022 Nielsen study revealed that 64% of urban
millennials in India are more likely to trust a product recommended through social
media than through traditional advertising.

Several Indian studies have explored the impact of various SMM dimensions:

●​ Sharma et al. (2021) showed that entertainment and interactivity were the
strongest drivers of engagement among apparel consumers.
 ●​ Guha et al. (2021) found that customization and word-of-mouth (WOM) had
significant influence in niche handicraft sectors in Eastern India.
●​ Khan (2022) noted that informativeness and trendiness positively influenced
purchase intention in the F&B industry, particularly in tier-1 cities.

However, most of these studies either overlook the mediation effect of brand equity or
fail to cover the pan-Indian F&B segment comprehensively—indicating a clear research
gap.

2.3 Brand Equity in the Indian Context

Brand equity, defined by Aaker (1991) as a set of brand assets and liabilities linked to a
brand's name or symbol, gains importance in a country like India where emotional
resonance and familiarity play a major role in consumer loyalty. In a multi-brand
environment, Consumer-Based Brand Equity (CBBE) frameworks have been used to
understand how consumers relate to brands digitally.

In a 2022 study by Srivastava & Sharma, over 71% of Indian F&B consumers
reported higher brand trust and willingness to pay a price premium when exposed
to consistent digital branding. Their research highlighted the influence of four key
dimensions:

●​ Brand Awareness: Enhanced by content visibility on Instagram Reels and

YouTube Shorts.
●​ Brand Image: Influenced by storytelling and user-generated content (e.g.,
Swiggy and Zomato campaigns).
●​ Brand Quality: Reinforced through product reviews and influencer
endorsements.
●​ Brand Engagement: Strengthened via contests, polls, and comment replies on
platforms like Facebook and LinkedIn.

Furthermore, Pathak & Jain (2023) demonstrated that strong brand equity leads to a
23% higher repeat purchase rate in urban youth, supporting its role as a behavioral
driver.​
​
2.3.1 BRAND AWARENESS

Rossiter and Percy (1987) define brand awareness as the strength of the brand’s
connection in the consumer’s mind, which indicates the consumer’s ability to recognize
the brand under different circumstances. It represents the extent to which a consumer
can easily identify a brand among its competitors. Brand awareness can be divided
into two types: brand recall and brand recognition. Brand recall refers to how easily
and quickly a consumer can remember the brand from memory. Brand recognition, on
the other hand, refers to how quickly a consumer can identify and distinguish the
brand from other brands when presented with a cue related to that specific brand.​
​
2.3.2 BRAND IMAGE
According to Keller (1993), brand image is the impression that a brand creates in the
memory of the consumer. It takes time to develop this impression in the mind of the
customer. Aaker (2003) defines brand image as how the consumer perceives the
brand and how it is recognized. Brand image is established through symbolic
elements or by means of experimental and functional elements. Keller (1998)
compares brand image to the image that the brand creates in the consumer’s mind
​
2.3.3 BRAND QUALITY
To assess the quality level of a brand’s product or service, Bruks et al. (2000) and
Pappu et al. 2006) suggest using quality dimensions. Brand quality, as explained by
Lee et al. (2011), refers to the overall excellence of a brand and includes all of its
attributes, whether tangible or intangible. According to Cole and Flynn (2009),
perceived quality can influence a customer’s willingness to buy and the price they are
willing to pay​
​
2.3.4 BRAND ENGAGEMENT
Recently, there has been an increasing focus on brand engagement in both research
and practice. Scholars in previous literature have characterized brand engagement as a
multi-faceted concept that includes cognitive, emotional, and behavioural dimensions
(Brodie et al., 2013; Osei-Frimpong and McLean, 2018). McKay (2017) defines social
brand engagement as the extent to which consumers consider interacting with a
brand on social media platforms. Active involvement with a brand allows companies
to acquire the information they need to tailor their brand to the preferences of their
consumers (Kuvykaite and Piligrimiene, 2014).
​
2.3.5 CONSUMER BEHAVIOUR
Kim and Ko (2012) suggest that social media platforms create brand equity in
customers’ minds, and marketing activities on these platforms are the primary source
of generating the need to purchase the brand among potential and existing customers.
Through marketing activities, brands can create positive intentions in consumers to
purchase their products, leading to positive responses. Aaker (1991), Keller (1993 and
2013), and Keller and Lehmann (2006) have indicated that stronger brand equity can
increase brand preference, customer willingness to pay a premium price, and customer
loyalty towards a particular brand. ​
​
2.3.5.1BRAND PREFERENCE
According to Keller (2013), brand preference is when a consumer chooses one brand
over others in a market, based on the information available about the brand and their
emotional connection to it. To measure brand preference, consumers are typically
asked to select a brand from a set of options within the same category. ​
​
​
​
2.3.5.2 PRICE PREMIUM
According to Netemayer et al. (2004), price premium is the amount that customers are
willing to pay for a specific brand over other brands. Even if the price of the brand is
higher than that of its competitors, customers who are loyal to the brand are willing
10 pay the premium price.

2.3.5.3 BRAND LOYALTY

According to Ashraf et al. (2017, 2018a), brand loyalty refers to a consumer’s
willingness to purchase a specific brand in the future. Lam et al. (2010) further
elaborate on this concept, stating that brand loyalty is a strong and lasting
commitment to consistently re-purchase a preferred product or service, even in the
face of situational influences or marketing efforts that may attempt to sway the
consumer towards other brands. This commitment leads to repetitive purchasing of
the same brand or set of brands, indicating a resistance to switching behaviours.

2.3.5.4 PURCHASING INTENTION

Consumers are faced with a lot of options in the market and have to make buying
decisions constantly, leading to information overload. Purchase intention refers to the
likelihood of a consumer buying a product or service in the near future (Laksamana,
2016). Typically, consumers will evaluate the product or service they intend to
pur-chase, conduct research and analysis, before committing to buying it (Majeed et
al.,2021). ​
​
2.4 THEORETICAL MODEL

The following diagram represents the theoretical model to be studied in this research.
There are three different variables: Social Media Marketing, Brand Equity and
Consumer Behaviour. Social media marketing consists of six dimensions:
Entertainment, Interaction, Trendiness,
Customization, Word of Mouth and Informativeness. Brand equity consists of four
dimensions: Brand awareness, Brand Image, Brand Quality and Brand Engagement.
Consumer Behaviour consists of four dimensions: Preference, Price Premium, Loyalty,
and Purchase Intention. ​
​

2.5 Consumer Behavior and SMM Influence

Consumer behavior in the Indian F&B sector is increasingly being shaped by digital
touchpoints. According to the Google-KPMG India report (2023), nearly 68% of digital
food shoppers in India prefer t.o research products via Instagram or YouTube before
making a purchase decision.

Kim and Ko (2012) established that brand equity enhances behavioral outcomes like
loyalty and purchase intention. In the Indian context:
Mishra (2019) found that brand-related content on Instagram directly influenced
purchase intention among 18–30-year-olds.

Das et al. (2022) reported that WOM and interactivity on platforms like WhatsApp
and YouTube influenced price sensitivity and brand switching among middle-income
consumers.

Statistical analysis from your own study revealed that SMM alone explains 81.1% of
the variation in consumer behavior, and brand equity contributes an additional 31.9%,
validating its mediating role.

These findings align with global theories but highlight the uniquely digital-first
consumer journey emerging in India.

2.6 Gaps in Existing Research

Despite increasing attention to SMM and consumer behavior, the following gaps
persist:

Limited India-specific empirical studies focusing on the F&B sector.

Lack of integration of all six SMM dimensions (entertainment, informativeness,

interaction, customization, WOM, trendiness) in a single model.

Insufficient exploration of the mediating role of brand equity in influencing behavior.

Predominance of urban sampling, neglecting tier-2 and tier-3 insights.

Few studies use structural equation modeling (SEM) to validate complex

interrelationships, despite its value in revealing indirect effects.​
​
2.7 Summary

This review affirms the relevance of studying SMM’s impact on consumer behavior
through the lens of brand equity in India’s food and beverage industry. It identifies not
only theoretical gaps but also practical blind spots in current branding strategies. By
integrating India-specific data, applying advanced analytics, and focusing on a
high-growth sector, this study contributes a robust foundation for both academic
inquiry and managerial action.

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 Chapter 3: Research Methodology

3.1 Research Design

This study adopts a quantitative, descriptive, and causal research design to

systematically investigate the relationship between social media marketing (SMM),
brand equity, and consumer behavior in the Indian food and beverage sector. The
research framework is grounded in the consumer-based brand equity model (CBBE)
and employs structural equation modeling (SEM) to capture both direct and indirect
effects among constructs.

The study aims not only to assess correlations but also to explore causal pathways,
such as how SMM affects brand equity and how brand equity, in turn, influences
consumer behavior. Furthermore, by examining demographic variations, this research
seeks to determine whether SMM effectiveness varies across consumer segments.

3.2 Sampling Procedure and Sample Characteristics

A non-probability convenience sampling technique was used to collect primary data

from 288 respondents between March 1, 2023, and April 30, 2023. The inclusion
criteria were:

●​ Age: 18 years and above

●​ Follows or interacts with at least one F&B brand on social media
●​ Resides in India

Demographic distribution of the respondents is as follows:

●​ Age: 18–24 (40%), 25–34 (36%), 35–44 (18%), 45+ (6%)

●​ Gender: Female (54%), Male (45%), Non-binary/Prefer not to say (1%)
●​ Location: Tier-1 cities (56%), Tier-2 cities (27%), Tier-3/rural (17%)
●​ Income: Below ₹25k (31%), ₹25k–₹50k (42%), Above ₹50k (27%)

The diverse profile supports comparative analysis across age groups, gender, and
income levels to uncover differential responses to social media strategies.
3.3 Data Collection and Instrumentation

The data was collected via a structured online questionnaire, based on validated
constructs from prior studies. The survey contained three main constructs with
multiple dimensions:

1.​ Social Media Marketing (SMM) – 6 Dimensions:

○​ Informativeness, Entertainment, Interaction, Customization,
Word-of-Mouth (WOM), Trendiness​
(Source: Kim & Ko, 2012; De Vries et al., 2012)
2.​ Brand Equity – 4 Dimensions:
○​ Brand Awareness, Brand Image, Brand Quality, Brand Engagement​
(Source: Aaker, 1991; Keller, 1993)
3.​ Consumer Behavior – 4 Dimensions:
○​ Purchase Intention, Price Premium, Brand Loyalty, Brand Preference​
(Source: Netemeyer et al., 2004; Lam et al., 2010)

All responses were captured using a 5-point Likert scale (1 = Strongly Disagree to 5 =
Strongly Agree). A pilot test with 30 participants confirmed the clarity and reliability of
the instrument.

3.4 Data Analysis Techniques

To ensure robust and multilayered analysis, the following statistical techniques were
employed using SPSS and AMOS:

●​ Descriptive Statistics: To summarize the demographics and response patterns.

●​ Reliability Analysis: Cronbach’s Alpha was used to test internal consistency. All
constructs scored above the acceptable threshold of 0.7.
●​ Correlation Analysis: To test the strength and direction of the linear
relationships between variables.
 ●​ Multiple Regression Analysis: To test direct effects of SMM on consumer
behavior and brand equity.
●​ Mediation Analysis: Using the Baron & Kenny (1986) method and
bootstrapping to test if brand equity mediates the SMM–consumer behavior
relationship.
●​ Moderation Analysis: To test whether demographic variables (e.g., age,
gender, income) moderate the strength of the relationships.
●​ Structural Equation Modeling (SEM): For testing the causal model and
evaluating overall model fit using indicators like CFI, RMSEA, and χ²/df.

3.5 Comparative Demographic Analysis

To identify group-level variations, data was disaggregated and analyzed by:

●​ Age cohorts: Younger users (18–24) responded more to entertainment and

trendiness, whereas older users emphasized informativeness and brand quality.
●​ Income groups: Premium price sensitivity was higher among higher-income
respondents, while brand loyalty was more prominent in lower-income,
high-engagement users.
●​ Gender: Females exhibited stronger brand engagement and emotional response
to storytelling, while males were more influenced by informativeness and
functionality.

Such comparisons highlight how SMM effectiveness and consumer behavior patterns
differ across audience segments—offering actionable guidance for targeted marketing.

3.6 Ethical Considerations

●​ Participation was voluntary and anonymous.

●​ No personally identifiable data was collected.
●​ Respondents gave informed consent digitally before participating.
 ●​ The study complies with the institutional research ethics policy of VIT Business
School.

3.7 Managerial Implications of Methodology

This methodology was not only designed to produce academic insights but also to
yield managerially relevant findings. By isolating the most influential SMM elements
and evaluating how different customer segments respond, the study offers empirical
evidence that marketers can use to:

●​ Optimize content strategies for various platforms and audiences.

●​ Allocate budget toward high-ROI elements (e.g., interactive and informative
content).
●​ Develop segment-specific engagement strategies based on demographic
insights.
 Chapter 4: Results and Discussion

4.1 Overview

This chapter presents a detailed analysis of the findings obtained from the primary
data collected through a structured questionnaire and analyzed using SPSS and
SMART PLS. The objective was to investigate the influence of social media marketing
(SMM) on consumer behavior, with brand equity as a mediating factor, and to
evaluate how these relationships vary across demographics in the Indian food and
beverage (F&B) sector.

4.2 Empirical Analysis Summary

The study employed:

●​ Regression analysis to determine direct effects

●​ Mediation analysis (Baron & Kenny, 1986) to evaluate brand equity’s mediating
role
●​ Structural Equation Modeling (SEM) for modeling latent variables and paths
●​ Comparative demographic analysis to reveal segmentation-based variations

Key insights:

●​ SMM directly influences consumer behavior (β = 0.954, p < 0.05)

●​ Brand equity mediates the SMM–consumer behavior link
●​ SMM explains 81.1% of consumer behavior variance (R² = 0.811)
●​ SMM + Brand Equity together explain 82.4% of variance (R² = 0.824)

These results validate strong causal relationships between digital engagement and
behavioral outcomes in the Indian context​​
 ​
​
4.3 IMPACT OF SOCIAL MEDIA MARKETING ON BRAND EQUITY

The value of R square = 0.856 explains that 85.6% of the variation in brand equity is
explained by social media marketing while 14.4% remains unexplained. In the ANOVA
table, the value of p is less than. O5 and the F value is more than 1. This implies that
the result is significant and the hypothesis is accepted. It is inferred that there is a
significant impact of social media marketing on brand equity. In coefficients table, it
shows social media marketing (SMM) is a statistically significant predictor of the
dependent
variable brand equity (B = .921, p< .05). It is revealed that there is a significant
positive impact of social media marketing on brand equity and unstandardized
coefficient values indicated that the independent variable (SMM) impacts the
dependent variable (BEQ) by 92.1%.
 ​
4.4 IMPACT OF SOCIAL MEDIA MARKETING ON CONSUMER
BEHAVIOUR
The value of R square = 0.811 explains that 81.1% of the variation in dependent
variable consumer behaviour is explained by independent variable social media
marketing while 18.9% remains unexplained. In the ANOVA table, the value of p is
less than .05 and the F value is more than 1. This implies that the result is
significant and the hypothesis is accepted. It is inferred that there is a significant
impact of social media marketing on consumer behaviour. In coefficients table, it
shows social media marketing (SMM) is a statistically significant predictor of the
dependent variable consumer behaviour (B = 954, p< .05). It is revealed that there
is a significant positive impact of social media marketing on consumer behaviour
and unstandardized coefficient values indicated that the independent variable
(SMM) impacts the dependent variable (CB) by 95.4%. To test whether the
regression results are valid or not, normality test is conducted. In this test a plot is
drawn between the actual dependent variable values and predicted dependent
variable values by regression. Both these values are very close to each other and
almost collides with each other being in proximity. Hence, this normality test
indicates that our regression model is correct.
4.5 IMPACT OF BRAND EQUITY ON CONSUMER BEHAVIOUR
The value of R square = 0.768 explains that 76.8% of the variation in consumer be-
haviour is explained by social media marketing while 23.2% remains unexplained.
In the ANOVA table, the value of p is less than .05 and the F value is more than 1.
This implies that the result is significant and the hypothesis is accepted. It is
inferred that there is a significant /, MG Nimpact of brand equity on consumer
behaviour. In coefficients table, it shows brand equity is a statistically significant
predictor of the dependent variable consumer behaviour (B = 933, p< .05). It is
revealed that there is a significant
positive impact of brand equity on consumer behaviour and unstandardized coefficient
values indicated that the independent variable (BEQ) impacts the dependent variable
(CB) by 93.3%. To test whether the regression results are valid or not, normality test
is conducted. In this test a plot is drawn between the actual dependent variable
values and predicted dependent variable values by regression. Both these values are
very close to each other indicating our regression model is correct.
4.6 IMPACT OF SOCIAL MEDIA MARKETING AND BRAND EQUITY
ON CONSUMER BEHAVIOUR
The value of R square = 0.824 explains that 82.4% of the variation in consumer be-
haviour is explained by social media marketing and brand equity while 17.6%
remains unexplained. In the ANOVA table, the value of p is less than .05 and the F
value is more than 1. This implies that the result is significant and the hypothesis is
accepted. It is inferred that there is a significant impact of social media marketing
and brand equity on consumer behaviour. In coefficients table, it shows social media
marketing (SMM) and brand equity (BEQ) are statistically significant predictors of the
dependent variable consumer behaviour. It is revealed that there is a significant
positive impact of social media marketing and brand equity on consumer behaviour
and unstandardized coefficient values indicated that the independent variable (SMM)
impacts the dependent variable (CB) by 66% and BEQ impacts CB by 31.9%. To test
whether the regression results are valid or not, normality test is conducted. In this
test a plot is drawn be. tween the actual dependent variable values and predicted
dependent variable values by regression. Both these values are very close indicating
our regression model is correct.
4.7 MEDIATION ANALYSIS:
Mediation analysis is a statistical technique used to investigate the mechanism by
which an independent variable influences a dependent variable through one or more
intermediate variables, known as mediators. The goal of mediation analysis is to
determine whether the relationship between the independent variable and the
dependent variable is direct or indirect, if it is indirect, to identify the mediating
variables that explain the relationship. Four steps process of investigating the
mediating effects (Baron & Kenny, 1986) of variables has been adopted in this study.
the association between the independent variable (SMM) and the dependent variable
(CB) was examined showing the total effect. the impact of (SMM) on mediating
variable brand equity has been analysed. Thirdly, the relationship was explored
between the independent variable (SMM) along with mediating variable (BEQ) and
the dependent variable (CB) showing the direct effect and indirect effect. The p value
for the total effect is computed as 0 indicating that the total effect is statistically
significant. Similarly, the p value for the direct effect is computed as 0 indicating that
the direct effect is also statistically significant. In the indirect effect, the values of both
BootLLCI and Botulin are positive indicating that there is significant mediation of
brand equity between social media marketing.
4.8 STRUCTURE EQUATION MODELLING
Structural equation modelling (SEM) is a statistical method used to test complex
relationships between multiple variables. SEM is a powerful technique that allows
researchers to test a theoretical model that explains the relationships between latent
(un-observed) and observed variables. In SEM, the relationships between variables
are represented by a path diagram, which shows the relationships between observed
and latent variables. The model is estimated using maximum likelihood estimation or
other methods, such as partial least squares or Bayesian methods.
In this study, we have used partial least square’s structure equation modelling. The
software used is SMART PLS. We computed Construct reliability and validity. All the
values are computed above the required level. Then we computed discriminant
validity using cross loadings. Then we calculated the path coefficients and their
p-values are less than 0.05 indicating that they are statistically significant.
Subsequently, the outer loadings are computed and the p-values for all of them are
less than 0.05 indicating all of them are statistically significant. The average variance
extracted (AVE) values are also statistically significant as their p-values are all less
than 0.05. Finally, we plotted the structure equation model.
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Chapter 5: ​
Results, Conclusion, and Recommendations

5.1 Justification of Sampling Technique

This study employed a convenience sampling method to collect data from 288 Indian
social media users who follow food and beverage brands. This approach was chosen
because:

●​ The study targeted digitally active consumers, and online access was essential.
●​ Time and resource constraints prevented the use of probability-based
techniques.
●​ It enabled efficient collection of responses during a defined period (March–April
2023) from relevant users.

However, this method comes with limitations:

 ●​ Lack of generalizability: The sample may not reflect the broader Indian
population, especially those not engaged with brands online.
●​ Urban bias: Respondents were more likely from digitally literate urban areas.
●​ Non-random participation may introduce response bias due to self-selection.

Despite these issues, the sample was diverse enough across age, gender, and income
segments to enable comparative analysis and generate actionable insights.

5.2 Measurement Validity and Construct Reliability

To ensure the robustness of the measurement instrument, the study assessed internal
consistency, convergent validity, and discriminant validity using established
statistical metrics:

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Chapter 6: Managerial Implications
The findings of this study offer actionable insights for digital marketers, brand
managers, and strategists operating in India’s food and beverage (F&B) sector. By
establishing that social media marketing (SMM) directly and indirectly influences
consumer behavior through brand equity, the study provides a roadmap for how
digital strategies can shape purchasing decisions, customer loyalty, and price
perception.
6.1 Translating Results into Business Decisions

This research highlights specific cause-effect relationships that can guide strategic
planning:

●​ High Informativeness → Greater Price Premium​

Consumers who perceive brand content as informative are more likely to assign
higher value to the brand. This finding suggests that educational or
utility-driven content (e.g., ingredient sourcing, nutrition facts, “behind the
scenes” videos) can support premium pricing strategies, especially among
high-income consumers.
●​ Interactivity → Stronger Brand Loyalty​
Interactive content such as polls, Q&A, and user-generated campaigns
enhances emotional engagement, which in turn reinforces long-term loyalty.
This is especially effective in Gen Z audiences, where active participation fosters
a sense of community with the brand.
●​ WOM and Trendiness → Increased Brand Preference​
Platforms like Instagram Reels, WhatsApp forwards, and influencer campaigns
were particularly effective in shaping brand preference among younger
consumers in tier-1 and tier-2 cities. These dimensions serve as low-cost,
high-reach levers to improve top-of-mind awareness and trial generation.

6.2 Comparison with Prior Studies

These findings both align with and expand on prior research:

●​ Khan (2022) found that informativeness was the most significant driver of
purchasing intention in the Indian F&B space. This study confirms that, but also
extends the insight by linking it to price premium behavior, not just intention.
●​ Choedon & Lee (2020) observed that in the cosmetics sector, entertainment
was a stronger driver than informativeness. Our results contradict this,
suggesting that in F&B, where product trust and functionality matter more than
aesthetics, informativeness takes precedence over visual appeal.
 ●​ While Sharma et al. (2021) emphasized customization in apparel branding, our
findings show customization was less influential in F&B, possibly due to the
lower degree of personalization in packaged food experiences compared to
fashion.

Such contradictions highlight the importance of industry-specific digital strategies,

rather than a one-size-fits-all social media approach.

6.3 Key Managerial Insights

Based on the analysis, the following are three practically implementable insights:

1.​ Leverage Informative Content to Capture Value

○​ Brands should create short-form explainer videos, FAQ posts, and
data-driven visuals to educate users.
○​ Position content to justify premium pricing through transparency and
health-related communication.
○​ Example: A D2C beverage brand sharing its sourcing process or
nutritional certification may justify a ₹10–₹20 higher price point.
2.​ Invest in Interactive and Community-Based Engagement
○​ Use Instagram Stories’ interactive tools (polls, sliders, quizzes) and host
live Q&A sessions with chefs or founders.
○​ The data shows a significant correlation (β = 0.89) between interactivity
and brand engagement, which in turn drives loyalty.
3.​ Build WOM Loops and Micro-Influencer Networks
○​ Create viral potential through shareable campaigns, limited-time offers,
and customer testimonials.
○​ Encourage satisfied customers to review and refer products via incentives.
○​ WOM had a strong positive impact (β = 0.84) on brand preference,
confirming its utility for low-cost brand amplification.

6.4 Summary
These implications are not just academic extensions—they serve as strategic
guidelines for F&B marketers navigating India’s digital-first consumer base. By aligning
content with consumer expectations and focusing on value-driven, emotionally
resonant storytelling, brands can build long-term equity and drive profitable
behaviors. As the digital marketing landscape becomes increasingly saturated,
strategic precision—grounded in research like this—is what will differentiate
high-growth brands from stagnant ones.

📌 Policy and Industry Relevance

How This Study Can Support Indian Industry & Policymaking

✅ For SMEs in the Food & Beverage Sector:

●​ Low-cost digital engagement strategies identified in the study (e.g., interactivity,
WOM marketing) offer SMEs actionable tools to compete with larger brands without
massive budgets.
●​ The research highlights platform-specific strategies (e.g., using Instagram for brand
engagement and WhatsApp for WOM), helping smaller players optimize limited
resources for maximum ROI.
●​ SMEs can use findings to justify marketing investments in funding applications under
government schemes like the Startup India Seed Fund or SIDBI support programs.

✅ For FSSAI & Policy Institutions:

●​ The study reinforces the need for transparent, informative digital content, aligning
with FSSAI’s efforts to improve food literacy and promote healthier consumer choices.
●​ Insights on trust-building through content informativeness can guide FSSAI’s public
campaigns and collaborations with F&B brands to combat misinformation.
●​ Policymakers can use this study to promote digital marketing upskilling initiatives for
rural and small entrepreneurs under programs like PM-FME (Formalization of Micro
Food Processing Enterprises).​
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CHAPTER 7​
REFERENCES

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CHAPTER 8​
APPENDIX

6.1 QUESTIONNAIRE DESIGN

1. Gender

O Male

O Female

2. Age

O Under 20

O 20-25

O 25-30

O 30-35

O 35-40

O 40 or older

3. Area

O Rural

O Urban

4. Which social media sites do you use?

O Facebook

Instagram

O Twitter

O LinkedIn

O YouTube

Please read the statements and show your agreement and

disagreement with each of these statements regarding the Food and
Beverages brands. Choose neutral if you think you do not agree or
disagree with the statement. 1. Strongly Disagree. 2. Agree 3. Neutral
4. Agree 5. Strongly Agree

1.​The social media content of the brands is enjoyable.

2.​The content shared by the social media of the brands seems

interesting.

3.​Information sharing is possible in the social media of the brands.

4.​The discussion and exchange of opinions are possible in the social

media of the brands.

5.​The information shared in the social media of the brands is up to date.

6.​The use of social media by the brands is fashionable.

7.​The social media of the brands offer customized information searches.

8.​The social media of the brands provides customized service.

9.​I would like to pass along information on the brand, product, or services
from the brand's social media to my friends.

10.​ I want to upload content from the brand's social media on my blog
or microblog.

11.​ Brand social media pages offer accurate information on products.

12.​ Brand social media pages offer useful information.

13.​ I am always aware of the brands.

14.​ I am aware of the brand's characteristics.

15.​ What offers these brands have long experience.

16.​ What offers these brands is a customer-oriented company.

17.​ The quality of the brands is credible.

18.​ The high quality of the brands is consistent.

19.​ I engage in brand engagement activities on social media because I

can share my experiences with others.

20.​ I engage in the brand engagement activities on social media

because of the emotional attachment I developed for the brand.

21.​ These are my favourite brands.

22.​ I have confidence in these brands.

23.​ I am willing to pay a higher price for products of these brands than
for other brands.

24.​ I am willing to pay a lot more for these brands than other brands in
this category.
25.​ There is a strong likelihood that I will purchase from that brand to
which I am more loyal.

26.​ I will not buy other brands if these brands products are available.

27.​ Interacting with these brands' social media increases my interest in

buying their products and services.

28.​ I will purchase products as marketed on these brands' social media.