How does social media marketing impact consumer response? The role of brand equity in Indonesia’s SVOD Services

The growth of digital technology has led to increased social media usage among Indonesians, a trend that marketers leverage to enhance brand awareness, brand image, brand loyalty, and consumers’ willingness to pay premium prices. This study investigates the impact of social media marketing activities on brand loyalty and willingness to pay premium prices, with brand awareness and brand image acting as mediating variables. Guided by the Stimulus-Organism-Response (S-O-R) framework, social media marketing activities are conceptualized as the stimulus, brand equity (awareness and image) as the organism, and consumer responses (loyalty and willingness to pay a premium) as the response. Data were collected from 270 Indonesian Subscription Video-on-Demand (SVOD) users using purposive sampling and analyzed with Partial Least Squares Structural Equation Modeling (PLS-SEM) via SmartPLS. The results indicate that social media marketing activities significantly influence brand awareness and brand image, which, in turn, positively affect brand loyalty and consumers’ willingness to pay premium prices.