Building Relationship Equity: Role of Social Media Marketing Activities, Customer Engagement, and Relational Benefits

In today’s service-driven economy, brands increasingly turn to social media marketing activities (SMMA) to build meaningful, long-term customer relationships. Grounded in social exchange theory (SET), this study examines how SMMA influences customer engagement (CE), relational benefits (confidence, social, and special treatment), and ultimately relationship equity—offering new insights for trust-based services, such as banking. SET provides a powerful lens to explain how perceived value in brand-initiated exchanges drives customer reciprocity. A between-subjects experimental design (n = 298) was employed using real social media ads from a bank to enhance ecological validity. Participants were randomly assigned to ad exposure or control conditions, and data were analyzed using PLS-SEM. Results show that SMMA significantly enhances CE and relational benefits. In turn, CE, along with confidence and social benefits, contributes to relationship equity. Special treatment benefits, however, had no significant effect. Ad exposure amplified the impact of SMMA on CE and relationship outcomes. Theoretically, this study advances SET by revealing how digital brand interactions translate into lasting customer bonds. Practically, the findings indicate that banks should prioritize SMMA for increased CE and relational benefits. When combined with targeted advertising efforts, this can significantly improve relationship equity.