From engagement to purchases: how do social media content differentiation and digital capabilities of micro firms shape consumer behavior?

Purpose This research investigates the mediating role of social media (SM) engagement in the relationship of content types with purchase motivation, that is differentiation-oriented, informative and interactive content. Further, it intends to study the moderating impact of firms' digital capabilities, that is use of SM and online marketing capabilities, on the relationship of SM engagement with purchase motivation. Design/methodology/approach The research employs a positivist philosophy, a deductive approach and a survey research strategy. Respondents were selected randomly from followers of the SM pages of micro firms in Pakistan. Micro firms operating only in grocery, food items, apparel and supplies were considered for data collection. Reliability and validity analysis were conducted as part of the measurement model, followed by mediation and moderation analysis using structural equation modeling. Findings The statistical analysis confirmed that all three content types, differentiation-oriented, informative and interactive, have a positive relationship with purchase motivation and SM engagement mediates the above-mentioned relationships. Results further validated that entrepreneurial/firm capabilities, that is use of SM and online marketing capabilities, moderate the relationship of SM engagement with purchase motivation. Practical implications This study discusses several practical implications for micro-firm marketing campaigns. First, it advises SM marketers and admins to focus more on creating content that develops differentiation about this particular firm's offerings compared to its competitors. This will bring clarity to customers' minds, leading to greater SM engagement. Second, SM teams with better digital capabilities can convert engaged users into loyal customers, leading to better firm performance in terms of purchases. Originality/value This is the first study to investigate the theoretical relationship between differentiation-oriented content and purchase motivation. Additionally, it contributes to existing knowledge by proposing firms' digital capabilities as moderators of the relationship between SM engagement and purchase motivation.