Social media marketing and purchase intention: the mediation of customer-based brand equity and adoption preparedness

Purpose A growing number of technology companies use service bundles, a promotional strategy in which marketers combine innovative products and services and offer them as a single package with a discount price. By integrating consumer-based brand equity (CBBE) and technology adoption frameworks, this study aims to investigate the effectiveness of social media marketing (SMM) activities in shaping consumer intentions to purchase technology service bundles (TSBs). Design/methodology/approach This study uses a mixed-method approach. In Study 1, a survey was administered to 765 WeChat users and customers of telecommunication companies in China. Building on the insights from Study 1, Study 2 uses in-depth email interviews with 44 participants to further explore and contextualize the underlying factors influencing customer purchase behaviours. Findings SMM activities have a negative influence on purchase intention. However, the influence of SMM activities on purchase intention becomes positive through the mediation of Adoption Preparedness and CBBE. Negative electronic word of mouth below social media brand posts have a negative effect on consumer intentions. Drawing on unified theory of acceptance and use of technology, this research also develops a multifaceted construct, Adoption Preparedness, composed of three first-order dimensions, including social influence, performance expectancy and effort expectancy. Research limitations/implications Although we draw on a sample of real customers of telecommunication companies in China, replication in another geographical context might be needed. Practical implications The results provide guidelines for social media managers on how to promote TSBs on social media. Originality/value The study provides new insights into how SMM activities influence consumer purchase intention for technology service offerings and develops a multidimensional construct of technology adoption (i.e. Adoption Preparedness).