MEDIATING ROLE OF CTRONIC WORD-OF-MOUTH SKEPTICISM TOWARDS RELATIONSHIP BETWEEN PARASOCIAL INTERACTIONS AND CUSTOMER EQUITY IN SOCIAL MEDIA CONTEXT: FOCUS ON FASHION BRANDS IN PAKISTAN

Abstract

The purpose of this study is to find the mediating role of electronic word-of-mouth skepticism towards relationship between parasocial interactions and customer equity in a social media context with a focus on fashion brands of Pakistan. A quantitative approach to existing study has been used for achieving its purpose which applied online questionnaire for gathering data from online audiences of fashion brands. The unit of analysis of the study comprises of individuals who followed social media channels of three fashion brands. By applying non-probability sampling technique, i.e. convenience sampling, a sample of 400 individuals has been selected to get data through close ended online questionnaires. Statistical analyses technique, i.e. regression and Sobel test have been applied to analyze survey results and prove the status of mediation between parasocial interactions and customer equity through eWOM skepticism. The results have proved that a significant correlation exists between parasocial interactions, customer equity, and eWOM skepticism. Further, significant results have been found in regression analysis between parasocial interactions and customer equity, which proved a direct relationship between these two variables. The mediation test has also proved significant results revealing partial mediation of eWOM skepticism in elaborating relationship between parasocial interactions and customer equity. The study concludes that relationship between parasocial interactions and customer equity is strengthened through eWOM skepticism. Future researchers can expand results of this study by incorporating a large and diverse sample from multiple fashion brands of Pakistan to generalize results over a large population. This study also offers managerial implications for the marketing managers of fashion brands to build constant and strong parasocial interactions with customers while considering their skepticism towards eWOM in order to enhance customer equity.