Abstract

In today's digital era, technology and data analytics have revolutionized the way businesses engage and build relationships with consumers, offering personalized experiences that go beyond catering to individual preferences. There is a growing utilization of personalized advertising on social media platforms, which modifies content based on every individual and their preferences and search histories. However, the mechanisms through which such personalized ads enhance brand attachment, experience, and brand equity are not well-understood. Studies suggest that while these personalized interactions hold potential, their actual impact in consumer-brand relationships and turning that into tangible brand equity remains undiscovered (Alanazi, 2023; T. Tran et al., 2020). Additionally, the specific effects of personalized Social Network Site (SNS) ads on brand equity in relation to customer satisfaction, brand attachment, and experience is still unknown (T. Tran et al., 2020). To bridge these gaps, this study examines the impact of perceived advertising personalization in social media interactions on brand equity, focusing on the mediating roles of brand attachment and customer satisfaction within the context of Saudi Arabian social networking platforms. To investigate the proposed relationships this study builds on the customer-based brand equity (CBBE) model proposed by Keller (1993 and 2001) and the attachment theory to test customer attachment to a brand and its outcomes (e.g., Boateng et al.,2020). A model was proposed along with a set of six direct hypotheses and three mediating hypotheses. Constructs were captured using multiple items with 7 – points scale adapted from previous studies (i.e., perceived personalization from Srinivasan et al., 2002; brand attachment from Thomson et al., 2005; brand experience from Jo˘ Sko Brakus et al., 2009; customer satisfaction from S Homburg et al., 2009; brand equity from Homburg et al., 2009 and Mohd Yasin et al., 2007). Data was collected using an online survey that started with four filter questions in order to exclude non-eligible respondents. Only Instagram users were selected to participate in this study due to the high popularity of this social media platform in Saudi Arabia with over 17 million users. Furthermore, Instagram provides a relevant environment for examining the dynamics of personalized advertising (Alanazi, 2023). The study followed the conventional way of assessing the measurement model then the structural model. Smart PLS 4 software (Ringle et al., 2024) was employed to run the analysis. The measurement model demonstrated adequacy were all constructs have high reliability (Cronbach alpha greater than .7; average variance extracted (AVE) all greater that the threshold of .50; all items loadings were greater than the threshold of .70). Therefore, convergent validity was assured. Discriminant validity was demonstrated using Fornell - Larcker criterion. After assessing the measurement model and assuring its adequacy, the structural model was run to test the proposed relationships using bootstrapping with 5000 resampling procedure. The results of the analysis are shown in table 2. Five of the proposed direct relationships were significant, thus hypotheses were supported. Also, two of the proposed mediating relationships were supported. This study has both conceptual and managerial contributions. Theoretically, for example, the positive impacts of brand experience on brand attachment and customer satisfaction, as supported in H3 and H4, highlight the integral role of sensory and emotional engagement in fostering deeper consumer relationships with brands. which emphasizes how sensory inputs from brand interactions shape emotional bonds and consumer satisfaction. For management, the significant hypotheses H1, H8, and H9 suggests that investing in technologies and strategies that enhance personalization od advertising can directly strengthen brand experience, attachment, and equity.

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