THE EFFECT OF SOCIAL MEDIA MARKETING ON CUSTOMER BRAND LOYALTY IN THE CASE OF SELECTED LIQUOR STORES, ADDIS ABABA

Abstract

The main objective of this study was to investigate the effect of social media marketing on brand loyalty in the case of selected liquor stores in Addis Ababa. To achieve the study objectives, explanatory research design along with quantitative approach was applied. The survey was conducted on targeted population of selected liquor stores’ official Facebook pages followers. A sample size of 361 respondents were selected through convenience non-probability sampling technique. Of which, 294 valid and usable responses were obtained. The primary data were collected through structured questionnaire from subscribers/ followers of selected liquor stores’ Facebook page followers. Using SPSS 21.0 statistical application software, both descriptive and inferential analyses were applied to carry out both correlation and multiple linear regression analysis to address the intended objectives. The results of multiple linear regression model revealed that all the five dimensions of social media marketing had positive and strong significant relationships with brand loyalty. Relevance content on social media has relatively the highest effect (B = .227, p<.001) on brand loyalty of selected liquor stores’ Facebook page followers in Addis Ababa, followed by applicable program (B = .149, p<.001), up-to-data content (B = .123, p<.001). Whereas, Interactivity (B = .119, p<.001), and perceived enjoyment (B = .109, p<.001) had relatively lower influence. This indicates that social media marketing content had positive and statistically significant effect on brand loyalty of liquor stores’ customers. Based on this, it can be concluded that social media marketing variables are good predictors of brand loyalty in the context of liquor brand which implied that social media marketing factors are vital in predicting customer’s loyalty towards branded liquor products. Further improvement on social media marketing practices of the liquor stores should be required to enhance brand loyalty of customers.