Effect of Social Media Marketing on Customer Product Loyalty

Abstract

This study investigates the mediated pathways through which social media marketing fosters brand loyalty among Pakistani consumers in the burgeoning e-commerce landscape, focusing on electronic word-of-mouth (e-WOM), perceived usefulness, trust, and social satisfaction as key mediators. Drawing on the Technology Acceptance Model and uses-and-gratifications theory, a conceptual framework posits a sequential chain: social media marketing → e-WOM → perceived usefulness/trust → social satisfaction → loyalty. The result is derived from the 120 respondents from the city of Karachi, using Smart PLS-SEM to verify the positive relationships with e-word of mouth being the strongest prediction with path coefficient. and validating hypotheses H5 (reviews/influencer endorsements boost loyalty, p<0.01) while rejecting H6 due to context-specific mediation needs in Pakistan's collectivist culture. Findings align with Kumar Singh et al. (2021), Bilgies et al. (2023), and Daud et al. (2018), emphasizing authentic peer endorsements over ads for repeat purchases and recommendations. Practical implications guide brands to allocate 60% budgets to micro-influencers and user-generated content for higher retention (25-40%). Recommendations include multilingual surveys for demographic generalizability, A/B testing of e-WOM authenticity, crisis-response analyses, and AI vs. human endorsement comparisons. This research equips Pakistani SMEs with evidence-based strategies to convert digital buzz into sustainable loyalty, bridging global trends with local realities.

Keywords: Social Media Marketing; Brand Loyalty; Electronic Word-of-Mouth (e-WOM); Perceived Usefulness; Trust; Social Satisfaction; Technology Acceptance Model (TAM); Uses and Gratifications Theory; E-commerce; Consumer Behavior; Micro-Influencers; User-Generated Content; PLS-SEM; Pakistani Consumers; Digital Marketing Strategy