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Pyrex Journal of Business and Finance Management Research

January 2016 Vol. 2(1), pp. 001-005

Copyright 2016 Pyrex Journals




Original Research Article


The Influence of Social Media on Brand Equity in Kenyan Banking Industry


JO Owino1*, M Cherotich2, WP Karuri2, V Gitonga2, L Kimuya2 and K Kaumbulu2

1Lecturer, School of Business, University of Nairobi, Kenya.
2Undergraduate student, School of Business, University of Nairobi, Kenya.

Corresponding Author E-mail: jowino@uonbi.ac.ke

Accepted 15th January, 2016



Abstract


The purpose of the study was to determine the influence of social media on brand equity in the banking industry in Kenya. The brand equity elements assessed were perceived quality, awareness and loyalty. Descriptive cross-sectional survey was used in the study. The target population was undergraduate business students aged between 18 and 30 years; with internet-enabled mobile handsets and a bank account. The sample size was 379 students. Stratified random sampling method was used to select respondents. Data was collected through interviewer administered questionnaire and a response rate of 79% was achieved. Data was analyzed through descriptive statistics and linear regression. It was established that social media has statistically significant positive influence on brand equity in the banking industry. Social media explains 81.2% of variation in brand awareness; accounts for 82.5% of perceived quality; and 85.9% of brand loyalty. We conclude that social media has positive influence on brand image and customer relations in the banking industry. We recommend the use of social media as a tool for building mutually beneficial relationship with customers in the banking industry.

Keywords: Social media, brand equity, banking industry.

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