9th Student Research Conference in Marketing (SRCM) - 2025
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Item The Impact of Facebook Advertising on E-Brand Loyalty in E-Commerce Industry(Department of Marketing Management, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Navodya, G. S. C.; Udara, S. W. I.Facebook advertising has become a powerful tool in digital marketing, enabling businesses to reach vast audiences with tailored messages and interactive content. As one of the most widely used social media platforms, Facebook offers businesses unparalleled opportunities to engage with consumers and build brand loyalty. With various ad formats ranging from simple image ads to engaging video content, businesses can create compelling advertisements that capture attention and drive results. This study examines the impact of Facebook advertising on e-brand loyalty within the e-commerce industry, focusing on how interactivity, informativeness, trendiness, customisation, and usefulness influence consumer loyalty. Addressing a critical gap in the literature, this research explores these relationships in Sri Lanka's rapidly growing e-commerce sector. While extensive research exists on social media advertising, the impact of Facebook ads on e-brand loyalty in Sri Lanka remains underexplored, with most studies focusing on India and Indonesia. This study seeks to fill this gap, highlighting Facebook’s potential to enhance loyalty through targeted and strategic advertising. Through this investigation, the research provides actionable insights for businesses aiming to strengthen customer relationships and improve brand loyalty using effective Facebook advertising strategies. A quantitative research design was employed to evaluate the relationship between Facebook advertising elements and e-brand loyalty. Data was collected through a structured questionnaire distributed to 385 respondents, with 375 valid responses retained for analysis. The sample comprised active Facebook users who engage with e-commerce platforms, ensuring the relevance of the data. Statistical techniques, including descriptive analysis, correlation analysis, and multiple regression analysis, were used to test the hypotheses and measure the significance of the identified advertising elements. The hypotheses examined in this study include the overall impact of Facebook advertising on e-brand loyalty and the specific effects of interactivity, informativeness, trendiness, customisation, and usefulness on brand loyalty. This research provides a rigorous framework for understanding the nuanced dynamics of Facebook advertising and its influence on consumer behaviour. The findings indicate that informativeness, interactivity, customisation, and perceived usefulness significantly contribute to e-brand loyalty. Among these, informativeness emerged as the most influential factor, demonstrating that consumers value advertisements that provide clear, accurate, and relevant information about products and services. Interactivity and customisation were also found to positively impact loyalty, emphasising the importance of engaging, two-way communication and personalised advertising content. Interestingly, trendiness did not exhibit a significant effect on brand loyalty, suggesting that while trendy content may attract attention, it does not necessarily foster long-term consumer loyalty. These findings partially align with previous studies while offering novel insights into the unique behaviours and preferences of Sri Lankan e-commerce consumers. The study is geographically limited to Sri Lanka, which may affect the generalisability of the findings to other cultural or regional contexts. Additionally, by focusing exclusively on Facebook, the study does not provide insights into the effectiveness of other social media advertising platforms. This study provides practical insights for e-commerce businesses, Facebook advertisers, and other stakeholders by highlighting the importance of creating ads that are informative, engaging, and personalised. For e-commerce businesses, the findings offer strategies to build stronger customer loyalty by focusing on relevant and interactive content. Facebook advertisers can enhance ad performance by aligning campaigns with user preferences, driving higher engagement and returns. Additionally, consumers benefit from ads that provide value through meaningful and relevant experiences, fostering trust and satisfaction. These insights offer a practical roadmap for leveraging Facebook advertising to strengthen consumer relationships and brand loyalty. This study underscores the critical role of Facebook advertising in shaping consumer loyalty and offers a robust framework for businesses to harness the power of social media to build lasting customer relationships in an increasingly competitive e-commerce landscape.Item Impact of Micro-Influencers on E-Brand Loyalty of Online Consumers in Sri Lankan Ayurveda Cosmetic Industry: Moderating Effect of E-WOM(Department of Marketing Management, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) De Silva, G. W. K. N.; Udara, S. W. I.This study examines how micro-influencers affect online consumers' e-brand loyalty in the Sri Lankan ayurvedic cosmetics industry, with a particular focus on the moderating role of electronic word-of-mouth (E-WOM). The digital era has significantly impacted the corporate environment, with social media marketing becoming a primary strategy for marketers to shape brand loyalty among their target audience. Influencer marketing has grown significantly in the digital era, with a global valuation of $21.1 billion in 2023. In Sri Lanka, the market for influencer advertising is expected to generate US$17.23 million in ad spending by 2024. Among various influencer categories, micro-influencers are seen as crucial in the growing significance of influencer marketing because they engage with niche audiences to shape consumer experiences with more personal and interactive content. Despite the growing importance of influencer marketing, gaps remain in understanding how micro-influencers influence brand loyalty, particularly in the Sri Lankan context. This study addresses these gaps by exploring how key micro-influencer attributes such as expertise, trustworthiness, and attractiveness impact e-brand loyalty and how E-WOM strengthens these relationships. A quantitative research approach was adopted, with data collected through an online survey. A sample of 385 participants was targeted, yielding 288 valid responses for analysis. The study measured key variables using a five-point Likert scale. Micro-influencers' trustworthiness, expertise, and attractiveness were considered independent variables, while e-brand loyalty served as the dependent variable, and E-WOM functioned as the moderator. Statistical analysis, including multiple linear regression and Andrew F. Hayes’ Process Macro in SPSS, was used to examine the relationships and moderating effects. The findings indicate that micro-influencer attributes significantly influence e-brand loyalty. Specifically, trustworthiness and attractiveness had a strong positive impact, whereas expertise showed no significant direct effect. However, the association between micro-influencer variables and e-brand loyalty was considerably modulated by E-WOM, which increased the influence of attractiveness and trustworthiness on e-brand loyalty outcomes. Given that the study focused exclusively on the Sri Lankan Ayurveda cosmetics market, its findings may not be generalizable to other industries or geographic regions. Additionally, reliance on self-reported data introduces potential biases, such as social desirability effects. Moreover, the study did not incorporate qualitative insights from brands or influencers regarding effective micro-influencer strategies, which could be explored in future research. This study makes important theoretical and practical contributions. It extends the literature on micro-influencer marketing by contextualizing its effects within the Sri Lankan market and examining the interplay between influencer attributes and E-WOM. By aligning with the Source Credibility Theory, the study enhances understanding of how micro-influencers foster brand loyalty through perceived trustworthiness and attractiveness, particularly when reinforced by E-WOM. From a practical standpoint, the findings offer valuable insights for marketers and policymakers, emphasizing the importance of building authentic, visually appealing, and trustworthy influencer relationships while leveraging E-WOM strategies to enhance consumer engagement. Additionally, the study provides a conceptual framework for future research in emerging economies, where digital marketing is rapidly evolving alongside cultural and technological shifts.