Impact of Facebook Advertising Strategies on E-Brand Loyalty of Gen Z: Examining the Mediating Effect of Negative Sentiments with the Special Reference to Franchise Cafes in Sri Lanka

Abstract

The research examines the impact of Facebook Advertising Strategies on e-branding commitment with special emphasis on the Franchise Cafes in Sri Lanka of the Generation Z. The research explores the role of social media in brand interactions among Gen Z consumers in Sri Lanka's Franchise cafes. Aware of the fact that consumers of this age appreciate social media in brands interactions, the research offers understanding of the digital marketing activities that appeal to this segment. Another contributing factor in this study is the negative attitude factors and its formation of perceptions of E-brand loyalty. In this study, quantitative data is gathered from Gen Z customers who interact with Franchise cafes in Sri Lanka. These findings present important implications for the marketers in the Franchise Cafe industry who are keen to optimize their social media messages for an empowered audience. This research adopts a Positivism philosophy and a deductive research approach to analyze Facebook Advertising Strategies and Gen Z’s e-brand loyalty in Franchise Cafes in Sri Lanka. In data collection, the study employs questionnaires, the primary objective is to obtain information from individual Gen Z consumers. All the questions in the questionnaire are on Likert scale since it is more appropriate for comparison. Real-life consumers of Gen Z are chosen as a representative sample for generalization of the research results and the targeted sample size is 385 responders. As Sampling method, purposive sampling approach was used to select individuals who frequently use Facebook and visit Franchise Cafes. As data analysis techniques, data analysis employed quantitative methods, including the use of descriptive statistics (mean, median, mode, standard deviation) and inferential analysis (correlation, regression, mediating analysis). The statistical tool that is used for data analysis is SPSS. Reliability was assessed using Cronbach’s Alpha and validity was tested through construct validity measures. Secondary data is collected from literature and industry reports. The study examined that element like likes, shares, comments, and clickable links enhance Gen Z's engagement and loyalty in e-brands. Factors like attractiveness, message comprehensiveness, and creativity influence advertisements' effectiveness. High-quality imagery and meaningful messages were found to increase brand loyalty and Facebook Stories were effective for Gen Z. Demographic and behavioral targeting were identified as key strategies. Negative sentiments mediating the relationship between Facebook advertising strategies and e-brand loyalty. This research study investigates the relationship between Facebook advertising strategies and e-brand loyalty of Gen Z consumers in Franchise Cafes in Sri Lanka. The study found that factors such as ad engagement features, content, location, platform, and precision in targeting consumers positively influence e-brand loyalty. Efficient strategies were found to reduce negative sentiments, while inadequate campaign approaches, such as wrong category targeting, low-quality messages, or posting ads at the wrong time, generated unfavorable perceptions. Negative sentiments partially mediate the relationship between Facebook advertising strategies and e-brand loyalty, suggesting businesses need to pay close attention to negative feedback to improve their advertising strategies. The study's reliability, validity, and normality test results confirmed the validity of the research, confirming the duality of loyalty and consumer sentiment management in advertising strategies. The research provides useful recommendations for marketers targeting Gen Z in Franchise Cafes in Sri Lanka. The study on e-brand loyalty in Sri Lankan Franchise Cafes is limited by its time frame, geographical scope, and sample population. It may not consider cultural or economic factors influencing loyalty. The results are specific to Gen Z, not Millennials or Gen X. Negative sentiments are subjective and influenced by individual experiences, emotions, and cognitive biases. E-brand loyalty is complex and includes personal experiences, perceived competitive offerings, and brand image. Longitudinal investigations may be more useful to understand the long-term effects of advertising strategies on loyalty. Franchise cafes can optimize their Facebook advertising strategies by engaging retargeting ads and lookalike audiences, focusing on products like premium drinks, creative meals, membership, and discounts, and using free content from clients. Mobile advertising, Facebook stories, and integration with Instagram can help Gen Z stay engaged. Engaging in polls, Q&A sessions, and hosting live videos can also help. Building and sustaining brand loyalty can be achieved through eco-friendly or social responsibility campaigns, unique selling propositions, and affiliation programs. Managing negative emotional appeals can be done using tools for analyzing sentiments in comments, reviews, and shares, and crisis management. Enhanced budget allocation can be achieved by treating advertising formats and targeting methods as priority areas, and reducing advertising expenditures on locations or age, gender, geography, or other classes that do not improve brand equity. Building strong customer relationships through emotional bonds, direct interactions, and events can help customers have memorable experiences. Future research should explore marketing tactics on other social media platforms, cultural and regional differences in Sri Lanka, comparative studies across industries, longitudinal studies on loyalty, and the role of influencers in Facebook ads. By implementing these recommendations, Franchise cafe stakeholders can improve Facebook advertising strategies and increase e-brand loyalty among Gen Z consumers.