The Impact of Social Commerce on Brand Equity in Emerging Markets

Thesis Abstract

The rapid growth of social media platforms and the proliferation of user-generated content have redefined how consumers interact with brands, particularly in emerging markets where digital adoption is accelerating yet consumer skepticism toward online brands remains a challenge. This study addresses the problem of limited understanding of how social commerce activities influence brand equity constructs—brand awareness, perceived quality, brand associations, and brand loyalty—in emerging economies, and how contextual factors such as trust, perceived risk, and cultural dimensions moderate these relationships. The aim is to delineate the pathways through which social commerce activities translate into enhanced brand equity and to identify boundary conditions that shape these effects. The specific objectives are (1) to examine the direct effects of social commerce practices (user reviews and ratings, peer endorsements, social storefronts, and influencer co-creation) on brand awareness and perceived quality; (2) to assess the impact of social commerce on brand associations and brand loyalty; (3) to investigate the mediating roles of trust and perceived risk in the relationship between social commerce and brand equity; (4) to explore moderating effects of cultural dimensions (uncertainty avoidance, collectivism) and digital literacy; and (5) to provide actionable recommendations for marketers operating in emerging markets. A positivist mixed-methods approach is employed to achieve explanatory and descriptive aims. The quantitative strand uses a cross-sectional survey of 600 online shoppers across three emerging-market hubs in Africa and Southeast Asia, selected through stratified random sampling to capture urban and semi-urban consumer segments. Structural equation modeling (SEM) with Amos is used to test hypothesized relationships among social commerce activities, trust, perceived risk, brand equity facets, and moderating variables. The qualitative strand comprises 20 in-depth interviews with marketing managers and 12 focus groups (6–8 participants each) with active social media users to enrich interpretation and identify contextual nuances. Data collection instruments include a validated multi-item scale for social commerce engagement, brand equity, trust, perceived risk, and cultural orientation, adapted to the local contexts through a pilot test (n=60) and back-translation procedures to ensure linguistic equivalence. Reliability and validity are assessed through Cronbach’s alpha, confirmatory factor analysis (CFA), and discriminant validity checks. For qualitative data, thematic analysis is conducted using NVivo to identify emergent patterns related to consumer trust dynamics, platform affordances, and local consumer norms. Expected findings indicate that social commerce activities positively influence brand awareness and perceived quality, which in turn bolster brand associations and loyalty. Trust is anticipated to mediate the social commerce–brand equity relationship, while perceived risk is expected to negatively impact trust and dampen these effects. Cultural dimensions such as collectivism and uncertainty avoidance are hypothesized to strengthen the effects of social proof and peer endorsements on brand equity in these markets. Digital literacy is projected to amplify positive outcomes by enabling more effective navigation of social storefronts and influencer content. Robustness checks will include multi-group SEM to test measurement invariance across regions and bootstrapping to assess indirect effects. The study contributes to knowledge by integrating social commerce mechanics with brand equity theory in the context of emerging markets, offering a comprehensive model that includes trust and perceived risk as key mediators and culture as a critical moderator. It extends the application of theories (Social Exchange Theory, Signaling Theory, and the Technology Acceptance Model) to explain consumer responses to social commerce in diverse economic settings and provides empirical benchmarks for practitioners designing social commerce strategies. Practical implications include guidance on optimizing user-generated content, influencer collaborations, and platform features to enhance brand equity while managing perceived risk and building consumer trust. The study concludes that a strategically designed social commerce ecosystem—characterized by transparent reviews, credible influencer partnerships, secure payment interfaces, and culturally aligned messaging—significantly strengthens brand equity in emerging markets, with recommendations for platform developers, marketers, and policy-makers to foster safer and more trustworthy social shopping environments.