The Mediating Role of Segmentation in Social Media Marketing and Brand Equity: A Study in Food and Beverage Industry

Abstract

Food and beverage industry in Malaysia provides a significant GDP contribution. However, majority of firms are SMEs that face financial access as their main problem. Social media marketing is a novel trend in business nowadays due to technology intensification. This article investigates the link between social media marketing and brand equity whereby segmentation is the mediator variable in the SME food and beverage industry. By using questionnaires distributed systematically to consumers at shopping malls, about 329 usable responses were obtained. The results indicated no direct relationship between social media marketing and brand equity. A positive and significant relationship exists, however, between social media marketing and segmentation, segmentation and brand equity which indicates that segmentation is a partial mediator. The findings imply that SMEs especially in the food and beverage industry should carefully segment their market and at the same time, increase social media usage in marketing their products. This study is the first attempt to examine segmentation as mediating variable in the food and beverage industry.