HOW PARASOCIAL RELATIONSHIPS ON INSTAGRAM BETWEEN USERS AND BRANDS CONTRIBUTE TO EQUITY VALUE, BRAND EQUITY, RELATIONSHIP EQUITY, AND INTENT TO PURCHASE

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2022

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Parasocial relationship is the phenomenon where a person in an audience extends their emotional energy, interest, and time to an unaware performing party (such as actors, celebrities, social media influencers). There have been a number of previous studies that examine the Parasocial Relationship between online influencers (or digital celebrities) and their followers. There is a positive correlation found between Parasocial Relationships and followers purchasing intentions, which is what leads brands to invest in influencers as a form of social media marketing. However, there are few studies published that look at Parasocial Relationships as a tool for direct marketing from brands. This thesis focuses on how brands, using Instagram, can form direct Parasocial Relationships with their potential, current, and former consumers. These Parasocial Relationships will then be examined in relation to Brand Value which consists of Brand Equity, Equity Value, Intent to Purchase, and Relationship Equity. The psychosocial factors Empathy, Loneliness, Low Social Self-Esteem, Information Seeking, and Relationship Building will also be examined in relation to Parasocial Relationships and Brand Value. An online survey was distributed to Instagram users who were above the age of 18 and followed at least one brand who they were currently or formerly customers of. The sample was taken from University of Hawaii undergraduate students, Instagram users who followed several Hawaii-owned businesses, and people who were reached via electronic word of mouth. The data was then analyzed using Chronbach’s Alpha and Pearson’s Correlation to see the relationships between each variable. The study found several key things. Firstly, Empathy, Information Seeking, and Relationship Building was a strong predictor of Parasocial Relationships. Secondly, Parasocial Relationships were found to have a strong relationship with Brand Value. Equity Value, Brand Equity, and Relationship Equity were all significantly correlated with Parasocial Relationships.

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Communication, Brand Equity, Instagram, Intent to Purchase, Parasocial Relationship, Social Media Marketing

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52 pages

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