The Effect of Social Media Marketing and Brand Experience on Brand Loyalty of Online Transportation in Indonesia: The Mediating Role of Consumer-Based Brand Equity

Intense competition in the online transportation industry requires companies to not only carry out marketing activities that provide a comfortable ecosystem but also increase their value through brand experience to make them stand out. Good customer perceptions can make them willing to repeat purchases and recommend the brand. This study aims to determine the effect of social media marketing activities and brand experience on brand loyalty through consumer-based brand equity service brands. This research is applied to 251 respondents who have used online transportation services and follow the brand’s social media. Data was collected through an online questionnaire, then the collected data was processed using SmartPLS and analyzed using the Structural Equation Model-Partial Least Square (SEM-PLS) technique. It was found that social media marketing activities and brand experience have a considerable role in shaping the service company’s brand equity, which will lead to customer loyalty to the brand. This is because the strong perceptions that are formed as well as the experience and quality of service that customers perceive as good, will be able to make them voluntarily use the service repeatedly and recommend the service as well as the brand, which indicates loyalty.