An User-Generated Content Strategy on Brand Equity and Customer Satisfaction toward Purchase Intention among South Korean Millennials: A Case Study of Innisfree

Abstract

With the evolution of digital environment, consumers have changed the way they make a purchase. Traditional mass marketing is no longer effective but digital content marketing is highly influenced by today’s consumers. Millennials are a large consumer group considered as the most influential target for marketers and technologically sophisticated generation. They are strongly influenced by user-generated content (UGC) when it comes to seeking out honest information about a product or service in order to make a good purchase. The study aimed to examine the influence of the frequency of media exposure to related UGC on YouTube on their perceived brand equity, customer satisfaction and intention to purchase Innisfree among South Korean millennials. The researcher opted to use quantitative research by using convenience sampling method and one hundred sixty-nine South Korean millennials were selected to respond to the questionnaire. The data was tabulated and analyzed by using Spearman correlation and Multiple Linear Regression at a significance level of .05. The findings revealed as follows: (1) Consumers’ frequency of exposure to Innisfree related UGC on YouTube was significantly positively correlated with their perceived brand equity toward Innisfree. (2) Consumers’ frequency of exposure to Innisfree related UGC on YouTube was significantly positively correlated with their satisfaction toward Innisfree. (3) Consumers’ overall perceived brand equity and their satisfaction significantly predicted purchase intention toward Innisfree at the rate of 77.2%, but there was not a significant prediction from brand association. The findings mainly show millennials significantly trust UGCs on YouTube when it comes to creating their brand equity and purchase decision. The researcher suggests that digital marketers refer to these findings to target millennial consumers by approaching them with the appropriate marketing strategies.