Influence of social media communication on consumer purchase decisions: do luxury hotels value perceived brand authenticity, prestige, and familiarity?

Abstract

Purpose This paper aims to examine the influence of social media communications, particularly firm-generated content (FGC) and consumer-generated content (CGC) on predicting consumer purchase decisions (CPD) through the lens of perceived brand authenticity (PBA). This paper also investigates the moderating influence of brand prestige (BP) and brand familiarity in the luxury hotel sector. Design/methodology/approach This study collected data from 390 consumers who were regularly using social media platforms, traveled frequently and stayed in luxury hotels. Following stringent data filtering, 371 responses were analyzed via structural equation modeling. Findings The findings indicate that FGC and CGC significantly strengthened PBA. However, CGC was the effective driver that directly influenced CPD. Likewise, PBA directly and indirectly substantially impacted CPD. Finally, BP’s direct and moderating effects significantly influenced CPD in the luxury hotel sector. Originality/value This novel study contributes to signaling theory, social media communications and branding literature in the luxury hotel sector.