Parasocial relationship effects on customer equity in the social media context

This study clarifies the concept of customer equity in today's social media landscape. The study shows: (1) motivation to use social network services (SNS) and celebrity source credibility positively affect parasocial relationships; (2) parasocial relationships positively affect attitudes toward using SNS; (3) parasocial relationships positively affect customer equity drivers; and (4) customer equity drivers positively affect customer lifetime value. A survey of 350 social media users recruited from Hong Kong and Macau in China is used to investigate key questions about parasocial relationships, customer equity drivers, and customer lifetime value. The theoretical model for customer equity in the social media context offers implications for marketing practitioners.