The Influence of Facebook User-Generated Content on E-Brand Loyalty with the Mediating Effect of Perceived Brand Authenticity with Special Reference to the Cosmetics Industry in Sri Lanka

Abstract

User-generated content has become a more discussable factor in digital marketing. Businesses have taken UGC as a key consideration as it may affect the business in a positive way as well as in a negative way. Marketers are looking for strategies to mitigate the negative effects of UGC while improving the positive effects of UGC. To have long-term relationships, loyalty businesses must make their customers feel connected with their brands while providing them with authentic products and services. Present study studies the influence of Facebook user-generated content on e-brand loyalty while concerning the mediating of perceived brand authenticity. The main objective of the study is to analyze the influence of Facebook user-generated content on e-brand loyalty in the cosmetics industry in Sri Lanka. This study adopts an explanatory research design, guided by the positivist research philosophy. A deductive approach is employed, utilizing quantitative data. The research follows a cross-sectional design, with data collected through an online questionnaire. Primary data was obtained from 387 respondents residing in the Western Province of Sri Lanka. A non-probability sampling method, incorporating both convenience and judgmental sampling techniques, was used to construct the study’s sampling framework. Data analysis was conducted using IBM SPSS version 30, employing descriptive statistics, frequency analysis, correlation analysis, and regression analysis. Few studies have focused on the relationships between UGC and e-brand loyalty or considered the mediating role of PBA. Most studies are focused on industries such as fashion; therefore, the cosmetics industry, especially in Sri Lanka, remains highly under-researched. This research, therefore, tries to fill this gap by examining how Facebook UGC affects the e-brand loyalty of Sri Lanka's cosmetics industry, with PBA as a mediating factor. This study established that UGC about Facebook was important in increasing both e-brand loyalty and perceived brand authenticity of cosmetics in Sri Lanka. UGC has been seen to affect the consumers' perception of the authenticity of a brand and directly lead a consumer to be loyal to the brand. On the contrary, perceived brand authenticity was a very important driver of e-brand loyalty; hence, it is of strategic importance to brands. The analysis also confirmed that perceived brand authenticity mediates the relationship between UGC and e-brand loyalty, serving as a kind of bridge that will ameliorate the connection between engaging and relatable content on one side and customer loyalty on the other. The limited availability of industry-specific reports in Sri Lanka was a challenge. It also focused on the Western Province only because of time constraints and the ease with which data is available, which may affect generalization across other regions or contexts. This dependence on quantitative approaches ruled out qualitative information. The structure of the study also had a general relationship without considering the sub-constructs; this also opens an avenue for further research at a more detailed level. It confirms that dimensions of UCG, such as trustworthiness, transparency, and quality, are of great relevance. It calls on marketers to encourage consumers to create favorable content on some form of stimulus, such as through reductions. Managers have to respond to negative responses constructively, build authentic brand experiences, and ensure communications are being sent across consistently. Future research gaps have been identified to study e-brand loyalty in other industries, test the relationships of sub-constructs, and adopt qualitative methods to gain more detailed insights. Furthermore, studying UGC beyond geographical constraints and investigating specific UGC types may yield more insightful information to help marketers use UGC properly to foster brand growth.