Social media marketing and hospital brand equity: An empirical investigation

Abstract

Despite the continuous upsurge in the use of social media, the empirical research investigating their economic value in the healthcare industry still lags. This study explores the impact of hospitals’ social media marketing efforts on their brand equity and, ultimately, hospital's financial performance. Using social media data from Instagram, online/offline survey methodology, and financial data obtained from hospitals, data is analyzed using a structural equation model. The study uses a random sample of (728) residents of the Kuwaiti population. Social media marketing efforts regarding use and engagement lead to higher hospital brand equity and financial performance. Particularly, the study finds that posts that are based on educational posts, patient stories, and sharing the latest news and research led to the highest form of brand awareness, perceived brand quality, brand association, and brand loyalty, thereby leading to higher perceived brand equity. The study also finds that brand equity leads to a positive and significant impact on hospitals’ financial performance. The study highlights the importance of creating engaging content, content that is personal and particularly educational. Healthcare organizations should guide their marketing efforts to manage this new marketing method better and communicate with patients to enhance consumer loyalty and financial performance.