Digital word of mouth and influencer credibility as drivers of brand equity among Generation Z: Evidence from a PLS-SEM analysis

Abstract

This study examines how digital word of mouth and influencer credibility shape brand equity among Generation Z, a cohort that has grown up with ubiquitous access to digital media and is increasingly driving change in how brands relate to consumers. Drawing on survey data from 307 Gen Z consumers, the study develops and tests a conceptual model linking Digital Word of Mouth, Influencer Credibility, Digital Behaviour, and Brand Equity Perceptions using Partial Least Squares Structural Equation Modelling (PLS-SEM). The results show that digital word of mouth and influencer credibility are statistically significant antecedents of brand equity formation, with digital word of mouth emerging as the strongest predictor, while digital behaviour has a smaller but statistically significant direct effect. Brand equity formation is further shaped by the extent to which consumers perceive a brand as consistent with their own values and behaviours. The findings offer a contemporary account of how Generation Z is reshaping brand communication and provide practical guidance for marketers seeking to build brand loyalty in a highly connected, digitally native consumer environment.