The luxury market is a relatively large industry that faces new challenges in connection with high demand for luxury products and developed technology, therefore it is important forluxury brands to follow developments in their marketing strategies. One way for luxury brands to market their brand is through social media which is used today as an effective communication channel between luxury brands and users for marketing purposes. By creatinga strong brand equity via social media, luxury brands can build their brand and make itvstronger. Previous studies have shown that brand equity is affected by social media marketing of luxury brands. This study aims to investigate how customer-based brand equity is affected by social media marketing of luxury brands by examining SMMA. The data collection was carried out through a qualitative method by using semi-structured interviews where six respondents were allowed to share their experiences with luxury brands on social media.

The study shows that social media marketing activities (SMMA) affect customer-based brand equity from the users' perspective. With the help of SMMA of luxury brands, a unique type of loyalty is created where the user does not have to consume to show loyalty to the luxury brand. But rather contributes with strong loyalty by interacting and following the luxury brand on social media. By using customization and other components of SMMA, the user creates brand associations towards a luxury brand. Luxury brands also possess strong brand awareness and perceived quality according to this study. Users show a positive response forSMMA of luxury brands and the impact it has on customer-based brand equity. Luxury brands can thus, through the correct implementation of SMMA, build a strong customer based brand equity.