Abstract
Although research has examined the social media-shareholder value link, the role of consumer mindset metrics in this relationship remains unexplored. To this end, drawing on the elaboration likelihood model and accessibility/ diagnosticity perspective, the authors hypothesize varying effects of owned and earned social media (OSM and ESM) on brand awareness, purchase intent, and customer satisfaction and link these consumer mindset metrics to shareholder value (abnormal returns and idiosyncratic risk). Analyzing daily data for 45 brands in 21 sectors using vector autoregression models, they find that brand fan following improves all three mindset metrics. ESM engagement volume affects brand awareness and purchase intent but not customer satisfaction, while ESM positive and negative valence have the largest effects on customer satisfaction. OSM increases brand awareness and customer satisfaction but not purchase intent, highlighting a nonlinear effect of OSM. Interestingly, OSM is more likely to increase purchase intent for high involvement utilitarian brands and for brands with higher reputation, implying that running a socially responsible business lends more credibility to OSM. Finally, purchase intent and customer satisfaction positively affect shareholder value.
Original language | English |
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Pages (from-to) | 37-56 |
Number of pages | 20 |
Journal | Journal of Marketing |
Volume | 82 |
Issue number | 1 |
DOIs | |
Publication status | Published - Jan 2018 |
Externally published | Yes |
Funding
Anatoli Colicev is Assistant Professor of Marketing, Graduate School of Business, Nazarbayev University (email: [email protected]). Ashwin Malshe is Assistant Professor of Marketing, College of Business, University of Texas at San Antonio (email: [email protected]). Koen Pauwels is Professor of Marketing, D’Amore-McKim School of Business, Northeastern University (email: [email protected]). Peter O’Connor is Professor of Information Systems, Decision Sciences, and Statistics, ESSEC Business School (email: [email protected]). The authors thank Abishek Borah, Andrew Stephen, and seminar participants at the 2015 Marketing Strategy Meets Wall Street conference, Big Data Conference 2015, ESSEC Business School, University of New Hampshire, University of Texas at San Antonio, NMIMS University, CIMR–Mumbai, and Ozyegin University for their comments; and YouGov for providing BrandIndex data. Peter O’Connor acknowledges funding from ESSEC Research Center for purchasing BrandIndex data. Michel Wedel served as area editor for this article.
Keywords
- Consumer decision journey
- Earned social media
- Marketing-finance interface
- Owned social media
- Shareholder value