Social Ties and User Generated Content: Evidence from an Online Social Network

We use variation in wind speeds at surfing locations in Switzerland as exogenous shifters of users' propensity to post content about their surfing activity onto an online social network. We exploit this variation to test whether users' social ties on the network have a causal effect on their content generation, and whether conent generation in turn has a similar causal effect on the users' abilty to form social ties. Economically significant causal effects of this kind can produce positive feedback that generate multiplier e¤ects to interventions that subsidize tie formation. We argue these interventions can therefore be the basis of a strategy by the rm to indirectly faciliate content generation on the site. The exogenous variation provided by wind speeds enable us to measure this feedback empirically and to assess the return on investment from such policies. We use a detailed dataset from an online social network that comprises the complete details of social tie formation and content generation on the site. The richness of he data enable us to control for several spurious confounds that have typically plagued empirical analysis of social interactions. Our results show evidence for significant positive feedback in user generated content. We discuss the implications of the estimates for the management of the content and the growth of the network

Groupthink 2.0: An empirical analysis of customers' conformity-seeking in online communities

Online communities have witnessed an ongoing interest from both digital practitioners and scholars alike. Whilst the motives for and outcomes of customers' participation have been convincingly evidenced, there is a lack of conceptual and empirical understanding on the decision-making processes within virtual groups. This study employs Janis' (1972) Groupthink theory to investigate customers' tendency to conform when making decisions in a financial online community. Based on a sample of 343 respondents and multiple regression analysis, it is shown that perceived stress and group insulation have a positive influence upon Groupthink, whilst group cohesion has a negative effect. The findings support the applicability of Groupthink theory in an online context and emphasise defective social decision-making processes in online communities as a key priority for future research. Digital marketers gain insight on strategies to manage their customers' conformity-seeking tendencies and to prevent dysfunctional decision-making processes

An Equilibrium Model of User Generated Content

This paper considers the joint creation and consumption of content on user generated content platforms (e.g., reviews or articles, chat, videos, etc.). On these platforms, users’ utilities depend upon the participation of others; hence, users’ expectations regarding the participation of others on the site becomes germane to their own involvement levels. Yet these beliefs are often assumed to be fixed. Accordingly, we develop a dynamic rational expectations equilibrium model of joint consumption and generation of information. We estimate the model on a novel data set from a large Internet forum site and use the model to offer recommendations regarding site strategy. Results indicate that beliefs play a major role in UGC, ignoring these beliefs leads to erroneous inferences about consumer behavior, and that these beliefs have an important implications for the marketing strategy of UGC sites. We find that user and site generated content can be either strategic complements or substitutes depending on whether the competition for existing readers exceeds the potential to attract new ones. In our data, the competitive effect substantially dilutes the market expansion effect of site generated content. Likewise, past and current content can also be either strategic substitutes or complements. Results indicate more durable content increases overall site participation, suggesting that the site should invest in making past information easier to find (via better search or page design). Third, because content consumption and generation interact, it is unclear which factor dominates in network growth. We find that decreasing content consumption costs (perhaps by changing site design or via search tools) enhances site engagement more than decreasing content generating costs. Overall, enhancing content durability and reducing content consumption cost appear to be the most effective strategies for increasing site visitation

Managing price and service rate in customer-intensive services under social interactions

This paper investigates the price and service rate decisions in a customer-intensive service in an M/M/1 queue system under the influence of social interactions, where a higher value of the service is perceived if more customers purchase the service. The customer-intensive nature of the service requires a low service speed to maintain its quality, which may increase the congestion of the system. Two cases where customers are either homogeneous or heterogeneous in terms of the customer intensity are considered. It is found that social interactions can always benefit the service provider as more expected revenue can be achieved, and potential profits would be lost if the influence of social interactions is ignored. For the case with heterogeneous customers, the optimal price and service rate decisions are solved with or without considering social interaction effect. The study finds the proportions of high and low sensitive customers and the social interaction intensity are critical to the operational decisions and the market coverage strategies. These results offer a better understanding on the interplay between the quality-speed conundrum and the influence of social interactions in customers’ purchase behaviour in managing customer-intensive services

Social Ties and User Generated Content: Evidence from an Online Social Network

We use variation in wind speeds at surfing locations in Switzerland as exogenous shifters of users' propensity to post content about their surfing activity onto an online social network. We exploit this variation to test whether users' social ties on the network have a causal effect on their content generation, and whether conent generation in turn has a similar causal effect on the users' abilty to form social ties. Economically significant causal effects of this kind can produce positive feedback that generate multiplier e¤ects to interventions that subsidize tie formation. We argue these interventions can therefore be the basis of a strategy by the rm to indirectly faciliate content generation on the site. The exogenous variation provided by wind speeds enable us to measure this feedback empirically and to assess the return on investment from such policies. We use a detailed dataset from an online social network that comprises the complete details of social tie formation and content generation on the site. The richness of he data enable us to control for several spurious confounds that have typically plagued empirical analysis of social interactions. Our results show evidence for significant positive feedback in user generated content. We discuss the implications of the estimates for the management of the content and the growth of the network

Taking Stock of the Digital Revolution: A Critical Analysis and Agenda for Digital, Social Media, and Mobile Marketing Research

Marketing has been revolutionized due to the rise of digital media and new forms of electronic communication. In response, academic researchers have attempted to explain consumer- and firm-related phenomena related to digital, social media, and mobile marketing (DSMM). This paper presents a critical historical analysis of, and forward-looking agenda for, this work. First, we assess marketing’s contribution to understanding DSMM since 2000. Extant research falls under three eras, and a fourth era currently underway. Era 1 focused on digital tools and platforms as consumer and marketer decision aids. Era 2 studied online communications channels (e.g., online forums) as word of mouth marketing “laboratories,” capturing the potential of DSMM for social information transmission. Era 3 embraced the notion of “connected consumers” by considering various antecedents and consequences of socially interconnected consumers in marketplaces. Era 4, currently starting, considers mobile marketing and brings psychological and social theories to bear on emergent DSMM issues. Second, we critique the DSMM literature and advance a series of recommendations for future research. While we find much to applaud, we argue that several problems limit the relevance of this research moving forward and suggest ways to alleviate these concerns moving forward

The effect of social media advertising on brand image of motor vehicles in South Africa

A research report Submitted in partial fulfillment of the requirements for the degree Master of Management in strategic marketing In the Faculty of Commerce, Law and Management at the University of the Witwatersrand Wits Business School, Johannesburg March 2018The automotive industry has experienced immense pressure as a result of global factors - inflation, competition, technology and political factors. Changing trends in consumer expectations have put the automobile industry under increasing pressure with more choices available. The practise of using Social Media Advertising by organisations and clients has revolutionalised the advertising and business landscape as it might be the most cost-effective way that organisations can promote their goods and services in the future. The marketing environment has evolved and marketers need to keep up and find innovative, cost effective ways to build brands. The main aim of this research was to examine the effects of Social Media Advertising on Brand Image of motor cars in South Africa. The study was grounded using 2 theories , AIDA (Attention, Interest, Desire, Action) and DAGMAR models. Social media involved the use of Facebook, Twitter, Instagram and Linkedin social media platforms. The study introduced the Keller Model of Brand Knowledge and investigated the relationship between Social Media Advertising, Brand Image, Types of Brand Associations, Benefits (Functional, Symbolic and Experiential) and Attitudes. The research design entails a quantitative approach and involves a cross sectional study design. The sample (N = 254) comprises owners and drivers of motor vehicles. A snowball sampling technique was used in selecting the final sample for the current study. This method was the most practical and feasible to arrive at the selected sample. The data involved a 2 phased approach. This study emphasises the use of Social Media Advertising in brand building strategies, particularly through social media platforms - Facebook, Twitter, Instagram and LinkedIn. The findings also suggest that through social media platforms consumers’ attitudes are influenced towards advertising, brands and intentions in forwarding messages to other users. The conclusions of this study have implications for brand managers. The study reveals practical value because it demonstrates that social media activities do have a positive effect on brands because they are supportive of the buying process.MT 201

The Effects Of Social Media Influencer Attributes On Collaborating Brand Credibility And Advocacy

This thesis investigates different characteristics and dimensions related to social media influencers that might affect some brand outcomes after being endorsed by /collaborating with the influencer in brand communications. This study specifically examines the impact of three dimensions—social media influencer credibility, attractiveness, and endorsement content quality—on the collaborating brand’s credibility. It also examines the influence of brand credibility on brand advocacy. The study also explores the mediating role of brand credibility and the moderating role of digital experience. To achieve these aims, the researcher employed the premises of two theories: the stimulus–organism–response theory and the social learning theory. The data were collected using an online questionnaire from 281 respondents. The findings reveal that social media influencer credibility significantly influences the credibility of the collaborating brand which in turn exert significant impact on brand advocacy. A mediating effect of collaborating brand credibility is identified between social media influencer credibility and brand advocacy. The findings have essential managerial implications that assist managers in choosing the most effective social media influencer for their brand