Improving Consumer Mindset Metrics and Shareholder Value through Social Media: The Different Roles of Owned and Earned Media

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.

Improvised Marketing Interventions in Social Media

“…Third, we extend prior research and contribute to the literature on the marketing-finance interface about the role of marketing in driving firm value by studying how IMI captures financial value for a firm (Colicev et al 2018;Srinivasan, Rutz, and Pauwels 2016;Tirunillai and Tellis 2014).…”

“…Digital communications have emerged as one of the most important means for firms to engage with customers (Colicev et al 2018;Kanuri et al 2018;Lamberton and Stephen 2016;Wedel and Kannan 2016). Anecdotal evidence suggests, however, that a growing number of consumers have become disenchanted and have grown suspicious-if not tired-of digital communications such as online advertisements (Wu 2016).…”

The Power of Brand Selfies in Consumer-Generated Brand Images

“…UGC has been shown to predict demand (e.g., Chevalier and Mayzlin 2006;Liu 2006), customer-based brand equity (e.g., Schweidel and Moe 2014), and stock returns (e.g., Colicev et al 2018). In addition, individual elements of text content (e.g., valence and arousal)…”

Peran Media Sosial Dalam Strategi Komunikasi Pemasaran Di Sebuah Perguruan Tinggi Swasta Di Jakarta Barat

“…Hal ini selaras dengan perkembangan website yang tidak hanya diisi oleh seseorang saja tapi juga melibatkan semua pihak secara kolaboratif seperti yang diungkapkan oleh Kaplan dan Haenlein (2009). Secara umum media sosial juga dapat meningkatkan pola pikir dari konsumen dan nilai dari shareholder (Colicev et al, 2018) dan juga menstimulasi penjualan, penghematan biaya dan perluasan jumlah interaksi (Felix et al, 2016). Selain itu media sosial juga sangat penting untuk membangun sebuah merek dari suatu perusahaan terutama untuk tetap senantiasa menjaga relasi dengan sangat dekat kepada seluruh masyarakat terutama komunitas khusus dari merek tersebut seperti yang diutarakan oleh Habibi et al (2014).…”