Journal of Interactive Marketing

The advent of social media has challenged companies as sole creators of marketing messages. Whether intentionally branded or subconsciously promoted, users become ambassadors for products and brands by producing and disseminating user-generated content (UGC). Whereas previous studies on UGC have mainly considered verbal peer recommendations or written reviews, our research focuses on user-generated videos (UGVs). In our 2 (source: user vs. agency) × 2 (technical quality: low vs. high) experimental study, we explore the impact of user-generated videos (UGVs) vs. agency-generated videos (AGVs) on spectators’ perceived source credibility and their intention to visit the tourist destination Tyrol in Austria, as promoted in the video. In addition, we explore the moderating role of video quality. In contrast to conventional wisdom, our results indicate that there is no general superiority of UGVs over AGVs. Rather, the influence of different video generators (user vs. agency) on spectators’ perception and intended behavior depends on the technical quality of the video. In the case of low technical quality, users as generators have a significantly stronger positive effect on source trustworthiness and expertise – and thereby on consumers’ intended behaviors – than AGVs. However, no impact from the generating source on trustworthiness has been found under the condition of highly technical quality. Concerning source expertise, videos generated by users are rated more highly than agency-generated videos under both low and high technical qualities, but the advantage is significantly lower under high technical quality. Our findings contribute to a better understanding of user-generated content overall and relativize the widely assumed general superiority of user-generated content over commercial, firm-generated content, at least in the case of videos.

When groups of consumers share information or express their opinions about products and services, their attitudes or behavior sometime align without centralized coordination, a phenomenon known as herding. Building on pattern-based explanations of herding from the cognitive science literature, we propose a framework to elucidate herding behavior based on three dimensions: the speed of contagion, i.e., the extent to which the behavior spreads in a given time, the number of individuals, i.e., the proportion of the whole population expressing the behavior, and the uniformity of direction, i.e., the extent to which the mass behavior is increasingly uniform with one variant becoming dominant. Based on these dimensions, we differentiate eight patterns of herding behavior from slowly diffusing, small and disparate groups through to rapidly spreading, massive herds expressing a convergent behavior. We explore these herding patterns in an online setting, measuring their prevalence using over four thousand streams of data from the online micro-blogging application, Twitter. We find that all eight patterns occur in the empirical data set although some patterns are rare, particularly those where a convergent behavior rapidly spreads through the population. Importantly, those occurrences that develop into the pattern we call “stampeding,” i.e., the rapid spread of a dominant opinion expressed by many people, generally follow a consistent development path. The proposed framework can help managers to identify such noteworthy herds in real time, and represents a first step in anticipating this form of group behavior.

Mobile marketing activities are growing at a rapid pace. The success of mobile marketing hinges on consumers’ adoption of mobile devices. However, consumers’ mobile device adoption is not well understood at the brand (e.g., Apple, Nokia, Samsung) level. We propose a conceptual framework linking mobile device brand loyalty (repurchase intention) to its drivers including perceived value, brand satisfaction, brand attachment and trust, and develop hypotheses about the moderating roles of adopter type and mobile technology generation in some of these linkages. We test these hypotheses using structural equation modeling on a unique cross-sectional dataset of attitudes toward mobile phone brands spanning two technology generations, 2.5G and 3G. The results reveal important asymmetries between adopter types and between technology generations: early adopters of mobile devices emphasize perceived value, whereas late adopters rely on brand satisfaction in developing brand loyalty; and consumers depend more on trust and less on perceived value in developing loyalty for the new generation than for the existing generation. We outline how brand managers of mobile devices should adapt their marketing strategies to different adopter types and technology generations.

The high penetration of cell phones in today's global environment offers a wide range of promising mobile marketing activities, including mobile viral marketing campaigns. However, the success of these campaigns, which remains unexplored, depends on the consumers’ willingness to actively forward the advertisements that they receive to acquaintances, e.g., to make mobile referrals. Therefore, it is important to identify and understand the factors that influence consumer referral behavior via mobile devices. The authors analyze a three-stage model of consumer referral behavior via mobile devices in a field study of a firm-created mobile viral marketing campaign. The findings suggest that consumers who place high importance on the purposive value and entertainment value of a message are likely to enter the interest and referral stages. Accounting for consumers’ egocentric social networks, we find that tie strength has a negative influence on the reading and decision to refer stages and that degree centrality has no influence on the decision-making process.

Word of mouth (WOM), long recognized as a highly influential source of information, has taken on new importance with the proliferation of online WOM. Research in online environments has focused on individuals who actively participate in generating WOM. However, over 90% of those that read WOM are non-participants, commonly called “lurkers.” This paper develops and tests a thematic discrepancy analysis (TDA) approach that combines commonly available information on Views and Replies with content analysis to provide new insights into differences between WOM participants and lurkers. TDA provides managers with market-sensing information to identify hidden opportunities and threats, as well as to test for non-response bias. Given the lack of approaches to address non-response bias due to lurkers, TDA represents a significant contribution to research methodology. We demonstrate the efficacy of TDA by applying it to a large scale WOM dataset containing over 80,000 messages from a brand-specific online forum.

In an attempt to gain a better position in haggling, consumers often seek a seller's pricing information (e.g., whether the posted price is negotiable, the discount and transaction prices) before going to that seller. Although traditionally difficult to obtain, such information is becoming increasingly available due to consumer price posting (CPP), whereby consumers post and share their purchase price information on the Internet. In this analytical study, we consider a market in which a seller, who chooses between a fixed price policy and a haggling policy, serves two types of consumers who differ in their willingness to pay and haggling costs. We explore how CPP can affect consumers’ behavior and the seller's pricing strategies (i.e., pricing policy and the associated prices). In the absence of CPP, our model features a two-sided uncertainty: the seller does not know individual consumer's type and thus may find it optimal to use a haggling policy to price discriminate consumers, whereas consumers do not readily observe the seller's cost type and pricing policy, and thus are uncertain whether their haggling will be fruitful. In the presence of CPP, consumers’ uncertainty about the seller's pricing policy is resolved. Because CPP can improve price transparency, inhibit consumers’ acceptance of a posted price and spur price haggling, it seems apparent that it should benefit consumers and hurt the seller. However, our analysis shows that CPP can lead to fewer purchases, higher prices and even a greater seller profit. It further shows that although CPP surely increases information accessibility, it can also reduce the amount of information available to consumers. These results are in sharp contrast to the conventional wisdom in the literature.