Improving consumer mindset metrics and shareholder value through social media: The different roles of owned and earned media

Anatoli Colicev, Ashwin Malshe, Koen Pauwels, Peter O'Connor

Research output: Contribution to journalArticle

41 Citations (Scopus)

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 languageEnglish
Pages (from-to)37-56
Number of pages20
JournalJournal of Marketing
Volume82
Issue number1
DOIs
Publication statusPublished - Jan 2018

Keywords

  • Consumer decision journey
  • Earned social media
  • Marketing-finance interface
  • Owned social media
  • Shareholder value

ASJC Scopus subject areas

  • Business and International Management
  • Marketing

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