Professional Documents
Culture Documents
Abstract
With the introduction of the Internet, consumers have been relying h
eavily
on the media for content. The popularity of consumer-generated content
(CGC) has captured the consumer (i.e., user) as the producer, which has
caused a power shift in the market from companies to c onsumers. When
technology is paired with culture, it is inevitable that consumers constantly change their attitudes toward consumption to adapt to current
trends. Thus, marketers are meticulously looking for information to stay
current with the consumer market in order to maintain their market
share. CGC is closely related to electronic word-of-mouth (eWOM) and
is found on various online review sites, forums, blogs, company websites, and social media platforms. Consumers contribution toward the
content on different digital media sites (including a companys website) is
voluntary, either paid (e.g., sponsored) or nonpaid (e.g., personal blogs).
It is evident that information that is published online travels faster to consumers than when delivered through traditional media such as television.
Thus, companies are trying to be proactive and, as a part of their promotional efforts, are turning to online media for the latest information on
their target market, feedback on their company (e.g., criticism, praises),
and information on their competitors. However, despite the convenience
of knowledge transfer via the Internet, there are still disadvantages of
the use of CGC. The goal of this book is to educate business owners,
marketing practitioners, students, and marketing researchers about the
use of CGC and how it is beneficial for their marketing plan.
Keywords
consumer behavior, consumer decision-making, consumer-generated
content, content marketing, cross-national, culture, marketing communication, process, social media, storytelling
Contents
Prefaceix
Acknowledgmentsxi
Chapter 1 What Is Consumer-Generated Content?1
Chapter 2 Consumer-Generated Content and Web 2.017
Chapter 3 Trustworthiness of Consumer-Generated Content51
Chapter 4 A Cross-National Perspective on Consumer-Generated
Content73
Chapter 5 Optimizing Consumer-Generated Content85
References and Bibliographies93
Index117
Preface
Is our life getting more convenient and more complex at the same time?
Research shows that with social media taking the consumer market by
storm, companies no longer have the option to stay out of the virtual
community. As the power shifts from companies to consumer, companies
are scrambling to find means and ways to retain as well as capture new
customers. How else should companies know what consumers want? The
answer is to listen.
Consumer-generated content (CGC) largely occurs on new media
and this new media is a paradigm shift in social media marketing.
Although the Internet allows direct communication between consumers
and consumers or businesses and consumers (or both), the amount of
exposure (e.g., online ads) is not necessarily voluntary for consumers.
With the birth of social media, consumers are now in control of what
they want to see and what they want to use as valuable information in
their decision-making process (e.g., purchase intentions).
The purpose of this book is to organize and clarify key information
about CGC. This information is intended to benefit small business
owners, marketing practitioners, students, and marketing researchers in
understanding the use of CGC as part of a marketing plan.
We begin the book by defining the term CGC. CGC is often linked
to electronic word-of-mouth (eWOM) as well as to social media. We next
discuss the role of consumers as CGC contributors and the changing
landscape of marketing communications.
We also review the different forms of CGC (e.g., reviews, blogs, and
collaborative content), in addition to looking at why CGC is so popular
in the consumer market; specifically, we examine the core c haracteristics
of CGC. The consumers motivation to contribute to CGC is also an
important element of this book. Since CGC is deemed to be more c redible
than company-published content, we want to understand how and why
companies can motivate their target consumers to contribute to CGC.
x PREFACE
Acknowledgments
I would like to thank the publisher, Business Expert Press, for giving me
this opportunity to express my interest in this book. I would also like
to extend my gratitude toward my editor, Dr. Vicky L. Crittenden, for
giving me constructive feedback for continuous improvements.
Last but not the least, I would like to thank my family members.
Thanks to my brother for the Singapore piece in this book. Mom and
Dad, thank you for being so understanding. Thank you Tse, for your
continuous support, and Kyler for letting mommy write.
CHAPTER 1
(Continued)
(Continued)
Definition of Consumer
The term consumer refers to the primarily consumers themselves
anyone other than professional writers, journalists, and publishers. The
communication messages posted by CGC consumers are often anonymous
(Campbell et al. 2011), whereas word-of-mouth (WOM) communicators
are often known to each other or at least identifiable (p. 89). Stern
(1994) defines WOM as the utterances that are personally motivated,
spontaneous, ephemeral, and informal in structureand are not paid by
sponsors (p. 89). Nonetheless, there has still been a debate over whether
WOM is more reliable than CGC. Skeptics argue that rational consumers doubt the credibility of the anonymous comments on CGC and still
value online WOM (Mayzlin 2006). Campbell et al. (2011) argued that
though CGC and eWOM have similar traits, communication of these
two forms still differs in certain ways. On the other hand, Wang and
Rodgers (2010) view eWOM as a type of online advertising that uses
CGC platforms. They argue that eWOM is a specific type of CGC that
is a critical component of marketing as consumer-generated reviews are
regarded as more credible and less biased (Keller 2007).
Lastowka (2007) defined user as a dichotomy between those who
make things and those who use them (p. 899). When the term CGC is
used in the consumer market, a user is often aligned with other possible
connotations such as consumers, purchasers, and audiences. Thus, in
order to have a consumer produce CGC, there should be technology.
In other words, the term CGC implies that there is an existence of two
parties (producers and consumers) and two things (communication tools
and content). In the context of this digitalized consumer market, the two
parties will be the CGC producers and CGC consumers and the two
possible artifacts will be social media platforms and product reviews.
Generally, consumers comprise the public at large. For many companies, CGC is often described as a benefit to both businesses and a
type of grassroots cultural revolution. In the past, content was generated
professionally, whereas now, consumers are allowed to produce their
own content with available communication tools such as social media
sites. The contemporary interest in CGC may not be so much in the
communication tools, but in how those who produce and distribute
the content can own and profit other consumers using the Internet as a
distribution platform.
Web 2.0 has provided amateur content creators an innovative way to
produce content at a lesser cost, along with the ability to connect with
others across great distances and to engage in entertaining one another
through their words. These possibilities have changed the marketing
communication landscape in the consumer market. Skeptics have been
critical about the benefits of CGC for society (Campbell et al. 2011;
Lastowka 2007). As content is shared among fellow consumers, the
information provided may be criticized as amateurish. On the other
hand, some may value the information provided by fellow consumers
as it appears more honest and reliable compared to those generated
by companies. In addition, such CGC may be a step toward improving traditional communication models of information production and
distribution.
Definition of Content
The word content in CGC is used to describe relevant and valuable
information that can be presented to an audience (Lastowka 2007). In
the marketing field, more specifically in content marketing, the content that is created and distributed is focused on attracting and retaining a target audience, which ultimately drives profitable customer action
(contentmarketinginstitute.com). Generally, this content is the m
essage
a company or consumer uses to communicate without selling. For
example, if a consumer is planning a vacation, the content is relevant to
the consumers travel plans such as activities.
With the merging of Web 2.0 and CGC, content often comprises
images, videos, or short messages posted on Instagram, YouTube,
Facebook, and Twitter. Other content may also include book reviews,
which may be posted on Amazon.com, and personal narratives posted
on community forums and blogs. In the consumer market, consumer
reviews are most significant for experiential products (Ye et al. 2011),
especially when the quality of the product is unknown (Klein 1998).
Litvin, Goldsmith, and Pan (2008) agreed that hospitality services are
considered experiential products and are important sources of information
Definition of E-Commerce
CGC generally appears on the Internet through various c ommunication
channels. Consumers are assimilating into a web-based commercial
information platform known as electronic commerce (e-commerce)
(Horrigan 2008). E-commerce activities such as online retailing and customer relationship management (CRM), have been fast growing domestically and globally and has been very c ompetitive over the past decade
(Fang et al. 2014). Transactions on this platform range from personal
items to big box items such as furniture. According to the U.S. Census
Bureau News (2015), sales generated from the U.S. retail e-commerce
sector for the third quarter of 2015 was estimated at $81.1 billion. This
is an estimated increase of 2.9percent from the second quarter of 2015.
The number of Americans who have p
urchased products online has also
increased (pewresearch.com). Furthermore, according to GE Capital Retail
Banks second 2013 annual report (www.retailingtoday.com), 81percent
10
11
12
13
leaning toward the use of various social media for CGC to give them more
information (Yoo and Gretzel 2011). Social media has become a powerful
communication tool for consumers to share their experience, which in
turn influences their decision-making process. CGC does not comprise
just written reviews; it can also be in media and advertising forms. L
itvin,
Goldsmith, and Pan (2008) added that consumer-
generated media
websites have grown to be one of the prominent platforms in improving
information accessibility and for enhancing consumers decision-making
processes. Ayeh (2015) pointed out that there is a growing interest in
14
15
Index
APAC. See Asia-Pacific Region
Argumentation, 2930
ASEAN. See Association of Southeast
Asian Nations
Asia-Pacific Region (APAC), 80
Association of Southeast Asian
Nations (ASEAN), 80
Behavior and customer citizenship, 14
Being responsive, 52
Blogs, 2425
Brands, 6164
CGA. See Consumer-generated ads
Co-creation for others, 1415
Co-creation for use, 1415
Collaborative behaviors, 3244
Communicating factor, 70
Community development, 3839
Connecting factor, 7071
Consumer
attitude in CGC, 3132
co-creation for others, 1415
co-creation for use, 1415
definition, 78
production process, 15
trust, 5859
Consumer-created information, 52
Consumer engagement, 4850
Consumer-generated ads (CGA), 61
Consumer-generated content (CGC)
best practices, 9092
blogs, 2425
on brands, 6164
categories of, 1820
challenges and opportunities,
5964
characteristics of, 2022
collaborative behaviors, 3244
company perspective, 4748
consumer engagement, 4850
consumer perspective, 4547
consumers, 78
consumers attitude, 3132
content, 89
co-producers/co-creators, 1415
definition, 2
ease of use, 2628
electronic commerce, 911
eWOM, 2224
future of, 8990
importance of, 1
last thoughts, 92
marketing communications, 1114
optimizing. See Optimizing
consumer-generated content
perceived usefulness, 2831
shopping behavior, 61
Consumer-generated eWOM, 44
Consumer-generated marketing
(CGM)
offering rewards for creativity,
6566
reinvention of branded asset, 65
story telling, 6667
Consumer-generated websites, 2526
Consumers motivation
in consuming CGC. See
Consumption
in participating in CGC. See
Participation
in producing CGC. See Production
Consumption
activities of, 3435
definition, 33
entertainment, 3637
information seeking, 3536
Content
definition, 89
trust perception, 5556
Controlling factor, 71
Conventional media model, 1
Conversion, 86
Corporate reputation, 47
118 Index
Creating factor, 70
Credibility, 4546
Cross-National perspectives
adoption and use, 74
consumer marketplace, 7374
Japan, 7780
power distance and masculine
culture, 74
Singapore, 8083
United States of America, 7677
Cross promoting factor, 71
Cs in social media
communicating factor, 70
connecting factor, 7071
controlling factor, 71
creating factor, 70
cross promoting factor, 71
Customer loyalty, 4748
Customer participation, 14
Deliberate processing approach,
3132
Discover factor, 22
Ease of use phenomenon, 2628
E-commerce, 911
e-fluentials, 44
Elaboration Likelihood Model, 31
electronic word-of-mouth (eWOM)
consumer-generated, 2224, 44
definition, 22
digitalized, 12
negative, 48
positive, 48
social interaction engagement, 50
Engage factor, 22
Entertainment, 3637
eWOM. See electronic word-ofmouth
Experience product, 30
Explore factor, 22
Facebook vs. Mixi, 80
Halo effect, 51
Huffington Post, 85, 91
Hunters, 13
Image-based CGC, 75
Inactive social media users, 21
Information seeking, 3536
Japan, 7780
Japanese social networking. See Mixi
Marketing communications, 1114
Mixi, 80
Negative eWOM, 48
Newsgroups, 3
The New York Times, 91
Nielsens Digital Consumer Report,
62
Online content creators, 54
Optimizing consumer-generated
content
conversion, 86
product insights, 8789
search engine optimization, 8687
Overall score, 21
Participation
activities of, 3435
definition, 33
social interaction and community
development, 3839
virtual communities, 3940
Passive bystanders, 13
Perceived usefulness, 2831
Pew Research Center, 50, 77
Positive eWOM, 48
Product insights, 8789
Production
activities of, 3435
definition, 33
self-actualization, 4344
self-expression, 4143
Purchase price, 29
Really Simple Syndication (RSS), 17
Reliability, 46
Review valence, 29
RSS. See Really Simple Syndication
Index 119
consumer-generated marketing,
6667
in consumer market, 6770
Cs in social media, 7072
Trust-building resources, 11
Trust perception
content, 5556
independent entities, 5354
online content creators, 54
social trends report, 55
source credibility theory, 5657
source trustworthiness, 5758
Trust users, social media, 51
Twitter, 7980
United States of America, 7677
Usenet, 3
User-generated content, 2
Virtual communities, 3940
The Wall Street Journal, 91
Weblog, 2425
Wikipedia, 2526
WOM. See Word-of-mouth
Word-of-mouth (WOM), 7