Viral effects of social network and media on consumers’ purchase intention

Gunawan, D. and Huarng, K. (2015). Viral effects of social network and media on consumers’ purchase intention. Journal of Business Research, 68(11), pp.2237-2241.

Keywords:  Viral marketing, eWOM, SEM, fsQCA

Main idea: This article is based on a study that explains how SNM influences people to make purchases. The research they conducted is surveys completed by people who use three SNM platforms.
The SEM results proved that SNM has no correlation with consumer’s purchasing, whereas fsQCA shows the opposite.

Development:

SNM sites are growing, and affect their user’s lives by forming connections among these users. SNM Viral marketing is often used as an electronic WOM, since a lot of people are connected and state their opinions and tastes online. The messages are transmitted way faster than they once were, which benefits the market as well as the consumers.

The study is based on three theories that make sense when put together (TRA, IAM and perceived risk). The first one is used to understand and predict behavior. The second one basically explains how one adopts to a new model, or technology. The latter clarifies the overall risk a consumer feels before and after purchasing a particular item.

The study gathered data taken from users who completed surveys they got online via these SNM sites. Based on the results, the researches would define if the theories can still apply. The findings prove that social influence is, indeed, the first leading impact.
Conclusion:
To conclude, the SEM results indicates that social influence and the source credibility is very important and showing in consumer’s attitude toward receiving and trusting an information. Consumers are more comfortable in listening to opinions from credible sources rather than trusting arguments written with quality.

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Culture and Consumer Ethics

Article Summary: Swaidan, Z. (2011). Culture and Consumer Ethics. Journal Of Business Ethics, 108(2), 201-213.

Keywords: Culture , Hofstede model, Consumer ethics, African American subculture, Muncy and Vitell model

 

Main idea: This study discovers the differences in consumer ethics across cultural dimensions using Hofstede’s model and Muncy and Vitell consumer ethics model.

Development:
Brands should understand that depending on the culture, consumer’s behavior will be different on a product or a service, therefore it is an important & influential variable.
The author states that culture and it’s differences affect the marketing mix because it says a lot about a consumer. He mentions Hofstede (1980) theory which is: “cultures could be contrasted along four dimensions: individualism/collectivism, masculinity/femininity, power distance, and uncertainty avoidance.”

This research focuses on an African American subculture sample to study the differences in culture and consumer ethics.

This study has 3 main objectives:

1st: study the cultural orientations of African American consumers (four dimensions of Hofstede’s (1980)

2nd: study the consumer ethics of African Americans (Muncy and Vitell (1992)) model.

3rd: Examine the differences in ethics among consumers who score high and consumers who score low on Hofstede’s cultural dimensions (i.e., collectivism, masculinity, power distance, and uncertainty avoidance).

After the author explored (within the sample of African American) the relationship between culture and personal moral philosophies, they concluded that there is a positive relationship between collectivism, uncertainty avoidance, and idealism; and a negative relationship between masculinity and idealism. Therefore, culture affects moral orientations of consumers.

He then studies different hypothesis by comparing the four dimensions of Hofstede’s model, depending if consumers score high or low and studying whether they reject illegal, active, passive, and no harm questionable activities

Conclusion:

In this study, the different results proves that marketers who are looking to work on an international scale and include how and what the consumer of each culture want, is important to study and explore very well. The author mentiones that although he studied the differences in consumer ethics across cultural dimensions, more research should be done to explore the differences in consumer ethics using culture characteristics.


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Social media marketing efforts of luxury brands: Influence on brand equity and consumer behaviour

Article Summary: Godey, B., Manthiou, A., Pederzoli, D., Rokka, J., Aiello, G., Donvito, R., & Singh, R. (2016). Social media marketing efforts of luxury brands: Influence on brand equity and consumer behavior. Journal Of Business Research, 69(12)

Keywords: Social media marketing, Brand equity, Preference
, Loyalty, Price premium Luxury brands, International

Main idea: The article describes how brand equity creation and consumers behavior according to a brand is due to social media actions. This research focuses on presenting a comprehensive framework that shows the benefits of social media marketing efforts on brand equity and consumer behavior towards five luxury brands in four countries.

Development:
Social media is a big change for companies. It requires them to be more interactive with their consumers and increasing the engagement rate. Although social media activities have many benefits, it has been hard measuring the success (or not) of social media activities.
This study’s objective is to have a deeper understanding on the relationships between social medias activities, brand equity and the consumer behavior regarding the brand. It also focuses on evaluating the importance of the mechanism used for social media marketing efforts in order to measure if it creates the brand value we want to offer and if consumers are more attracted to the brand. This study is to understand if those social media marketing efforts have an effect on brand loyalty and if it creates a love mark brand to a consumer.
Social media marketing effort is to to reach consumers in a personal way. It changed the way advertising a product works.
In fact, it is a new way of creating entertainment as they are more amused and enjoy the experience. The interaction between the brand and the consumer completely changed the definition of communication.

In this study, it is highlighted that social media generates new updates that are trending in the moment on different platforms and it covers four sub-motivations: surveillance, knowledge, purchase intention and inspiration.
Also, brands have the choice to customize their content their consumer depending on whom they are trying to target. This study describes customization social media as a channel that helps personalize information search.
All of these features help create the word of mouth, which builds more credible and relevant information for customers.

The author found out that:

– The effect on brand equity is more on the luxury brand image than on its awareness.

– Marketing efforts on social media (SMMEs) have a positive and direct influence on the consumer preference, brand loyalty and likely willing to pay a premium price.

-While including the comparison of the countries on the effects of SMMEs, he found out that:

Chinese consumers appreciate their interaction with a luxury brand as it hels reinforce it’s image but do not respond the same way as the other countries. (Probably due to internet control in the country).
Indians are more interested in this new trend of brands being present on social media and affects them in all ways.
On the other hand, Italians are not very reactive on to SMMEs but very responsive but seem to react more regarding loyalty and price premium.
The French were the most balanced out of all the countries regarding. All the components are effective just moderated.

 

Conclusion:

In conclusion, social media content includes entertainment, interaction, trendiness, WOM, and customization all contribute to building brand equity. Content should be engaging and creating relationships.

Brands should perceive social media as a brand image-building tool.
Social media marketing activities influence more on brand loyalty and preferences but less on the willingness to pay a premium price, therefore brands should focus more on “traditional” ways to convince their customers to pay the difference.
The author noticed few differences between the markets studied. Most of social media marketing activities are similar and have the same effect but in the core-content and context, there are variations between countries.

 

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