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New product launching: The effect of firm-generated content on purchase intention

  • 1.

    School of Management, University of Science and Technology of China, Hefei 230026, China

  • 2.

    School of Management, Hefei University of Technology, Hefei 230009, China

Cite this:
https://doi.org/10.52396/JUST-2021-0107
  • Received Date: 12 April 2021
  • Rev Recd Date: 21 June 2021
  • Publish Date: 31 December 2021
    Abstract

  • Abstract

    The launching of new products is important for the success of a firm. Nowadays, official brand pages have become one of the main channels to launch new products because of the low cost and high controllability. Firm-generated content (FGC) is a potential signal of product quality and product brand, which gradually turns into the key information for companies to launch new products. In case of the market launch of new products, this study investigates the effect of FGC effectiveness on purchase intention. The online experiment was conducted and data were collected from 423 brand followers on Sina Weibo. The structural equation modeling was used to empirically test the proposed conceptual framework. Findings of the direct effects of the research show that emotional appeal positively affects purchase intention. Informativeness and emotional appeal are the important predictors of the perceived quality and brand attitude, and further influence purchase intention. This study also demonstrates that the perceived quality has a positive impact on the brand attitude, showing that the perceived quality and brand attitude sequentially mediate the effects of FGC effectiveness on purchase intention. The results implicate that a firm should not only serve as an information provider but also serve more as an emotional provider.

    Abstract

    The launching of new products is important for the success of a firm. Nowadays, official brand pages have become one of the main channels to launch new products because of the low cost and high controllability. Firm-generated content (FGC) is a potential signal of product quality and product brand, which gradually turns into the key information for companies to launch new products. In case of the market launch of new products, this study investigates the effect of FGC effectiveness on purchase intention. The online experiment was conducted and data were collected from 423 brand followers on Sina Weibo. The structural equation modeling was used to empirically test the proposed conceptual framework. Findings of the direct effects of the research show that emotional appeal positively affects purchase intention. Informativeness and emotional appeal are the important predictors of the perceived quality and brand attitude, and further influence purchase intention. This study also demonstrates that the perceived quality has a positive impact on the brand attitude, showing that the perceived quality and brand attitude sequentially mediate the effects of FGC effectiveness on purchase intention. The results implicate that a firm should not only serve as an information provider but also serve more as an emotional provider.
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    • References(91)
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    [1]
    Majumdar A, Bose I. Do tweets create value? A multi-period analysis of Twitter use and content of tweets for manufacturing firms. International Journal of Production Economics, 2019, 216: 1-11.
    [2]
    Ren F, Tan Y, Wan F. Social media engagement and performance of e-tailers: An empirical study.https://ssrn.com/abstract=2956420.
    [3]
    Kemp E, Porter III M D, Anaza N A, et al. The impact of storytelling in creating firm and customer connections in online environments. Journal of Research in Interactive Marketing, 2021, 15(1): 104-124.
    [4]
    Kumar A, Bezawada R, Rishika R, et al. From social to sale: The effects of firm-generated content in social media on customer behavior. Journal of Marketing, 2016, 80(1): 7-25.
    [5]
    Stephen A T, Galak J. The effects of traditional and social earned media on sales: A study of a microlending marketplace. Journal of Marketing Research, 2012, 49(5): 624-639.
    [6]
    Colicev A, Malshe A,Pauwels K, et al. Improving consumer mindset metrics and shareholder value through social media: The different roles of owned and earned media. Journal of Marketing, 2018, 82(1): 37-56.
    [7]
    Cruz D, Fill C. Evaluating viral marketing: Isolating the key criteria. Marketing Intelligence & Planning, 2008, 26(7): 743-758.
    [8]
    Poulis A, Rizomyliotis I, Konstantoulaki K. Do firms still need to be social? Firm generated content in social media. Information Technology & People, 2018, 32(2): 387-404.
    [9]
    Park J, Park J, Park J. The effects of user engagements for user and company generated videos on music sales: Empirical evidence from YouTube. Frontiers in Psychology, 2018, 9: 1880.
    [10]
    Baum D, Spann M, Füller J, et al. The impact of social media campaigns on the success of new product introductions. Journal of Retailing and Consumer Services, 2019, 50: 289-297.
    [11]
    Schivinski B, Dabrowski D. The effect of social media communication on consumer perceptions of brands. Journal of Marketing Communications, 2016, 22(2): 189-214.
    [12]
    Müller J, Christandl F. Content is king-But who is the king of kings? The effect of content marketing, sponsored content & user-generated content on brand responses. Computers in Human Behavior, 2019, 96: 46-55.
    [13]
    Raji R A, Mohd Rashid S, Mohd Ishak S, et al. Do firm-created contents on social media enhance brand equity and consumer response among consumers of automotive brands? Journal of Promotion Management, 2020, 26(1): 19-49.
    [14]
    Yang Z, Zheng Y, Zhang Y, et al. Bipolar influence of firm-generated content on customers’ offline purchasing behavior: A field experiment in China. Electronic Commerce Research and Applications, 2019, 35: 100844.
    [15]
    Weiger W H, Wetzel H A, Hammerschmidt M. Who’s pulling the strings?The motivational paths from marketer actions to user engagement in social media. Eur. Journal of Marketing, 2019, 53(9): 1808-1832.
    [16]
    Bai L, Yan X. Impact of firm-generated content on firm performance and consumer engagement: Evidence from social media in China. Journal of Electronic Commerce Research, 2020, 21(1): 56-74.
    [17]
    Manthiou A, Hickman E, Klaus P. Beyond good and bad: Challenging the suggested role of emotions in customer experience (CX) research. Journal of Retailing and Consumer Services, 2020, 57: 102218.
    [18]
    Colicev A, Kumar A, O’Connor P. Modeling the relationship between firm and user generated content and the stages of the marketing funnel. International Journal of Research in Marketing, 2019, 36(1): 100-116.
    [19]
    Chandrasekaran S, Annamalai B, De S K. Evaluating marketer generated content popularity on brand fan pages: A multilevel modelling approach. Telematics and Informatics, 2019, 44: 101266.
    [20]
    Lipsman A, Mudd G, Rich M, et al. The power of “like”: How brands reach (and influence) fans through social-media marketing. Journal of Advertising Research, 2012, 52(1): 40-52.
    [21]
    Ramalingam V, Palaniappan B, Panchanatham N, et al. Measuring advertisement effectiveness: A neural network approach. Expert Systems with Applications, 2006, 31(1): 159-163.
    [22]
    Lee J, Hong I B. Predicting positive user responses to social media advertising: The roles of emotional appeal, informativeness, and creativity. International Journal of Information Management. 2016, 36(3): 360-373.
    [23]
    Ducoffe R H. Advertising value and advertising on the web. Journal of Advertising Research, 1996, 36: 21-36
    [24]
    Pollay R W, Mittal B. Here’s the beef: Factors, determinants, and segments in consumer criticism of advertising. Journal of Marketing, 1993, 57(3): 99-114.
    [25]
    Tellis G J, MacInnis D J, Tirunillai S, et al. What drives virality (sharing) of online digital content? The critical role of information, emotion, and brand prominence. Journal of Marketing, 2019, 83(4): 1-20.
    [26]
    Batra R, Ray M L. Affective responses mediating acceptance of advertising. Journal of Consumer Research, 1986, 13(2): 234-249.
    [27]
    Herjanto H, Gaur S S, Yap S F. Consumer emotional responses to emotional appeal advertising within an online social network context. In: Looking Forward, Looking Back: Drawing on the Past to Shape the Future of Marketing. Cham, Switzerland: Springer, 2016: 226-233.
    [28]
    Wu R, Wang G, Yan L. The effects of online store informativeness and entertainment on consumers’ approach behaviors.Asia Pacific Journal of Marketing and Logistics, 2019, 32(6): 1327-1342.
    [29]
    Rod M, Saunders S. The informative and persuasive components of pharmaceutical promotion. International Journal of Advertising, 2015, 28(2): 313-349.
    [30]
    Holdack E, Lurie-Stoyanov K, Fromme H F. The role of perceived enjoyment and perceived informativeness in assessing the acceptance of AR wearables. Journal of Retailing and Consumer Services, 2020: 102259.
    [31]
    Naylor R W, Lamberton C P, West P M. Beyond the “like” button: The impact of mere virtual presence on brand evaluations and purchase intentions in social media settings. Journal of Marketing, 2012, 76(6): 105-120.
    [32]
    Resnik A, Bruce L S. An analysis of information content in television advertising. Journal of Marketing, 1977, 41: 50-53.
    [33]
    Osei-Frimpong K, McLean G. Examining online social brand engagement: A social presence theory perspective. Technological Forecasting and Social Change, 2018, 128: 10-21.
    [34]
    Dobele A, Lindgreen A, Beverland M, et al. Why pass on viral messages? Because they connect emotionally. Business Horizons, 2007, 50(4): 291-304.
    [35]
    Araujo T, Neijens P, Vliegenthart R. What motivates consumers to re-tweet brand content? Journal of Advertising Research, 2015, 55(3): 284-295.
    [36]
    Arif I, Aslam W, Siddiqui H. Influence of brand related user-generated content through Facebook on consumer behaviour: A stimulus-organism-response framework. International Journal of Electronic Business, 2020, 15(2): 109-132.
    [37]
    Gaur S S, Herjanto H, Makkar M. Review of emotions research in marketing, 2002-2013. Journal of Retailing and Consumer Services, 2014, 21(6): 917-923.
    [38]
    Hirschman E C, Holbrook M B. Hedonic consumption: Emerging concepts, methods and propositions. Journal of Marketing, 1982, 46(3): 92-101.
    [39]
    Zeithaml V A. Consumer perceptions of price, quality, and value: A means-end model and synthesis of evidence. Journal of Marketing, 1988, 52(3): 2-22.
    [40]
    Žabkar V, Brenčič M M, Dmitrovič T. Modelling perceived quality, visitor satisfaction and behavioral intentions at the destination level. Tourism Management, 2010, 31(4): 537-546.
    [41]
    Klein J G, Ettenson R, Morris M D. The animosity model of foreign product purchase: An empirical test in the People’s Republic of China. Journal of Marketing, 1998, 62(1): 89-100.
    [42]
    Wang C L, Chen Z X. Consumer ethnocentrism and willingness to buy domestic products in a developing country setting: Testing moderating effects. Journal of Consumer Marketing, 2004, 21(6): 391-400.
    [43]
    Snoj B, Pisnik K. A, Mumel D. The relationships among perceived quality, perceived risk and perceived product value. Journal of Product & Brand Management, 2004, 13(3): 156-167.
    [44]
    Szybillo G J, Jacoby J. Intrinsic versus extrinsic cues as determinants of perceived product quality. Journal of Applied Psychology, 1974, 59: 74-78.
    [45]
    Kirmani A, Rao A R. No pain, no gain: A critical review of the literature on signaling unobservable product quality. Journal of Marketing, 2000, 64(2): 66-79.
    [46]
    Roest H, Rindfleisch A. The influence of quality cues and typicality cues on restaurant purchase intention. Journal of Retailing and Consumer Services, 2010, 17: 10-18.
    [47]
    Vazquez E E. Effect of an e-retailer’s product category and social media platform selection on perceived quality of e-retail products. Electron Mark, 2020, 31: 139-157.
    [48]
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