BUS 302 Chapter Notes - Chapter 2: User-Generated Content, Social Media Marketing

• School: Stony Brook University
• Department: Business Management
• Course: BUS 302
• Professor: Ethan Pew

Document Summary

Many companies believe that liking a brand on facebook will translate into meaningful purchasing behavior by individuals that have liked the brand. Possible that those who have positive feelings toward a brand are more likely to follow it in the first place. Merely endorsing a brand does not affect customer"s behavior or lead to increased purchasing: support endorsements with branded content can have significant results. Study 2 does liking page influences behavior of online friends: value of endorsements may be lower on social media. Following does not gurantee brand exposure for endorsers or friends. Some fb users like brands indiscriminately or for various one-off reasons (i. e. getting discounts: liking brand on fb had no enhancing effect on purchasing habits of friends. Study 4 same insurance company but now company paid fb to display two posts a week to members of liking group: people in liking group now earned 8% more points than people in control group.