Although research has examined social media-shareholder value link, the role of consumer mindset metrics in this relationship remains unexplored. To this end, drawing on 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 mind-set 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 mind-set 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 non-linear 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 getting one's house in order yields more credibility to OSM. Finally, Purchase Intent and Customer Satisfaction positively affect shareholder value. Link to the article
COLICEV, A., MALSHE, A., PAUWELS, K. and O'CONNOR, P. (2018). Improving Consumer Mind-Set Metrics and Shareholder Value through Social Media: The Different Roles of Owned and Earned. Journal of Marketing, 82(1), pp. 37-56.