Fan-centric social media: The Xiaomi phenomenon in China

In this highly competitive century, social media offers both opportunities and challenges. The concept of social media is top of mind for many entrepreneurs today. Fans are assuming an increasingly active role in co-creating marketing content with companies and their respective brands. Based on the Xiaomi success story in China, we provide a framework for building the power of the fan base and propose a new fan-centric social media business model. We examine the best practice case study of an emerging company's successful efforts to leverage social media in order to reach an important audience of young consumers. Thereafter, we conclude with several lessons related to the integration of social media into a new firm's operation strategy. We strongly recommend that businesses, and especially startups, make good use of powerful social media to develop a business model with fan demand as the core. This is what we call the ‘fan-centric’ social media business model.     

The double-edged impact of social media on online trading: Opportunities,threats, and recommendations for organizations

While we understand well how social media channels sway consumers, there is little understanding of their influence on online trading behavior. We argue that social media are creating a new class of self-directed online traders by simultaneously encouraging and biasing trading decisions. Through an empirical study, we show that heavy social media users are more likely to engage in online trading but are largely affected by online herding behavior, and are four times more likely to blindly follow other traders. Bloggers, influencers, social network contacts, and social media news shape these users’ online trading behaviors. As online traders influenced by social media are unlikely to receive adequate returns, companies face an ethical dilemma: They could leverage social media to efficiently access funds but they risk inappropriately exploiting the inexperience of online traders biased by social media. We offer a set of nine practical recommendations for organizations to respond to these new challenges.     

Value co-creation and social media: Investigating antecedents and influencing factors in the U.S. retail banking industry

This study seeks to examine and unearth antecedents to co-creation behaviours within a U.S. retail banking context. A critical aspect for marketing managers and academics alike, co-creation has a strong influence on tangible factors such as profit and intangible factors such as referrals, satisfaction and feedback. Antecedents were identified as trust, customer engagement and participation attitude whilst social media usage was a consumer characteristic identified as influencing co-creation. Data was collected from 489 U.S. retail banking customers via an online survey. The data was analysed via structural equation modelling. The findings indicate that customer engagement influences trust, co-creation and participation attitude. Participation attitude was found to influence trust and co-creation but trust had no direct effect on co-creation. The study further found that social media usage intensity influenced co-creation behaviours. The findings contribute in three ways. First, this is one of the first studies to scrutinise participation attitude in an attempt to explain co-creation behaviours for U.S. banks over social media. Second, identification of precursors to value co-creation has been ascertained in a U.S. retail banking social media context. Third, the study additionally contributes to the findings that social media usage has a moderating effect in value co-creation and offers a potential segmentation strategy.     

Social media and sustainable purchasing attitude: Role of trust in social media and environmental effectiveness

The role of social media in promoting sustainable attitudes is currently understudied. Underpinned by social learning theory, this study unveils the effect of social media usage and browsing on sustainable purchasing attitude, the underlying mechanism, and the boundary condition. Drawing on a sample of 693 experienced respondents analyzed using structural equation modeling, this study reveals that social media usage and browsing have a significant positive association. Both constructs significantly impact sustainable purchasing attitudes with complementary partial mediation of the drive for environmental responsibility. Further, trust in social media and perceived environmental effectiveness significantly moderate the relationships belongs to the browsing and drive for environmental responsibility. Contrary to the theorization, moderating constructs cannot substantially impact the proposed associations of social media usage. In this manner, the present research is innovative and provides valued knowledge to comprehend social media's role in encouraging sustainable attitudes.     

The influence of social capital through social media: a study of the creation of value in shopping behaviour

When consumers access information from groups through social network sites (SNSs), they develop social capital in the form of bonding and bridging ties with these groups. The purpose of this study is to investigate the influence of these bonding and bridging behaviours on consumers’ use of the social network information (SNI) gained from SNSs in their purchasing decisions. The study integrates constructs from the Technology Acceptance Model and the concept of flow to examine how these behaviours influence consumers’ perceptions of how useful the SNI is, of how easy the SNI is to use, and how they engage with SNI. The study utilizes structural equation modelling to examine questionnaire data from a random sample of social network users. The findings demonstrate that bonding and bridging ties influence consumers’ perceptions of the usefulness and ease of use of the information provided by SNSs, and therefore influence their use of the information when making shopping decisions. In addition, consumers who access SNI through bonding ties are likely to have flow experiences which further contribute to their use of the information. This study makes a theoretical contribution by expanding knowledge of the social capital influences on consumers’ perceptions of the value of the social media shopping experience.     

The impact of COVID-19 on the evolution of online retail: The pandemic as a window of opportunity

Pandemic-related shocks have induced an unexpected volatility into the evolution of online sales, making it difficult for retailers to cope with frequently occurring, drastic changes in demand. Relying on a socio-technical approach, the purpose of this paper is to (a) offer a deeper insight into the driving forces of online sales during the pandemic, and (b) investigate whether pandemic-related shocks accelerate the long-term growth of online retail. Novel, high-frequency data on GPS-based population mobility and government stringency is used to demonstrate how time spent in residential areas and governmental restrictions drive the monthly evolution of online sales in 23 countries. We deconstruct these effects into three main phases: lure-in, lock-in, and phase-out. Lastly, using time series analysis, we show that the pandemic has induced a level shift into the long-term growth trend of the online retail sector in the majority of countries investigated.     

Customer pre-participatory social media drivers and their influence on attitudinal loyalty within the retail banking industry: A multi-group analysis utilizing social exchange theory

Social media pervades everyday life and firms need to understand what consumer traits antedate participation over these channels. Utilizing social exchange theory (SET), this study seeks to determine what factors precede SET's cost-benefit analysis of social media participation along with these factors' influence on attitudinal loyalty. Important antecedents to this cost-benefit analysis for social media participation are online interaction propensity (OIP), participation attitude and trust. Further, demographic (age, gender, income) and social media page factors (perceived page size and page visit frequency) are identified as potential precursors to customers' cost-benefit analysis towards social media participation. A sample of 482 U.S. banking customers was collected via an online survey. The results found that OIP and trust had direct statistically significant effects on attitudinal loyalty and participation attitude's effect was fully mediated by trust. Age, gender and page visit frequency facets exhibited no differences between groups whilst income (with higher income groups displaying higher levels of loyalty) and page size groups (smaller page sizes demonstrated greater loyalty) demonstrated differing effects on attitudinal loyalty. The study contributes to knowledge and practice by extending particular pre-SET traits in social media to a U.S. retail banking context. The study also furthers academic and managerial capabilities for segmentation analysis' and explicating connections between pre-participatory influences and attitudinal loyalty.     

Consumer social voice in the age of social media: Segmentation profiles and relationship marketing strategies

Service failures, once handled quietly by customer service departments, are now played out on a highly public social media stage. These failures can result in not only the loss of a loyal consumer but also can negatively affect relationships with those watching the dialogue between disgruntled customers and organizations. The phenomenon of seeking resolution to service failures online is distinct from both traditional word-of-mouth and voice behaviors. This article introduces social voice: public complaining behavior that aims to change the behavior of the organization. A qualitative methodology defines eight dimensions of social voice and categorizes them by the strength of the relationship to the organization. Results indicate that appropriate response strategies differ based on social voice segment.     

The use of social media to detect corporate fraud: A case study approach

Social media is a rapid and dynamic medium of communication that forms a crucial component of the modern business toolkit. It can be used to detect corporate fraud by tapping into collective user wisdom, also known as the wisdom of crowds. This article highlights both the potential and limitations of social media in detecting corporate fraud by examining information from traditional media and social media for a recent corporate fraud case (i.e., Empowered Products Inc.). Using text analysis of information posted on traditional media compared to social media, this article illustrates how social media provides an increased level of relevant information in a faster manner. By using wisdom of crowds in this way, social media platforms such as Twitter can improve organizational knowledge quality. We identify methods for managers to utilize social media to improve their organizational knowledge management.     

We’re all connected: The power of the social media ecosystem

Consumers are adopting increasingly active roles in co-creating marketing content with companies and their respective brands. In turn, companies and organizations are looking to online social marketing programs and campaigns in an effort to reach consumers where they ‘live’ online. However, the challenge facing many companies is that although they recognize the need to be active in social media, they do not truly understand how to do it effectively, what performance indicators they should be measuring, and how they should measure them. Further, as companies develop social media strategies, platforms such as YouTube, Facebook, and Twitter are too often treated as stand-alone elements rather than part of an integrated system. This article offers a systematic way of understanding and conceptualizing online social media, as an ecosystem of related elements involving both digital and traditional media. We highlight a best-practice case study of an organization's successful efforts to leverage social media in reaching an important audience of young consumers. Then, we conclude with several insights and lessons related to the strategic integration of social media into a firm's marketing communications strategy.     

Do social media platforms develop consumer panic buying during the fear of Covid-19 pandemic

There is inadequate understanding of how social media can shape fear and consumer responses in the manner of consumer panic buying while Covid-19 is spreading across the world. Through taking a social constructionism position this research focused on what people think and feel at an individual and collective level on the role of social media to create panic behaviour. Data have been collected from thirty-four consumers who have minimum one active social media account. These participants are contacted through telephonic interview due to maintaining the social distancing. Findings reveal that uncertainties and insecurities proof, buying as persuasion, product unavailability proof, authorities' communication, global logic, and expert opinion are some of the causes on social media platforms that developed the situation of consumer panic buying during Covid-19 crises. Furthermore, the unprecedented level of real-time information on Covid-19 at users' fingertips can give them the tools they need to make smart decisions, but also make them more anxious about what is to come; experts say that may lead to panic buying or stockpiling of products. The study has tried to develop understanding about how social media generates social proof and offers a window into people's collective response to the coronavirus outbreak and shapes panic buying reaction. The study has provided a consumer panic buying theory based on the results of this study and on existing theories, such as global capitalism/information society risk society, social influence, and social proof. These theories help to understand how global logic is built due to the use of social media and how different social proofs are generated which developed the behaviour of consumer panic buying due to Covid-19 pandemic.     

Effect of the use of social media in trust,loyalty and purchase intention in physical stores

This research evaluates the effect of the use of social media on consumer trust, loyalty and purchase intention in physical stores. We used six constructs in a structural model: a consumer’s use of social media, company-generated communication in social media, user-generated communication on social media, trust, loyalty and purchase intention. We considered 406 valid respondents in the analysis. The results suggest that the use of social media, company and user-generated communication positively affects trust of the physical store. Trust, in turn, has a direct positive effect on consumer loyalty to the store, and both trust and loyalty have positive impacts on a consumer’s purchase intention. We note the impact of the use of social media on purchase intention in physical stores, through the building of trust and loyalty with the store, as a fundamental element in the definition and implementation of a successful marketing strategy by high street retailers.     

Adverse effect of social media on generation Z user's behavior: Government information support as a moderating variable

Social media emerged as a primary source of information among young users, but its severe effect on mental state due to information overload, still an area of concern for the researchers. Generation Z users' addiction to the mobile phone/gadgets is increasing with a rise in social media and consequently their behavioral outcomes have transformed completely. Nowadays behavioral issues including stress, fatigue, ‘fear of missing out’ and ‘phubbing’, anxiety etc. rising each day but the relationship among these issues and information overload is less examined. The social media users are unable to filter the trustworthy information due to its enormous size and thus role of information support from government becomes essential. The current study extends the S-O-R theory exploring relationship between the stimulus of enormous information on the responses generated among the Generation Z such as social media fatigue, ‘fear of missing out’, ‘phubbing’ and anxiety. The findings from a sample of 319 users belonging to Generation Z suggest that social media platforms need to understand user's compulsive usage that is resulting into fatigue and consequently anxiety. The role of government information support on reducing fatigue and anxiety is found to be positive. The relationship between ‘fear of missing out’, ‘phubbing’ and anxiety is found significant and shows presence of partial mediation. The study offers significant theoretical and practical implications. It is significant for the service providers and social media platforms to advance interfaces with minimum fatigue for the users and offers information support to the users to reduce stress caused by information load.     

The influence of social capital on local retail patronage in an urban setting

Local retail stores are currently facing intense competition from both online retailers and large chain stores. An understanding of local retail store patronage (i.e., patronage of retail stores in one's own community) is essential to the survival and growth of local retailers. Drawing on Social Capital Theory, we theorize and show with store-level survey data the influence of social capital (community attachment and reciprocity) on local retail store patronage in a large urban setting. We find that the impact of social factors differs for residents within the community compared to those outside of the community. We also demonstrate the importance of social factors in comparison to non-social factors. These findings contribute to the literature by extending the impact of social capital on local retail store patronage beyond rural settings, providing insight into urban consumers' decision to patronize local retail stores, and highlighting the impact of community boundaries. These findings also generate practical recommendations for local merchants and stress the importance of building reciprocal relationships with local customers as well as varying communications across community boundaries.     

Retailers,don't ignore me on social media! The importance of consumer-brand interactions in raising purchase intention - Privacy the Achilles heel

Effective interactions are essential for retail brands to progressively nudge consumers towards purchase. While social media provides the platform for brands to directly connect with consumers, it is critical that brands take privacy concerns seriously. This paper address common questions retailers ask: How do brands develop effective interactions with consumers on social media? Do consumer-brand interactions impact purchase intention? Does privacy matter? Through 541 UK participant responses and using social exchange theory, this research examines consumer-brand interactions on social media, focusing on how social media activities, attitudes towards social media advertising, and privacy, impact upon purchase intention. Our results show that brands must establish strong relationships through high-quality consumer-brand interactions to significantly raise purchase intentions, while also carefully managing consumers' privacy expectations. Effective privacy management positively mediates the link between social media and purchase intention but ignore privacy, and it becomes the Achilles heel of the relationship.     

Two hearts in three-quarter time: How to waltz the social media/viral marketing dance

The concept of viral marketing has been discussed in the literature for over 15 years, since Jeffrey Rayport first introduced the term in 1996. However, the more widespread use of social media has recently pushed this idea to a whole new level. We provide insight into the relationship between social media and viral marketing, and illustrate the six steps executives should take in order to dance the social media/viral marketing waltz. We define viral marketing as electronic word-of-mouth whereby some form of marketing message related to a company, brand, or product is transmitted in an exponentially growing way—often through the use of social media applications. We consider the three conditions that need to be fulfilled to create a viral marketing epidemic (i.e., giving the right message to the right messengers in the right environment) and present four different groups of social media viral marketing campaigns (nightmares, strokes-of-luck, homemade issues, and triumphs). We conclude with five points of caution that managers should heed when trying to launch their own viral marketing campaign.     

Examining the impact of managerial involvement with social media on exporting firm performance

The growth of social media presents international businesses and marketers with unprecedented risks and challenges. Marketers are becoming aware of the threat of losing control over their message and are also beginning to realize the potential of social media as a marketing tool. Based on export managers’ beliefs about social media use outcomes, as well as their attitudes, intention to use, and actual use of these applications of Web 2.0, three groups of Spanish exporters are identified according their managerial involvement with social media tools: ‘potential in SM’, ‘initiated in SM’, and ‘expert in SM’. Considering other firm characteristics and type of sector, these three clusters of exporting firms are fully characterized and their relationship with firm performance is determined. From these results, relevant implications emerge for academic researchers, entrepreneur-managers and policy-makers.     

Managing social media recovery: The important role of service recovery transparency in retaining customers

This research examines the influence of service recovery transparency on customer forgiveness to retain customers in the context of service recovery via social media. We propose that customer forgiveness mediates the effect of service recovery transparency on switchover intentions. We further posit that the effect of service recovery transparency on customer forgiveness is moderated by two additional recovery strategies, i.e., apology and explanation. The results of two studies, i.e., a survey and a scenario-based experiment, show that service recovery transparency acts to elicit customer forgiveness, which subsequently negatively affects switchover intentions. Furthermore, both apology and explanation moderate the effect of service recovery transparency on customer forgiveness. The positive effect of service recovery transparency on customer forgiveness is attenuated when an apology/explanation is absent.     

The evolution of social media and its impact on organizations and leaders

This paper examines organizational impacts of social media on Fortune 100 companies over a 5-year period (2011–2016). Specifically, the study focuses on three broad areas of social media impact: (1) the adoption of social media platforms across industries and business models from 2011 to 2016, (2) the influence of social media adoption on the roles of the chief information officer (CIO) and chief marketing officer (CMO) and their changing relationships in companies over this time frame, and (3) the impact of social media on company strategy, governance, and the IT (information technology) and marketing functions. The results support the contention that the CMO role has evolved to meet the technology needs of the marketing function and that the relationship between the CMO and CIO has taken on greater importance. In most Fortune 100 companies in 2016, social media has transitioned to ownership by the marketing department and the CMO provides leadership for social media strategy while working closely with the CIO. This study contributes to a better understanding of the established role of social media in companies, governance structures, and the evolving roles of both the CIO and CMO in relation to social media trends. The study integrates the IT and marketing literature to provide an agenda for future work that builds on theory and establishes an ongoing cohesive research agenda.     

Customer co-creation projects and social media: The case of Barilla of Italy

This article investigates a social media-enabled, customer co-creation project that employs front-end innovation (FEI) at a well-known, large-scale food manufacturer. It sheds light on the role of social media technology in transforming the characteristics of FEI in terms of boundaries and knowledge distance. What type of exploratory or exploitative innovation ideas does a project of this sort enable? How did the project evolve? What lessons can be learned from this project? A longitudinal case study of Barilla was carried out through two rounds of interviews with marketing, business development and innovation, and digital communication managers. The evidence gathered highlights the emergent evolution of this customer co-creation project from an initial stage of idea exploitation to a more complex and fruitful stage in which both exploitation and exploration were simultaneously accomplished.