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Social Media Gratification and Attitude toward Social Media Marketing Messages: A Study of the Effect of Social Media Marketing Messages on

Online Shopping Value Christina Chung Kristine Austria Ramapo College of New Jersey Ramapo College of New Jersey [email protected] [email protected] ABSTRACT

Social media provide marketers interactive communication environments with opportunities to enhance existing relationships with consumers. Even though social media has been recognized as the most potentially powerful medium in business practice, there is lack of understanding in terms of why people use social media and how they perceive social media marketing messages. This study investigates (1) gratifications underlying social media usage, (2) attitudes toward social media marketing messages, and (3) the effectiveness of the messages concerning online shopping value. A research model was created based on the Uses and Gratifications theory. Social media gratifications, including entertainment, information and interaction, were examined as exogenous variables. Attitudes toward social media marketing messages and online shopping values were examined as endogenous variables. The results explain that attitudes toward social media marketing messages are strongly related to social media interaction and information gratifications, but are not related to entertainment gratification. Also, positive social media marketing messages increase online shoppers’ hedonic values. As a managerial implication, marketers should provide useful information and an active interaction virtual arena using social media in order to create positive consumer marketing messages and increase online shopping value.

Keywords

Social media gratifications, social media marketing messages, online shopping value

1 INTRODUCTION

Social media provide a virtual network place where people can enjoy expressing their opinions, exchange opinions, disseminate and control messages anywhere anytime. Marketers are now able to reach consumers and interact with them using social media. Previous studies have found that consumers tend to trust more user-generated messages, such as peer recommendations or consumer reviews, on social media than messages from traditional mass media.

Consumers’ comments about a product on social media produce a negative or positive brand buzz and the virtual messages affect consumer purchasing decisions. How seriously should marketers think about social media effects in marketing practices? “Social media is no longer a trend for marketers: It is a reality” (Williamson, 2010). Social media is an inevitable channel for customer support (Jacobs, 2009). Even though social media has been recognized as the most potentially powerful medium, there is lack of understanding in terms of why people use social media and how they perceive marketing messages on social media. This study investigates (1) gratifications underlying social media usage, (2) attitudes toward social media marketing messages, and (3) the effectiveness of the messages concerning online shopping value. Uses and Gratifications theory is utilized as the theoretical basis to investigate consumer gratification in the use of social media. Also, online shopping value is examined in the relationship with social media marketing messages.

2 SOCIAL MEDIA AND SOCIAL NETWORKING

Social media includes various methods such as social networking, user-sponsored blogs, multimedia sites, company-sponsored websites, collaborative websites, podcasts, etc. Social media is “the media that is published, created and shared by individuals on the internet, such as blogs, images, video and more” (Strokes, p. 350), as well as online tools and platforms that allow internet users to collaborate on content, share insights and experiences, and connect for business or pleasure (Strauss & Frost, p. 326).

Social network is “a type of web site model where individual members become part of a broader virtual community” (Strokes, p. 125) and/or “the practice of expanding the number of one’s business and social connects by making connections through individuals online” (Strauss & Frost, p.183). Thus, “Social media can be called a strategy and an outlet for broadcasting, while social networking is a tool and a utility for connecting with others” (Cohen, 2010).

3 THEORETICAL BACKGROUND


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Uses and Gratifications (U&G)

Uses and Gratifications (U&G) research was developed based on social and psychological origins of needs which generate expectations of the media. The theory explains that people have differential patterns of media exposure resulting in need gratifications (Katz, Bluner & Gurevitch, 1974). U&G research takes an approach that asks what people do with media as opposed to what media do to people. U&G suggests that people’s underlying needs drive media choice. Therefore, people are active in their use of media to satisfy their needs. The U&G theory has been applied to traditional media and the evidence was limited in supporting the theory because of a lack of original conceptualization coherence. However, in a new technology environment, audience choices concerning new media are well explained using U&G (Ruggiero, 2000). Researchers have examined U&G using new media such as the Internet, electronic bulletin boards, virtual community, personal home pages, social networking, blogs 2008), E-learning and personalized content. These studies found that U&G offers a convincing theoretical explanation for the use of media behavior.

Online Shopping Value

According to the “2010 Social Media Report” from ForeSee results, 69% of online shoppers use social media. Fifty-six percent of shoppers indicate that they visit e-retail websites on a social networking site and that website visiting affects consumer purchase intention. Previous advertising research has shown that the attitude toward advertising is the most noteworthy indicator of advertising effectiveness and outcomes (Aaker & Stayman 1990). For example, MacKenzie, Lutz, & Belch (1986) found that the attitude toward the ad influences brand attitudes and purchase intentions. It implies that consumers who hold a positive attitude toward the Web would spend more time browsing the web for fun or information, and feel satisfied with the convenient and resourceful Web. In this study, the relationship between perceived online shopping value and social media marketing messages is examined.

Conceptual Definition and Research Hypotheses

U&G assumes that people are goal-directed in their underlying motivations. Researchers found that people use internet-based communication for various gratifications such as entertainment, information, and social interactions (Sangwan, 2005). This study also views social media usage derived from entertainment, social interaction, and information gratification.

Social Media Entertainment Gratification (SMEG)

Entertainment refers to the extent to which the web media is fun and entertaining to media users (Eighmey & McCord,

1998). Previous research suggests that providing a higher entertainment value is likely to lead to an advantage for media users and to motivate them to use the media more often. For example, it was discovered that web users who perceive a banner ad on the Web as entertaining leads to more brand loyalty to the advertised products and a higher chance of purchasing the brand (Stern & Zaichowsky 1991). Similarly, Ducoffe (1996) argues that entertainment is positively related to attitude toward advertising. Chen and Wells (1999) found that entertainment is positively associated with the attitude toward the site. Internet users may be motivated by enjoyment of the usage processes of random browsing and site navigation (Hoffman & Novak, 1996). Thus, the following hypothesis is developed:

H1: Social media entertainment gratification has a positive relationship to attitude towards social media marketing messages.

Social Media Interaction Gratification (SMITG)

Sociability is a tendency to affiliate with others and to prefer being with others to remaining alone (Buss & Cheek, 1981). Raacke & Bonds-Raccke (2008) found college students use MySpace and Facebook for “friend-networking” (p. 169) in terms of social interaction needs. Kuehn (1994) emphasized this interactive capacity of computer-mediated communication and suggested a group of U&G statements be used as rating scales to evaluate computer-aided instructional programs. A 2009 annual survey from Alterian reported consumers’ demand for engagement and consumer-centric social interaction is critical for marketing success. Thus, the following hypothesis is developed:

H2: Social media interaction gratification has a positive relationship to attitudes towards social media marketing messages.

Social Media Information Gratification (SMIFG)

Information on the web refers to the extent to which the Web provides users with resourceful and helpful information (Ducoffe 1996). Users of specific Internet sites might be motivated by the desire for specific site-related informational content, such as product or store information (Stafford & Stafford, 1998). Without time and space barriers in the virtual world, social media can offer consumers instant and insightful content. Maddox (1998) reports that the most important reason people use a website is to gather various kinds of information. Chen and Wells (1999) found that information on the Web provides positive consumer attitudes toward the information. In addition, Ducoffe (1996) explains that there is a positive correlation between information and advertising value. Specific Internet sites might be motivated by the desire for specific site-related


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informational content, such as product or store information (Stafford & Stafford, 1998). Thus, it is hypothesized:

H3: Social media information gratification has a positive relationship to attitudes toward social media marketing messages.

Attitude towards Social Media Marketing Messages and Online Shopping Value

Fiore et al. (2005) found the relationship between a preferred level of environmental stimulation and the hedonic shopping value. Arnold and Reynolds (2003) identifies a comprehensive inventory of consumers’ hedonic shopping motivations using six variables including adventure, gratification, role, value, social, and idea shopping motivations. Kim and Forsythe (2007) findings explain that hedonic motivation has a stronger positive relationship than functional motivations do with attitudes toward using product virtualization technologies. Thus, the following hypothesis is developed:

H4: Attitudes toward social media marketing messages have a positive relationship is positively related to hedonic shopping value.

Scale Development:

Based on previous research findings, along with U&G theory and online shopping value, a conceptual model was developed. The proposed model is comprised of five groups of variables. Each latent construct was operationalized by several observable indicators that represented a question in the questionnaire. Entertainment and information scales were based on research including Chen and Well (1999), and Ducoffe (1996) for “entertainment,” “information” and “social interaction” in order to measure motivations. Attitudes toward marketing messages were developed based on the Shamdasni, et al., (2000) and Bush, et al. (1999) studies. Hedonic scales were based on Babin, et al. (1994). Some questions were modified for this study. A 5-point Likert scale ranging from strongly disagree (1) to strongly agree (5) was used.

4 METHODOLOGY

Two research methods, in-depth interviews and survey, were employed. Previous research for social media mainly focuses on usage patterns and motivations. However, there is a lack of research findings in understanding the relationship between social media motivations and attitudes toward social media marketing messages and online shopping value.

Study 1: In-Depth Interview

To find out why and how people use social media and how their perspectives affect online shopping value, six

individual in-depth interviews were conducted. Interviewees were asked several questions regarding social media usage gratification and their attitudes toward social media marketing messages and online shopping behavior.

Nearly all respondents enjoy using social media. However, some demonstrated negative feelings when they evaluated the amount of time they spend on these networks. Half of the respondents do not feel that it is a way of escaping from their ordinary lives because they believe that it is a part of their ordinary lives and believe that it is a reflection of who they are. Interviewees reveal that social media provides social interactions and relationships with people. Most use it to interact with people they personally know—a few use it to interact with strangers, but do so to share similar ideas and interests. Overall, they understand the evolution of communication and accept it as the “new thing.” They embrace and use it since it poses such an important role in promoting and providing social interaction in their daily lives.

They also use social media for posting, blogging, or responding to company brands. Almost all have interacted with companies through social media. The extent of interest in a specific industry, hobby, or subject area influences the level of participation on company brands via social media sites. What the students liked best about companies using social media is that it provides a very fast and easy way to be up-to-date with new products and promotions. Social media allows consumers to have “a voice” and that companies are actively listening to them and quickly respond. Some enjoy the idea that it allows them to look at new products or promotions on their own time instead of being bombarded via other media sources. Generally, they do not trust social media marketing messages because of the lack of brand/organization legitimacy. Oftentimes, advertisements lead to other links and require information input, and users do not trust how that information will be used. The level of brand/company loyalty affects whether a consumer will post feedback on their sites. There were mixed responses in how much they trust blogs in terms of product information.

Study 2: Survey

A survey questionnaire was developed in order to measure the relationships among social media gratification, attitudes toward social media marketing messages, and online shopping value. The survey questions include five latent constructs. The first three constructs are concerned with social media gratifications that include entertainment, information, and interaction as exogenous variables and the last two constructs are concerned with attitude toward social media marketing messages and online shopping values as endogenous variables. Data was collected using a web-survey method among college students. Most college


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students are technologically savvy and heavy users of social media, as well as being comfortable as online shoppers. Thus, the sampling frame is appropriate to identify social media gratification and online shopping behavior. A total of 146, 76 male and 70 female, between the ages of 19-25, responded to the survey. Data were entered and analyzed for descriptive and inferential statistical tests. Most of respondents indicated that they have used social media sites approximately for five years. Usually, they spend 60-120 minutes a day accessing social media. They also explained that they do online shopping a few times a month (38%) and a few time a year (67%).

Data Analysis and Results

Initial analysis

As a preliminary analysis, exploratory factor analysis (EFA) was used to assess the dimensionality of a set of variables. First, principle-components method was used to generate the initial solution. The generated factor solution was rotated using Varimax loading to identify the significant loading for each variable. Less than .60 of communality variables were dropped and 19 items were identified. The cumulative percentage was 74.79 with 19 components for five latent constructs. Next, the reliability analysis verified the precision of the survey instrument and the internal consistency of the measure. Cronbach’s alpha is widely used for testing the internal consistency of the measurement and for increasing the precision of the measurement instrument by precluding the obstructive items for the instrument. These alpha values indicated strong associations and implied good levels of reliability of each construct with alphas above .86.

Using AMOS 17, a two-step data approach was used to assess the measurement model of the factors and to test the structural models. Confirmatory factor analysis (CFA) was used to test the overall validity of the measurement theory. The proposed hypotheses were tested in the context of an overall model showing theoretical relations among five variables. Factoring loadings provided a first step in assessing the convergent validity of the measurement model (Hair, et al., 2006). CFA results of the overall model analyses indicate that the χ2 for measurement model is 256.756 (p = .000) with 142 degrees of freedom. The fit indexes are Comparative Fit Index (CFI) = .93, Normed Fit Index (NFI) = .85, Root mean Squared Error (RMSEA) = .075, and Tucker-Lewis = .91. As a result, a 19-item CFA model was estimated and it revealed that the measurement model provided an appropriate fit. The completely standardized factor-loading estimates and all loading estimates were significant (p < .001) with the lowest being .65 and the highest being .89. The variance-extracted estimates were .73, .57, .62, .61, .and 63 for social media

entertainment gratification (SMEG), social media interaction gratification (SMITG), social media information gratification (SMIFG), social media attitude toward marketing messages (SMATT), and online shopping value (OSVALU), respectively. Further, the construct reliability estimates were all adequate ranging from .92 to .80. Discriminant validity could be measured by comparing the variance-extracted percentage for any two constructs with the square of the correlation estimate between these two constructs (Fornell & Lacker, 1981). The variance-extracted estimates should be greater than the squared correlation estimate. Squared Interconstruct Correlations (SIC) calculated from the IC (Interconstruct Correlations) and all variance extracted (VE) were estimated. The results indicate that convergent validity of the model was supported and good reliability was established.

Structural Model and Hypotheses Testing

After measuring the measurement model, the structural model was analyzed and the hypotheses were tested. The structural model is adequate with χ2 = 261.453 (p = .000) with 145 degrees of freedom. The fit indexes are Comparative Fit Index (CFI) = .93, Normed Fit Index (NFI) = .85, Root mean Squared Error (RMSEA) = .074, and Tucker-Lewis = .91. All hypotheses were tested and the SEM structural path results indicated that all relationships except the one between SMEG and SMATT were significant (Figure 1). Thus, H2, H3, and H4 were supported. H1 was not supported. Estimate of Squared Multiple Correlation indicates that the predictors of social media marketing messages (entertainment, information and interaction gratifications) explain 23.5% of its variance. Also, social media marketing messages is a predictor of hedonic shopping value that explains 13.1% of its variance. Entertainment, interaction, and information gratification on social media usage are significantly correlated to each other. Among the three gratifications, interaction and information gratification affect attitude toward social media marketing messages. Also, social media marketing messages significantly influence online shopping values.

5 DISCUSSION AND MANAGERIAL IMPLICATION

Social media has changed society with new ways of interactive communication and marketers have recognized that social media is increasingly important to the marketing mix (eMarketer, 2010). The results of this study imply that attitude toward social media marketing messages are strongly related to social media usage gratifications such as interaction and information, but not entertainment gratification. The findings from this study are consistent with the Stafford & Gonier (2004) study. They found that information, communication, and socializing are main


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gratifications when using the Internet. The reason that entertainment is not significantly related to social media marketing messages might be interpreted that using social media is no longer an entertainment; rather, it is a common practice in daily life. On the other hand, active interaction and useful information on social media create positive perceptions toward social media marketing messages. Also, positive social media marketing messages increase online shoppers’ hedonic value.

As a managerial implication, marketers should understand how consumers want to interact and what kind of information they want to obtain. Even though the term “social media” is ubiquitous, 52% of social marketers are operating without a game plan and knowing how to integrate social media into their companies is critical for company’s success (eMarketer, 2010).

Marketers should consider information content, currency, the delivery method and the delivery device to enhance the effectiveness of information motivation. Information content can be company information, product information, and/or sales promotion such as sales events or coupons. Social media provides a very fast and easy way to be up-to-date with new products and promotions. Delivering real time information is one of the advantages in using social media over traditional media. In addition, utilizing methods such as maintaining a company-sponsored website with video, photos, commerce communities and podcasts, as well as delivering through devices such as computers, iPods, iPads, etc., depend upon a target market when delivering messages using social media.

For effective interactivity, it should be considered how to participate in social media as a company and how to encourage consumers to get involved. Social media allows consumers to have a voice and the voice can be a valuable feedback. Interactivity is very important in order to keep loyal consumers. Marketers on social media should catch consumer attention. The level of brand or company loyalty affects the consumers’ willingness to post feedback on their sites. By listening and responding promptly, companies can make a virtual community in the center of communication among loyal consumers. An April 2010 study by ROI Research, commissioned by Performics, found that at least once a week, 33% of active Twitter users share opinions about companies or products while 32% make recommendations and 30% ask for them. Most online shoppers use social media to get product information. In this study, the authors found that there is a significant, positive relationship between attitude toward social media marketing messages and hedonic shopping values.

In conclusion, this is an experimental study that attempts to examine the relationships between social media and

marketing. The conceptual model was supported theoretically with measurement validity and reliability. For future research, social media usage in marketing practices needs more research in terms of consumer behavior, perspective, lifestyle, and new technology adaption. Consumer trust levels should be examined in connection with social media sites, messages, source, and brand familiarity.

6 FIGURE Figure 1 AMOS Analysis of The Overall Model of Standardized Coefficients. Social Media Usage

n.s. (H1)

.44 .52 .36** (H2) .36(H4) .24* (H3) .28**

Significance: p=000 χ2 =261.45

** p<0.01 * p<.05 df=145 χ2/ df = 1.803

CFI=.93 RMSEA=.07

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