Involvement in consumer-generated advertising: Effects of organizational transparency and brand authenticity on loyalty and trust

• Published in: International journal of contemporary hospitality management 2019-04, Vol.31 (4), p.1763-1784
• Main Authors: Busser, James A., Shulga, Lenna V.
• Format: Article
• Language: English
• Subjects: Advertising; Authenticity; Collaboration; Communication; Consumer behavior; Consumers; Credibility; Customer feedback; Customer services; Empowerment; Hospitality industry; Marketing; Perceptions; Purchase intention; Social networks; Structural equation modeling; Tourism; Trust; User generated content; Values
• ISSN: 0959-6119; 1757-1049
• DOI: 10.1108/IJCHM-10-2017-0685

PurposeThe purpose of this paper is to examine consumer involvement with a popular US-based coffee-shop brand consumer-generated advertising (CGA) and its effect on brand loyalty and trust, to test the influence of antecedents: organizational transparency and brand authenticity on CGA involvement, and to analyze differences among customers and non-customers of the brand.Design/methodology/approachGrounded in the service-dominant logic and signaling theory, a scenario-based survey describing a contest to co-create a video commercial, as CGA, for a prominent US-based coffee-shop brand, yielded 492 responses from recent restaurant patrons. Structural equation modeling was used to test the effects of involvement in CGA on loyalty and trust. Multi-group comparison examined the differences between customers and non-customers of the brand.FindingsInvolvement in CGA had positive effects on loyalty and trust for both brand customers and non-customers. Transparency builds perceptions of brand authenticity; both authenticity and transparency significantly and positively affected trust, but only authenticity influenced loyalty. There was a stronger impact of involvement with CGA on loyalty for non-customers than brand customers. Non-customer perceptions of the brand’s authenticity influenced brand trust more significantly than customer perceptions.Practical implicationsCoffee-shop brand marketers should leverage online and physical brand exposure to involve both customers and non-customers in company-driven CGA, as a relationship management and marketing tool. Marketers should enhance transparency, which builds perceptions of brand authenticity, leading to greater CGA involvement.Originality/valueThis study contributes to hospitality research and literature, revealing that non-customers can be converted to brand customers through authenticity and indirect involvement with CGA, leading to long-term relational outcomes. The results identified consumers’ perception of organizational transparency is an antecedent of brand authenticity and established CGA contests as a relational marketing tool for hospitality brands.