Advertisement

Design of sweepstakes-based social media marketing for online customer engagement

  • Woo-Jin Jung
  • Seungjun Yang
  • Hee-Woong KimEmail author
Article
  • 106 Downloads

Abstract

Customer engagement has been considered to be one of the most important goals of social media marketing. Many companies have conducted social media marketing, particularly through Facebook, by managing their brand fan pages. Compared with other approaches in social media marketing, sweepstakes-based marketing has been successful in gaining customers’ attention and in fostering engagement with customers. However, understanding has been lacking regarding ways in which to design sweepstakes-based social media marketing. By applying expected utility theory, this study examines sweepstakes-based social media marketing strategies, particularly designs based on the combination of promotion characteristics, prize types and categories, and prize payment type, to enhance customer engagement with a brand in the context of Facebook brand fan pages. The study in general, as well as the testing results, provides guidance to social media marketers and explains ways in which to design sweepstakes in social media marketing for customer engagement. This study contributes to the literature by demonstrating the significance of sweepstakes design factors and the combinations for customer engagement.

Keywords

Customer engagement Social media marketing Expected utility theory Brand fan pages Sweepstakes 

Notes

References

  1. 1.
    Abdul-Ghani, E., Hyde, K. F., & Marshall, R. (2011). Emic and etic interpretations of engagement with a consumer-to-consumer online auction site. Journal of Business Research, 64, 1060–1066.Google Scholar
  2. 2.
    Archak, N., Ghose, A., & Ipeirotis, P. (2007). Show me the money! Deriving the pricing power of product features by mining consumer reviews. In Proceedings of the 13th ACM SIGKDD international conference on knowledge discovery and data mining, San Jose, USA (pp. 56–65).Google Scholar
  3. 3.
    Ashley, C., & Tuten, T. (2015). Creative strategies in social media marketing: An exploratory study of branded social content and consumer engagement. Psychology & Marketing, 32(1), 15–27.Google Scholar
  4. 4.
    Belch, G. E., & Belch, M. A. (2014). Advertising and promotion: An integrated marketing communications perspective (10th ed.). New York: McGraw Hill Edu.Google Scholar
  5. 5.
    Blattberg, R. C., & Neslin, S. A. (1990). Sales promotion: Concepts, methods, and strategies. Upper Saddle River: Prentice Hall.Google Scholar
  6. 6.
    Bordley, R. F., & Kirkwood, C. W. (2004). Multiattribute preference analysis with performance targets. Operations Research, 52(6), 823–835.Google Scholar
  7. 7.
    Braojos-Gomez, J., Benitez-Amado, J., & Llorens-Montes, F. (2015). How do small firms learn to develop a social media competence? International Journal of Information Management, 35(4), 443–458.Google Scholar
  8. 8.
    Brodie, R. J., Hollebeek, L. D., Juric, B., & Ilic, A. (2011). Customer engagement: Conceptual domain, fundamental propositions, and implications for research. Journal of Service Research, 14, 3.Google Scholar
  9. 9.
    Carlson, B., Suter, T. A., & Brown, T. J. (2008). Social versus psychological brand community: The role of psychological sense of brand community. Journal of Business Research, 61(2), 284–291.Google Scholar
  10. 10.
    Castagnoli, E., & LiCalzi, M. (1996). Expected utility without utility. Theory and Decision, 41(3), 281–301.Google Scholar
  11. 11.
    Challagalla, G., Venkatesh, R., & Kohli, A. K. (2009). Proactive postsales service: When and why does it pay off? Journal of Marketing, 73, 70–87.Google Scholar
  12. 12.
    Chandon, P., Wansink, B., & Laurent, G. (2000). A benefit congruency framework of sales promotion effectiveness. Journal of Marketing, 64(4), 65–81.Google Scholar
  13. 13.
    Cheung, C., Lee, M., & Liang, L. (2015). Building brand loyalty through user engagement in online brand communities in social network sites. Information Technology & People, 28(10), 90–106.Google Scholar
  14. 14.
    Ching, R. K., Tong, P., Chen, J. S., & Chen, H. Y. (2013). Narrative online advertising: Identification and its effects on attitude toward a product. Internet Research, 23(4), 414–438.Google Scholar
  15. 15.
    Christy, A., & Tracy, T. (2015). Creative strategies in social media marketing: An exploratory study of branded social content and consumer engagement. Psychology & Marketing, 32(1), 15–27.Google Scholar
  16. 16.
    Constantinides, E., Lorenzo, C., & Gómez, M. A. (2008). Social media: A new frontier for retailers? European Retail Research, 22, 1–28.Google Scholar
  17. 17.
    Constantinos, K., Coursaris, & Wietske, V. O. (2016). Informing brand messaging strategies via social media analytics. Online Information Review, 40(1), 6–24.Google Scholar
  18. 18.
    D'Andrea, A., Ferri, F., & Grifoni, P. (2012). SNeM2S: A social network model for marketing strategies. International Journal of E-Business Development, 2(3), 103–110.Google Scholar
  19. 19.
    Dholakia, U. M., Bagozzi, R. P., & Pearo, L. K. (2004). A social influence model of consumer participation in network- and small-group-based virtual communities. International Journal of Research in Marketing, 21, 163–241.Google Scholar
  20. 20.
    Duffett, R. G. (2015). The influence of facebook advertising on cognitive attitudes amid generation Y. Electronic Commerce Research, 15(2), 243–267.Google Scholar
  21. 21.
    Elaad, E., Sayag, N., & Ezer, A. (2010). Effects of anchoring and adjustment in the evaluation of product pricing. Psychological Reports, 107(1), 58–60.Google Scholar
  22. 22.
    Felix, R., Philipp, A. R., & Chris, H. (2016). Elements of strategic social media marketing: A holistic framework. Journal of Business Research, 9, 118–126.Google Scholar
  23. 23.
    Friedman, M., & Savage, L. J. (1948). The utility analysis of choices involving risk. The Journal of Political Economy, 56(4), 279–304.Google Scholar
  24. 24.
    Griffin, D., Dunning, D., & Ross, L. (1990). The role of construal processes in overconfident predictions about the self and others. Journal of Personality and Social Psychology, 59, 1128–1139.Google Scholar
  25. 25.
    Greene, W. (2012). Ecometric analysis (7th ed., pp. 379–380). London: Pearson.Google Scholar
  26. 26.
    Greenleaf, E. A. (1995). The impact of reference price effects on the profitability of price promotions. Marketing Science, 14(1), 82–104.Google Scholar
  27. 27.
    Gwinner, K., Gremler, D., & Bitner, M. (1998). Relational benefits in services industries: The consumer’s perspective. Journal of the Academy of Marketing Science, 26(2), 101–114.Google Scholar
  28. 28.
    Haugh, L. J. (1983). Defining and redefining. In Advertising Age, February 14, M44.Google Scholar
  29. 29.
    Heinonen, K. (2011). Consumer activity in social media: Managerial approaches to consumers’ social media behavior. Journal of Consumer Behavior, 10(6), 356–364.Google Scholar
  30. 30.
    Hoffman, D., & Fodor, M. (2010). Can you measure the ROI of social media marketing? MIT Sloan Management Review, 52, 1.Google Scholar
  31. 31.
    Hsieh, J. K., Hsieh, Y. C., & Tang, Y. C. (2012). Exploring the disseminating behaviors of eWOM marketing: Persuasion in online video. Electronic Commerce Research, 12(2), 201–224.Google Scholar
  32. 32.
    Im, I., Jun, J. K., Oh, W. S., & Jeong, S. O. (2016). Deal-seeking versus brand-seeking: Search behaviors and purchase propensities in sponsored search platforms. MIS Quarterly, 40(1), 187–203.Google Scholar
  33. 33.
    Jang, D., & Mattila, A. S. (2005). An examination of restaurant loyalty programs: What kinds of rewards do customers prefer? International Journal of Contemporary Hospitality Management, 17(5), 402–408.Google Scholar
  34. 34.
    Johnson, E., Bernard, H. R., Killworth, P. D., Shelley, G. A., & McCarty, C. (1995). A social network approach to corroborating the number of AIDS/HIV + Victims in the U.S. Social Networks, 17, 169–187.Google Scholar
  35. 35.
    Kang, J. H., Liang, T., & Ann, M. F. (2014). Enhancing consumer–brand relationships on restaurant Facebook fan pages: Maximizing consumer benefits and increasing active participation. International Journal of Hospitality Management, 36, 145–155.Google Scholar
  36. 36.
    Karla, A., & Shi, M. (2010). Consumer value-maximizing sweepstakes and contests. Journal of Marketing Research, 47(2), 287–300.Google Scholar
  37. 37.
    Kaplan, A., & Haenlein, M. (2010). Users of the world, unite! The challenges and opportunities of social media. Business Horizon, 53(1), 59–68.Google Scholar
  38. 38.
    Kerr, G., & Drennan, J. (2010). Same but different-perceptions of integrated marketing communication among marketing communication partners in Australia. Journal of Promotion Management, 16(1–2), 6–24.Google Scholar
  39. 39.
    Kivetz, R., & Simonson, I. (2002). Earning the right to indulge: Effort as a determinant of customer preferences toward frequency program rewards. Journal of Marketing Research, 39, 155–170.Google Scholar
  40. 40.
    Kivetz, R. (2003). The effects of effort and intrinsic motivation on risky choice. Marketing Science, 22(4), 477–502.Google Scholar
  41. 41.
    Krishna, A., & Zhang, Z. J. (1999). Short- or long-fuse coupons: The effect of expiration date on coupon profitability. Management Science, 45(8), 1041–1056.Google Scholar
  42. 42.
    Kroeber-Riel, W. (1987). Informationsüberlastung durch Massenmedien und Werbung in Deutschland. Die Betriebswirtschaft, 3, 257–264.Google Scholar
  43. 43.
    Kwang, N. Y. (1965). Why do people buy lottery tickets? Choices involving risks and the indivisibility of expenditure. Journal of Political Economy, 73(5), 530–535.Google Scholar
  44. 44.
    Lee, S. H., Lee, J., & Kim, H. W. (2018). A customer value theory approach to the engagement with a brand: The case of KakaoTalk plus in Korea. Asia Pacific Journal of Information Systems, 28(1), 36–60.Google Scholar
  45. 45.
    Luo, X., Zhang, J., & Duan, W. (2013). Social media and firm equity value. Information Systems Research, 24(1), 146–163.Google Scholar
  46. 46.
    Morgan, R. M., & Hunt, S. D. (1994). The commitment-trust theory of relationship marketing. Journal of Marketing, 58(3), 20–38.Google Scholar
  47. 47.
    Nord, W. R., & Peter, J. P. (1980). A behavior modification perspective on marketing. Journal of Marketing, 44, 36–47.Google Scholar
  48. 48.
    Olbrich, R., & Holsing, C. (2011). Modeling consumer purchasing behavior in social shopping communities with clickstream data. International Journal of Electronic Commerce, 16(2), 15–40.Google Scholar
  49. 49.
    Okleshen, C., & Grossbart, S. (1998). Usenet groups, virtual community and consumer behaviors. Advances in Consumer Research, 23, 276–282.Google Scholar
  50. 50.
    Raju, S., Unnava, H. R., & Montgomery, N. V. (2009). The effect of brand commitment on the evaluation of non-preferred brands: A disconfirmation process. Journal of Consumer Research, 35, 851–863.Google Scholar
  51. 51.
    Rishika, R., Kumar, A., & Janakiraman, R. (2013). The effect of customers’ social media participation on customer visit frequency and profitability: An empirical investigation. Information Systems Research, 24(1), 108–127.Google Scholar
  52. 52.
    Rothschild, M., & Gadis, W. C. (1981). Behavioural learning-its relevance to marketing. Journal of Marketing, 45(2), 70–78.Google Scholar
  53. 53.
    Rumbo, J. D. (2002). Consumer resistance in a world of advertising clutter: The case of adbusters. Psychology and Marketing, 19(2), 127–148.Google Scholar
  54. 54.
    Schweidel, D. A., & Moe, W. W. (2014). Listening in on social media: A joint model of sentiment and venue format choice. Journal of Marketing Research, 51(4), 387–402.Google Scholar
  55. 55.
    Selby, E. B., & Beranek, W. (1981). Sweepstakes contests: Analysis, strategies, and survey. The American Economic Review, 71(1), 189–195.Google Scholar
  56. 56.
    Solomon, M. R. (2008). The truth about what customers want. Upper Saddle River: FT Press.Google Scholar
  57. 57.
    Stelzner, M. A. (2014). Social meda marketing industry report. 2014. http://www.socialmediaexaminer.com/SocialMediaMarketingIndustryReport2014.pdf.
  58. 58.
    Sneath, J. Z., Finney, R. Z., & Close, A. G. (2005). An IMC approach to event marketing: The effects of sponsorship and experience on customer attitudes. Journal of Advertising Research, 45(4), 373–381.Google Scholar
  59. 59.
    Taylor, D. G., Lewin, J. E., & Strutton, D. (2011). Friends, fans, and followers: Do Ads work on social networks. Journal of Advertising Research, 51(1), 258–275.Google Scholar
  60. 60.
    Teichmann, M. H., Gedenk, K., & Knaf, M. (2005). Consumers’ preferences for online and offline sweepstakes and contests. Marketing ZFP, 27(JRM 2), 76–90.Google Scholar
  61. 61.
    Trusov, M., Bucklin, R., & Pauwels, K. (2009). Effects of word-of-mouth versus traditional marketing: Findings from an Internet social networking site. Journal of Marketing, 73(5), 90–102.Google Scholar
  62. 62.
    Tuten, T., & Solomon, M. (2013). Social media marketing. Upper Saddle River: Pearson.Google Scholar
  63. 63.
    Von Neumann, J., & Morgenstern, O. (1953). Theory of games and economic behavior (3rd ed.). Princeton: Princeton University Press.Google Scholar
  64. 64.
    Wang, Y. C., Yu, Q., & Fesenmaier, D. (2002). Defining the virtual tourist community: Implications for tourism marketing. Tourism Management, 23(4), 407–417.Google Scholar
  65. 65.
    Weinberg, I. M. (1993). Is TQM really so hard? The Journal for Quality and Participation, 16(6), 48.Google Scholar
  66. 66.
    Wood, L. (2000). Brands and brand equity: Definition and management. Management Decision, 38(9), 662–669.Google Scholar
  67. 67.
    Woodridge, J. M. (2014). Econometric analysis of cross section and panel data. Cambridge: MIT Press.Google Scholar
  68. 68.
    Wohlfeil, M., & Whelan, S. (2005). Consumer motivations to participate in marketing-events: The role of predispositional involvement. European Advances in Consumer Research, 7, 125–131.Google Scholar
  69. 69.
    Wu, J., Huang, L., Zhao, J., & Hua, Z. (2015). The deeper, the better? Effect of online brand community activity on customer purchase frequency. Information & Management, 52(7), 813–823.Google Scholar
  70. 70.
    Xie, K., & Lee, Y. J. (2015). Social media and brand purchase: Quantifying the effects of exposures to earned and owned social media activities in a two-stage decision making model. Journal of Management Information Systems, 32(2), 204–238.Google Scholar
  71. 71.
    Yang, S. B., Lim, J. H., Oh, W., Animesh, A., & Pinsonneault, A. (2012). Using real options to investigate the market value of virtual world businesses. Information Systems Research, 23(3), 1011–1029.Google Scholar
  72. 72.
    Zhang, K., Siddhartha, B., & Sudha, R. (2016). Large-scale network analysis for online social brand advertising. MIS Quarterly, 40(4), 849–868.Google Scholar
  73. 73.
    Zhang, K. Z. K., & Benyoucef, M. (2016). Consumer behavior in social commerce. Decision Support System, 86, 95–108.Google Scholar

Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2019

Authors and Affiliations

  1. 1.Barun ICT Research Center, Graduate School of InformationYonsei UniversitySeoulRepublic of Korea
  2. 2.DeloitteSeoulRepublic of Korea
  3. 3.Graduate School of InformationYonsei UniversitySeoulRepublic of Korea

Personalised recommendations