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Dissertation Online Consumer Engagement DISSERTATION ONLINE CONSUMER ENGAGEMENT: UNDERSTANDING THE ANTECEDENTS AND OUTCOMES Submitted by Amy Renee Reitz Department of Journalism and Technical Communication In partial fulfillment of the requirements For the Degree of Doctor of Philosophy Colorado State University Fort Collins, Colorado Summer 2012 Doctoral Committee: Advisor: Jamie Switzer Co-Advisor: Ruoh-Nan Yan Jennifer Ogle Donna Rouner Peter Seel Copyright by Amy Renee Reitz 2012 All Rights Reserved ABSTRACT ONLINE CONSUMER ENGAGEMENT: UNDERSTANDING THE ANTECEDENTS AND OUTCOMES Given the adoption rates of social media and specifically social networking sites among consumers and companies alike, practitioners and academics need to understand the role of social media within a company’s marketing efforts. Specifically, understanding the consumer behavior process of how consumers perceive features on a company’s social media page and how these features may lead to loyalty and ultimately consumers’ repurchase intentions is critical to justify marketing efforts to upper management. This study focused on this process by situating online consumer engagement between consumers’ perceptions about features on a company’s social media page and loyalty and (re)purchase intent. Because online consumer engagement is an emerging construct within the marketing literature, the purpose of this study was not only to test the framework of online consumer engagement but also to explore the concept of online consumer engagement within a marketing context. The study refined the definition of online consumer engagement as an attempt to align the industry and academic definitions of the construct. The social networking site, Facebook, was utilized to test the online consumer engagement framework. Specifically, the study examined whether and how perceived Facebook company page features (i.e., perceived information quality, perceived enjoyment, and perceived interactivity) predicted online consumer engagement, and further investigated whether and how online consumer engagement with companies on Facebook related to loyalty and ultimately (re)purchase intent. First, focus groups were conducted to get a better understanding of the “liking” behavior on Facebook and to refine the survey questionnaire. Next, 233 online surveys ii were collected from U.S. adult Facebook users who “like” companies on Facebook to test the online consumer engagement framework. Hypotheses were tested through structural equation modeling. Findings suggest that perceived Facebook characteristics (i.e., perceived information quality, perceived enjoyment, and perceived interactivity) influence online consumer engagement, which influences loyalty and ultimately (re)purchase intent. Results also revealed that online consumer engagement is a multidimensional construct that encompasses both cognitive/affective and participative dimensions. This study provides the first steps in understanding the role that online consumer engagement plays within a mediated environment that includes both consumers and companies. Implications both academically and for the industry are discussed, and directions for future research endeavors are presented. iii ACKNOWLEDGEMENTS I want to acknowledge all of the people who have helped and supported me through my doctoral journey. First, I want to thank all of my committee members – Dr. Jamie Switzer, Dr. Ruoh-Nan Yan, Dr. Jennifer Ogle, Dr. Donna Rouner, and Dr. Peter Seel – for their continuous guidance, direction, and invaluable contributions to my dissertation. A special thanks to my two co-advisors – Dr. Jamie Switzer and Dr. Ruoh-Nan Yan for dedicating so much of their time to this project. Without Dr. Jamie Switzer’s attention to detail and editing skills and Dr. Ruoh-Nan Yan’s mastery of statistical analysis, this project would not have been completed. Additionally, my co-advisors provided enthusiasm, good cheer, and unfaltering support throughout the entire process, which made the completion of this work enjoyable. Secondly, I want to acknowledge my two dear friends, Melodee Bachman and Darcie Geenen for enriching my educational experiences throughout my undergraduate and graduate degrees. Their support as well as lively academic discussions and enjoyable personal adventures have made the journey memorable. Specifically, I to want acknowledge Darcie’s efforts in editing this work. Most of all, I want to acknowledge my family for their love, support, and encouragement throughout my entire academic career. First, I want to acknowledge my parents – Jerry and Debra Wilson – who are the most amazing parents in the world. They have taught me so many valuable lessons throughout my life, one of which is to have the confidence and tenacity to go after your dreams. If they had not instilled this in me, I may have not had the courage to pursue my doctoral degree. Secondly, they have taught me the importance of working hard. They are two of the hardest working people I know and have taught me that hard work is needed to accomplish your goals, which was definitely needed to complete this dissertation. Specifically, I iv want to acknowledge my mom for being my rock, pillar of strength, and inspiration throughout my academic career. She is the most amazing woman I know and a wonderful role model to me. Secondly, I want to acknowledge my brother, Jeremy Wilson, who has always been there for me, especially during this research endeavor. He was instrumental in keeping me on track to complete this goal while helping me laugh and see the fun and excitement in my journey. I also want to acknowledge my sister-in-law, Gina Wilson, who I could count on to not only listen and provide sound advice but also to share her industry expertise, which kept my work grounded. Additionally, I want to acknowledge my lovely niece, Madeline Wilson, who I could always count on to have a smile on her baby face, which made me happy and kept me inspired. Lastly, I want to acknowledge my loving husband, Philip Reitz, and my precious son, Wilson Reitz, for their contributions to this research work. My husband’s never-ending support, love, and confidence in me are what kept me going. His hard work and sacrifices helped me complete this research project, which I am forever grateful. Furthermore, I want to acknowledge my baby boy who was with me every step of the way throughout this project. He gave me the drive and motivation I needed to work on the project while providing endless entertainment, loads of laughter, but mostly his love and sweetness. v TABLE OF CONTENTS ABSTRACT .................................................................................................................................... ii ACKNOWLEDGEMENTS ........................................................................................................... iv LIST OF TABLES .......................................................................................................................... x LIST OF FIGURES ....................................................................................................................... xi ONLINE CONSUMER ENGAGEMENT: UNDERSTANDING THE ANTECEDENTS & OUTCOMES................................................................................................................................... 1 Social Media Background ........................................................................................................... 1 Company Adoption of Social Media ...................................................................................... 3 Social Networking Websites and Facebook............................................................................ 4 Engagement ................................................................................................................................ 6 Gaps in Knowledge ................................................................................................................. 7 Purpose of the Study ................................................................................................................. 10 Facebook Justification .......................................................................................................... 11 Contributions of the Study ........................................................................................................ 12 Theoretical Contributions ..................................................................................................... 12 Industry Contributions .......................................................................................................... 14 Organization of the Study ......................................................................................................... 15 LITERATURE REVIEW ............................................................................................................. 17 Social Networking Sites ............................................................................................................ 17 History and Overview ........................................................................................................... 19 Industry Perspective .............................................................................................................. 20 Academic Perspective ........................................................................................................... 24 General Facebook Research .............................................................................................. 24 “Liking” Companies on
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