Endorsement Effectiveness in YouTube Vlogs ANZMAC, 03/12/2018 Hanna Reinikainen*, Juha Munnukka*, Devdeep Maity** & Vilma Luoma-aho* *University of Jyvaskyl̈ ä, **Delaware State University University of Jyväskylä JYU. Since 1863. 15.1.2019 1 Agenda • Vlogs and vloggers • Theoretical approach • Conceptual model • Hypothesis • Study • Results • Implications University of Jyväskylä JYU. Since 1863. 15.1.2019 2 Vlogs • Videos based on vloggers’ own lives, filmed using simple, camera gear (Stefanone and Lackaff, 2009). • Format adds realism to the content, thereby generating massive interest and drawing very large audiences (Lee and Watkins, 2016). • Have become an important focal channel of brand-related information and an integral part of consumers’ decision- making process (Chu & Kamal, 2008; Ho et al., 2015). University of Jyväskylä JYU. Since 1863. 15.1.2019 3 Vloggers = Influencers 81% of US consumers trust information and advice from blogs 61% of US consumers have made a purchase based on recommendation from a blog (Barker et al. 2017). 18–34 year-olds watch more YouTube than cable networks in the US. (YouTube) University of Jyväskylä JYU. Since 1863. 15.1.2019 4 What makes their endorsements so effective? University of Jyväskylä JYU. Since 1863. 15.1.2019 5 Parasocial interaction • Illusionary feeling of reciprocal interaction with a media persona (Horton & Wohl 1956). • Unique and one-sided involvement may range from feelings of friendship to a sense of attraction (Perse & Rubin 1989). • Can draw the audience members back to the content, increase time spent with the content (Quintero Johnson & Patnoe- Woodley 2016) and even translate into an emotional connection with brands the performer uses or recommends (Lueck 2015). • Can lead to positive brand perceptions (Lee & Watkins, 2016) and increase loyalty intentions (Labrecque, 2014). University of Jyväskylä JYU. Since 1863. 15.1.2019 6 Audience participation • Degree by which the audience engages in various activities in a vlog such as likes, shares, comments, subscriptions, and responses to other comments. • Participation supports the experience of parasocial interaction (Brown, 2015). • May translate into higher vlog influence on the audience’s perceptions, affect and behavior. University of Jyväskylä JYU. Since 1863. 15.1.2019 7 Perceived credibility • Perceived credibility of the message source positively affects the likelihood that the audience accepts the message (Pornpitakpan, 2004). • Perceived vlogger credibility (PVC) is defined as the extent to which the vlogger is perceived to possess expertise relevant to the endorsement topic, can be trusted to provide an objective opinion of the endorsed subject, and considered similar by the audience (Goldsmith et al. 2000; Chu and Kamal 2008). • Composed of perceived trustworthiness, expertise, and similarity (Ohanian 1990; Pornpitakpan 2004). University of Jyväskylä JYU. Since 1863. 15.1.2019 8 Conceptual model and hypothesis University of Jyväskylä JYU. Since 1863. 15.1.2019 9 Conceptual model User comments Endorsement effectiveness H2+ Audience Parasocial Perceived Purchase participation interaction credibility intention H1+ H3+ H4+ University of Jyväskylä JYU. Since 1863. 15.1.2019 10 Hypothesis H1: Audience participation (AP) positively affects the experience of parasocial interaction (PSI). H2: Other users’ comments (OC) moderate the audience participation-parasocial interaction relationship. H3: The perceived vlogger credibility (PVC) has a positive effect on purchase intention (PI) of the endorsed brand. H4: Parasocial interaction mediates the relationship between audience participation and perceived vlogger credibility. University of Jyväskylä JYU. Since 1863. 15.1.2019 11 Study University of Jyväskylä JYU. Since 1863. 15.1.2019 12 Data collection • A vlog entry from a Finnish female lifestyle vlogger was studied. • The video included an endorsement for a health service for young women. • An experimental design with two conditions (positive comments presented / not presented) was created. • Four constructs were measured: audience participation, parasocial interaction, perceived vlogger credibility, and purchase intention. • The studied video was embedded into the questionnaire. • A link to the online questionnaire was shared on the Snapchat channel of a Finnish magazine for young women. • The study resulted in 309 usable responses. • The scales were validated with CFA and standardized summated scales were constructed and taken for the analyses conducted with PROCESS macro. University of Jyväskylä JYU. Since 1863. 15.1.2019 13 Analyses and Results University of Jyväskylä JYU. Since 1863. 15.1.2019 14 Analyses • Construct reliabilities (CR): PSI = 0.93, PCV= 0.94, PI= 0.92, AP=0.83. • The scales summated and standardized as single ratings. • Main effects tested with linear regression analysis • Mediation analysis (Barron and Kenny’s 1986) with bootstrapping method (Preacher and Hayes 2004) with PROCESS macro in SPSS • Moderation analysis – interaction effect analysis University of Jyväskylä JYU. Since 1863. 15.1.2019 15 Results User comments 0.07 Parasocial Perceived Purchase Audience interaction credibility intention participation 0.96 R2 0.75 0.38 R2 0.75 0.75 R2 0.29 0.36 All hypothesis supported University of Jyväskylä JYU. Since 1863. 15.1.2019 16 Implications and limitations University of Jyväskylä JYU. Since 1863. 15.1.2019 17 Academic implications • This study contributes to the endorsement effectiveness literature and builds understanding about parasocial interaction. • Audience participation was found to increase the vlogger’s perceived credibility indirectly through parasocial interaction. The results prove the importance of parasocial interaction for message acceptance in the context of vlogs. • Brand endorsements in vlogs drive purchase intention by the perceived credibility of the vlogger as a message source, which supports the positive relationship of vlogger credibility and endorsement acceptance. University of Jyväskylä JYU. Since 1863. 15.1.2019 18 Managerial implications • Relationship instead of reach: Working with vloggers can serve as a powerful form of influence, but it requires understanding of the audience. This implies a mindset change from considering the size of the audience to considering the vlogger’s relationship with the audience. • The right kind of match: Endorsements become powerful, when there’s a perfect match between the brand, the vlogger and the audience. • No superimposing: Content that inspires the audience to participate and supports the relationship between the vlogger and the audience is effective – let the vlogger do her job and stay true to her style. University of Jyväskylä JYU. Since 1863. 15.1.2019 19 Limitations • Research design involved only one specific vlog and one video. The findings may be specific to kind of service, brand, or the personality type of the vlogger present in this study. • Using only positive comments as a moderator. Future studies should also look at the role of neutral and negative comments as well. • The experimental setting was simple and there may be additional factors that may interact with the constructs of the present model but were not were not included into the present study. • Testing the model in the case of a positive brand endorsement. The effects between the constructs may not change symmetrically in the case of negative or neutral brand endorsements. University of Jyväskylä JYU. Since 1863. 15.1.2019 20 References • Barker M., Barker D.I., Bormann N.F. & Zahay D. (2017) Social Media Marketing: A Strategic Approach. Cengage Learning, Boston. • Baron R.M. & Kenny D.A. (1986). The moderator-mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personal and Social Psychology, 51(6), 1173–1182. • Chu S. & Kamal S. (2008). 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