MARKETING WITH TWITTER: INVESTIGATING FACTORS THAT IMPACT ON THE EFFECTIVENESS OF TWEETS Alena Soboleva School of Business Western Sydney University, Australia This dissertation is submitted for the degree of Doctor of Philosophy April 2018 Marketing with Twitter: Investigating factors that impact on the effectiveness of tweets This page is intentionally left blank. Page 2 Marketing with Twitter: Investigating factors that impact on the effectiveness of tweets DECLARATION This dissertation is the result of my own work and includes nothing that is the outcome of work done in collaboration except where specifically indicated in the text. It has not been previously submitted, in part or whole, to any university or institution for any degree, diploma, or other qualification. In accordance with the School of Business guidelines, this thesis does not exceed 100,000 words. Signed: _______________________ Date: 29 August 2017 Alena Soboleva, MCom, MIB Sydney, Australia Page 3 Marketing with Twitter: Investigating factors that impact on the effectiveness of tweets This page is intentionally left blank. Page 4 Marketing with Twitter: Investigating factors that impact on the effectiveness of tweets ABSTRACT The increasing use of Twitter by businesses has created the challenge of how organisations can use Twitter most effectively for marketing. Using data across several years of Twitter activity by both leading global brands and a non-profit organisation (NPO), this thesis presents measures that can be used by practitioners and researchers to assess the effectiveness of marketing communications on Twitter. It discusses the factors that predict consumer and stakeholder engagement with organisational tweets, and different Twitter strategies that have been successfully (and less successfully) used by leading global brands and a large non-profit organisation. The thesis consists of four separate but inter-related papers that have variously been published or accepted for publication. Each paper analyses different aspects of organisational Twitter activity, including an analysis of tweet features that impact on the frequency of retweeting of brands’ tweets and examination of reciprocity within the network of an NPO and its corporate partners. The thesis contributes to the literature by assessing what has been done on Twitter, what works and what does not, and by showing what it is possible to achieve on the platform in terms of effective communications. Firstly, the research evaluates Twitter activity both in commercial organisations and within the network of an NPO and its supporters by analysing their Twitter accounts’ activity, follower engagement and tweet structure. The research also compares and contrasts Twitter activity over a two-year period by both commercial brands and an NPO and therefore provides insights into the evolution of Twitter use. Secondly, the research develops and tests a theoretical model that predicts electronic word-of-mouth (eWOM) on Twitter by assessing the effect of different tweet features on retweet count. The Page 5 Marketing with Twitter: Investigating factors that impact on the effectiveness of tweets research also provides an approach to estimate minimum and maximum threshold levels for some tweet features that can be used repeatedly in tweets (e.g., hashtags and photos) and which can thus have a non-linear effect on retweeting. In addition, the research evaluates how consumer involvement with the product category, as represented by different industries, impacts on consumer responses and engagement with brand communications and subsequent eWOM on Twitter. This is important as the findings suggest that different industries need to use different communication strategies, depending on the brand context, in order to be successful on Twitter. Thirdly, the thesis discusses what it is possible to achieve on Twitter, in particular by reviewing how the medium can be used for reciprocal promotion within a network of organisations using co-branding and co-created tweets, even among those who compete. Finally, the thesis discusses implications for organisations using Twitter for marketing communications, and for further research into the use of Twitter for marketing. Page 6 Marketing with Twitter: Investigating factors that impact on the effectiveness of tweets ACKNOWLEDGEMENTS First and foremost, I would like to express my sincere gratitude to my principal supervisor and academic mentor, Professor Suzan Burton: I could not have asked for a more knowledgeable, supportive, and encouraging advisor. I truly appreciate all of the time and effort you devoted to me throughout my doctoral program. Your mentorship has been invaluable to me and has dramatically impacted my experience as a doctoral student at the Western Sydney University. I greatly value both the professional and personal relationship we have built and look forward to collaborating with you on future projects. To Dr Aila Khan: Without your encouragement and insightful comments, it would not have been possible to complete this journey. I really appreciate your help. To Dr Girijasankar Mallik: Thank you for your gracious help with data analysis. The joy and enthusiasm you have for the subject of statistics was contagious and motivational for me, even during tough times in the Ph.D. pursuit. To my loving parents, boyfriend and friends: Thanks for believing in me, giving me emotional and financial support, and always being there for me. Page 7 Marketing with Twitter: Investigating factors that impact on the effectiveness of tweets CONTENTS Declaration ......................................................................................................................................... 3 Abstract ............................................................................................................................................... 5 Acknowledgements ......................................................................................................................... 7 Contents ............................................................................................................................................... 8 List of Tables ................................................................................................................................... 13 List of Figures ................................................................................................................................. 14 1: Introduction ........................................................................................................................... 15 1.1 Background to the research .................................................................................................. 15 1.1.1 Using social media for marketing ........................................................................................ 15 1.1.2 Marketing with Twitter............................................................................................................ 20 1.1.2.1 Popularity of Twitter .......................................................................................................... 20 1.1.2.2 Potential benefits of Twitter for organisations ........................................................ 21 1.1.2.3 Measuring success on Twitter ........................................................................................ 28 1.1.2.4 Mechanisms for facilitating marketing success on Twitter ................................ 33 1.1.2.5 The evolving nature of Twitter ....................................................................................... 44 1.2 Gaps in the literature ............................................................................................................... 45 1.3 Research objectives .................................................................................................................. 47 1.4 Outline of the thesis ................................................................................................................. 49 1.5 Proposed contributions of the research .......................................................................... 52 1.6 Summary of Chapter 1 ............................................................................................................ 54 2: Marketing with Twitter: Challenges and Opportunities ......................................... 55 2.1 Overview of Book Chapter ..................................................................................................... 55 2.2 Introduction ................................................................................................................................ 58 2.2.1 Potential Benefits of Marketing with Twitter................................................................. 59 2.2.1.1 Increased Audience Reach ............................................................................................... 59 2.2.1.2 A Powerful Additional Channel ...................................................................................... 60 2.2.1.3 Engagement with Consumers and Word of Mouth ................................................ 61 2.2.1.4 Monitoring and Responsiveness .................................................................................... 62 2.2.2 Challenges of Using Twitter for Marketing ..................................................................... 62 Page 8 Marketing with Twitter: Investigating factors that impact on the effectiveness of tweets 2.2.2.1 Rapid Evolution of Technologies