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

Abstract

Purpose

The 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/approach

Grounded 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.

Findings

Involvement 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 implications

Coffee-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/value

This 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.

Citation

Busser, J.A. and Shulga, L.V. (2019), "Involvement in consumer-generated advertising: Effects of organizational transparency and brand authenticity on loyalty and trust", International Journal of Contemporary Hospitality Management, Vol. 31 No. 4, pp. 1763-1784. https://doi.org/10.1108/IJCHM-10-2017-0685