Ugc Engagement
Ugc Engagement
Ugc Engagement
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Jihad Mohammad
Department of Management and Marketing,
College of Business and Economics, Qatar University,
Doha, Qatar
[email protected]
Farzana Quoquab
International Business School, Universiti Teknologi Malaysia,
Jalan Sultan Yahya Petra, Kampung Datuk Keramat, 54100 Kuala Lumpur,
Wilayah Persekutuan Kuala Lumpur, Malaysia
[email protected]
Ramayah Thurasamy
School of Management, Universiti Sains Malaysia,
11800 Gelugor, Penang, Malaysia
[email protected]
ABSTRACT
User-generated content (UGC) and online customers’ brand engagement are gaining popularity and becoming
essential tools in improving the online business. Considering its growing importance, the present research aims to
examine the indirect effect of UGC quality on online customers’ brand engagement through UGC’s functional and
emotional values in a non-Western culture. Data were collected using an online survey which yielded 242 useable
responses which were then analysed using Partial Least Squares - Structural Equation Modelling (PLS-SEM).
Findings revealed that, content and technical quality of UGC have significant effects on UGC’s functional and
emotional values. Moreover, functional and emotional values exert positive and significant effects on customers’
brand engagement. Contrary to the expectations, the design quality of UGC has no direct effect on UGC values nor
an indirect effect on customers’ brand engagement. The findings of this research provide valuable insights to the
managers about what they need to prioritise in regard to increase online customers’ brand engagement. This study
contributes significantly to the body of knowledge by developing and empirically testing research model connecting
to UGC quality with UGC values and customer’s brand engagement within the Asian context.
Keywords: User-generated content; Functional value; Emotional value; Online customers’ brand engagement
1. Introduction
Web 2.0 has brought significant changes in regard to individuals’ interaction pattern with the Internet [Lai & To
2015; Yang et al. 2017]. It allows the internet users to interact and collaborate with each other via user-generated
content which differs from the first generation of web where users’ role was limited to view the content in a passive
manner [Thomas et al. 2019]. The inclusion of user-generated content enabled Web 2.0 to offer a more social,
interactive, and responsive web design. More particularly, it allows users to create, modify, and share their own content
[Owusu et al. 2016; Papathanassis & Knolle 2011]. The special characteristics of openness, participation, and sharing
contributed to the significant increase of Web 2.0 in the production of user-generated content [UGC) [Valcke &
Lenaerts 2010]. UGC is an important means that allows individuals, groups, and all type of organisations to express
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themselves and communicate with others online by sharing videos, texts, audios, and images (e.g., YouTube); blogs
(e.g., Blogger.com); and social networking sites (e.g., Instagram, Facebook) [Bakshy et al. 2012; Kim & Lee 2017].
In recent years, the use of UGC in business organisations to carry out marketing activities has increased
significantly [Malthouse et al. 2016; Navarro & Bigné 2017; Thompkins & Regerson 2012]. These organisations
utilise UGC for different purposes, including advertisement, promotions, and customer services [Shim & Lee 2009].
At the individual level, UGC helps consumers to express their personal identity, allows social interactions with others,
and enables gathering or disseminate information [Daugherty et al. 2008]. Blackshaw & Nazzaro [2006, p. 4] argued
that UGC is “a mixture of fact and opinion, impression and sentiment, founded and unfounded titbits, experiences,
and even rumour”. It serves as a vital way for its users to express their views and opinions and communicate with
others [Boyd & Ellison 2008]. Organisations started to employ UGC to achieve two-way communication and
interactions with their current and potential customers [Papathanassis & Knolle 2011]. UGC assists companies to
deliver their messages to customers and obtaining customers feedback. Therefore, high quality UGC is expected to be
shared [Valcke & Lenaerts 2010]. Sun (2010) argued that, the qualities of information systems enhance the value
served by the system. Similarly, Gangi & Wasko [2009] found that, organisations created value using high quality
UGC, and this value influenced the experience and interests of users positively. In the same manner, this study argues
that organisation’s UGC quality can enhance users’ values, which would in turn affect their online brand engagement
positively.
Broadly speaking, the notion of the brand engagement is comparatively new in the marketing literature [Vivek et
al. 2012; Zheng et al. 2015], which is considered as one of the key drivers that affect consumer’s decision-making
process [Hollebeek 2011; Potdar et al. 2018]. Considering its importance, researchers have suggested to explore the
antecedents that drive online customer engagement [e.g. Brodie et al. 2011; Hollebeek et al. 2014]. Brand engagement
is perceived as the way to create a solid and stable relationship between the brand and the consumer [Liu et al. 2011].
Bonhomme et al. [2010] argued that to have a successful brand, a company must build customer brand engagement.
Having customers willing to spend their own valuable time on a specific brand is a crucial step for each business
[Smith et al. 2012). One of the most significant tools for marketers to convey their brad, to interact with the customers
and to communicate with them is UGC [Gunelius 2012; Malthouse et al. 2016; Verma 2014].
Different studies in the field of brand engagement considered the role of UGC and its effects on brand equity and
utility. The research done by Kim et al. [2012] focused on the effect of UGC and UGC-created values on utility. They
argued that, there are three quality factors creating value for customers, including: content quality, design quality and
technology quality, which in turn improve the utility. Similarly, Bonhomme et al. [2010] found a significant positive
relationship between UGC and consumer-based brand equity. Different streams of research revealed that, UGC has
significant effects on brand images, purchase intentions, and sales [De Vries et al. 2012; Jin & Phua 2014).
Nevertheless, there is a lack of studies that examine the direct and indirect effect of UGC quality on online customers’
brand engagement through UGC values. Therefore, the main objectives of this study are threefold: (i) to examine the
effect of UGC quality on UGC values, (ii) to test the effect of UGC values on online customers’ brand management,
and (iii) to predict the mediating effect of UGC values between UGC quality and online customers’ brand engagement.
To achieve these objectives, a theoretical framework has been developed based on Stimulus-Organism-Response (S-
O-R) theory [Mehrabian & Russell 1974]. Based on this theory, this study postulates that, the online environmental
cues like music, colour, lighting, technology, quality, design, etc., affect customers’ internal states (UGC values) and
external state (online customers’ brand engagement) [Richard 2005; Wang et al. 2011]. The rest of the paper is as
follows. First, based on past studies, a theoretical framework is developed and hypotheses are explained. Next, the
adopted methodology is discussed, followed by the results, findings, and discussions. Lastly, a conclusion is made,
and implications, limitations, and future research directions are highlighted.
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Past studies have applied the S-O-R theory to explain how the factors of the online shopping environment affect
the psychological states of cognition, affection, and activation, creating customer responses [Animesh et al. 2011;
Jiang et al. 2010; Parboleah et al. 2009]. In the same manner, Kim and Lennon [2010] used information to represent
the stimulus, perceived risk and satisfaction to represent the organism, and revisit and purchase intention to represent
the response. Additionally, Fang [2012] considered sellers’ online interactivity strategies as the stimulus, and
discussed its effect on perceived diagnosticity and deception, affecting consumers’ transaction intention. Likewise,
this study considers that, UGC created by Internet and technology users that are made available online in the form of
text, audio, and visual as online environment stimuli that may affect customers’ functional and emotional values and
ultimately influence their decision to engage with a certain brand (e.g., YouTube, Facebook, Twitter, Google, etc.).
Particularly, UGC that provides functional factors (such as, accessibility, ease of use, quality, etc.), and emotional
factors (such as, pleasure, excitement, satisfaction, contentment, etc.) is likely to influence customers’ response
positively. The response part reflects the outcome, including both psychological reactions like attitude and behavioural
reaction [Bagozzi 1986]. Psychological responses can be positive or negative, as behaviour can be positive (engaging
with brand) or negative (avoiding brand).
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state of mind, which can include pleasure, satisfaction, arousal, dominance, and comfort, and ultimately inspire
customers to respond by engaging in the brand. Accordingly, the following hypotheses are developed:
H1. UGC content has a positive effect on the functional value of UGC.
H2. UGC content has a positive effect on the emotional value of UGC.
H3. Functional value has a positive effect on customer-brand engagement.
H4. Emotional value has a positive effect on customer-brand engagement
H5. Functional values mediate the relationship between UGC content and customer-brand engagement.
H6. Emotional values mediate the relationship between UGC content and customer-brand engagement.
2.6 UGC Design, Functional and Emotional Values, and Brand Engagement
UGC contents are developed in different forms, including blogs, wikis, videos, podcasts, and social networking
sites [Peters et al. 2013]. The visible characteristics and elements of every website are called design. Every UGC
website developer has been trying to develop a distinguished and unique design from that of the competitors, and thus
numerous readymade temples are available with the flexibility of editing and formatting. It is logical that the more
appealing the appearance and outlook of any web-based UGC, is the higher number of UGC users it will directly
attract [Ewalda & Ali 2016]. There are elements and factors contributing to website designs. Those elements can
include audios, graphics, fonts, colours, shapes, etc. The method by which UGC is designed is important, because it
can improve the values of UGC in terms of functional and emotional values [Kim et al. 2010]. More clearly, the
flexibility of website design makes it simple and easy for users to share videos, images, comments, ideas, etc., with
others locally and globally, enhancing their functional and emotional values, and ultimately boosting their engagement
with the brand.
Based on the above mentioned discussions, this study argues that design quality of UGC can exert a direct effect
of UGC emotional and functional values, and indirect effect on brand engagement through UGC values. This argument
is rooted in the S-O-R theory. It theorises that, online environmental signals act as stimuli (stimulus) affecting the
customers’ emotional and functional state (organism), which ultimately affects their behaviour (response). In detail,
the structure of the UGC content, including the unification and harmonisation of sound, video, text, and audio, can
enhance the emotional and functional values of customers, and eventually motivate them to engage with the brand.
Accordingly, the following hypotheses are developed:
H7. UGC design quality has a positive effect on the functional value of UGC.
H8. UGC design quality has a positive effect on the emotional value of UGC.
H9. Functional value mediates the relationship between UGC design quality and customer-brand engagement.
H10. Emotional value mediates the relationship between UGC design quality and customer-brand engagement.
2.7 UGC Technology Quality, Functional and Emotional Values, and Brand Engagement
Technological advancement plays a vital role in the success of almost every business of the modern world [Bui
& Kemp 2013; Leong et al. 2018]. New generations of techno-savvy Internet users demand more and more
advancement in technology of every product they used [Priporasa et al. 2017]. Technology advancement makes the
competition strong, thus attracting users to every web-based UGC platform is difficult. One might easily lose vast
numbers of fans from lagging facilities and attributes that rival UGC websites have. UGC technology can increase the
functional and emotional values of UGC, providing more user-friendly interfaces, ease of accessibility, and
convenience [Kim et al. 2012]. Furthermore, UGC contains videos and motion pictures that can directly impact the
emotional value of UGC [Kim et al. 2010]. These efforts from UGC sites not only help in improving UGC
technological functional and emotional values, but also lead to an increase in brand engagement among users.
Based on previous discussions, this study proposes that UGC technology can affect functional and emotional
values of UGC and enhance the users’ engagement with the brand. This argument is embedded in the S-O-R model.
Based on this theory, the effect of online environmental stimuli on customers’ action/reaction is mediated by attitudinal
and emotional regulation. More clearly, UGC’s advanced and friendly technologies that assist the users in generating
and sharing the content with others boosts the emotional and functional values of the user, motivating them to engage
with a specific brand. Accordingly, the following hypotheses are developed:
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H11. UGC technology quality has a positive effect on the functional value of UGC.
H12. UGC technology quality has a positive effect on the emotional value of UGC.
H13. Functional value mediates the relationship between UGC technological quality and customer-brand
engagement.
H14. Emotional value mediates the relationship between UGC technological quality and customer-brand engagement.
Based on the discussion above a research model is drawn as shown in Figure 1.
3. Methodology
3.1 Procedure of Data Collection
This is a cross-sectional study where the data-gathering process was carried out at one point of time. This study
utilised the quantitative research particularly survey method to collect data from participants. Due to the Internet-
based subject of this research, the best place to find the respondents and collect the data from them was the Internet.
The ‘Qualtrics’ web-based survey administration website was employed to collect data from respondents. The online
survey was sent to respondents through the Internet via messenger, email, and social media, including Twitter and
Facebook, for approximately 10 weeks, from February 2017 to mid-April 2017. The answers were automatically and
directly collected on the ‘Qualtrics’ website. A total number of 1000 questionnaire links were distributed and around
242 questionnaires were returned and found usable for further analysis. The profiles of the respondents are presented
in Table 1. About 55% of the respondents were females and 45% were male. In terms of their ethnicity, 44.95% of
participants were Malay, followed by Chinese (25.25 %), and Indian (13.44 %). In terms of age, the majority of
respondents (61.4%) were less than 35 years. Regarding participants education background the bulk of them have a
bachelor degree and above (50.9%). With respect to experience in UGC use, the majority of respondents use it more
than 6 times every week for different reasons such as sharing information (23.5%), social relationship (22.6),
community participating (18.9%), pleasure improvement (8.8%), expression expansion (9.5%).
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factor that explain the majority of variance [Podsakoff et al. 2003]. The result of the un-rotated factor analysis revealed
that the first factor explained 24.95% of the total explained variance (62.95%) which confirms that CMV is not an
issue in this study.
4. Results
To test the research model, this study used structural equation modelling Partial Least Squares (PLS-SEM), using
the SmartPLS 3.0 software [Ringle et al. 2015]. Following the recommended two-stage analytical procedures by
Anderson & Gerbing [1988], the measurement model was tested followed by the structural model. The measurement
model represent the relationship between latent variable and its relevant indicators, whereas, the structural model
reflect the relationship between the latent variables [Hair et al. 2017; Quoquab et al. 2018].
In this study, the PLS-SEM was considered for different reasons. First, this is an exploratory research [Richter et
al. 2016] that aim to know more about the causal relationships between UGC, UGC values, and customer online brand
engagement. Second, this study aim to predict and maximize the explained variance in the endogenous variables [Hair
et al. 2017]. Additionally, PLS-PM is recommended for complex models that has direct and indirect relationships
[Richter et al. 2016].
Next, discriminate validity was evaluated based on two methods i.e., Fornell & Larcker’s [1981] criterion and
heterotrait-monotrait (HTMT) method [Henseler et al. 2015]. To establish discriminant validity based on fornell -
Lacker criterion, the square root of the average variance extracted for that constructs should be higher than its
correlation with other constructs in the model [Hair et al. 2017]. Table 3 shows that all the values on the diagonals
were greater than the corresponding row and column values indicating the measures were discriminant. To establish
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Mohammad et al.: The Mediating Role of Functional and Emotional Values
discriminate validly using HTMT method, the ratio of between construct correlations to within construct correlation
should be less than 0.85 or 0.90 [Henseler et al. 2015]. The results in Table 4 show that the HTMT0.90 of all latent
variables were lower than 0.90. Thus, discriminant validity has been established using both methods.
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5. Discussion
The objectives of this study were to predict the direct effect of UGC quality on UGC values and the direct effect
of UGC values on customer-brand engagement. It also examined the mediating role of UGC values between UGC
quality and customer-brand engagement in a non-western context. To accomplish the objectives of this study, a
conceptual framework was developed based on S-O-R model, literature, and logical argument. Structural equation
modelling - partial least square approach was employed to examine the hypothetical model. Overall, the findings of
this study found support for majority of the hypotheses (8 out of 14).
In explaining the hypotheses, the data support the relationship between the content quality of UGC and functional
and emotional values which is consistent with the S-O-R theory as well as past studies [Kim et al. 2012]. It implies
that when the content quality of UGC sites is simple to understand, easy to use, novel, popular, and relevant to users’
interests, this will stimulate and enhance users’ functional and emotional values, and ultimately they will be inclined
to allocate more time to be involved and connect cognitively and emotionally with the brand. Moreover, this study
found that, the technological quality of UGC exerts positive and significant effects on both functional and emotional
values. This result is in line with S-O-R theory and past studies [Kim et al. 2012]. This result suggests that to enhance
users’ functional and emotional values, the technology quality of UGC must provide users with friendly access to
various websites, help users upload and share their items (video, audio, image) with others, and have fast interactions
with UGC. Eventually, customers will be more willing to engage cognitively and emotionally with the brand.
Interestingly, the results of this study found that design quality of UGC has no effect on users’ functional and
emotional values in the Malaysian context. This result contradicts past studies that found that, these variables were
positively related [Kim et al. 2012]. A possible explanation for this result is that the organisation, structure and
harmony among different elements of UGC, including audio, video, image, sound, etc., was not important in this
culture. The users’ main concern focused more on the practical and technical side rather than the aesthetic side.
Overall, the results suggest that both content and technological quality of UGC are important predictors of users’
functional and emotional values, whereas design quality was less important in this context.
This study hypothesised that functional and emotional values of UGC will exert a positive effect on customer-
brand engagement. The findings of this research provide support for these hypotheses. In other words, the higher the
users’ functional and emotional values, the more they will be engaged with an online brand like Facebook, YouTube,
Twitter, etc. More specifically, if providers of UGC can satisfy the need of their users by providing convenient and
easy to use functions, with low cost, and make the use of these functions an enjoyable experience, their functional and
emotional values will increase, and eventually their engagement with the provider’s brand will rise. The result of this
study is in line with the S-O-R theory and past studies that found these types of values affect users’ attitudes, in terms
of their utility [Kim et al. 2012].
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Mohammad et al.: The Mediating Role of Functional and Emotional Values
The results of this study also found that, the functional and emotional value of UGC mediate the relationship
between content and technological quality and customer-brand engagement. This result is consistent with the S-O-R
theory. More particularly, when UGC sites provide users with a good combination of technology and knowledge that
are simple, clear, and easy to use, with refreshing and popular content, their functional and emotional value are likely
to increase and, ultimately, customers tend to be more engaged with the brand. Contrary to the expectation, neither
functional nor emotional values mediate the relationship between design quality and customer-brand engagement.
Acknowledgment
We gratefully acknowledge the insightful feedback of the anonymous reviewers and the Associate Editor, as well
as the cooperation and support of the Editor-in-Chief (Professor Melody Kiang).
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