Consumer-Generated Ads on YouTube: Impacts of Source Credibility and Need for Cognition on Attitudes, Interactive Behaviors, and eWOM

ABSTRACTThis study examines consumer-generated advertising (CGA) impacts on consumer attitudes, and behaviors for interacting with YouTube features and passing along electronic word-of-mouth. An online experiment with 175 subjects was conducted with a 2x2x2 factorial design. Participants viewed a video advertisement on YouTube, framed as either a consumer-generated or firm-generated advertisement, to determine effects of source credibility with different levels of product involvement. Need for cognition (NFC) also was examined. Analysis revealed consumers as source significantly enhanced advertising attitudes and interactivity behaviors. Higher NFC levels significantly increased interactivity and pass-along. Findings suggest that CGA is a trusted form of user-generated content, with one exposure prompting interactive engagement to search, rate, or comment. Practical implications show potential for online marketers to see positive consumer responses to advertisements labeled as CGA with content flexibility for broad consumer groups, and enhanced pass-along from high-NFC individuals.Keywords: User-generated content; Advertising; Consumer-generated advertising; Source credibility; Electronic word of mouth; Need for cognition1. IntroductionThe global rise of social media has empowered consumers to create and share online videos about brands broadly with others. Previously, only corporations could create and disseminate a video advertisement. Today, on social media and video-sharing sites, consumer-generated advertising (CGA) videos may be shared with millions. CGA is defined as "publicly disseminated, consumer-generated advertising messages whose subject is a collectively recognized brand" [Campbell, Pitt, Parent and Berthon 2011, p. 88]. Nielsen [2012] research shows consumers trust peers and online reviews more than traditional ads. Some brands struggle with the power shifts of such user- generated content (UGC). This form of advertising may be solicited, such as Doritos' successful CGA contests that involve consumer voting and air annually as Super Bowl ads [Wasserman 2013], or unsolicited via consumer interest.Consumer responses to CGA - in terms of attitudes and behaviors - offer a developing area of inquiry. In limited CGA studies, attitudinal responses vary. Consumers may trust online product information from peers more readily than corporate sources [Cheong and Morrison 2008]. CGA may persuasively impact via source effects that enhance ad and brand attitudes [Lawrence, Fournier and Brunel 2013]. Yet, CGA developed for brand-sponsored contests may draw consumer critique of source competence to create advertising [Ertimur and Gilly 2012; Thompson and Malaviya 2013]. CGA itself may not enhance attitudes consistently, but video features may impact online consumer comments for firm-generated ads differently than CGA [Pehlivan, Sarican and Berthon 2011] and award-winning and popular CGA may be of positive influence [Steyn, Wallstrom and Pitt 2010]. Few studies have considered behavioral outcomes from CGA experiences. Consumers may use Web 2.0 interactive features, such as posting comments, and giving recommendations or ratings, which may spark opinion- sharing brand conversations on YouTube [Campbell et al. 2011; Cheong and Morrison 2008]. In turn, consumers easily may send messages involving brands, a form of electronic word-of-mouth (eWOM). Studies of eWOM show consumers provide opinions and share content with peers, or seek comments from others related to products or brands. eWOM is powerful communication that diffuses rapidly, offers easy accessibility, shows observable qualities, and provides credibility [Cheung and Thadani 2012]. Most eWOM studies focus on social network sites [Chu and Kim 2011; Jansen, Zhang, Sobel and Chowdury 2009] or virtual communities [Hennig-Thurau, Gwinner, Walsh and Gremler 2004; Hung and Li 2007; Sun, Youn, Wu and Kuntaraporn 2006]. Hung and Li [2007] noted consumers shared similar interests, or involvement - a familiarity or interest in a category [Laaksonen 1994] that may draw attention to related ads [Greenwald and Leavitt 1984]. …