+ All Categories
Home > Documents > CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A...

CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A...

Date post: 27-Jun-2020
Category:
Upload: others
View: 1 times
Download: 0 times
Share this document with a friend
67
CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODELWord count: 19.328 Senne Vermassen Student number: 01308585 Supervisor: Prof. dr. Sarah Steenhaut Master’s Dissertation submitted to obtain the degree of: Master of Science in Business Economics Academic year: 2017 - 2018
Transcript
Page 1: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

“CUSTOMER ENGAGEMENT IN AN

OMNICHANNEL ENVIRONMENT: A

COMPARATIVE ANALYSIS OF

FACEBOOK AND INSTAGRAM BASED

UPON THE P2F MODEL”

Word count: 19.328

Senne Vermassen Student number: 01308585

Supervisor: Prof. dr. Sarah Steenhaut

Master’s Dissertation submitted to obtain the degree of:

Master of Science in Business Economics

Academic year: 2017 - 2018

Page 2: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word
Page 3: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

“CUSTOMER ENGAGEMENT IN AN

OMNICHANNEL ENVIRONMENT: A

COMPARATIVE ANALYSIS OF

FACEBOOK AND INSTAGRAM BASED

UPON THE P2F MODEL”

Word count: 19.328

Senne Vermassen Student number: 01308585

Supervisor: Prof. dr. Sarah Steenhaut

Master’s dissertation submitted to obtain the degree of:

Master of Science in Business Economics

Academic year: 2017 - 2018

Page 4: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

I

Confidentiality agreement

PERMISSION

I declare that the content of this Master’s Dissertation may be consulted and/or reproduced, provided

that the source is referenced.

Student’s name: Senne Vermassen

Signature:

Page 5: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

II

Nederlandse samenvatting

De hedendaagse klant heeft zich onderworpen aan een totale metamorfose ten aanzien van zijn

traditionele voorganger. Waar klanten zich tot voor kort nog als één grijze massa voortbewogen op het

ritme van het bedrijf, heeft elk lid van die massa vandaag de dag een eigen gezicht en stem gekregen.

De achterliggende reden van deze ommekeer is te wijten aan de alsmaar groeiende kracht van de

digitale wereld. Meer bepaald, bieden sociale media zoals Facebook en Instagram een interactief

platform aan waarop klanten de mogelijkheid krijgen hun gedachten te spuien omtrent aanrakingen met

het bedrijf. Zodoende, betekent dit dat de machtsverhouding tussen bedrijven en klanten drastisch

gekeerd is ten voordele van de laatstgenoemden.

Om het hoofd te kunnen bieden aan deze cruciale veranderingen, dienen managers hun strategieën

ingrijpend te veranderen. Echter, gegeven de toegenomen complexiteit vanwege de overgang naar een

digitaal tijdperk, is dit beslist geen eenvoudige opdracht. Daarom is het aan de academici om hen hierin

wegwijs te maken, door een ruim arsenaal aan theorieën, conceptuele modellen en bruikbaar

gereedschap aan te bieden. In deze thesis, worden dusdanig twee veelbesproken onderwerpen

samengebracht, om zo een dergelijk inzetbaar instrument te bekomen.

Enerzijds behandelen we de thematiek rond klantbinding. Dit onderwerp heeft namelijk tot op heden

nogal wat discussie doen opwaaien tussen managers en academici en academici onderling. In de

literatuurstudie van dit werk gaan we daarom eerst op zoek naar raakvlakken tussen de verschillende

opinies, die vervolgens geconcretiseerd worden in vier stellingen. Bovendien zal getracht worden de

consensus verder te bevorderen door middel van het opstellen van een overkoepelende definitie.

Anderzijds, duiken we in de wereld van marketing kanalen. Meer bepaald, maken we duidelijk hoe een

graduele overgang van het gebruik van multi- naar Omnikanalen - die een geïntegreerde aanpak van

een veelheid aan traditionele en digitale kanalen impliceren - de deur opende naar verschillende

vormen van waarde creatie ten gunste van het bedrijf.

Als laatste, vormt het in elkaar vlechten van de bovengenoemde onderwerpen de apotheose van dit

eindwerk. Hieruit volgt namelijk de constructie van het P2F model, dat als doel voor ogen heeft een

nieuwe wending te geven aan de manier waarop marketing praktijken vandaag de dag op hun

effectiviteit beoordeeld worden.

Om vervolgens de daad bij het woord te voegen, wordt het voorgestelde model verder reeds in werking

gesteld in het onderzoek gedeelte van deze thesis. Meer bepaald, trachten we op basis van klantbinding

de meest complete en accurate vergelijking te maken van de verschillen in effectiviteit tussen Facebook

en Instagram, dé twee populairste sociale media van vandaag. Daarenboven, brengen we twee

mogelijke formats waarin de berichten op dergelijke platformen geplaatst worden, mee in rekening als

onafhankelijke variabelen. Ten einde het onderzoek vorm te geven, werd besloten om Volvo te hanteren

als onderzocht merk in de relatie tussen sociale media activiteit en klantbinding.

Uit onze resultaten volgt dat Instagram blijkt een sterker potentieel aan klantbinding te bezitten dan

Facebook. Daarnaast vinden we aanwijzingen voor de tendens dat video formats meer in staat zijn de

klant te engageren dan een afbeelding met opschrift. Als laatste benadrukken we tevens dat wanneer

het gaat om het meten van klantbinding, big-data technieken mogelijks een waardevol alternatief kunnen

bieden voor onze gebruikte survey-methode.

Kernwoorden: Klantbinding – Marketing kanalen – Sociale media – Facebook – Instagram – P2F

model - Formats

Page 6: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

III

Preface

Starting off this academic journey, not fully knowing what to expect, I perceived it as just the most

evident next step in my education. I envisioned it as the simple continuation of my high school years.

Soon however, I became aware of the substantial increase of hard work I would have to invest in order

to handle the large amounts of study material. The theoretical aspect of college has thus proven itself

as quite the challenge. Yet, through hard work, it turned out to be achievable!

It is only now however, that I have come to realize that university has meant much more to me than

that. It has offered me the ideal platform to grow on a more personal level, to an extent that I hadn't

expected initially. The valuable skills attained in the numerous presentations, the countless group

works and my Erasmus experience in particular, have significantly contributed to my overall level of

confidence and self-knowledge.

However, one does not simply complete his master's degree on his own. Therefore, there are a few

people who I had wished to express some words of gratitude towards in the following paragraphs:

First of all, to my promotor, prof. dr. Sarah Steenhaut, who I could undoubtedly count on in the midst of

facing though obstacles throughout the process and who pushed me beyond what I imagined

achievable in writing a master’s dissertation.

To my best friend for almost twenty years, Guust, who always offered a listening ear to my overflowing

thoughts in times of both extreme joy and uttermost despair.

To my big brother, Flor, who set a tremendous example for me to not only succeed academically, but

also to follow my dreams and live life to the fullest.

To my amazing girlfriend Sarah, who I got together with in the first year of university and who stuck

with me through thick and thin along the ride. You often knew me better than I knew myself and kept

believing in me at all times. I love you.

And last but not least, to my wonderful parents. Without your unconditional love and support from the

first year of kindergarten up until the last year of university, I would have never been in the fortunate

place I am today. You consistently gave me every opportunity to do what I wanted to do and as a

result to become who I wanted to be. Therefore, I wanted to say: mom and dad, thank you, this one’s

for you!

Senne Vermassen

1st of January 2018

Page 7: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

IV

Table of contents Page

CONFIDENTIALITY AGREEMENT ............................................................................ I

NEDERLANDSE SAMENVATTING ........................................................................... II

PREFACE ................................................................................................................. III

TABLE OF CONTENTS ............................................................................................ IV

LIST OF FIGURES .................................................................................................... VI

LIST OF TABLES .................................................................................................... VII

LIST OF USED ABBREVIATIONS ......................................................................... VIII

1 INTRODUCTION .................................................................................................. 1

2 LITERATURE SURVEY ....................................................................................... 2

2.1 A WALK THROUGH THE WONDER WORLD OF CUSTOMER ENGAGEMENT ................. 2

2.1.1 Back to the roots of CE: an historic overview ...................................................................... 2

2.1.2 Many perspectives, little consensus .................................................................................... 4

2.1.3 Bringing order to the chaos: recognized common ground in CE research.......................... 5

2.1.4 An overarching meaning singled out .................................................................................. 7

2.1.5 Conclusion ........................................................................................................................... 8

2.2 AN OMNIPOTENT SOLUTION FOR A MULTIDIMENSIONAL ISSUE .................................. 8

2.2.1 How multichannel marketing rose to the occasion .............................................................. 9

2.2.2 Exploring the ever changing MM landscape: from an offline to an online environment. ... 10

2.2.3 In search of MM crossovers: the proliferation of stand-alone empirical cases. ................ 11

2.2.4 The integration of a multitude of channels: from MM to OM ............................................. 12

2.2.5 Conclusion ......................................................................................................................... 14

2.3 COMBINING CONCEPTS: THE IDENTIFICATION OF A KNOWLEDGE GAP ................... 14

2.3.1 Introducing the P2F model ................................................................................................ 14

2.3.2 The weakness and strength of CE in an Omnichannel environment ................................ 16

2.3.3 Comparing the effectiveness of social media channels and their formatting ..................... 18

2.3.4 Research questions and hypotheses ................................................................................ 20

3 METHODOLOGY ............................................................................................... 21

3.1 GOAL OF THE RESEARCH ................................................................................................. 21

3.2 RESEARCH DESIGN ............................................................................................................ 22

3.2.1 Sample ............................................................................................................................... 23

3.2.2 Procedure .......................................................................................................................... 23

3.3 RESULTS .............................................................................................................................. 25

3.3.1 Scale validity analysis ........................................................................................................ 25

3.3.1.1 Factor analysis ........................................................................................................... 25

3.3.1.2 Internal consistency reliability analysis ...................................................................... 27

3.3.2 Hypotheses testing ............................................................................................................ 27

3.3.2.1 Descriptive statistics on the research question ......................................................... 27

Page 8: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

V

3.3.2.2 The use of independent samples t-tests to identify general effects .......................... 28

3.3.2.3 The use of variance analysis to identify combined effects ........................................ 30

4 DISCUSSION ..................................................................................................... 32

4.1 CONCLUSIONS EMERGING FROM THE RESEARCH ....................................................... 32

4.2 DISCUSSION FROM THE RESEARCH RESULTS .............................................................. 32

4.3 LIMITATIONS AND SUGGESTIONS FOR FURTHER RESEARCH .................................... 34

4.4 MANAGERIAL IMPLICATIONS ............................................................................................. 35

5 CONCLUSIVE CONSIDERATION ..................................................................... 35

REFERENCES .......................................................................................................... IX

APPENDIX .............................................................................................................. XIV

SCHEMATIC OVERVIEW OF THE RESEARCH .............................................................................XIV

SURVEY ................................................................................................................... XV

1. SURVEY INTRODUCTION ............................................................................................................XV

2. CI MEASUREMENT ......................................................................................................................XV

2.1 Involvement towards cars.........................................................................................................XV

2.2 Involvement towards Volvo .....................................................................................................XVI

3. ASSIGNING RESPONDENTS TO EXPERIMENTAL/CONTROL GROUP(S) ............................XVII

3.1 Facebook allocation ............................................................................................................. XVIII

3.2 Instagram allocation .................................................................................................................XX

3.3 Stimuli .....................................................................................................................................XXII

3.3.1 Scenario 1: Facebook captioned image ......................................................................XXII

3.3.2 Scenario 2: Facebook video .........................................................................................XXII

3.3.3 Scenario 3: Instagram captioned image .....................................................................XXII

3.3.4 Scenario 4: Instagram video .........................................................................................XXII

3.3.5 Captioned image stimulus .......................................................................................... XXIII

3.3.6 Video stimulus ............................................................................................................. XXIII

4. CE MEASUREMENT ................................................................................................................. XXIV

5. SOCIO-DEMOGRAPHICS......................................................................................................... XXVI

Page 9: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

VI

List of figures Page

Figure 1: The Evolution of Customer Management Figure……………...………………......………...…..3

Figure 2: : A comparison of the perceived and actual customer values between two customer when a

CE dimension has been wrongfully omitted…………………………………………………...……………...6

Figure 3: Customer's path to and off purchase…...……..…………………………………………………13

Figure 4: Proposed new marketing effectiveness model…………………………………....………….....15

Figure 5: Modified mass communications model…………………………………………………….…….17

Figure 6: The overview of a comparison between on- and offline marketing channels………………..17

Figure 7: Factiva Mentions per Major Topic in Popular Business Press……………………………...…18

Figure 8: A graphical representation of the intended research………………………………...…………23

Figure 9: Schematic overview of the research…………………………………………………………….XIV

Figure 10: Captioned image of a Volvo XC90…………………………………………………………...XXIII

Figure 11: Video of a Volvo XC90………………………………………………………………………...XXIII

Page 10: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

VII

List of tables Page

Table 1: Factor loadings and communalities for 16 items of the CES……………………………………26

Table 2: Descriptive statistics for the three CES factors………………………………………….…...…..27

Table 3: Descriptive statistics on the measure of CE as a function of social media posting…………..28

Table 4: Independent samples t-test on the mean scores of CE between experimental groups and

control group…………………………………………………………………………………………………….28

Table 5: Cell sizes, means and standard deviations on the factorial design measuring CE…………..31

Page 11: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

VIII

List of used abbreviations

CE………………………………………………Customer Engagement

CES……………………………………..Customer Engagement Scale

CIC……………………………………......Customer-Initiated Channel

FIC……………………………………………….Firm-Initiated Channel

FMCG…………….…………………….Fast-Moving Consumer Good

MM……………………………………………..Multichannel Marketing

MSI…………………...…………………...Marketing Science Institute

OM……………………...……………………..Omnichannel Marketing

P2F…………...…………………………………………Path-to-Feelings

P2P…………………………………………………….Path-to-Purchase

PII……………………………………Personal Involvement Inventory

RFM……………………………Recency/Frequency/Monetary Value

SEA………………………………………..Search-Engine Advertising

WTP………………………………………………….Willingness-to-Pay

Page 12: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[1]

1 Introduction

The way in which customers are managed has shifted drastically over the past decades. Customers are

no longer perceived as dependent cash-cows adding solely monetary value to a firm’s financial

objectives. Instead, customers are now seen as active contributors rather than passive subjects.

Examples of such contributions can be found in the field of customer acquisition and retention, product

innovation and marketing communication. (Malthouse, Haenlein, Skiera, Wege, & Zhang, 2013). In this

respect, we can identify a broader trend among firms of altering the focus from the objective of “selling”

to “emotionally connecting” with their customers. Hereby, the goal is to not only generate purchases,

but also to create a level of proactive engagement amongst customers that lasts for a lifetime (Pansari

& Kumar, 2016).

The shift of attitude towards customers has led to a continually increasing amount of interest in the

construct of “customer engagement” (CE). The Marketing Science Institute underscores CE as a key

research area that has the ability to develop a more enhanced academic insight into consumer behavior

in multiple environments (Marketing Science Institute, 2010). However, not only from an academic point

of view, but also from a practitioner’s perspective, the construct has gained significant interest. Take for

example the Belgian beer giant Anheuser-Busch, who is willing to spend more than $200 million annually

on the development of their engagement strategies, beginning in 2017 (Barris, 2015). In addition, a

study by Gallup (2013) shows that entirely engaged customers deliver 23 percent extra benefits in the

field of share-of-wallet, profitability, revenue, and relationship growth as opposed to non-engaged

customers. In all, these examples clarify that CE has prompted itself as a relevant concept worth

evaluating for professional marketers.

In sharp contrast to the illustrated importance of CE, the exact meaning of the construct has proven to

be far from determined. Over the past decade, many profound researchers provided valuable insights

into the matter, each with their own personal approach. However, no consensus between academics

and practitioners, nor between academics mutually, was ever reached. Harmeling, Moffett, Arnold and

Carlson (2017) warn that this diffuse variation in perceptions can become problematic due to a lack of

clarity and unambiguity regarding the concept. Therefore, the first aim of this dissertation is to make an

overview of the most significant existing definitions, ideas, and justifications used to examine the

construct, based on which four encompassing tenets are formed. By doing so, business professionals

as well as academics are provided with a useful guide that is able to show them the ropes in the complex

world of CE. Consequently, this conceptual guidance can be considered as the theoretical contribution

of this dissertation.

Next to the development of CE, Omnichannel marketing (OM) has almost simultaneously emerged as

a topic of high interest among marketing researchers. More specifically, next to traditional offline

marketing activities, the arrival of e-commerce has spawned an enormous amount of studies that

investigate the underlying drivers of online channel use (Lemon & Verhoef, 2016). Also in practice, the

expansion of online marketing channels has left its mark. In the United States for instance, online

advertising – in its many forms - has grown from $9.6 billion in 2004 to $72.3 billion in 2016 (Interactive

Advertising Bureau, 2017). However, despite this stunning growth by means of major investments,

companies remain to struggle with the integration of online marketing channels with their longer existent

offline channels. This is undesirable, as an inefficient incorporation of both channel types may negatively

affect the efficiency in which customers are led along their customer journey. In contrast, it is argued

that a well implemented Omnichannel strategy has the ability to strongly engage customers by means

of a seamless experience (Frazer & Stiehler, 2014).

This leads us to the second intent of this paper, that is to join together the CE construct and the OM

concept, with the purpose of enabling practitioners to compare the effectiveness of both online and

offline channels in terms of CE. By doing so, this thesis aims to come up with a coherent, logical and

Page 13: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[2]

applicable measuring model for both academicians as well as practitioners, that transcends a theoretical

classification of existing literature. After we conjoin the two identified concepts theoretically, the gathered

knowledge is then put into practice by means of a quantitative research, amplified with a qualitative

section. In summary, this part of the dissertation can be considered as its practical contribution.

More specifically, in this dissertation, we looked for the effect of online channel choice on the extent to

which a customer felt engaged towards a brand. The research was conducted for the car industry, as

Volvo was picked as the brand to investigate. Moreover, the effect was checked for by two different

formats: video and a captioned image.

This dissertation will consist of five major compartments. First of all, a detailed overview of the theoretical

concepts that were studied, will be provided in the literature study of the next section. This survey will

then be followed by the description and results of our conducted research, within the methodology

compartment. Thirdly, the ensuing results will be reflected upon within the discussion. At last, we will

end this thesis with a summarizing wind-up in the conclusive consideration section.

2 Literature survey

The literature study consists of four chapters. In what follows, the CE concept will first be addressed.

Secondly, we will move towards a better understanding of the concept of Omnichannel marketing. In

the third part, both CE and OM are combined in order to address an identified gap in literature. Lastly,

we will make use of the integration of both constructs, blended in the proposed P2F model, to make a

comparison of effectiveness within online marketing channels.

2.1 A walk through the wonder world of customer engagement

In the current decade, the biggest leap of progression in the management of customers has been made

in the field of CE (Lemon and Verhoef, 2016). The issue of how companies can win the minds and hearts

of consumers, turning them into fully committed customers, has been put on top of the agenda by

practitioners. Many challenging questions arose over this period of time. What does CE mean exactly?

How can CE contribute to a firm’s objectives? In which way can CE be effectively measured?

Consequently, academicians have been handed the task to find meaningful theories, concepts,

frameworks and tools that can help managers find the answers to those questions. In the following

sections, a comprehensive overview of the most prominent findings during this period of time will be

provided. Afterwards, the gathered knowledge will be condensed to its core, in an attempt to reveal the

essence of preexisting literature covering the CE construct. The eventual goal is to provide a conceptual

guide that assists practitioners in solving engagement related problems by reconciling the most

influencing CE researchers.

In this facet, this paper differentiates itself from previous research by searching for interrelationship in

the most prominent literature covering the CE theory, rather than delivering an umpteenth listing of

preexisting differences in between those works. By doing so, we answer to the call of Hollebeek,

Srivastava and Chen (2016) for more generalizable and less fragmented CE research. This demand

stems from the idea that a tendency for sparse research likely hinders and at least slows down CE

research, therefore possibly endangering its theoretical advancement (Hamerling et al., 2016).

2.1.1 Back to the roots of CE: an historic overview

In order to start understanding CE to a full extent, it is necessary to first of all take a look at the historical

context in which the concept grew. In general, a gradual shift in marketing focus from transaction to

relationship, to eventually engagement marketing has taken place (Pansari and Kumar, 2016). A

schematic representation of this transition can be found in Figure 1 below.

Page 14: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[3]

From the sixties up until the beginning of the nineties, emphasis in the relationship between firm and

customer was based upon the recency, frequency and monetary (RFM) value of the customer (Baier,

Ruf, & Chakraborty, 2002). This means that the most crucial task of a firm was to get as much money

out of each customer individually for as many times possible, regardless of the resulting attitude the

customer held towards the selling firm. Even though a first attempt was made to implement a more in-

depth analysis of the customer buying process during this period of time, by means of the integrated

Buying Behavior Process Models (Howard, Sheth, & Jagdish, 1969), the ‘money’ component – as

opposed to ‘feeling’ - stayed dominant in the interaction between both parties.

Further down the line, throughout the nineties and early 2000s, when the goals of companies slowly

changed, researchers followed by amplifying the ‘relationship marketing’ theory. Morgan and Hunt

(1994) as well as Berry (1995) made a case for this concept in a B2B and B2C setting respectively. The

main idea behind the theory is that feelings of trust and commitment sent out by companies were the

main drivers for firms wanting to obtain longer lasting, more satisfying and positive relations with their

customers. These long-term relationships were put in place with the aim of promoting efficiency,

productivity and effectiveness (Morgan and Hunt 1994). The major contribution of this line of thought

was that in comparison to the transaction theory, the focus of the marketer had been extended by

including emotions and perceptions associated with the overall buying experience (Lemon & Verhoef,

2016). On the other hand, the downfall of the relationship marketing theory was that it remained a one

sided conversation. As the firm pushed its trustworthiness and commitment onto the customer, it did not

leave much room for a possibility of exchange or conversation between both parties.

This is why the engagement theory jumped the scene at the beginning of the current decade. More

specifically, the CE theory emphasizes the customers’ ability to influence the firm in their part, through

a set of interactive brand-related dynamics (Brodie, Hollebeek, Juric, & Ilic, 2011). This means the

construct reveals an opportunity for creating a bilateral exchange of information between firm and

customer. In the evolution of CE management figure, Pansari and Kumar (2016) suggest that when a

relationship is satisfied and has emotional bonding, it then proceeds to the stage of “engagement.” This

implies that even though satisfaction had been described earlier on as an important concept in marketing

literature (e.g. Oliver, 1980; Bolton & Drew, 1991), it has only acquired its true meaning since the

introduction of the more recent engagement marketing theory. Despite the fact that many researchers

nowadays underline its importance, the wide variety of definitions and positions regarding CE

bamboozle its true meaning.

Figure 1:The Evolution of Customer Management Figure. Source: Pansari & Kumar (2016)

Page 15: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[4]

2.1.2 Many perspectives, little consensus

Both researchers as well practitioners have racked their brains in finding a meaningful definition of the

CE construct in the recent past. This resulted in an extensive, yet scattered landscape of CE

interpretations. Jaakkola and Alexander (2014) therefore made a first attemptof reconciling CE research

by splitting it up into two major viewing points from which the construct had been encountered up until

then.

The first perspective on CE accentuates its psychological component, both cognitively as well as

emotionally. One of the most influential researchers to describe the construct in such a manner has

been Bowden (2009), who conceptualizes CE as a psychological process that conjoins cognitive and

emotional aspects leading to the creation of loyalty amongst prospective as well as existing customers.

Brodie et al. (2011) follow this line of work. Remarkably, rather than seeing CE as a psychological

process in itself, the authors depict CE as a psychological state of mind that is the result of repetitive,

interactive and co-creative experiences with the firm. This means that CE is depicted as an outcome of

interactive experience, instead of a transitional stage towards an improved relationship between

customer and firm. Moreover, despite keeping the main emphasis on the cognitive and emotional

aspects of CE, the behavioral dimension of CE was added as a subpart. Notwithstanding the fact that

Hollebeek (2011) kept the notion of ‘state of mind’, the author refined the definition of Brodie et al. (2011)

by delaring this state is motivational, brand-related, and context-dependent. Patterson, Yu and De

Ruyter (2006) reinforce the psychological perspective of CE by defining it as a psychological state that

is characterized by a degree of vigor, dedication, absorption and interaction. Despite the slight

differences in approach, there is thread to be identified among the above-mentioned researchers. CE is

presented in a way in which the ‘thinking’ and ‘feeling’ of a customer prevails its ‘doing’ in the motivation

to move along their decision journey.

The second viewpoint from which the CE construct has been attempted to be described, stresses its

behavioral component. Van Doorn et al. (2010) noted that CE is a customer’s behavioral manifestation

towards a firm, beyond the act of purchasing. This manifestation resulted from the motivational drivers

of the customer. Remarkably, in their definition, by explicitly referring to its motivational drivers as the

starting point of CE, the aforementioned psychological component of CE has not been neglected. A

more transactional approach to a behavioral definition came from Vivek, Beatty, and Morgan (2012),

who construed CE as the intensity of participation in and connection with the activities of a firm. The

suggested interactivity that results from this definition is either initiated by the customer or by the firm.

Very important in this work is the addition of a social dimension to the preexisting cognitive, emotional

and behavioral aspects of CE. Moreover, the dominance of the behavioral component of CE has been

reaffirmed by Verhoef, Reinartz, and Krafft (2010) who also specify it as a behavioral manifestation

toward the firm that surpass transactions. In summary, we can identify that from the behavioral side of

view, CE can be seen as a deliberate action of the customer to associate itself with the brand, beyond

the act of buying products or services. If this is the case, than we can state that a customer’s ‘doing’

tends to become more important than its ‘thinking’ and ‘feeling’ in the path to purchase (P2P).

Although both sides of the ‘CE spectrum’ (psychological versus behavioral prevalence) recognize the

relevance of their counterpart, it has to be noted that the previously mentioned researchers haven’t

allowed sufficient room for reconciliation between both ways of thinking. For further and a more

advanced theoretical development of CE however, we suggest that it is of major importance to work

towards a happy medium between both extremities. Hamerling et al. (2016) confirm this concern by

expressing that without definitional precision, it may become very hard to operationalize and differentiate

CE from other marketing constructs. If compromise is the way towards a better understanding of CE, it

begs the question: how can a generally accepted consensus among parties concerned be reached?

Page 16: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[5]

2.1.3 Bringing order to the chaos: recognized common ground in CE research

I propose that a first step towards reconciliation can be attained by finding parallels among the existing

definitions. In doing so, this paper dissociates itself from previous research that has the urge to pick

sides in the CE conversation. Brodie et al. (2011) argued that in the developmental state of CE, the

construct was in need of multiple descriptions by means of varied research. This implies that the

construct initially urged alternate theoretical lenses through which to view the concept and its associated

dynamics. In contrast, we suggest that it is necessitous to find common ground within these perspectives

in order to guide the concept from its initial developmental state to a more mature phase. Therefore, in

the next paragraphs we will provide an overview of our four identified CE tenets, that seemingly exist

within each preceded description of the construct.

1. CE is a multidimensional construct that includes a cognitive, emotional, behavioral and social

aspect.

To the best of our knowledge, previous researchers can all agree on the fact that CE integrates multiple

areas of a customer’s set of human capabilities. The cognitive and emotional dimensions can be

classified as the psychological component, which co-operates with the behavioral component, as

opposed to dissociating itself from it. The more recently introduced social aspect refers to the interactive

capabilities of social media, whichprovide a conceptual similarity to the interactive nature of the CE

concept itself (Hollebeek, Glynn & Brodie, 2014). Kumar et al. (2010) inform us that customers may

draw an incorrect valuation (overvalued or undervalued), when not all of these dimensions of CE are

taken into account. This erroneous assessment of a customer’s value may therefore result in an

inappropriate allocation of resources by practitioners (Verhoef et al., 2010). The latter idea gives us an

additional motivation of why we find it so important to align an academic point of view in a theoretical

setting, with a practical point of view that exists in the working field.

Take for instance customer A and customer B who both have an equally positive cognitive and emotional

relationship towards a brand. . A graphical representation of this idea can be found in Figure 2 on the

next page. The brand itself takes only the cognitive, emotional and behavioral aspects of CE into

account. As a result of its contentment with the brand, customer A buys the brand’s products very

regularly. The brand identifies this repeated purchase as a sign of strong engagement with the brand,

based on that customer’s behavioral component (e.g. purchases). Customer B on the other hand buys

the brand’s products rather occasionally, but is a strong influencer and promoter of the brand on social

media. Since the brand does not incorporate the relevance of a social dimension of CE and form a

behavioral point of view customer A provides more value than customer B, the brand incorrectly

overvalues customer A. In practice however, by offering a strong social influence, customer B had

brought forward more impact to the brand’s objectives. Therefore, customer B, should have been

allocated with the most resources, as it was the biggest value creator.

Page 17: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[6]

Figure 2: a comparison of the perceived and actual customer values of two customer when a CE dimension is

wrongfully omitted.

2. CE goes beyond the act of purchasing based on the recognition of a need.

The second observed mutuality among existing definitions is the fact that CE implies a deeper interaction

process than the traditional shift from a pre-purchase stage - in which need recognition is the driver of

a consumer’s activity - to the purchase stage and eventually the evaluation of the purchased product in

the post-purchase stage. This mechanism, described by Howard and Sheth’s model (1969), highlights

the necessity of the arise of a need prior to the customer taking initiative to interact with the firm. This

contradicts more recent research that emphasizes the fact that CE goes beyond transactions.

Furthermore, tenet 2 is strengthened by the idea that CE is based on behaviors through which customers

make voluntary resource contributions to a firm’s objectives (Jaakkola & Alexander, 2014). However,

the exchange goes beyond what is fundamental to the transaction. The notion of voluntariness

emphasizes that customers do not need the firm to fulfill their desires, but rather spontaneously want to

reach out to the them. This depicts the active role of the customer in the contemporary relationship

between customer and firm.

3. CE is based upon a balanced interaction between the thinking, feeling and doing of a customer.

Instead of further fortifying the quarrel between a customer’s psychological component feeling on one

side and behavioral component on the other (as discussed in section 2.1.2), we recommend that both

customer activities are granted an equal weight of attention. Given the multidimensional nature of CE,

all of its components should be taken into account equally in order to obtain the full picture of one’s level

of CE. By leaning towards one end of the CE continuum, researchers unwillingly may mislead managers

in making an erroneous evaluation of their customers. An additional motivation for this consideration is

that foundational constructs such as CE must be conceptually broad enough in order to capture the true

underlying essence of the phenomenon (Suddaby ,2010), which suggests that a biased approach

towards CE may undermine its true meaning.

Page 18: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[7]

4. CE instigates the co-creation of value between customer and firm.

Value is considered a collaboratively created concept that stems from interaction between parties

through the exchange of resources (Grönroos and Voima 2012). These resources do not only include

goods and money (Michel, Brown, & Gallan, 2008), as they can also be considered intellectual resources

such as improved relationships. This means that the co-creation of value lays perfectly in line with the

CE construct, which analogically presumes that the relationship between customer and firm is

considered interactive beyond purchases. It follows that CE logically results in the co-creation of value

as a product of the relationship between customer and firm.

2.1.4 An overarching meaning singled out

After recognizing the four tenets of CE, it is meaningful for this thesis, as well as for future research, to

identify a definition that encompasses all four most fittingly. The reasoning for this idea is that the

utilization of one embracing definition in particular, provides more clarity and unambiguity for latter

research that aims to build on the proposed encompassing direction of CE research.

Despite acknowledging alternative valuable standpoints from which CE could possibly be described,

such as the S-D informed logic-informed CE of Hollebeek et al. (2016), we tend to follow the line of work

of Pansari and Kumar (p.4, 2016) who proclaim a holistic definition that describes CE as “the mechanics

of a customer’s value addition to the firm, either through direct or/and indirect contribution”. Direct

contributions consist of customer purchases, while indirect contributions refer to customer references,

influencing and knowledge addition.

The main reason we opt to follow such line of work is that we are of the opinion that it lays most in line

with our four identified tenets of CE. First of all, the definition directly confirms our first tenet, which

describes CE as a multidimensional construct, by underlining both direct and indirect contributions.

Secondly, what is important to recognize here is that purchases – in the form of direct contributions –

are considered an integral part of the CE construct, which therefore became a desired outcome of the

firm’s activities in itself. In this way the financial objectives of a firm are reflected within the construct of

CE an sich, rather than seeing CE as an intermediate step towards reaching those objectives. This can

be considered an affirmation of our second tenet. Furthermore, a customer’s direct contributions could

be viewed as its doing activity, while its indirect contributions refer to the both thinking and feeling. We

can recognize the validation of tenet 3 in this idea.

However, in order to come up with the most holistic definition of CE until date, we suggest that even this

definition remains too limited and therefore should be expanded. More specifically, by describing CE as

a “customer’s value addition to the firm”, we believe that the authors put too much emphasis on the one-

way value contribution of the customer towards the firm. Based upon our fourth tenet, we argue that in

fact, CE implies the co-creation of value and therefore the value contribution of the firm towards the

customer is ought to be at least as important. Consequently, we propose our own definition of CE, which

can be described as followed:

CE can be considered as the co-creation of value between customer and firm, which originates from the direct and indirect contributions made by the customer and results in a positively modified cognitive, emotional, behavioral and social state of that customer.

Page 19: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[8]

2.1.5 Conclusion

First of all it is made clear that CE did not pop up out of nowhere. It is the result of a process of shift in

focus by companies that react to a more active role of the consumer, which led to an opportunity of

interactive relationships. Thus, practitioners took the lead in heading towards CE marketing. Lagging

behind the changing approach of practitioners, academicians in the developmental phase then

abundantly brought forward a myriad of sparse meanings regarding the construct. This led to an overflow

of diverse suggestions whereupon researchers, nor practitioners could no longer see the wood for the

trees. This is why scholars such as Hollebeek et al. (2016) pled for more encompassing CE research.

By following the 4 proposed tenets of CE, academicians as well as practitioners can understand the

essence of CE much more easily and quicker. Because of this, the CE construct gets handed the

opportunity to evolve to a more mature stage in which practitioners and academicians, as well as

academicians mutually can agree upon its meaning. A self-identified holistic definition that includes all

four tenets, forms the apotheosis of this chapter based on which the next sections will be built upon.

2.2 An omnipotent solution for a multidimensional issue

In the first part of this literature survey, the CE construct has been recognized as one of the most

important developing concepts within recent marketing research. After going over the diverse point of

views from which the construct has been described in the past, I concluded that CE connotes the

creation of both customer and firm value which arises from the interactivity between both. This

interaction however, can solely be reached by means of channel use through which a firm communicates

with its customers. It follows that a marketing channel can be defined as a collection of exchange

relationships that co-create value in the acquisition, consumption, and disposition of products and

services (Pelton, Strutton and Lumpkin, 1997). In other words, CE and its accompanied value creation

can only arise when there are channels available as intermediating platforms, that are able to create

interactivity between the firm and customer.

Evidently, a firm nowadays possesses a wide range of possible channels to choose from through which

they can approach their customers, both on- and offline. In earlier works, researchers therefore started

considering the multichannel marketing (MM) concept, which investigated how the choices of multiple

channels across multiple phases of the customer experience impacted sales distinctively (e.g. De

Keyser, Schepers, & Konus, 2015; Konus, Verhoef and Neslin, 2008). Nowadays however,

Omnichannel marketing (OM) takes this insight a step further in trying to enable firms to make use of

two or more of the channels they decide to make us of, in an integrated way. This means that OM

strategies aim to provide outstanding shopper experiences by merging both a firm’s utilized on- and

offline channels in a highly effective and convenient way (Frazer & Stiehler, 2014). Due to this

recognized importance, OM has prompted itself as yet another upcoming phenomenon determined to

reform the marketing landscape.

In the following sections we move on towards a deeper understanding of OM by first making clear how

MM became an increasingly essential activity to the present-day marketer. Secondly, we recognize that

with the explosion of possibilities brought forward by the introduction of online channels, also came a

myriad of challenges. We will therefore take a look at what those challenges are and how OM could be

used to address them. At last, the integration of online and traditional channels will be looked at from a

two point of views: a basic and a more profound one.

Page 20: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[9]

2.2.1 How multichannel marketing rose to the occasion

The rise of the internet and its accessory popularity among customers to use it as an interactive platform

has had a tremendous impact on modern-day marketing. One of the major implications of the climbing

importance of online settings in the field of marketing, is a substantial increase in channels through

which firms are nowadays able to interact with their customers. Subsequently, firms have to adapt to

the constantly changing environment that results from this upsurge in channels. In exchange for the

effort firms put into managing multichannel customers, they in their part succeed in obtaining more value

per customer (Neslin & Shankar, 2009). The co-creative value that arises from this interaction can be

split up into two categories.

First of all, multichannel customers provide more value to a firm by means of profitability (Montaguti,

Neslin and Valentini, 2015). The reason behind the increased revenue that multichannel customers

bring forward compared to single-channel customers can be split up in three factors (Blattberg, Kim, &

Neslin, 2008; Neslin & Shankar, 2009). These causes are identified as self-selection, marketing, and

customer satisfaction. The self-selection reasoning refers to customers who purchase the firm’s

products or services occasionally. The more frequent a customer buys from the firm –thus self-selecting

itself-, the higher its profitability. The frequent buyer therefore tends to typically make use of more of the

available channels. The marketing explanation can be looked at from the idea that customers who

purchase products or services through multiple channels evidently get exposed to numerous different

marketing forms, which heightens their chance of providing more monetary value. Moreover,

multichannel customers see the fact that they can interact with the firm through a variety of channels as

an additional service. Therefore, they are perceived to be happier, which explains the customer

satisfaction motivation. In summary, we identify that multichannel customers generate more revenues

due to their increased interactivity with the firm.

Secondly, the expanded value addition of multichannel customers can be devoted to the fact that they

enjoy improved communication with the firm. Chen and Lamberti (2016) suggest that this second

component of MM benefits can be looked at from 2 perspectives. The first viewing point is illustrated by

the definition of MM proposed by Neslin et al. (2006), who describe a marketing channel as a contact

point through which the firm as well as the customer interact with one another. This implies that MM

solely encompasses reciprocal activities between firm and customers. In the second viewpoint, Keller

(2010) adds that besides interactive communication, mass-communication such as TV advertising can

also be considered within the MM concept. Both one-way and twi-way communications are accordingly

reflected upon in the latter idea.

When combining the aforementioned MM value benefits, it is clear to see that they account for both firm

and customer. The firm’s main advantage seems to remain mainly monetary. However, by means of

improved communication with the customer, firms also enjoy longer lasting and more loyal relationships

with their customers. By successfully synchronizing the channels through which firms operate,

customers in their turn benefit from MM because of its integrated communication possibilities.

Rangaswamy and Van Bruggen (2005) suggest that the convenience that results from this

synchronization creates superior service outputs, which makes it less likely for customers to switch over

to other firms. For instance, a firm that offers the customer services to look for a product online, buy it

in the store afterwards and request later services through their mobile application, has a higher chance

of retaining customers than its unsynchronized competitor. This reveals the true strength of MM and

suggests that both online and offline channels may play crucial factors in moving customers along their

decision journey.

Page 21: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[10]

2.2.2 Exploring the ever changing MM landscape: from an offline to an online

environment.

The contemporary addition of online to traditional channels has notably expanded the work field of

researchers as well as practitioners. This means that nowadays marketers possess a much more varied

and extensive set of marketing opportunities to work with. Whereas marketers of the past were solely

occupied with operating a small set of traditional channels, today’s marketers find themselves in the

midst of an overflow of new media, which influences when, where, and how customers pick their

preferred brands (Batra & Kelly, 2016).

To highlight a few of the traditional possibilities, marketers for instance, would make massive use of TV

broadcasting as a channel to raise brand awareness and create previously non-existing needs.

Additionally, they could set up direct mail campaigns to support existing customers and target potential

customers. Moreover, print ads could be utilized to symbolically publicize the values represented by the

firm. Marketers would also employ telephone marketing to retarget departed customers by offering

renewed deals and discounts (Batra & Kelly, 2016). Above all, these traditional marketing

communication channels aimed to reach an audience which was ought to be as large as possible.

Therefore, the old way of marketing is considered to be mainly oriented on mass advertising.

Nowadays however, practitioners can also communicate with customers through a set of online

platforms. Mainly the introduction of social media such as Facebook and Instagram have facilitated the

ability of companies to interact with their customers and target prospects. For example, companies can

now directly respond to messages regarding customer feedback or customer care through the

messages function of such media. Also, firms are able to monitor negative or positive buzz surrounding

their content put on social media, by directly anticipating on comments and working with influencers.

Moreover, firms have the possibility to segment their customers up front by making use of publicly

accessible information on the platform. Subsequently, this enables firms to target only those customers

within a desired segment. This shows us that the present-day marketer, in comparison to its traditional

predecessor, cannot only direct the narrative of its content, but also deliver a much more personalized

message to its target group.

However, it is not all roses when it comes to MM. The rise of the internet has also significantly

complicated the integration of the abundance of marketing channels (Lamberton & Stephen, 2016). As

a result, online marketing campaigns do not always turn out to be as fruitful as expected. The allocation

of a marketer’s budget to the firm’s numerous channels therefore has shown to be a risky and precarious

operation. With regards to this downside of MM in an online environment, it is essential for practitioners

to understand that the channels through which they interact with customers vary significantly in benefits

and costs. This insinuates that in most cases the usage of one channel is more appropriate than another

in a particular stage of the customer’s P2P (Lemon & Verhoef, 2016). Therefore, managers in the digital

era are in desperate of need models capable of measuring the contribution of multiple channels in order

to assist decisions regarding marketing budget allocation. In other words, the theoretical models brought

forward by academicians can allow practitioners to correctly determine how much money should be

spent on each of their considered channels, only when those models are aligned with the practitioner’s

goals in a complex environment.

Page 22: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[11]

In an effort to handle the above mentioned increase in quantity and complexity of marketing channels,

Li and Kannan (2014) decided to focus on the digital side of the emerging MM opportunities. Doing so,

the authors designed a measurement model that aims to analyze a customer’s consideration of, visits

through, and purchases at multiple online channels. The most valuable part of their work is that they

made a distinction between marketing channels by splitting them up in firm-initiated channels (FICs) and

customer initiated channels (CICs). This means that by means of online interactivity, customers not only

get approached by firms through FICs such as e-mail or display ads for example, but are now able to

approach firms in their part through the provided CICs. For instance, in case the customer wants to

report a complaint to the company, it can opt to do so directly via the online channels that are at hand.

This can be considered the core difference between online channels and traditional channels, that are

by definition exclusively firm-initiated. Consequently, this idea reveals the crucial strength of online

marketing channels.

Recent research into the biggest differences between FICs and CICs suggest that there is a growing

importance of the latter form of interacting with customers. This is caused by the idea that online FICs

are becoming increasingly unwanted due to a multitude of arguments (Blattberg et al., 2008). First of

all, Goldfarb and Tucker (2011) suggested that online FICs such as display ads show a lower chance

of noticeability among customers, compared to online CICs. Consequently, online FICs are less likely

to influence the customer’s brand awareness, as well as less probable of contributing to ad recall.

Interaction through online CICs on the other hand, has a strong potential to result in long-term

remembrance among customers. Secondly, CICs are generally conceived as less intrusive than the

more traditional FICs (Goldfarb and Tucker 2011). At last, CICs result in higher response rates than

FICs (Sarner & Herschel, 2008) because they inherently require a higher level of preliminary interest

from the customer.

2.2.3 In search of MM crossovers: the proliferation of stand-alone empirical cases.

With the multichannel marketing concept in mind it is particularly vital for the development of effective

metrics for practitioners, to not only consider online but also offline marketing channels. The reasoning

is that both media interact with one another (Srinivasan, Pauwels, and Rutz, 2016) and that traditional

media nowadays still prove to be relevant as they remain to take a large chunk of a manager’s marketing

budget. Despite the generally accepted importance of assimilating the online and traditional marketing

world, researchers continue to struggle to integrate these different ways of interacting with customers

into existing marketing mix models (Keller, 2016). Therefore, Lamberton and Stephen (2016) suggest

that the crossover between both worlds is in need of a more profound understanding.

Following the identified need for conciliation between on- and offline marketing channels, a tendency to

generate isolated cases of research arose among academics. Dinner, Van Heerde and Neslin (2014)

for example investigated how the interaction between traditional advertising on one side and online

display and paid search advertising on the other side, translated into sales. Their findings suggest that

there are strong cross-channel effects between both ways of advertising. Based on these effects, it

shows that search advertising in particular is more effective in terms of sales than traditional marketing.

Liaukonyte, Teixeira and Wilbur (2015) on the other hand looked for the effect between television

advertising and website traffic. More specifically, the authors wanted to find out how this interaction

could affect online shopping figures. As a result of their research, the writers found that there is a

significant relation between the researched offline and online channel. Moreover, action-focus content

(as opposed to information-focus content) proved to higher direct website traffic. Both contents however,

managed to have a positive net effect on eventual sales. Lastly, even more recent research seems to

continue to follow the trend of isolated research. Fossen and Schweidel (2016) researched the

relationship between television advertising and online word-of-mouth. Their findings suggest that

television advertising indeed has an influence on the volume of online word-of-mouth for the brand.

Although these empirical cases propose usable guidelines for practitioners seeking to use a certain set

of traditional and online marketing channels, they do not determine whether or not the eventual

integration of those channels, in possible combination with other marketing channels, results in an

Page 23: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[12]

efficient and effective whole. Therefore, Batra and Keller (2016) made a call for more encompassing

research that allow the design of more meaningful integrated marketing communication (IMC) models,

embedded in a broad multichannel context. Yet not only academics, but also practitioners need to

become more aware of the importance of well-designed IMC models. Towards that goal, the authors

composed seven criteria that can help marketers evaluate their integrated channel choice. The criteria

are called the “seven C’s” and consist of coverage, cost, contribution, commonality, complementarity,

cross-effects, and conformability. The found criteria imply that besides monetary maximization in terms

of the reduction of costs, the conciliation of a myriad of channels requires much more assessment and

interpretation of the marketer. This explains why the measurement of MM activities remains to be so

complex and therefore Keller (2016) prioritizes the development of more quantitative IMC models for

attribution analysis.

2.2.4 The integration of a multitude of channels: from MM to OM

Lately, researchers have started responding to this call for a deeper insight into MM crossovers by

searching for integrated effects of channel use. This can be considered the actual transition from MM

research to an OM approach. A first attempt has been made by De Haan, Pauwels and Wiesel (2016),

who followed the work of Li and Kannan (2014) by building upon the distinction between CICs and FIC

for six online marketing channels. The major addition of knowledge in this work however, is that the

authors controlled their findings for two traditional channels (television and radio). In doing so, a new

proposal of budget allocation across both online and offline advertising forms for practitioners was

provided. Hereby, the ultimate goal was to prevent managers from making decisions based on trial- and

error, own judgment and gut feeling (De Haan et al., 2016).

Furthermore, the researchers tested the effectiveness of simple attribution models such as the last-click

method. To date, the last-click attribution is one of the most favored metrics to assign a budget to multiple

online channels. It is still used by practitioners in the majority of the cases, due to its simple applicability

and easy use (Econsultancy, 2012). In essence, the last-click metric checks through which online

channel a customer visited the firm’s website before making a conversion. Based on this information,

practitioners then attribute their marketing budget in proportion to the channels that led to those

conversions. In other words, the online channels that brought forward the most conversions are

assigned with the most money and care. However, the authors’ findings suggest that this model cannot

longer be considered an accurate enough measurement, as it accounts for ten to twelve percent less

revenue than the status quo (De Haan et al., 2016). Although this work can be considered a first step

towards the integration of online and offline channels, it is obstructed by the fact that the authors control

their findings for traditional channels, rather than truly integrating those channels with their online

equivalent. Hereby, the urge for absolute unification remained to exist.

This last issue is where Srinivasan, Pauwels, and Rutz (2016) come to help. They contribute by

proposing and testing a conceptual framework that integrates the use of online and offline channels.

More specifically, the framework tests how online consumer activity, reflected in online marketing

channels, interacts with traditional marketing mix actions. Moreover, the way in which this interaction

drives the customer’s purchase decision and ultimately translates to sales is being investigated

(Srinivasan, Pauwels, and Rutz, 2016). In this way, the authors are able to compare the effectiveness

in terms of sales of traditional versus online marketing channels. Since this line of work corresponds

strongly with the goal of this thesis, the constructed framework will be explained into more detail.

The framework shown in Figure 3 below combines a set of traditional marketing actions with three

tangible online activities, which collectively derive into sales. The resulting sales are generated by two

effects. First of all, the traditional marketing actions have a direct impact on sales. This can be

considered the direct P2P. In this case, the use of traditional channel advertising such as television,

radio or newspaper advertisements can be thought of. Secondly, marketing mix activities have an

indirect impact on the online consumer activity, which in itself can indirectly lead towards more revenue.

The authors depicted this pathway as the indirect P2P.

Page 24: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[13]

Furthermore, the online consumer activities are divided in three channel options, based on the way in

which the firm managed to gain control over them. Either the firm owned the medium from the start,

either it paid for the medium, or it earned the medium through social media (Stephen and Galak, 2012).

A television commercial for instance, can generate more online interest by creating website visits.

Subsequently, a part of these visits will convert into purchases, which explains the last indirect effect.

The combination of traditional and online activities results in a P2P scheme that recognizes a cognitive,

emotional and behavioral component. These are respectively measured by paid search clicks and/or

visits to the firm’s website on one hand, and engagement that takes positive and negative expressions

on Facebook (like and unlike) into on the other hand. The scheme, presented in this way, depicts the

classic knowledge to feelings to action path (Srinivasan et al. 2010), which can be looked at as the

traditional way of thinking in marketing. Important to notice here, is that the cognitive aspect of the

scheme is measured by the outdated last-metric method (De Haan, Pauwels and Wiesel 2016). We will

reflect on this issue in section 2.3 of this thesis.

Figure 3: customer's path to and off purchase. Source: Srinivasan et al. (2016)

However, and maybe more importantly, the framework of Srinivasan, Pauwels, and Rutz (2016) also

provides us with another pathway for marketers to influence customers, namely the knowledge to action

to feelings sequence. Herewith, the authors build on the suggestion that multiple P2Ps are possible in

moving a customer along its customer journey (Vakratsas and Ambler, 1999). The idea reflected in this

alternative pathway implies that activities through traditional channels can lead to increased sales and

consequently to a combination of feelings found in the affective and cognitive components of the online

consumer activities, hence the reciprocal arrow between sales and online customer activity.

For instance, a customer can become aware of a product through a radio advertisement. Later on, when

the need arises, the customer picks this product above the alternatives of competitors because of its

remembrance of the ad. Because of the resulting positive experience the customer had with the product,

he or she then posted a positive review of it on social media. This can be considered an emerging key

insight into modern marketing in an omnichannel environment, since it implies that the end result of a

marketer’s activities may not solely imply the conversion to sales, but can translate into certain feelings

the customer holds towards the firm.

Page 25: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[14]

2.2.5 Conclusion

Although the questions of which channels a firm should pick to operate through and how they are ought

to be managed mutually, have been head-scratchers for marketers for many decades, the introduction

of online channels definitely complicated that puzzle. On the other hand, the possibilities brought forward

by those same channels seem to be endless, as success stories of effective online marketing campaigns

tend to be increasingly common. This leaves the present-day marketer wondering how it can optimize

the integration of its channels in such a way that it becomes viable within today’s complex online

environment. Simultaneously, the integration should focus on minimizing the risk of losing scare

resources by following simple metrics such as gut-feeling and the last-click method.

We argued that this issue is where academics should guide managers by handing them the right tools,

ready to be applied in a hyper digitalized climate, and therefore providing a significant competitive

advantage. In this chapter we proposed that the way academics should do this is not by following the

trend of doing stand-alone MM research with regards to a specific combination of channels, but rather

by following a broader OM vision that is able to bring forward complete models and provide firms with

the opportunity of integrating a myriad of marketing channels in an effective way. In an effort to elaborate

on our own propositions, we will therefore proceed in the following sections by composing and

suggesting such an integrative model.

2.3 Combining concepts: the identification of a knowledge gap

In the previous chapters of this dissertation we described the relevance of both the CE and OM concepts

in today’s marketing world from an academic standpoint, as well as a practical point of view. Hereby, on

one hand, we defined CE as the co-creation of value between customer and firm. On the other hand,

OM was described as a marketing approach aiming to generate such co-creative value between

customer and firm. Thus, it is made clear from these descriptions that based on the co-creative aspect,

both constructs taken together seem to imply a conceptual fit. However to the best of our knowledge,

this fit has not yet been thoroughly researched until date. Therefore, in the next sections we will start off

with constructing a framework that is able to address the identified knowledge gap. Secondly, we will

take a look at what the model can and cannot do for managers as well as academicians aiming to

integrate a multitude of marketing channels. At last, we will make use of the strength of the model in

order to come up with our own research ideas and its accessory hypotheses.

2.3.1 Introducing the P2F model

In the first chapter of this dissertation we learned that throughout the recent past of marketing research,

the activities of a marketer were judged upon the contribution made to their firm’s financial objectives.

This implies that practitioners were deemed to create value by means of increased sales or revenue per

customer, either through expanding RFM values or managing relationships. Later, in the early stages of

the newfangled era of CE, the construct gained attention as a crucial intermediate step towards sales.

More specifically, researchers suggested that in order to create revenues and thus more customer value,

practitioners should keep the cognitive, affective, behavioral and social components of CE in mind (Van

Doorn et al., 2010; Vivek et al., 2012; Hollebeek, 2011; Brodie et al. 2011; Verhoef et al., 2010). This

insight was concretized in the traditional idea of moving customers along their P2P by means of

interactive experiences through a multitude of channels.

Page 26: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[15]

Now, in a more holistic approach that is based on the four proposed tenets and suggested definition

presented within this thesis, we recognize that CE instigates the idea that value is co-created between

firm and customer and that sales are only one part of that value. This follows from the fact that through

the interactive platform that arises within the CE theory, besides buying, customers can additionally

provide indirect contributions by influencing, providing knowledge and referring (Pansari & Kumar,

2016). More specifically, customer influencing refers to the ability of social media users to affect one

another by promoting the firm. Knowledge addition on the other hand, implies the active feedback

activities of a customer that aim to improve the firm products or services. At last, customer referrals

concern customers exciting other potential customers who would otherwise had not been interested,

based on the provision of an incentive.

In figure 3 it shows that this more advanced approach suggests a new way of modeling marketing

effectiveness, which contradicts the traditional measurement model of P2P.

Figure 4: (a) Traditional marketing effectiveness model (P2P). (b) Proposed new marketing effectiveness model

(P2F).

Presented in this way, CE in itself has become a desirable outcome as a measure of marketing

effectiveness, which opposes the obsolete idea that CE is merely a transitional stage towards more

earnings. This sequential thought pattern aligns closely with Srinivasan, Pauwels and Rutz (2016), who

suggest that besides direct buying, there is also an indirect path towards value creation among

customers, namely the knowledge to action, to feelings sequence (see section 2.2.4). Whereas the

authors introduced this pathway as a variant of the traditional P2P scheme, we suggest that, based on

the self-proposed overarching definition of CE that composes our four identified tenets, this pathway is

a distinct concept. Therefore, we adopt it as the path to feelings, or P2F model.

By detaching the P2F model from the traditional P2P scheme, this model aims to offer a more complete

picture for researchers as well as practitioners wanting to measure major marketing activities, as it is

based on relevant findings within recent CE studies. Besides influencing, knowledge addition and

referencing, the purchases made by customers in this model are an expression of the customer’s

feelings towards the firm rather than a goal in itself, hence the naming. This means that whereas in the

P2P model, a customer that makes no purchases with the firm would therefore offer no additional value,

that same customer is still able to provide value in the P2F model through its influencing, knowledge

addition and/or referencing ability.

Page 27: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[16]

Although this model could subsequently be applied on a wide myriad of marketing actions, in this thesis

we chose to limit the P2F model to OM activities, as it is able to contribute to such line of work in three

ways (see chapter 2 of the preceded literature survey). First of all, we identified that the measurement

of effectiveness of marketing channel integration, as one of the most vital marketing activities of this

time, is still executed in terms of gained revenues rather than improved CE (Dinner et al., 2014;

Liaukonyte et al., 2015; Fossen and Schweidel, 2016). This means that the idea of P2P, as a direct

value creator in terms of gained revenues, continues to predominate OM research. However, Montaguti

et al. (2015) demonstrated that besides profitability, improved communication is an equally important

part of the value created between the firm and Omnichannel customer. In our proposed model, both of

these value components would be taken into consideration. Herewith, the added communication value

would take the form of customer influencing, knowledge addition and referencing. Secondly, the P2F

model allows researchers to move away from outdated effectiveness measurement techniques such as

the last-click method, criticized by De Haan et al. (2016), thus helping them moving towards a deeper

understanding of measuring OM activities. At last, the P2F model can provide an answer to the call of

Batra and Keller (2016) to develop new encompassing models, that are able to adequately optimize IMC

programs, by taking into account more factors than simply costs and profits.

Since the idea of merging CE with OM based on the P2F model had not been identified up until date, it

evidently has also not been researched yet. Therefore, in the following sections, we tend to elaborate

on the knowledge gap on the intersection between CE and MM, as we continue to explore it into depth.

2.3.2 The weakness and strength of CE in an Omnichannel environment

In chapter 2 of this thesis, we underscored the urgent need for measurement tools that are able to

compare the effectiveness of traditional channels with more recent online channels. As a result, our goal

within the dissertation is to investigate whether or not the CE construct, as part of the P2F model, could

fittingly serve as such a metric. Regarding this complex comparison, it is of major importance to find out

whether traditional channels are interactive to a minor degree in comparison to online channels, or

exclusively non-interactive. Indeed, this fine distinction determines the possibility of comparing

traditional channels with online channels by means of CE.

The idea follows from our self-proposed definition of CE that looks at the construct as ‘the co-creation of value between customer and firm, which originates from the direct and indirect contributions made by the customer and results in a positively modified cognitive, emotional, behavioral and social state of that customer’ (see section 2.1.4). The definition is based on the gradual shift of marketers from one-way transactional and relationship marketing, to the era of CE which is fundamentally based on two-way interaction (Pansari & Kumar, 2016). This means that if traditional channels can be depicted as non-interactive, the CE construct cannot be used as an adequate metric for those channels.

In an early work, Winer (2009) identified interactivity as one of the two key characteristics that can be

exclusively attributed to new media, with the other one being digitalism. This means that the interactivity

between customer and firm that nowadays exists within the online environment, is not applicable in a

traditional setting. The author illustrates these findings based on the figure of Hoffman and Novak (1996)

that compares the traditional mass communications model with the present-day mass communications

model. More specifically, the latter model sprouted from the introduction of online channels in paticular

and therefore implies interactivity (see Figure 5). Indeed, we can see that the reciprocal arrows that

solely exist within the modified mass communications model, seem to confirm the verdict.

Page 28: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[17]

Figure 5: (a) Traditional mass communications model. (b) Modified mass communications model. Source:

Hoffman and Novak (1996)

Moreover, our own extended research on CE dates back to Bowden (2009) at the earliest (see chapter

1 of the preceded literature survey). This suggests that there was no mention of the CE construct, as

described in academic literature, at the time that only traditional channels were available. It follows that

CE originated from a time in which online channels saw a significant rise in relevance. Furthermore, the

idea that traditional channels are to be seen as exclusively non-interactive is backed up by relevant

findings within MM research. In the distinction made between FICs and CICs (see section 2.2.2) Li and

Kannan (2014) noted that customer initiation, as a basic requirement of interactivity and consequently

CE, is a phenomenon that arose explicitly from the introduction of online channels in the field of

marketing. This means that CICs cannot be labeled as traditional channels, given they only seem to

exist within an online setting.

Conclusively, the ideas presented in the paragraphs above, from both a CE and MM standpoint, seem

to imply that CE cannot be considered as an adequate comparison basis for measuring traditional versus

online marketing channel effectiveness. Therefore, and to the best of my knowledge, the P2F model

cannot be of use for research within this field. In summary, a graphical representation of the

aforementioned ideas can be found in Figure 6 below.

Figure 6: The overview of a comparison possibility between traditional and online marketing channels based upon

their interactivity.

Page 29: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[18]

Now that the we know for which type of research the P2F model cannot be used, the question that

remains to exist is how it is then ought to be used in closing the knowledge gap that exists on the

intersection of CE and OM. Based on the preceding literature review and its representation in Figure 6

above, we notice that by means of interactivity between customer and firm, the CE construct allows us

to compare channels in an online environment. This means that, in contrast to the integration of both

traditional and online, the P2F model from an OM standpoint can be applied for the measurement of

effectiveness between a set of digital channels. It is therefore immediately clear that this is the true

power of CE in an Omnichannel environment.

2.3.3 Comparing the effectiveness of social media channels and their formatting

After proposing that it is not possible to conduct research within the field of comparing traditional with

online channels based on the P2F model, we continue focusing on the strength of CE in an OM

environment by considering online marketing channels solely. More specifically, Lamberton and

Stephen (2016) found that when it comes to online marketing, social media have been the most

discussed topic within business press over the last 15 years. (see Figure 7 below). This suggests that

the outcomes of interacting with customers through social platforms such as Facebook, Twitter and

Instagram, has mesmerized practitioners to a great extent over this period of time.

Figure 7: Factiva Mentions per Major Topic in Popular Business Press. Source: Lamberton and Stephen (2016)

However, despite its indisputable relevance to managers in the field of marketing, research in the field

of comparing the effectiveness of social media platforms remains to be fairly limited. This may be due

to the fact that the use and effects of social media are constantly changing, making it hard for

researchers to keep up with the newest trends in the resulting hyper-dynamic environment. For instance,

a study conducted by Statista (2017) found out that whereas Twitter, besides Facebook, used to be the

second biggest social media platform in 2014 with 255 million monthly users globally, in 2017 it has

been largely surpassed by Instagram with 800 million global active users per month. This shows that

within the time span of less than five years, the social media landscape has been subject to large-scale

evolutions.

Page 30: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[19]

In an attempt to address and explain this fast changing environment, we suggest that practitioners

should be able to compare the effectiveness of their social media activities at any given time. This would

allow these business professionals to permanently evaluate their social media strategy, thus enabling

them to revise, analyze and correct if necessary, judging upon the latest trends within the working field.

I propose that an answer to this problem can be provided by comparing the effectiveness of different

social media platforms based upon the P2F model, which allows managers to get a sense of how

engaged customers feel towards their distinctively used social channels. This would lead us to taking

the psychological, behavioral and social aspect of users into consideration, as an effectiveness metric

of social media use. Since Facebook and Instagram are the eminent platforms of today by monthly

usage (Statista, 2017), we suggest it could be worth comparing them mutually.

Moreover, we aim to elaborate on an identified call for more research within the field of formatting impact

on customer decisions (Batra & Kelly, 2016). In their work, the authors suggested that it could be worth

researching which types of formats have the most impact on a customer’s willingness to pay (WTP) and

are able to move the customer along its P2P the most efficiently. We would not only take into account

this suggestion, but genuinely build upon it by applying our proposed P2F model, as opposed to utilizing

the traditional P2P concept, as the effectiveness measurement tool. Consequently, we aim to provide a

more complete result of the effect of formatting by using CE as the metric for effectiveness as opposed

to sales.

Although research in the field of formatting impact on engagement is not new, my intended research

can contribute in multiple ways. First of all, practitioners implicitly seem to agree on the idea that a video

format is the prevailing formatting choice when it comes to engaging customers. This is why in practice,

a study by Magisto (2016) found out that the digital video marketing industry in the United States alone

is expected to reach $135 billion in 2017, which is roughly forty percent more than the budget allocated

to other formats of digital advertising. However, the preference for video marketing is often based on an

implicit gut feeling, which stems from trial and error and relatively simple rules among practitioners. Yet,

one of the core intentions of our research is to lead away managers from such subjective metrics and

guide them towards a deeper understanding of their activities through the use of the CE concept as

measured by objective standards.

Furthermore, the ambiguity of a video format as the prevailing tool to engage customers seems to be

dubious when reflecting on existing literature. Leung, Bai and Stahura (2015) checked the effectiveness

of formats on Facebook in terms of likes, comments and shares for the hotel industry in specific. Within

this sector, the biggest effect seemed to be generated by the image format in comparison to text, video

and web link. Moreover, Bonson, Royo and Ratkai (2015) compared the effectiveness of multiple

formats on the Facebook pages of local governments. Turns out, photo and text were far out the most

effective formats in engaging citizens. Then again, CE was measured in terms of likes, comments and

shares. At last Dolan, Conduit, Fahy and Goodman (2016) looked for the effect of different format types

on the engagement of customers within the wine industry. This study was conducted based upon the

same simple metrics based upon the users’ activity in terms of likes, comments and shares. The results

showed that a traditional status in the form of a text or web link was the number one engaging factor,

with video formatting coming in last place.

Based upon these findings, we do not only conclude that video formatting across multiple sector may

not be the king of engagement as opposed to what the practitioners’ gut feelings might tell them, but

also identify a trend among researchers of measuring engagement through simple metrics such as likes,

comments and shares. This implies that despite the extensive usage of social media in practice as tool

to foster CE (Lamberton & Stephen, 2016), up to now and to the best of my knowledge, there has been

no in-depth study yet of the relationship between social media use and CE.

Page 31: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[20]

2.3.4 Research question and hypotheses

As a result of the suggestive considerations made in section 2.3.3, we will set up and conduct a

quantitative research that (1) aims to find out whether posting on a social media platform truly impacts

a customer’s level of engagement beyond the act of liking, sharing and commenting, (2) elaborates on

a deeper understanding of measuring engagement by making use of the self-proposed P2F model that

is based on our self-proposed holistic definition of CE, (3) is able to compare the effectiveness of

distinctive social media platforms mutually and (4) is based on a critical standpoint of formatting as it

aims to draw practitioners away from simple metrics and subjective measures. The research question

that results from the identification of these four objectives can be investigated by means of 3 hypotheses,

each representing a level of analysis.

First of all, in an attempt to meet objective one and two, it is important to recall that the P2F model is not

able to make a comparison between a traditional and digital channel. Consequently, the model is ought

to be used in comparing digital channels solely. In our case we choose to limit digital channels to social

media in an attempt to address the fast changing environment in which those channels find themselves,

as well as the massive usage of these channels to engage customers from a practitioner’s standpoint.

Therefore, the overlapping level of our research concerns the main effect of social media usage on CE.

The research question that follows from this consideration can be articulated in the following way:

RQ: What is the impact of social media posting by a firm on a user’s level of engagement?

However, based on the preceding literature survey that led up to the identification of this research

question, we acknowledge that the answer to this question cannot be taken unambiguously as it is in

need of nuance in order to be explained thoroughly.

Therefore, when considering objective three, it is first of all important to find out whether there is a

difference of effect in between social media channels on a customer’s level of engagement. Yet, in order

to make such comparison, we first need to identify which types of social media channels are at hand in

today’s marketing world. To answer this issue, we follow the approach of Aichner and Jacob (2015) who

classify different categories of social media platforms, based upon their purpose and function. Within

their classification we opt to highlight the social networking channel and image-sharing channel as these

represent the most used social media platforms of today, namely Facebook and Instagram respectively.

In summary, we are thus aiming to look for a deeper explanation of our research question by looking at

the difference in effectiveness between a social networking channel and an image-sharing channel

The hypothesis for this refinement stems from preceded literature (Leung et al., 2013; Bonson et al.,

2014; Dolan et al., 2016) recognizing that across different sectors, images and text have a greater effect

in comparison to videos in terms of engaging customers on Facebook, the leading social networking

site. Given the fact that Instagram is the pre-eminent social media channel for sharing captioned images,

we translate the findings for Facebook to an image-sharing setting, in order to come up with the following

hypothesis:

H1: exposure to a post by a firm via an image-sharing channel, will have on average a more

positive influence on a user’s engagement level, compared to exposure to a post by a firm via a

social networking channel.

Secondly, in an effort to meet objective four, we believe that the answer to our research question can

be even further clarified by introducing the independent variable of formatting. In an attempt to do so,

the social networking and image-sharing channel need to be set apart in order to being able to identify

where the major differences in CE are situated within these respective channels. More specifically, we

aim to use two distinct posting formats, namely captioned image and video. Thus, this implies that we

identified an additional effect to be investigated in order to analyze our general research question. This

effect can be expressed as the difference in effectiveness in terms of CE for a social networking channel

and for an image-sharing channel respectively, based upon their posting formats.

Page 32: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[21]

The assumptions for this research question can be drawn up from the same argumentation used to

formulate H1. Hereby, we compose the following hypotheses:

H2a: exposure to a captioned image posted by a firm via a social networking channel, will have

on average a more positive influence on a user’s engagement level, compared to a video posted

by a firm via the same channel.

H2b: exposure to a captioned image posted by a firm via an image-sharing channel, will have on

average a more positive influence on a user’s engagement level, compared to a video posted by

a firm via the same channel.

At last, it is important to notice that customer involvement (CI) should be considered a key antecedent

of CE (Hollebeek et al. 2014), suggesting it has significant influence on the construct. Therefore, a

measurement of CI has to be taken into account as a moderating variable in the relationship between

social media usage and CE, in an effort to come up with the most accurate analysis of CE. Since CI is

deemed a crucial condition towards engaging customers, high-involved customers are supposed to

require less effort being converted into truly engaged contributors. If a customer on the other hand were

not to be involved with the firm from the get-off, the likeliness of being engaged towards it should be

expected to decrease substantially. Hollebeek et al. (2014) found evidence for this reasoning and state

that consumer involvement has a positive effect on CE. As a result of this insight, following hypothesis

arises:

H3: The effect of the posting of a firm on social media on a user’s level of engagement is stronger

for high-involved customers as compared to low-involved customers.

3 Methodology

After constructing our central research question and its accessory hypotheses, we will now discuss how

these preparations eventually were implemented into a specific research design. In the following

sections we will first recapitulate our objectives. Secondly, we will proceed by specifying the way in

which the research was set up from a respondent’s point of view. At last, the analysis of the gathered

data that resulted from our research will be presented in the results section.

3.1 Goal of the research

In summary of our research question and hypotheses, we wanted to look for the effect of both the social

media type and format type on a user’s level of CE, taking into account CI as a moderating variable.

This research will conclusively be brought to life through the use of a design that includes four

experimental groups, which are checked for by a control group. A graphical representation of this design

is illustrated in Figure 8.

Page 33: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[22]

Figure 8: A graphical representation of the intended research design.

However, before setting up the research it was necessary to first figure out which product category would

be adequately fitting enough to study the desired effects on CE. Considering this problem, it was

particularly meaningful for the study that the product category chosen for the eventual measurement of

CE was highly involving. Reason can be found in the idea that high-involvement products in comparison

to fast moving consumer goods (FMCGs) have a higher chance of generating digital consumer activity

(Srinivasan, Pauwels and Rutz 2016). Therefore, high-involvement product would provide us with a

more relevant basis in analyzing the relationships between our independent variables and CE. More

specifically, these product categories typically are characterized by a longer purchase decision

hierarchy, such is the case of consumer durables (Li and Kannan 2014). An example of a durable high-

involvement product category is a car. Subsequently, the research design will be set up around cars.

In order to keep the noise that could have an impact on the research limited, we chose to solely consider

one car brand in specific. This made sure that there was no difference in CE levels across respondents

as a result of feeling connected more to one car brand as compared to another. Volvo is a car brand

that has been very innovative in the recent past in terms of using their online platforms as a tool of

engaging a wide audience. For instance, in 2015, Volvo managed to hijack the Superbowl, which is the

most watched television broadcast in the United States, by setting up an enormous successful Twitter

campaign that challenged users to tweet the hashtag ‘VolvoContest’ during the commercial of any other

car brand in order to nominate a loved one of becoming eligible win a Volvo. By doing so, the brand

managed to change the Superbowl conversation from a couple of massively expensive thirty second

commercials on television, to an ongoing online Twitter contest that lasted the whole game (Grey, 2015).

Therefore, we chose to provide stimuli that considered Volvo as a car brand.

3.2 Research design

In finding the answers to our formerly introduced research question and hypotheses, we set up a survey-

based empirical research, making use of the online survey software Qualtrics. A comprehensive

understanding of the structure of our study can be attained by taking the schematic overview figure of

our research, attached to the Appendix, at hand. The survey consisted of five parts, which will be

explained more into detail in the following paragraphs. In what follows we will first address our ideal and

eventual sample characteristics, followed by the procedure in which the survey took place. Do note that

the software obliged respondents to answer all questions.

Page 34: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[23]

3.2.1 Sample

Prior to setting up and carrying out the eventual survey, we first needed to get ahold of the optimal pre-

composition of our sample, based upon the required amount and ideal distribution of the respondents.

Firstly, we calculated our minimal sample size based on the proportion formula of sample sizes (De

Pelsmacker & Van Kenhove, 2014). Although in practice a margin of error of five percent is often used

in comparing sample and population proportions, we allowed ourselves an extra percentage of error due

to a limited access to resources that would’ve enabled us to gather larger amounts of respondents,

compared to studies within a business setting. Making use of the formula of infinite populations at a

maximum acceptable margin of error of six percent, we concluded that we needed at least 267

respondents. In order to get an equal distribution across the five cells of our research design

(experimental groups and control group), this would imply that they were to contain at least 54

respondents each.

Moreover, we set two restrictions on our sample definition both geographically and by age. First of all,

we decided to conclude only European citizens in order to avoid as much bias as possible on the basis

of cultural differences among respondents. On the other hand, we did not want to limit ourselves to a

single country or region in an effort to gather as many respondents as possible. Secondly, we

determined to take into account only respondents between 18 and 39 years of age. The lower limit is

due to the fact that we are looking for engagement towards a car brand. Since minors in Europe are not

allowed to drive and they cannot be regarded as consumers of cars, we figured to leave them out of our

sample. In contrast, the upper limit is a consequence of the demographics of social media use. As we

were limited to sending-out the survey in Flanders (Belgium), we expected respondents to be living

mostly within this region. A study conducted by Imec (2016) showed that the relative percentages of

users within the age group from 18 to 39 years old in Flanders, are roughly the same for the Facebook

and Instagram. More specifically, across these ages, there tend to be twice the amount of Facebook

users (90%) as opposed to Instagram users (45%) within the population. As the older a user is, the less

likely he or she tends to be active on Instagram, the inclusion of older age classes would therefore lead

to an underrepresentation considering the use of Instagram. Moreover, the way in which social media

are used could vary considerably if we were to take older age classes into account (e.g. interactivity with

brands as opposed to family and friends).

After the survey was distributed, we managed to gather a total of 320 respondents. This implied that a

margin of error between sample and population proportions of 5.47% was attained, which represented

a value within the desired range. Roughly 150 of these respondents were collected organically, by

means of sharing the survey with friends and family on social media. We were able to accumulate the

other half of respondents by providing a snack as an incentive to students at the Faculty of Economics

and Business Administration at Ghent University.

3.2.2 Procedure

The survey started off with an introduction to the respondents. The subject of the survey was not

communicated in an effort to prevent respondents from being biased prior to answering the questions.

Nonetheless, the respondents were informed that there were no wrong answers and that they had to try

to answer the questions as subjectively as possible. In doing so, we aimed to reveal their true intentions

towards the later stimuli.

After advancing through the introduction, the respondents were then checked for their level of

involvement towards cars as well as Volvo. The reason this was done prior to posing any other questions

related to CE, is that according to Hollebeek (2014), CI is a not to be forgotten antecedent of CE and

therefore logically precedes the latter construct. Moreover, it was of our opinion that both involvement

towards cars as well as Volvo should be tested, as their eventual moderating effect could be different.

This follows from the idea that being involved towards cars does not explicitly indicates the respondent

feeling involved with Volvo and vice versa. Accordingly, an accurate and validated scale that was able

Page 35: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[24]

to measure how involved the respondents felt towards cars as well as Volvo, had to be sought for. The

Personal Involvement Inventory (PII) (Zaichowsky, 1994) gave us an adequate finding. It is a survey-

based scale that on a 7 point Likert scale and provides an idea of the extent to which consumers feel

involved with a certain product category or brand. The order in which the items of the scale presented

themselves was randomized in order to avoid order-effects. Moreover, six of the ten items were reverse-

scored with the purpose of reducing or acquiescence and boredom.

The next step included respondents declaring whether or not they were social media users. If not, the

respondent was automatically assigned to the control group as he or she could not be exposed to stimuli.

Those who were actual social media users then proceeded to the part in which they were asked to

indicate which social media platforms they specifically made use of, out of a list of ten possibilities. The

list was constructed based on the top ten social platforms by popularity.

The reason why respondents were asked to give indication of the platforms they were active on, prior

to getting exposed to stimuli, was that their answer determined which experimental group they would be

assigned to. More specifically, through self-selection, respondents stating they were active on both

Facebook and Instagram (besides other platforms) got drafted into the Instagram column. On the other

hand, respondents declaring only to be active on Facebook (besides other platforms except Instagram)

were assigned to the Facebook column. At last, respondents that indicated not to be active users of

Facebook nor Instagram besides other platforms, were automatically designated to the control group.

Due to the fact that we expected twice the amount of Facebook users as opposed to Instagram users

(see section 3.2.1) it was justifiable to assign the respondents that were active on both platforms to the

Instagram column. Furthermore, based upon which column they got assigned to, respondents were then

posed several questions regarding the way in which they used their designated platform. This specific

questioning was put in place for the purpose of obtaining a general view on how both Facebook and

Instagram were worked with by their users.

Afterwards, respondents assigned to the Facebook or Instagram column then got assigned to either an

image stimulus, a video stimulus or the control group. The probabilities of getting allocated to either one

of the subgroups within a column were 40%, 40% and 20% respectively. As opposed to randomizing

the allocation, the probabilities were put in place in order to avoid overcrowding the control group, since

this group occurred twice across the investigated platforms (see Appendix).

Consequently, across two columns, five subgroups were formed. In order to measure both the social

media type and format type as independent variables, these groups all got exposed to a different

stimulus: a Facebook image, a Facebook video, an Instagram image, an Instagram video or no stimulus

at all (control group). The content across stimuli was kept equal in an effort to isolate formatting as a

distinctive independent variable. Therefore, both the video and image were kept the same across

Facebook and Instagram. Moreover, in both cases, the video and image showed the same white Volvo

(see Appendix) being advertised for its safety, design and technology. What did differ across stimuli

were the scenarios attached to the image or video. These scenarios were put in place in order to put

the respondent in a real-life setting. The idea was to enable respondents to imagine them scrolling

through their social medium feed and encountering the post of Volvo. The eventual goal hereby was to

try and present a situation to the respondents that approached reality as much as possible.

Following the exposure to one of the respective stimuli which can be found in the Appendix, the

experimental groups were then separately tested for their level of engagement towards Volvo. For the

actual measurement of CE, we opted to utilize the Customer Engagement Scale (CES) of Pansari and

Kumar (2016), since this measurement scale aligned most closely with our earlier findings on CE and

the P2F model. In particular, the scale consisted of 16 items in a five-point Likert scale, grouped by the

four components of that measure CE: customer purchases, customer references, customer influencing

and customer knowledge. The order in which the questions were presented were randomized.

Page 36: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[25]

Moreover, we aimed to eliminate acquiescence by means of putting in a control question. More

specifically, this control question asked the respondent to tick off a specific answer option. If not, the

software would automatically return the following error message:

“WARNING!

Please take your time to fill in all questions honestly by carefully considering all possible answers.”

The aim here was evidently to prevent respondents from randomly ticking off the answers to each one

of our CES items. A more detailed version of the scale can be found in the Appendix. Do note however,

that due to its recency, the scale had not yet been officially validated. Therefore, further analysis and

validation was imperative.

As a last step, all respondents were asked to answer several questions related to their socio-

demographic status. The topics included sex, age, marital status, fondness of driving, having a driving

license and the amount of cars available within the household. These questions were put at the end of

the survey as a means to avoid scaring off potential respondents from the get go.

3.3 Results

After addressing the way in which the research was set up and how it was conducted from a

respondent’s point of view, we now move over to the description of our research outcomes. First of all,

we will focus on a primary check on the CES by means of a scale validity analysis. Secondly, we will

recapture our hypotheses and perform the adequate tests to examine whether they are to be confirmed

or not.

3.3.1 Scale validity analysis

Since the CES of Pansari and Kumar (2016), that is used to get a sense of a user’s level of CE, can be

depicted as a fairly new scale and therefore has not been validated yet, we deemed it essential to

primarily get a grasp of its validity. Therefore, before any other type of analysis on our data could be

executed, we opted to implement a factor analysis followed by an internal consistency reliability analysis.

3.3.1.1 Factor analysis

In our assumption, we follow the work of Pansari and Kumar (2016), who suggest that their self-

developed 16-item scale consists of 4 constructs: customer purchases, customer references, customer

influence and customer knowledge. In an effort to test this assumption for our sample, we used a

principal components method for our factor analysis. Moreover, since we assumed that the constructs

of the scale may be correlated to one another, we opted to utilize an oblique rotation for our analysis.

In order to determine the factorability of the 16 CE items we first took a look at the correlation between

items. Firstly, the determinant of 0.00009 shows us that the items were sufficiently related to each other.

More specifically, it was observed that all 16 items of the scale correlated at least .5 with at least one of

the other items. Moreover, none of the items were correlated more than 0.8 with another item, which

rules out the possible issue of multicollinearity. Secondly, the Kaiser-Meyer-Olkin measure of sampling

adequacy was .932, a value above the generally recommended value of .6. On top of that, The Bartlett’s

test of sphericity was statistically significant (χ2 (120) = 2888.18, p < .001). At last, the communalities

all had a value of more than .3, demonstrating that each item of the scale shared common variance with

any of the other items. As these three indicators suggested high factorability, a factor analysis was

perceived applicable.

Based on the criterion of Eigenvalues larger than 1, we extracted three factors, each explaining 46%,

12% and 8% respectively of the total variance. This implies that the three extracted factors cumulatively

explained 67% of the variance of all items combined. However, we can identify that the extraction of

Page 37: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[26]

three factors is not in line with the amount that was to be expected, namely the four factors of our initial

assumption. More specifically, we can see in Table 1 that whereas the items of customer purchases and

references indeed load on distinct factors, the items for influence and knowledge seem to load on the

same construct. We suggest that this occurrence is due to the content of the questions. When looking

at the items of the scale (see Appendix) we can first of all tell that items 1 to 4, regarding customer

purchases, examine the respondent’s buying intentions in an offline setting. Therefore, they load on the

same construct. The items measuring customer references, influence and knowledge on the other hand,

refer to the interaction intentions in an online setting and more specifically on a social platform.

Therefore, items 9 to 16, representing customer influence and knowledge, load on the same factor,

which we adopt as social media interactions. These interactions can be seen as interplay with other

platform users (influencing) as well as with the firm (knowledge addition). Despite the items aiming to

measure customer references (5 to 8) being additionally embedded in an online setting, the construct is

able to separate itself due to the important condition of an incentive. Therefore, we suggest that the

factor of customer references implies a reactive sensitivity towards incentives, rather than a true

intention of interacting with others on the social platform by means of referrals. Consequently, the label

of this factor was adapted to customer reference sensitivity.

As all the items of the scale contributed to a simple factor and met with the general criteria of a factor

loading higher than 0.4 on the designated factor and lower than 0.3 on the other factors, none of the

items were to be deleted.

Table 1: Factor loadings and communalities for 16 items of

the CE Scale (CES) of Pansari and Kumar (2016) (N=318)a

Components

Customer

purchases

Customer

reference

sensitivity

Customer social

media interaction

Communalities

Item1 .78 .63

Item2 .88 .77

Item3 .82 .69

Item4 .85 .75

Item5 -.79 .73

Item6 -.82 .72

Item7 -.69 .69

Item8 -.89 .72

Item9 .77 .60

Item10 .63 .61

Item11 .64 .59

Item12 .61 .65

Item13 .81 .64

Item14 .82 .63

Item15 .87 .70

Item16 .76 .59

Extraction Method: Principal Component Analysis.

Rotation Method: Oblimin with Kaiser Normalization.

Factor loadings < .3 are suppressed.

a. Rotation converged in 5 iterations.

Page 38: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[27]

3.3.1.2 Internal consistency reliability analysis

To further verify the reliability of our extracted factors, we calculated the internal consistency by means

of Cronbach’s alphas. The alphas were good for customer purchases and customer reference

sensitivity, with scores of 0.86 and 0.87 respectively. The alpha for the customer social media interaction

factor could even be depicted as excellent, with a resulting Cronbach alpha of 0.91. No increases in

Cronbach’s alphas for any of the factors could have been achieved by eliminating an item. In summary,

our scale consisted of 3 factors with 4, 4 and 8 items respectively and could be seen as internally

consistent, suggesting its reliability. These findings can be retrieved in Table 2.

Table 2: Descriptive statistics for the three CES factors

(N = 318)

No of items Cronbach’s α

Customer purchases 4 0.86

Customer reference sensitivity 4 0.87

Customer social media interaction 8 0.91

3.3.2 Hypotheses testing

After preparing our scale for further analysis, we will now move over to the actual testing of the

hypotheses relevant for conducting the intended research. More specifically, we will rehearse every

effect that was to be investigated specifically, each time explaining which test was performed on it in

order to retrieve meaningful results. In what follows, we will first try to get an overview of our research

by means of a set of descriptive statistics. Secondly, we will shift to some pairwise comparisons by using

independent samples t-tests, with the aim of identifying stand-alone effects. At last, we will end up with

a conclusive variance analysis, in search of a more profound understanding of the combined effect

between our independent variables.

3.3.2.1 Descriptive statistics on the research question

In order to get a general, but rough first impression of the effect of the use of social media as a means

for positively influencing a user’s CE, we firstly ran a number of descriptive statistics comparing the

experiment groups with the control group. The results can be found in Table 3 below. Do note that prior

to running these descriptives, we executed a series of data cleaning steps . By means of a box plot we

looked for significant outliers within our CE distribution. However, none were to be found. Secondly, we

did delete two responses as they were incomplete, leaving us with a total of 318 respondents to be

analyzed.

Page 39: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[28]

Table 3: Descriptive statistics on the measure of CE as a function of social media

posting

CE score

N Mean

Std.

Deviation Minimum Maximum

Facebook video 69 34.42 10.55 16.00 66.00

Facebook image 72 31.83 10.17 16.00 65.00

Instagram video 60 38.65 9.79 18.00 66.00

Instagram image 62 36.61 11.16 16.00 66.00

Control group 55 39,85 12.38 16.00 64.00

Total 318 36,00 11.11 16.00 66.00

Note. The minimum and maximum score are 16 and 80 respectively.

Surprisingly, the absolute mean values of the CE scores of the experiment groups are all lower than the

mean CE score of the control group. At first glance, this would imply that getting exposed to a post of a

firm on social media, would result in a lower engagement as compared to the status quo. Therefore,

these means are unquestionably in need of further analysis and explanation. Furthermore, based on the

respective minimum and maximum values, the range of values of all groups tend to be quite similar,

reconfirming there were no significant outliers in the data of our CE scores.

3.3.2.2 The use of independent samples t-tests to identify general effects

Once we obtained a general view on the general effect that was to be investigated, we could then

proceed to conducting the relevant tests used to get a more profound insight of this effect, as this was

the eventual goal of our research in particular. In doing so, we first calculated a series of independent

samples t-test comparing the interval-scaled CE scores of our experimental groups with our control

group. The results can be found in Table 4 underneath.

Table 4: Independent samples t-test on the mean scores of CE between experimental

groups and control group

Mean Std. Deviation

t-value

p-value

Facebook video

Control group

34.42

36.00

10.55

12.38

-2.63 0.009

Facebook image

Control group

31.83

36.00

10.17

12.38

-3.90 < 0.001

Instagram video

Control group

38.65

36.00

9.79

12.38

-.58 0.562

Instagram image

Control group

36.61

36.00

11.16

12.38

-1.48 0.139

Page 40: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[29]

Based upon our above-mentioned results, we can conclude that whereas the average CE scores of the

control group do not significantly differ from the Instagram stimuli (both video and image), the average

CE scores of the Facebook both the video and captioned image stimuli do show significantly lower

values as opposed to the control group. This implies that on one hand, there is no effect of posting a

video nor an image on a user’s level of engagement on Instagram. On the other hand, posting a video

or a captioned image on Facebook negatively affects a user’s level of engagement as compared to the

status quo. These results did not lay in line with our expectations of the answer to our RQ.

Secondly, we calculated an independent samples t-test to identify a possible difference between the CE

scores of our two main independent samples, namely the Facebook group and the Instagram group.

This was done in an attempt to provide an answer to our first hypothesis. Do note that we did not yet

split up these groups based upon their formatting. The results indicated that users who got exposed to

a post by the firm via an image-sharing channel reported significantly higher CE scores (M = 37.6, SD

= 10.5) than did users who got exposed to a post by the firm via a social networking channel (M = 33.1,

SD = 10.4), t(261) = -3.49, single-tailed p = < .001. As expected, the image-sharing channel (Instagram)

generated a significantly higher mean CE score among users, as compared to a social networking

channel (Facebook), which confirms our first hypothesis.

After checking for the effect of platform type on CE between our two independent samples, we then

wanted to determine within these groups respectively whether or not formatting had a significant impact

on CE for each of the platforms distinctively. This would allow us to come up with an answer for the

second hypotheses of our research. In order to do so, we repeated two independent samples t-tests.

The results showed that on one hand the 72 respondents in the Facebook image group (M = 31.8, SD

= 10.2) and the 69 respondents in the Facebook video group (M = 34.4, SD = 10.6), demonstrated a

marginally significant difference in mean CE scores (t[139] = -1.48, single-tailed p = .07). On the other

hand, the 62 respondents in the Instagram image group (M = 36.6, SD = 11.2) and the 60 respondents

in the Instagram video group (M = 38.7, SD = 9.8) exhibited a non-significant difference in mean CE

scores (t[139] = -1.07, single-tailed p = 0.14). These results indicate that there are no significant

differences between the effects of formatting on a user’s level of engagement on Instagram, as well as

Facebook. Consequently, the bilateral hypotheses of H2 were denied. However, do note that the effect

of formatting within a Facebook context would have been significant if the significance level of

acceptance were to be raised to 0.1. Therefore, we conclude that a Facebook video has a marginally

significant more positive effect on a user’s level of engagement, as compared to a captioned image

posted on Facebook.

At last, in order to get a first glance at the moderating effect between our variables of customer

involvement, both towards cars and towards Volvo, we conducted two independent samples t-tests to

find differences in the means of CE scores between low –and high involved users. Firstly, we reverse

coded the 6 reverse scored items of the scale. Secondly, the cut-off point was determined by splitting

the scale of Zaichowsky (1994), that ranged from 10 to 70, in half. At last, respondents that had an

involvement score within a 5-point margin around the mid-point of the scale were left out, as we

perceived them indifferent towards the questioned construct. Consequently, respondents scoring less

than 35 on the scale were labeled as low-involved users, whereas respondents scoring more than 45

were classified as high-involved users. Regarding involvement towards cars, low-involved social media

users (M = 30.6, SD = 2.12) indeed reported significantly lower CE scores as opposed to high-involved

users (M = 38.4, SD = 0.75) , t(239) = -3.59, single-tailed p = < .001. With respect to involvement towards

Volvo, we found a similar effect with low-involved users scoring a mean CE score of 30.1 (SD = 1.08)

and high-involved users scoring a mean CE score of 41.1 (SD = 1.17), t(181) = -6.68, single-tailed p =

< .001. Based on the respective t-values of both tests we recognize that involvement towards Volvo has

a stronger significant moderating effect as opposed to involvement towards cars. Therefore, we will

utilize the latter mentioned moderator in further analysis of our research.

Page 41: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[30]

3.3.2.3 The use of variance analysis to identify combined effects

Now that we obtained insight on the effect of social media channel choice and formatting separately, we

figured it would be of major interest to observe the combined effect of both independent variables on

the mean CE scores of respondents. Moreover, in order to give meaning to the odd descriptive statistics

found in section x, the comparison of the combined research cells mutually, should be expanded with a

check for the control group. At last, the found effects should be further investigated by adding

involvement towards Volvo as a moderating variable to the mix.

This implies that we needed to conduct a factorial ANOVA to compare the main effects of type of

research category and Volvo involvement, and the interaction-effect between both variables on the

mean CE score of a user. The type of research category consisted of four levels (Facebook video,

Facebook image, Instagram video and Instagram image) and involvement included two levels (low-

involved and high-involved). The cell sizes, means and standard deviations of the 4x2 factorial design

are represented in Table 5 below. Whereas both main effects were statistically significant, the

interaction-effect turned out non-significant. On one hand the main effect of research category type

yielded an F ratio of F(3,156) = 2.9, p = 0.04 indicating a significant difference between a Facebook

video (M = 34.1, SD = 1.60), a Facebook image (M = 31.3, SD = 1.70), an Instagram video (M = 37.8,

SD = 2.00) and an Instagram image (M = 37.1, SD = 1.64). On the other hand the main effect of

involvement towards Volvo yielded an F ratio of F(1, 156) = 28.0, p < 0.001. This indicated that the mean

CE scores of low-involved users (M = 30.5, SD = 1.31) are significantly lower than those of the high

involved users (M = 39.7, SD = 1.15), which laid in line with H3. The interaction effect was non-

significant, F(3, 156) = 1.2, p > 0.05.

Page 42: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[31]

Table 5: Cell sizes, means and standard deviations on the 4x2 factorial

design aiming to measure CE

CE score

Research

category Volvo involvement N Mean

Std.

Deviation

Facebook video Low-involved towards

Volvo

20 28.45 8.29

High-involved towards

Volvo

23 39.65 11.89

Total 43 34.44 11.71

Facebook

image

Low-involved towards

Volvo

20 26.15 6.45

High-involved towards

Volvo

18 36.50 13.98

Total 38 31.05 11.77

Instagram video Low-involved towards

Volvo

10 32.10 8.97

High-involved towards

Volvo

24 43.46 9.81

Total 34 40.12 10.80

Instagram

image

Low-involved towards

Volvo

21 35.19 11.83

High-involved towards

Volvo

20 39.00 10.31

Total 41 37.05 11.14

Total Low-involved towards

Volvo

71 30.31 9.69

High-involved towards

Volvo

85 39.91 11.54

Total 156 35.54 11.73

Furthermore, post hoc Tukey HSD comparisons showed that the mean CE score for a Facebook

image was significantly lower than the mean CE score for an Instagram image (p = 0.02) and

Instagram video (p = 0.01) respectively. However, all the other pairwise comparisons between

research categories did not significantly differ from one another.

Page 43: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[32]

4 Discussion

4.1 Conclusions emerging from the research

First of all, our research suggests that when it comes to engaging users beyond the act of liking, sharing

and commenting, Instagram is a better performing social platform than Facebook. More specifically, a

video or a captioned image posted on Instagram contributes significantly more to a user’s level of

engagement than a captioned image posted on Facebook.

Secondly, we recognize two tendencies across the investigated social platforms. On one hand, our

research shows that for both platforms distinctively, it seems that video formatting tends to have a larger

positive effect on a user’s level of CE as compared to a captioned image. On the other hand, the effect

of formatting within a social platform is likely to be stronger for Facebook than for Instagram.

Conclusively, the choice of picking a video over a captioned image seems to be more important within

a social networking setting as opposed to an image-sharing environment. However, it needs to be noted

that more research in this area is needed in order to significantly affirm these trends.

4.2 Discussion from the research results

To the best of our knowledge, our research was the first in its kind to measure the result of marketing

activities - in our case social media channel integration - by means of direct and indirect contributions in

order to come up with a holistic result of CE. We did this by using our self-proposed P2F model as a

framework. In doing so, we merged the world of CE and OM in order to address the literature gap that

existed between both. Moreover, this research succeeded in making a comparison between the

effectiveness of Facebook and Instagram, the most used social media platforms of today.

Taking into account our global research question, we wanted to get a hold of the effect of the use of

social media by a firm on a user’s level of engagement. Notwithstanding the fact that the eventual goal

of our research was to provide a nuanced answer to this question, we found it valuable to obtain a

general view of this effect at the outset of our research. Consequently, this was done by comparing the

mean CE scores of our experiment groups with the CE score of our control group. Although the

differences in results proved not to be significant in case of the Instagram stimuli as opposed to the

Facebook stimuli, all of the experimental groups showed lower absolute mean values on their CE scores

as opposed to the control group. This would imply that firms posting content in a video or image format

on a social platform would not differ from the status quo in case of Instagram, and even have a negative

effect on a user’s level of engagement in the case of Facebook. Since these occurrence cannot be

justified from an academic point of view, nor from the standpoint of massive usage of social media in

practice to engage users, we are led to believe that the explanation of this manifestation has to be

sought elsewhere.

In our opinion, these odd outcomes are due to the utilized research method. Hereby, it needs to be

recalled that our survey-based approach put the respondents in an artificial setting. This made the

respondents very aware of the fact that they were being manipulated. Moreover, respondents tend to

not like to admit that they are being influenced within this environment. Both of these factors may have

contributed to raising response sensitivity, therefore having a none to negative impact on the mean CE

scores as opposed to the control group. In addition, we suggest that engagement towards a firm is

difficult to ascribe to a single manipulation and rather the result of multiple interactions with the firm

across social media platforms over time.

Page 44: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[33]

In these regards, we advocate the usage of a data-driven approach when it comes to measuring CE, as

this method enables the researcher to measure the true perceptions of a user rather than seeking for

superficial intentions. More specifically, we propose that for the measurement of direct, data mining

techniques such as the CLV method of Kumar, Venkatesan, Bohling, and Beckmann (2008) may still

provide a valuable alternative. As far as the measurement of indirect contributions, more recent research

in the field of text-mining may provide meaningful insights on the references, influencing and knowledge

addition value of users. Moreover, these techniques would not only be able to measure CE more

efficiently, but would also enable both researchers as well as practitioners to generate predictive models

of marketing activities on CE using the P2F model as a framework.

When taking a look at our first hypothesis, we anticipated a post of the firm via an image-sharing channel

having a stronger effect on a user’s level of engagement, as opposed to a post of the firm via a social

networking channel. Indeed, by comparing Facebook and Instagram, our research results show that this

is the case. However, we hypothesized this effect on the assumption that images would generate more

CE as compared to videos and that therefore Instagram would be the biggest engaging platform. Yet,

our own research now shows that there is tendency for video being a stronger engaging format as

opposed to a captioned image. Therefore, our hypothetical justification can no longer apply.

Now, the question that remains to exist is what did cause this effect. We suggest the biggest reason for

this outcome can be found in the fact that interacting with a firm on Instagram can be done more

anonymously as opposed to interacting with a firm on Facebook. More specifically, the activities of a

user on Facebook are subject to bigger public exposure in comparison to activities on Instagram.

Whereas on Facebook, the likes and comments of a user get displayed on the news feed of every one

of their friends, followers on Instagram do not receive notice of such interactions, unless they

coincidentally encounter the same post. We believe that this lack of anonymity on the Facebook platform

tends to withhold users from truly engaging with their beloved brands, as they might consider this an

infringement of their privacy. In summary, we recognize that despite CE goes beyond mere commenting,

sharing and liking, these factors still play a major role in terms of social media use. Therefore, we

propose that the sense of anonymity might be an important driver from a social media user's point of

view

Bearing in mind our second hypothesis, we stated that a captioned image would have had a more

positive effect on CE as opposed to a video format, and that this effect occur across both investigated

social platforms. On the contrary, the results showed that in fact there is a tendency for the opposite

effect. A video thus tends to create more engagement in comparison to a captioned image. In order to

being able to understand this, we first need to recapture the foundation of our hypothesis.

The assumption for our second exploratory effect was based on empirical research that investigated the

effect formatting had on social media engagement. Although no abundance of literature was found within

this field, Leung et al., (2013), Bonson et al. (2014) and Dolan et al. (2016) found that across different

sectors, images topped videos in engaging Facebook users. We suggest that our conflicting results can

be explained in two ways. First of all, we propose that the effect of formatting on the engagement of

social media users might be sector specific and therefore not generalizable. For instance, a moving

visual might be more appealing to users in the context of a car, as opposed to wines and hotels.

Secondly, given the fast-evolving nature of the social media environment, these papers, despite being

relatively recent, may already not be cooping well with the current trends regarding the effect of

formatting on CE. This means that whereas images may have topped videos in engaging users up until

two to four years ago, this trend may have already been reversed due to the social media dynamics that

took place in the meantime.

Page 45: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[34]

At last, our third hypothesis involved the moderating effect of customer involvement between our two

main effects of interest. Despite adding involvement towards Volvo as a moderator to all our main effects

as well as the combined effect, no significant interaction effects were found. Therefore, a further analysis

of this variable was not discussed. Nonetheless, our research showed that indeed low-involved users

were subject to lower CE scores as opposed to high-involved users, reconfirming the insight provided

by Hollebeek (2014).

4.3 Limitations and suggestions for further research

A first limitation of our research consists of the overrepresentation of the youngest age group in our

sample. Our socio-demographic distribution showed that roughly 78% of the sample consisted of

respondents within the age group of 18-24. In particular, we suggest that this could have caused bias

on the distribution of the CE scores. More specifically, we assume that the older people get, the more

sensitive they become towards risk avoidance. This implies that when it comes to a car, safety is likely

to become a more important characteristic as the person ages. Since safety can be seen as the most

important advertisement feature utilized by Volvo and this feature also came forward prominently in the

stimuli of our research, we suspect that the overrepresentation of the younger age group was the reason

of seeing lower CE scores to occur, as opposed to what was to be expected.

The attentive reader may have noticed that whereas at the end of chapter two of the literature study, we

discourage researchers of doing research in the field of OM in stand-alone fashion, we then proceed

with setting up a research that compared merely two social media channels by the end of chapter three.

This is due to the limitation that within the confines of a master’s dissertation, we lacked both time and

resources to further expand the research design. Moreover, this lack of resources implied that we were

not granted access to a real-life database of Volvo sales figures and/or social media details of their

customers. Therefore, we were only able to calculate the engagement scores of a random set of platform

users, rather than measuring the engagement intentions of real customers.

Taking all these limitations into consideration, we want to underline that the research conducted within

this dissertation should be considered a basic illustration of the type of research that could be done

making use of the P2F model as a framework and this from both a managerial as well as an academic

point of view. Therefore, we encourage future researchers to carry out larger-scale research in the area

of OM by adding more social media platforms to the mix such as Youtube and Snapchat. Moreover, we

suggest it could be of value to add other online channels to the research design, such as search engine

advertisements (=SEA) and e-mail marketing, in addition to social media channels. By doing so, the

marketer would be enabled to come up with a meta-analysis of the effectiveness of a firm’s total online

marketing activity.

Taking into account the ambiguity that remains to exist surrounding the effect of formatting on a user’s

level of engagement, we propose that first of all it could be worth doing research within this line of work

by taking into account multiple sectors in order to find meta-effects across sectors. Secondly, given the

hyper-dynamic environment of social media, we call for research that is able to keep track of time series

in order to keep up with the fast moving trends within social media use. Thirdly, besides formatting, the

content of a social media post could also be worth to be taken into consideration as an important variable

to explain differences of engagement across platform users. At last, we would like to mention that

whereas we assumed in section 2.2.3 that practitioners seemed to agree on the idea that video is the

prevailing engaging format based on a practical study, this idea could have been confirmed by

strengthening the quantitative study with a qualitative aspect which would check for the perception of

formatting effectiveness among a group of managers within the field. This qualitative study could have

been conducted by means of in-depth interviews.

Page 46: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[35]

4.4 Managerial implications

Despite the fact that Facebook has proved its value within the social media landscape for a longer period

of time and intermediately has developed an extensive tool to expose sponsored content to a specific

target group, our research shows that Instagram is significantly capable of engaging its users more.

More specifically, this effect is especially true when the target group consists of young people between

the ages of 18 and 39. Therefore, we encourage managers relying on Facebook as the prevailing social

platform within their social media strategy to also (and maybe even more) take Instagram into

consideration.

In addition, it is important to note that despite the fact that Instagram is the image-sharing channel par

excellence, videos nevertheless tend to generate the highest level of engagement, even within this

platform. This is why we recommend managers to predominantly post videos on their Instagram feed.

However, it needs to be noted that we are not convinced that posting solely video content on the platform

will maximize engagement levels, due to the potential negative effect of monotony.

Finally, we also want to discourage managers from putting an abundance of Facebook pictures on their

wall, as they tend to perform marginally worse than Facebook videos and significantly generate less

engagement than Instagram photos and videos.

5 Conclusive consideration

In today’s business world, all too often marketers from a consumer’s point of view are still being looked

at as money grabbing monsters eager to suck the dollars right out of their pockets. This is unfortunate,

as in fact it are the marketers who should be the ones providing firms deep, meaningful connections

with all of their customers and potential customers. I believe that the only way of changing the narrative

of how the marketers of today are being looked at, is by changing the way marketers themselves

approach their surroundings.

Instead of selling the idea of putting customers at the center point of gravity under the guise of “the

customer is always right” only to then chase as much revenues as possible in the short term, I propose

that marketers should truly build their strategy around the customer by focusing on the co-creation of

value between both parties. Hereby, it is of my opinion that following the latter kind of approach will

automatically lead to profit maximization as well as more satisfied relationships in the long term.

With the introduction of the P2F model presented within this dissertation, managers as well as

practitioners willing to pursue such vision, are provided with a framework that enables them to implement

a corresponding strategy.

Page 47: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[IX]

References

Aichner, T., & Jacob, F. (2015). Measuring the degree of corporate social media use. International

Journal of Market Research, 57(2), 257-276.

Baier, M., Ruf, K. M., & Chakraborty, G. (2002). Contemporary database marketing: concepts and

applications. Racom Communications.

Barris, M. (2015). Budweiser says Super Bowl digital strategy as important as ad buy. Mobile

Marketer. Retrieved August 12, 2017 from

http://www.mobilemarketer.com/cms/news/advertising/19580.html.

Batra, R., & Keller, K. L. (2016, November). Integrating Marketing Communications: New findings, new

lessons, and new ideas. American Marketing Association.

Berry, L. L. (1995). Relationship marketing of services—growing interest, emerging perspectives.

Journal of the Academy of Marketing Science, 23(4), 236-245

Blattberg, R. C., Kim, B. D., & Neslin, S. A. (2008). Why database marketing?. In Database Marketing

(pp. 13-46). Springer New York.

Bolton, R. N., & Drew, J. H. (1991). A multistage model of customers' assessments of service quality

and value. Journal of consumer research, 17(4), 375-384.

Bonsón, E., Royo, S., & Ratkai, M. (2015). Citizens' engagement on local governments' Facebook

sites. An empirical analysis: The impact of different media and content types in Western Europe.

Government Information Quarterly, 32(1), 52-62.

Bowden, J. L. H. (2009). The process of CE: a conceptual framework. Journal of Marketing Theory

and Practice, 17(1), 63-74.

Brodie, R. J., Hollebeek, L. D., Juric, B., & Ilic, A. (2011). CE: conceptual domain, fundamental

propositions, and implications for research. Journal of Service Research, 14(3) 252-271.

Chen, S., & Lamberti, L. (2016). Multichannel marketing: the operational construct and firms’

motivation to adopt. Journal of Strategic Marketing, 24(7), 594-616.

De Haan, E., Wiesel, T., & Pauwels, K. (2016). The effectiveness of different forms of online

advertising for purchase conversion in a multiple-channel attribution framework. International Journal

of Research in Marketing, 33(3), 491-507.

De Keyser, A., Schepers, J., & Konuş, U. (2015). Multichannel customer segmentation: Does the after-

sales channel matter? A replication and extension. International Journal of Research in Marketing,

32(4), 453-456.

De Pelsmacker, P., & Van Kenhove, P. (2014). Marktonderzoek: methoden en toepassingen.

Amsterdam: Pearson.

Dinner, Isaac M., Harald J. Van Heerde, and Scott A. Neslin (2014), “Driving Online and Offline Sales:

The Cross-Channel Effects of Traditional, Online Display, and Paid Search Advertising,” Journal of

Marketing Research, 51 (October), 527–45.

Dolan, R., Conduit, J., Fahy, J., & Goodman, S. (2016, February). Facebook for Wine Brands: An

Analysis of Strategies for Facebook Posts and User Engagement Actions. In 9th Academy of Wine

Business Research Conference (p. 457).

Page 48: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[X]

Econsultancy (2012). Quarterly digital intelligence briefing: Making sense of marketing attribution.

Retrieved January 7, 2018 from http://econsultancy.com/nl/reports/quarterly-digital- intelligence-

briefing-making-sense-of-marketing-attribution.

Fossen, B. L., & Schweidel, D. A. (2016). Television advertising and online word-of-mouth: An

empirical investigation of social tv activity. Marketing Science, 36(1), 105-123.

Frazer, M., & Stiehler, B. E. (2014, January). Omnichannel retailing: The merging of the online and off-

line environment. In Global Conference on Business & Finance Proceedings (Vol. 9, No. 1, p. 655).

Institute for Business & Finance Research.

Gallup (2014). The financial and emotional benefits of fully engaged bank customers. Retrieved

August 17, 2017 from http://www.gallup.com/opinion/gallup/173255/financial- emotional-benefits-fully-

engaged-bank-customers.aspx.

Goldfarb, A., & Tucker, C. (2011). Online display advertising: Targeting and obtrusiveness. Marketing

Science, 30(3), 389-404.

Grey (2015). The greatest interception. Retrieved January 8,, 2018 from

http://grey.com/global/work/key/new-york-volvo-interception/id/5647/.

Grönroos, C., & Voima, P. (2012). Making sense of value and value co-creation in service logic.

Hanssens, D.M. (2009). Empirical generalizations about marketing impact: What we have learned

from academic research. Marketing Science Institute.

Harmeling, C. M., Moffett, J. W., Arnold, M. J., & Carlson, B. D. (2017). Toward a theory of CE

marketing. Journal of the Academy of Marketing Science, 45(3), 312-335.

Hoffman, D. L., & Novak, T. P. (1996). Marketing in hypermedia computer-mediated environments:

Conceptual foundations. The Journal of Marketing, 50-68.

Hollebeek, L. (2011). Exploring customer brand engagement: definition and themes. Journal of

Strategic Marketing, 19(7), 555-573.

Hollebeek, L., Glynn M., & Brodie R. (2014), “Consumer Brand Engagement in Social Media: Concep-

tualization, Scale Development, and Validation,” Journal of Interactive Marketing, 28 (2), 149–65.

Homburg,

Hollebeek, L., Srivastava, R., Chen, T. (2016). S-D logic-informed CE: integrative framework, revised

fundamental propositions, and application to CRM. Journal of the Academy of Marketing Science

(2016) pp. 1-25.

Howard, J., Sheth A. & Jagdish, N. (1969). The theory of buyer behavior (No. 658.834 H6).

IAB (2017). 2016 Internet advertising revenue full-year report. Retrieved April 14, 2017 from

https://www.iab.com/wp-

content/uploads/2016/04/IAB_Internet_Advertising_Revenue_Report_FY_2016.pdf.

Imec (2016). Imec digimeter 2016. Retrieved January 6, 2017 from https://www.imec-

int.com/nl/digimeter.

Jaakkola, E., & Alexander, M. (2014). The role of CE behavior in value co-creation a service system

perspective. Journal of Service Research, 17(3), 247–261.

Page 49: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[XI]

Leung, X. Y., Bai, B., & Stahura, K. A. (2015). The marketing effectiveness of social media in the hotel

industry: A comparison of Facebook and Twitter. Journal of Hospitality & Tourism Research, 39(2),

147-169.

Li, H., & Kannan, P. K. (2014). Attributing conversions in a multichannel online marketing environment:

An empirical model and a field experiment. Journal of Marketing Research, 51(1), 40-56.

Magisto (2016). The size of video marketing. Retrieved December 23, 2017 from

https://www.magisto.com/video-market-size.

Keller, K. L. (2010). Brand equity management in a multichannel, multimedia retail environment.

Journal of Interactive Marketing, 24(2), 58-70.

Keller, K. L. (2016). Unlocking the Power of Integrated Marketing Communications: How Integrated Is

Your IMC Program?. Journal of Advertising, 45(3), 286-301.

Kumar, V. (2010). A customer lifetime value-based approach to marketing in the multichannel,

multimedia retailing environment. Journal of Interactive Marketing, 24(2), 71-85.

Kumar, V. (2013). Profitable CE: Concept, Metrics and Strategies.” SAGE Publications, India.

Kumar, V., & Pansari, A. (2016), Competitive Advantage Through Engagement. Journal of Marketing

Research, 53, 497–516.

Kumar, V., Venkatesan, R., Bohling, T., & Beckmann, D. (2008). Practice Prize Report—The power of

CLV: Managing customer lifetime value at IBM. Marketing science, 27(4), 585-599.

Lamberton, C., & Stephen, A. T. (2016). A thematic exploration of digital, social media, and mobile

marketing: research evolution from 2000 to 2015 and an agenda for future inquiry. Journal of

Marketing, 80(6), 146-172.

Lemon, K. N., & Verhoef, P. C. (2016). Understanding Customer Experience and the Customer

Journey. Journal of Marketing, 80(JM-MSI Special Issue), 1–62.

Liaukonyte, J., Teixeira, T., & Wilbur, K.C. (2015). Television Advertising and Online Shopping.

Marketing Science, 34(3), 311–30.

Malthouse, E. C., Haenlein, M., Skiera, B., Wege, E., & Zhang, M. (2013). Managing customer

relationships in the social media era: introducing the social CRM house. Journal of Interactive

Marketing, 27(4), 270-280.

Michel, S., Brown, S., & Gallan, A. (2008). An expanded and strategic view of discontinuous

innovations: Deploying a service-dominant logic. Journal of the Academy of

Marketing Science, 36(1), 54–66.

Montaguti, E., Neslin, S. A., & Valentini, S. (2015). Can marketing campaigns induce multichannel

buying and more profitable customers? A field experiment. Marketing science in press.

Morgan, R. M., & Hunt, S. D. (1994). The Commitment-Trust Theory of Relationship Marketing.

Journal of Marketing, 58(3) 20-38.

Nambisan, S. (2002). Designing virtual customer environments for new product development: Toward

a theory. Academy of Management Review, 27(3), 392-413.

Page 50: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[XII]

Neslin, S. A., & Shankar, V. (2009). Key issues in multichannel customer management: current

knowledge and future directions. Journal of interactive marketing, 23(1), 70-81.

Neslin, S. A., Grewal, D., Leghorn, R., Shankar, V., Teerling, M. L., Thomas, J. S., & Verhoef, P. C.

(2006). Challenges and opportunities in multichannel customer management. Journal of Service

Research, 9(2), 95-112.

Oliver, R. L. (1980). A cognitive model of the antecedents and consequences of satisfaction decisions.

Journal of marketing research, 460-469.

Pansari & V. Kumar (2016). CE: the construct, antecedents, and consequences. Journal of the

Academy of Marketing Science, 37, 1-32

Patterson, P., Yu, T., & De Ruyter, K. (2006, December). Understanding CE in services. In Advancing

theory, maintaining relevance, proceedings of ANZMAC 2006 conference, Brisbane (pp. 4-6).

Pelton, L. E., Strutton, D., & Lumpkin, J. R. (1997). Marketing channels. Chicago: Richard W. Irwin,

203-209.

Rangaswamy, A., & Van Bruggen, G. H. (2005). Opportunities and challenges in multichannel

marketing: An introduction to the special issue. Journal of Interactive Marketing, 19(2), 5-11.

Sarner, A., & Herschel, G. (2008). A checklist for evaluating an inbound and outbound multichannel

campaign management application. Report G00160776, Gartner, Stamford, CT.

Sedley, R. (2010). 4th Annual online CE report 2010.

Sethuraman, R., Tellis, G. J., & Briesch, R. A. (2011). How well does advertising work?

Generalizations from meta-analysis of brand advertising elasticities. Journal of Marketing Research,

48(3), 457–471.

Srinivasan, S., Pauwels K., & Rutz, O.J. (2016). Paths to and off Purchase: Quantifying the Impact of

Traditional Marketing and Online Customer Activity. Journal of the Academy of Marketing

Science,44(4),440–53.

Statista (2017). Instagram: number of monthly active users 2013-2017. Retrieved December 27, 2017

from https://www.statista.com/statistics/253577/number-of-monthly-active-instagram-users.

Statista (2017). Twitter: number of monthly active users 2010-2017. Retrieved December 27, 2017

from https://www.statista.com/statistics/282087/number-of-monthly-active-twitter-users.

Suddaby, R. (2010). Construct clarity in theories of organization. Academy of Management Review,

35(3), 346–357.

Vakratsas, D., & Ambler, T. (1999).How advertising works: what do we really know? Journal of

Marketing, 63(January), 26–43.

Van Doorn, J., Lemon, K. N., Mittal, V., Nass, S., Pick, D., Pirner, P., & Verhoef, P. C. (2010). CE

behavior: Theoretical foundations and research directions. Journal of Service Research, 13(3), 253-

266.

Verhoef, P., Werner R., & Krafft M. (2010), “Customer 1211 Engagement as a New Perspective in

Customer Management,” Journal of Service Research, 13, 3, 247–52.

Page 51: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[XIII]

Vivek, S. D., Beatty, S. E., & Morgan, R. M. (2012). CE: Exploring customer relationships beyond

purchase. Journal of Marketing Theory and Practice, 20(2), 122-146.

Winer, R. S. (2009). New communications approaches in marketing: Issues and research directions.

Journal of Interactive Marketing, 23(2), 108-117.

Page 52: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[XIV]

Appendix

Schematic overview of the research

Figure 9: schematic overview of the research

Page 53: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[XV]

Survey

1. Survey introduction

Start of Block: Introduction

Intro Dear participant,

The next survey will take about 8 minutes of your time.

There are no right or wrong questions. Your personal ideas, perceptions and feelings are what matter.

The data will be analyzed anonymously.

Thank you for your participation,

Senne Vermassen

Ghent University

Click >> to start.

End of Block: Introduction

2. CI measurement

2.1 Involvement towards cars

Start of Block: Customer involvement measurement

In this section, I would like you to think about your perception of cars and answer the following

questions.

Page 54: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[XVI]

Car involvement To me cars are:

1 (0) 2 (1) 3 (2) 4 (3) 5 (4) 6 (5)

important

(1) o o o o o o o unimportant

boring (2) o o o o o o o interesting

relevant

(3) o o o o o o o irrelevant

exciting

(4) o o o o o o o unexciting

means

nothing (5) o o o o o o o means a lot

to me

appealing

(6) o o o o o o o unappealing

fascinating

(7) o o o o o o o mundane

worthless

(8) o o o o o o o valuable

involving

(9) o o o o o o o uninvolving

not

needed

(10) o o o o o o o needed

2.2 Involvement towards Volvo

Here, I would like you to think of the car brand Volvo and answer the following questions.

Volvo, to me is:

(Same scale as presented above)

End of Block: Customer involvement measurement

Page 55: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[XVII]

Start of Block: Any social medium usage

SM user Are you a user of any social medium?

o Yes (1)

o No (2)

End of Block: Any social medium usage

Start of Block: Which social media usage

3. Assigning respondents to experimental/control group(s)

Which of the following social media tools do you use? (Choose all that apply)

▢ Facebook (1)

▢ Instagram (2)

▢ Twitter (3)

▢ LinkedIn (4)

▢ Google+ (5)

▢ Youtube (6)

▢ Skype (7)

▢ Flickr (8)

▢ Snapchat (9)

▢ Other (please specify) (10) ________________________________________________

End of Block: Which social media usage

Start of Block: General condition Facebook

Page 56: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[XVIII]

3.1 Facebook allocation

Do you use Facebook primarily for business/academic or personal purposes?

o Business/academic usage (1)

o Personal usage (2)

o It's about 50/50 (3)

o I don't know (4)

access freq How often do you access your Facebook account? (On average)

o Hourly (1)

o Multiple times per day (2)

o Daily (3)

o Once per couple of days (4)

o Once per week (5)

o Once per month (6)

o Less than once per month (7)

Page 57: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[XIX]

How often do you post information you want to share on your Facebook account? (On average)

o Hourly (1)

o Multiple times per day (2)

o Daily (3)

o Once per couple of days (4)

o Once per week (5)

o Once per month (6)

o Less than once per month (7)

How often do you use Facebook to obtain information about a brand's products and services?

o Frequently (1)

o Sometimes (2)

o Rarely (3)

o Never (4)

How often do you use Facebook to like, comment or share posts of brands?

o Frequently (1)

o Sometimes (2)

o Rarely (3)

o Never (4)

End of Block: General condition Facebook

Start of Block: General condition Instagram

Page 58: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[XX]

3.2 Instagram allocation

Do you use Instagram primarily for business/academic or personal purposes?

o Business/academic usage (1)

o Personal usage (2)

o It's about 50/50 (3)

o I don't know (4)

How often do you access your Instagram account? (On average)

o Hourly (1)

o Multiple times per day (2)

o Daily (3)

o Once per couple of days (4)

o Weekly (5)

o Monthly (6)

o Less than once per month (7)

Page 59: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[XXI]

How often do you post information you want to share on your Instagram account? (On average)

o Hourly (1)

o Multiple times per day (2)

o Daily (3)

o Once per couple of days (4)

o Weekly (5)

o Monthly (6)

o Less than once per month (7)

How often do you use Instagram to obtain information about a brand's products and services?

o Frequently (1)

o Sometimes (2)

o Rarely (3)

o Never (4)

How often do you use Instagram to like, comment, or contact brands?

o Frequently (1)

o Sometimes (2)

o Rarely (3)

o Never (4)

End of Block: General condition Instagram

Start of Block: Photo stimulus Facebook

Page 60: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[XXII]

3.3 Stimuli

3.3.1 Scenario 1: Facebook captioned image

In this section I would like to imagine yourself in the following situation: "You are logged into your

Facebook account on any device. Scrolling down your news feed, you encounter posts, shares and

activity of your friends. Moreover, you get to see posts and shares of the pages you liked. Regularly

however, these messages are alternated by content of pages you did not like. These are sponsored

posts. At a given moment, one of those posts draws your attention."

Please read the caption and take a close look at the image below.

3.3.2 Scenario 2: Facebook video

In this section I would like to imagine yourself in the following situation: "You are logged into your

Facebook account on any device. Scrolling down your news feed, you encounter posts, shares and

activity of your friends. Moreover, you get to see posts and shares of the pages you liked. Regularly

however, these messages are alternated by content of pages you did not like. These are sponsored

posts. At a given moment, one of those posts draws your attention."

Please take a close look at the video below.

3.3.3 Scenario 3: Instagram captioned image

In this section I would like to imagine yourself in the following situation: "You are logged into your

Instagram account on any device. Scrolling down your home page, you encounter images and videos

of subjects you follow. These subjects consist of persons (friends, family, acquaintances, celebrities,

...) as well as brands. Regularly, you also encounter images and videos of subjects you don't follow.

These are sponsored posts. At a given moment, one of those posts draws your attention."

Please read the caption and take a close look at the image below.

3.3.4 Scenario 4: Instagram video

In this section I would like to imagine yourself in the following situation: "You are logged into your

Instagram account on any device. Scrolling down your home page, you encounter images and videos

of subjects you follow. These subjects consist of persons (friends, family, acquaintances, celebrities,

...) as well as brands. Regularly, you also encounter images and videos of subjects you don't follow.

These are sponsored posts. At a given moment, one of those posts draws your attention."

Please take a close look at the video below.

Page 61: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[XXIII]

3.3.5 Captioned image stimulus

Ins ph "Design, technology and safety. All in one with the New Volvo #XC60. Link in bio.

#MadeBySweden"

Figure 10: Captioned image of a Volvo XC90

3.3.6 Video stimulus

Figure 11: Video of a Volvo XC9

Page 62: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[XXIV]

4. CE measurement

Based on the image/video above, please provide an answer for the following statements:

Definitely not

(1)

Probably not

(2)

I don't

know (3)

Probably will

(4)

Definitely will

(5)

I would consider

buying the products of

Volvo in the near

future. (1) o o o o o

I feel like a purchase

with Volvo would make

me content. (2) o o o o o I feel like I would get

my money’s worth

when purchasing with

Volvo. (3) o o o o o

I feel like owning a

Volvo would make me

happy. (4) o o o o o I would promote Volvo

to my followers

because of possible

monetary referral

benefits provided by

the brand.* (5)

o o o o o

In addition to the value

derived from Volvo,

monetary referral

incentives would

encourage me to refer

Volvo to my followers.*

(6)

o o o o o

I would enjoy referring

Volvo to my friends

and relatives because

of possible monetary

referral incentives.* (7)

o o o o o

Given that I am the

owner of a Volvo, I

would refer my

followers on Instagram

to Volvo because of

possible monetary

referral incentives.* (8)

o o o o o

Page 63: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[XXV]

disclaimer * Volvo may provide monetary referral incentives. This means that if you refer Volvo to

multiple friends, you may be offered discounts or exclusive features on a purchase with Volvo.

I would actively

discuss Volvo on

Instagram. (9) o o o o o I would love talking

about my experience

with Volvo on

Instagram. (10) o o o o o

I would discuss the

benefits that I get from

Volvo with others on

Instagram. (11) o o o o o

I would feel part of

Volvo and mention it in

my conversations on

Instagram. (12) o o o o o

I would provide

feedback about my

experiences with

Volvo through

Instagram. (13)

o o o o o

I would provide

suggestions for

improving the

performance of Volvo

through Instagram.

(14)

o o o o o

I would provide

suggestions/feedbacks

about the new

product/services of

Volvo through

Instagram. (15)

o o o o o

I would provide

feedback/suggestions

for developing new

products/services for

Volvo through

Instagram. (16)

o o o o o

Please select

'probably not'. (17) o o o o o

Page 64: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[XXVI]

5. Socio-demographics

Start of Block: Socio-demographic info

What is your age?

o 18-24 (1)

o 25-31 (2)

o 32-39 (3)

Wat is your gender?

o Man (1)

o Woman (2)

Where do you live? (City/town)

________________________________________________________________

What is your employment status?

o Employed for wages (1)

o Self-employed (2)

o Out of work and looking for work (3)

o Out of work but not currently looking for work (4)

o Homemaker (5)

o Student (6)

o Unable to work (7)

Page 65: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[XXVII]

What is the highest degree or level of school you have completed? If currently enrolled, highest

degree received.

o No schooling completed (1)

o Elementary diploma (2)

o High school diploma (3)

o Bachelor's degree (4)

o Master's degree (5)

o Doctorate degree (6)

What is your marital status?

o Single, never married (1)

o Married or domestic partnership (2)

o Widowed (3)

o Divorced (4)

o Separated (5)

Are you in possession of a driving license?

o Yes (1)

o No (2)

Page 66: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[XXVIII]

How many cars does your household keep?

o 0 (1)

o 1 (2)

o 2 (3)

o 3 (4)

o More than 3 (5)

Display This Question:

If Are you in possession of a driving license? = Yes

How many years do you have your driving license?

________________________________________________________________

Display This Question:

If Are you in possession of a driving license? = Yes

In general terms, do you like driving?

o Yes (1)

o No (2)

o I am indifferent (18)

Display This Question:

If How many cars does your household keep? != 0

Are you the owner of one of the cars in your household?

o Yes (1)

o No (2)

Display This Question:

If Are you the owner of one of the cars in your household? = Yes

Page 67: CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ......“CUSTOMER ENGAGEMENT IN AN OMNICHANNEL ENVIRONMENT: A COMPARATIVE ANALYSIS OF FACEBOOK AND INSTAGRAM BASED UPON THE P2F MODEL” Word

[XXIX]

Is the car you own a company car?

o Yes (1)

o No (2)

End of Block: Socio-demographic info


Recommended