Content Marketing S Effect On Customer Engagement

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CONTENT MARKETING’SEFFECT ON CUSTOMERENGAGEMENT– A QUALITATIVE STUDY USING AMULTIDIMENSIONAL APPROACHExamensarbete – KandidatFöretagsekonomiJohn Denham-SmithPontus Harvidsson2017: VT2017KF20I

AcknowledgementsWe would like to thank our supervisor Nicklas Salomonson for his wise words and feedbackduring the creation of this thesis. We would also like to express our sincere gratitude to ourinterview respondents for their contribution.Pontus HarvidssonJohn Denham-SmithII

Svensk titel: Innehållsmarknadsförings påverkan på kundengagemangEngelsk titel: Content Marketing’s effect on customer engagementUtgivningsår: 2017Författare: John Denham-Smith, Pontus HarvidssonHandledare: Nicklas SalomonssonAbstractThe marketing landscape is changing, with the focus shifting from traditional marketingmethods towards digital marketing. Enterprises must realize the importance of this newparadigm to not risk falling behind competitors. The new paradigm focuses on customerrelationships and trying to attract and create loyal customers. A new way of creating loyaltrusting customer relationships is by using content marketing, meaning providing customerswith valuable information in the form of content and enabling two-way communication. Tounderstand how consumers perceive content and why they choose to engage or not, is crucialfor enterprises, in creating successful content marketing.This study aims to provide knowledge and understanding of how content marketing affectscustomer engagement from a consumer's perspective. This study is a qualitative study usingseveral semi-structured interviews and observations to gather data. A conceptual frameworkfrom previous research is used to analyse the result, this framework is a multidimensionalapproach of how consumers react and perceive different types of online content marketing.The outcome of this study shows that consumer engagement is a psychological state that ishard to reach for any enterprise/brand, to be truly successful the consumers dimensions ofcognitive, emotional and action response must all be affected, which can be enabled throughcredible, targeted and differentiated content marketingKeywords: Content marketing, customer engagement, social media, consumer engagement,digital marketing, brand engagementIII

SammanfattningOmgivningen för marknadsföring håller på att förändras, fokus har flyttats från traditionellametoder mot digitala marknadsmetoder. Företag måste förstå hur viktig detta paradigmskifteär för att inte halka efter sina konkurrenter. Det nya paradigmet fokuserar på kundrelationeroch att försöka attrahera och skapa lojala kunder. Ett nytt sätt att skapa dessa relationer är attanvända innehållsmarknadsföring (content marknadsföring), med det menas att tillhandahållavärdefull information i form av innehåll och att bistå med plattformar för att underlättatvåvägskommunikation mellan kunder och företag. Att förstå hur kunder uppfattar innehålloch varför de väljer att engagera sig i den eller inte är avgörande för ett företag i att skapalyckad innehållsmarknadsföring.Syftet med denna studie är att förse läsaren med kunskap och förståelse för hurinnehållsmarknadsföring påverkar kundengagemang ur ett kundperspektiv. Studien är enkvalitativ studie som använder semi-strukturerade intervjuer och observationer somdataunderlag. Ett ramverk baserat på tidigare forskning används för att analysera resultatet,som byggs på ett flerdimensionellt synsätt hur kunder reagerar och upplever olika typer avinnehållsmarknadsföring.Resultatet av studien visar hur kundengagemang är ett psykiskt tillstånd som är svårt förföretag/varumärken att skapa hos konsumenten. För att uppnå lyckosaminnehållsmarknadsföring måste kundens kognitiva, emotionella och viljan att ta handlingstimuleras, vilket kan skapas genom trovärdig, målinriktad och differentieradinnehållsmarknadsföring.Nyckelord: Innehållsmarknadsföring, content marketing, kundengagemang, sociala medier,digital marknadsföring, varumärkesengagemang.IV

Table of content123456789Introduction . - 1 1.1Previous research . - 1 1.2Problem discussion . - 4 1.3Research purpose and question . - 5 1.4Limitations . - 5 Theoretical framework. - 6 2.1Content marketing . - 6 2.1.1 Social media marketing . - 7 2.2Consumer behaviour online and on social media . - 7 2.3Brand engagement . - 8 2.4Customer engagement . - 9 2.5Theoretical summary . - 11 Research methodology . - 13 3.1Research approach . - 13 3.2Research design . - 13 3.3Sampling . - 14 3.4Ethical principles . - 15 3.5Data collection . - 15 3.6Data analysis . - 16 3.7Method reflection . - 17 3.7.1 Trustworthiness . - 17 3.7.2 Authenticity . - 18 Result . - 19 4.1Cognitive . - 19 4.2Emotional . - 20 4.3Action. - 21 Analysis . - 23 5.1Cognitive . - 23 5.2Emotional . - 24 5.3Action. - 24 5.4Analysis of CE’s fundamental propositions in relation to content marketing . - 25 Conclusion and contributions . - 27 6.1Conclusion . - 27 6.2Contribution to the field of marketing . - 28 Limitations and further studies . - 28 References . - 29 Appendix . - 32 9.1Interview guide . - 32 -List of FiguresFigure 1 Erdoğmuş & Tatar’s (2015) model on what drives brand engagement .- 8 Figure 2 Pansari & Kumar (2017), Customer management levels .- 11 -V

1 IntroductionThis chapter gives the reader an introduction to the need for change in marketing strategy,digital marketing and content marketing is introduced as alternatives to traditionalmarketing. Further on previous research within the area of content marketing and customerengagement is presented followed by a problematization and purpose of the research. Lastlythe limitations of the study are presented.Marketing is defined by Todor (2016, p. 1) as “Everything a company does to place itsproduct or service in the hands of potential customers”. Throughout the years there has been achange in the concepts of marketing, from transactional concepts such as pricing, promotionand distribution, towards relationship concepts such as customer trust, risk and commitment(Baines & Fill 2016). Nowadays more traditional marketing methods, such as TV ads, emaillists and online ads tends to be ignored which is one reason for changing marketing strategy(Rancati, Codignola & Capatina 2015). The change towards a digital society has forcedenterprises to adopt new ways to meet the expectations from customers and otherstakeholders, which has resulted in the concept of digital marketing (Wertime & Fenwick2009).Compared with conventional marketing communications, one major aspect in digitalmarketing is content, Bill Gates released a paper in 1996 named “Content is king”, where hepredicted that success on The Internet would be created through content. This phrase has sincethen become a popular slogan in the digital economy (Rancati, Codignola & Capatina 2015).There is reason to believe that the trend of decreased investment in traditional marketingmethods is affected by the change in consumer behavior (Rancati et al. 2015; Opreana &Vinerean 2015). Nowadays consumers tend to not want to be interrupted and therefore moreconsumers ignore marketing messages that seem intrusive (Rancati et al. 2015). Moreconsumers ignore TV commercials, unsubscribe to email lists and more phone numbers enters“do not call lists”, which are indications that it is easier for consumers to ignore interruptiveads (Rancati et al. 2015; Malthouse, Haenlein, Skiera, Wege & Zhang 2013).Digital marketing was created in the early 90’s when the internet was first introduced to thepublic, in its earliest form it consisted of static messages and information with basically nointeraction with the consumer (Kingsnorth 2016). Since then a lot has happened, Google,YouTube and smartphones have been invented and the ways for enterprises to marketthemselves online are many. Marketing an enterprise online is more or less exactly whatdigital marketing is about and an important aspect is to provide the online audience with thecontent it wants, this is called content marketing (Moran 2016).1.1 Previous researchMarketing is about creating and retaining customers (Grigsby 2015; Tracy 2014; Patrutio &Baltes 2016); however the way to do this has changed and is still changing, much because ofthe digitalization and evolvement of internet technologies (Rancati et al. 2015). According toPatrutio & Baltes (2016) content marketing is a crucial part of digital marketing. The reason isthat the major part of any enterprises digital marketing should be built on identifying the-1-

consumer and its needs, by doing this enterprises can acquire trust and build a customercompany relationship (ibid). Content marketing strategies involve the usage of digitalplatforms such as blogs and social networks where high quality content is presented to theconsumer (ibid). The content presented on these platforms as well as through other media iswhat creates value for the customers and will help enterprises attract, convert and retain them(ibid).Content marketing should seek to be informative, entertaining and helpful; a proof of contentmarketing is if the content itself helps audiences solve a problem even though they never endup buying a product or service (Moran 2016). According to Moran (2016) content marketingshould possess four properties; credibility, targeted, differentiated and measurable, which arefurther described in section 2.3. Content plays an important part in digital marketing sincecreative, good and valuable content can drive customer engagement (Ahmad, Musa & Harun2016). The definition of content marketing is according to Content Marketing Institute (2015)“a strategic marketing approach that focuses on creating and distributing valuable, relevantand consistent content to attract and retain a clearly-defined audience to gain profit”.Malthouse et al. (2013) mention that because of consumers’ ability to filter content to whatappeals to them, enterprises must adapt communication strategies to fit inbound messages andcreate customer value. Content is a way of providing information which enables the customerto engage in a certain brand (ibid). The only reason for customers to visit a certain web pageis not to purchase products but also to seek information about, for example already purchasedproducts, through content provided on the page (ibid). To maintain brand credibility anenterprise must enable co-creation of content with the customer, for example a forum wherecustomers can write and answer issues regarding products or enable customer reviews onproducts (ibid).Boateng & Okoe (2015) mention that a consumer's attitude towards an object will makehim/her act accordingly. The study concludes that social media is a positive platform toengage customers as a marketing tool. Enterprises should however be careful in choosingcontent since consumers play an active role in content sharing, they are no longer passiverecipients of advertising, they now play a large role in what content they want to receive andengage in (Kilgour, Sasser & Larke, R. 2015; Keller 2009). Boateng & Okoe (2015) alsomention that it is important for companies to link social media content to their website for thecustomer to validate the content posted on social media and improve credibility. If enterprisescan stimulate consumers to share messages, they would be perceived in the community asmore credible sources of information compared to commercial sources, therefore creatingpositive attitudes towards the brand (Kilgour et al 2015)In the article “Impact of Social Media Content Marketing towards Brand Health (Ahmad,Musa & Harun 2016) the authors emphasize the role of Social Media Content Marketing(SMCM) in brand health as it is a platform for consumers to get familiar with the brand.Ahmad et al. (2016) mention content marketing as an important element in creating goodbrand health, which means the evaluation of the brand from digital audiences (ibid).Measuring of brand health is done by certain key performance indicators (KPI) such as timeon site, likes, subscriptions, followers and repeat visitors (ibid). Ahmad et al. also emphasizesthe need for consistent monitoring of brand health score which is how the customer engagesin the content. What can be derived from previous research is that social media platforms haslimited the control of an enterprises content and messages (Kilgour, Sasser & Larke, R. 2015;Baines & Fill 2014; Evans & Mckee). With this in mind it is important for enterprises to-2-

create content that engages a consumer to share messages in their social networks (Kilgour etal 2015). Kilgour et al. (2015) mention key questions that need to be answered when creatingcontent; “how do you stimulate customers to distribute your message?”, “who should you getto distribute your message?” Therefore it becomes important to understand your target groupand their motives to be able to provide them with content that they would share in their socialnetworks (ibid).Online word of mouth such as online reviews have an impact on online consumer behavior,where the way a review is written also have an effect. Kronrod & Danziger (2013) found thatusing figurative language has a positive effect on how consumers perceive hedonistic goods.What is interesting is also that reviews that used explanatory language and described actionsand emotions will affect the perceived helpfulness of a review (Moore 2015) while softlanguage makes the impact of a negative review greater (Hamilton, Vohs & Mcgill, 2014).Studies also show that people are less likely to transmit word of mouth on social mediacompared to offline because they perceive that there is a higher social risk on social media(Eisingerich, Chun, Liu, Jia & Bell 2015).Content and messages that are developed by enterprises should be designed to enable users toenhance their self-esteem by sharing content, since the primary motive for use of social mediais to improve feelings of self-esteem (Kilgour et al 2015). Kilgour et al. (2015) mention theimportance of reaching key social influencers to spread messages on social networks sincethey are part of large networks within a certain community and therefore increases thelikelihood of the content being looked at. Key social influencers’ social relationship statuswith the community will also reflect positivity and add credibility to the content since it willmost likely not be perceived as a corporate message and advertising which is a key concept incontent marketing (ibid).The goal of content marketing is to provide consumers with content that they are willing toengage with. Ways of engaging in content means sharing, liking, commenting and adaptingthe message, then spreading it, thereby creating user-generated content. Psychologicalengagement in content is dependent on the consumer's goals needs and motives (Ashley &Tuten 2015). Consumers tend to engage in content to create positive self-images, which is anindication that consumers might not engage in content about products they like but rather inbrands that corresponds with the ideal self (Schau & Gilly 2003).There are many definitions of customer engagement (CE); this thesis however will useBrodie, Hollebeek, Jurić & Ilić (2011 p.260), definition;Customer engagement (CE) is a psychological state that occurs by virtue of interactive, cocreative customer experiences with a focal agent/object (e.g., a brand) in focal servicerelationships. It occurs under a specific set of context dependent conditions generatingdiffering CE levels; and exists as a dynamic, iterative process within service relationships thatconcrete value. CE plays a central role in a nomological network governing servicerelationships in which other relational concepts (e.g., involvement, loyalty) are antecedentsand/or consequences in iterative CE processes. It is a multidimensional concept subject to acontext- and/or stakeholder-specific expression of relevant cognitive, emotional and/orbehavioral dimensionsIn summary this definition explains customer engagement as a psychological state whichoccurs as a result of interaction with e.g. a brand, extending beyond individual transactions(ibid), meaning that CE extends beyond binary interactions thus it is not limited to a specificsituation, behavior or context (Brodie et al 2011). This definition is used in this thesis because-3-

it is not limited to any platforms or brands but rather to seek general knowledge of contentmarketing's effect on CE in a broader sense and not specific to any context and behavior.1.2 Problem discussionResearch proves a paradigm shift in marketing from traditional marketing to digital marketing(Wertime & Fenwick 2009), consumers are less likely to engage in traditional marketing andmeans to ignore traditional advertising are increasing (Rancati, et al. 2015; Malthouse et al.2013). Enterprises who do not accept changes in the marketing environment and consumerbehavior risk falling behind.Previous research states that content marketing is an important part of an enterprise'smarketing (Patrutio & Baltes 2016; Ahmad, Musa & Harun 2016; Musa & Harun 2016).Content created and shared on various online platforms is what engages consumers whichbuild a customer-company relationship and further leads to purchase intent. This isparticularly important since the way content is shared and perceived by users cannot becontrolled by an enterprise, whether positive or negative (Kilgour, Sasser & Larke, R. 2015;Baines & Fill 2014; Evans & Mckee), Users are no longer passive recipients of content, theyactively engage and co-create by liking, sharing or commenting on content posted byenterprises (Kilgour et al. 2015), which is why it is important to understand why consumerschose to engage with content or not.According to Kilgour et al (2015) it is important for enterprises to get customers to engage intheir content, since it creates trust relationships and positive actions such as purchase orpositive WOM. Eisingerich et al. (2015) on the other hand argues that customers avoid cocreation on social media, such as online WOM since it is associated with high social risk.Kilgour, Sasses & Larke (2015) further advocates the importance of choosing the rightcontent since users play an active role in content sharing. What this thesis examines is whatusers of social media are being attracted by and what content they want to engage or notengage in.Articles on content marketing (Colin 2016; Odden 2012), argue that content should seek to beinformative, entertaining and helpful to help the audience solve a problem even though theymight not actually buy a product on the same website as the content was found (Moran 2016).What is more important from the consumer's view? Can content in itself create and retaincustomers or is the product/service more crucial?To summarize there are many indications that content marketing has to be considered as amarketing strategy and that it is an effective way of creating customer engagement. Contentmarketing is an important aspect in creating customer-brand relationships and engagingcustomers with the goal of driving traffic to the website and in the end driving profit.However there is a lack in research on the consumer's perceptions toward content. To whatdegree are consumers interacting, co-creating and engaging in content and why do theyengage? And what part does content marketing play in consumer engagement?-4-

1.3 Research purpose and questionThe purpose of this study is to provide knowledge and insights on why consumers choose toengage or not engage with content in an online environment. This thesis studies thephenomenon from a consumer perspective and more specifically it aims to contribute toresearch within customer engagement and content marketing. What will be studied is what theunderlying reasons are for consumers to engage or not engage with content. Inboundmarketing techniques such as content marketing are becoming more common (Patrutio &Baltes 2016), with the main goal of attracting customers to online platforms through highquality content (Kilgour et al. 2015; Kingsnorth 2016). Kilgour et al. (2015) mention the fastpaced nature of social media environments and that the area is in constant need of validationand further research.To reach the purpose this thesis aims to answer following research question:Why do customers decide to engage or not engage in online content marketing?1.4 LimitationsThis thesis is limited to the platforms for sharing of content marketing. The main focus isofficial websites of brands together with Facebook and Instagram which are the two mostused social media platforms in Sweden, where the study is taking place (Davidsson, P. &Findahl, O. 2016). In regards to content marketing, these two platforms are mentioned mostfrequently, which further motivates the choice. Choosing the official website of the chosenbrands is because content posted on other media is to drive traffic to the website. Boateng &Okoe (2015) mentions the importance to link social media content to their website to enableconsumers to validate content, which further motivates the choice. The research is not acomparative study between brands, but rather seeks to gain generalized knowledge on theperception of content marketing from a consumer's point of view.Note that in the thesis, the words customer and consumer is used, however we emphasize thatin this thesis they have the same meaning and are used dependent on the context and referenceused.-5-

2 Theoretical frameworkThis second chapter provides the audience with a description of frequently used expressionsregarding the domain, as well as the conceptual framework that is used for the result andanalysis. The field of content marketing and customer engagement are described thoroughlysince they are the focus area of the thesis.2.1 Content marketingOdden (2012 p. 99) describes content as “an approach to attract, engage and inspire customersto a logical conclusion to buy and share through content that emphasizes with the variedinterests and behaviors during the buying cycle”. Customers nowadays educate themselves bysearching various platforms to receive information about a specific object (ibid). Therefore itis important for enterprises to provide consumers with content that enables them to engage inthe brand, which if successful leads to purchase intent (Kilgour et al 2015). Digital marketingsets the playing ground for content to be shared on, below are some of the most popularplatforms for enterprises to create content l mediaBlogsE-mailMobile contentResearchVideosCase studiesImagesNews releasesSlideshowsWebinarsDigital newslettersInfographicsPDFsSocial mediaWhite papersThe concept of content marketing is that it should be informative, entertaining and helpful inthe way that it helps the audience to solve a problem (Moran 2016). Moran (2016) states thatfor content marketing to be successful it needs to possess the four following properties:credibility, targeted, differentiated and measurable. These are further used in the result andanalysis sections of this thesis. Credibility means that the content stands out from traditionalkind of marketing which tends to be extravagant and loud, instead it is more similar to anarticle or documentary. Credibility is also created by not mentioning the specific product thatis actually marketed since consumers nowadays are very prone to lose their trust towardscontent that explicitly does this. Targeted, just like other marketing, content marketing alsoneeds to be targeted. However, it is more precise than most other marketing since today’smarketers have access to large amounts of customer data. It includes creating personas out ofaudiences such as motivations and psychographics, analyzing different stages of a buyer’sjourney and also considering message resonance where the content exposed to a potentialbuyer matches his/hers relationship to the product/website. The third property isdifferentiation, meaning that an enterprise must offer to solve a consumer’s problem betterthan its competitors. This difference must, except from being different in product/service, alsopossess a difference that a market is willing to pay for. The last property is that the contentstrategy must be measurable, digitization has brought almost endless possibilities to analyzeand measure different types of data that varies in volume, velocity, variety and veracity. Bothstructured data that can be put into spreadsheets and databases must be measured, as well asunstructured data such as images, videos and text. (Moran 2016)-6-

2.1.1 Social media marketingAccording to the report “Swedes and the Internet” (Davidsson & Findahl 2016), time spent oninternet especially on social media such as Facebook, Instagram and LinkedIn is increasingfor individuals in Sweden. Social media has become an everyday part of life where those whouse social networks in Sweden spends about one hour per day browsing them (ibid). Previousresearch has also shown that investments in marketing are moving away from traditionalmarketing areas towards digital areas (Baines & Fill 2014).Social media marketing (SMM) is a digital marketing technique that takes advantage of socialtechnological platforms for the use of marketing activities (Baines & Fill 2014). Social mediais changing the way consumers take part in offerings, nowadays anyone can comment, shareand create information on brands or people (ibid). Enterprises can no longer control how theyare perceived on the marketplace (ibid). Evans & Mckee (2010) put it in words as “The socialweb exposes the good, the bad and the ugly” meaning that all things regarding a specificbrand can be shared whether positive or negative. Social media has had an impact on howenterprises work with marketing; many believe that traditional marketing methods might fadein the near f

In the article "Impact of Social Media Content Marketing towards Brand Health (Ahmad, Musa & Harun 2016) the authors emphasize the role of Social Media Content Marketing (SMCM) in brand health as it is a platform for consumers to get familiar with the brand. Ahmad et al. (2016) mention content marketing as an important element in creating good

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