Virtue Goes Viral: The Integration of Social Responsibility into the Corporate Identity and Story for Legitimacy in a New Media Society
Jillian T. Rosen 10312447
University of Amsterdam Graduate School of Communication Master Program: Communication Science
Master Thesis
Supervisor: Dr. Friederike Schultz Submitted: 23/06/2015
Abstract
The current state of a network society advocates the use of online, possibly viral means to portray the corporate identity and story to gain legitimacy, in which social businesses may have the upper hand. Through an online 3x2x2 experiment with social media users, this study has delved into marketing social business, strategic CSR, and non-CSR identities through visual corporate stories, along with complexity style, emotional influence, and the perceived potential to go viral. It was found that consumers prefer the presence of a social business identity story in comparison to a non-CSR identity story, while storytelling style, consisting of agenda and frame complexity, did not have an effect. Skepticism and emotion mediated the relationships between identity type and reputation, brand loyalty, and eWOM, while the perceived potential to go viral demonstrated a capability of influencing social value marketing in the network society.
Introduction
The discussion of Corporate Social Responsibility (CSR) as a strategic placement opportunity through Corporate Marketing (CM) has continued to increase in popularity within academia (e.g. Hildebrand, Sen & Bhattacharya, 2011). On the basis of the CM perspective on CSR, a major contribution to the literature by Balmer, a strategic approach by an organization should be employed in order to ‘do well while also doing good’. In other words, an organization should aim to create and portray a socially responsible identity to its stakeholders, while also maximizing profits (Balmer, 1998; Balmer & Greyser, 2006; Hildebrand et al., 2011). This brings to the forefront the issue of stakeholder perception. CM has its primary aim towards stakeholders (e.g. Balmer, 1998), and thus, their perception of CSR initiatives of organizations should hold the most importance. This paper will focus on the effects of CSR marketing through the integration of social responsibility into the corporate identity and story on consumer perceptions of reputation, brand loyalty, and the inclination to engage in electronic word-of-mouth (eWOM). To accomplish this, two CSR-type identities and a non-CSR identity will be compared, as potential skepticism towards motivations prompts the exploration into a different type of social responsibility: the
social business. Skepticism is regarded here only as a concept that potentially differentiates a
social business and organizations practicing CSR. The social business considers responsibility as the entire reason for existence, and its activities and business goals, from beginning to end, are dedicated to the public good, welfare, and overall value creation (Austin, 2006; Corner & Ho, 2010; Santos, 2012). Furthermore, this type of responsibility forms a completely natural fit with the business itself. This has been shown to decrease skepticism of consumers through strongly perceived intrinsic motivations, while still acknowledging the basic extrinsic motivation of necessary profit production (Du, Bhattacharya & Sen, 2010; Ellen, Webb & Mohr, 2006). Forehand and Grier (2003) found that consumer skepticism is especially apparent when the
motivations of a company’s social initiatives do not match up; in other words, when these initiatives are communicated as purely society-serving, but appear to consumers as possibly self-serving. Another area of interest is the nonexistence of a strategic CSR or social business identity. Perhaps it is simply preferred when the corporate identity and marketing initiatives do not focus on social responsibilities, but rather another core business competency. This is exactly what the current research is positioned to uncover.
So far, the comparison of strategic CSR and social business integrations, or lack thereof, into the identity and story has been relatively unchartered. Specifically, this research explores storytelling through online viral marketing as the vehicle for communicating a strategic CSR or social business identity. This has also been minimally researched, although a few notable
exceptions do exist (i.e. Johansen & Nielsen, 2012; Gill, 2014). This is surprising, as storytelling is quite important for organizational communication in today’s world. Storytelling is, arguably, the optimal tool in establishing firm opinions on and attitudes about organizations, and does so
through inspiring trust and an emotional bond with consumers (Hallahan, 1999; Gill, 2014). However, corporate stories vary in style and, thus, their influence on consumers may differ. This research aims to determine the effects of storytelling complexity styles, as complexity levels may lead to more clarity, or more uncertainty (e.g. Galtung & Ruge, 1965; Suedfeld & Tetlock, 1977). Specifically, agenda and frame complexity will hereby constitute storytelling style, which take into account the number of issues present within a story and how connected these issues are (e.g. Kleinnijenhuis, Schultz & Oegema, 2014).
However, with the introduction of new media and a ‘network society’, characterized by intensely persuasive and permeating communication through new media outlets (Castells, 2007), organizations no longer hold the ultimate power in their identity storytelling. The power that comes from a good reputation is now in the hands of organizations and consumers, thanks to new
media (Berger & Reber, 2005), making effective storytelling that is open to online debates a crucial venture. This power shift also calls for a change in strategic CSR and social business marketing, away from a focus on strictly strategic CSR CM, which is based solely on the output of the organization. The constructivist perspective (CCO perspective) is explored in this regard; explicating that identity development through online storytelling should be based on the input and debate of various voices from actors participating in new media platforms (e.g. Schultz, Castello & Morsing, 2013). Put more broadly, the CCO perspective posits that communication constitutes the construction of realities (e.g. Ashcraft, Kuhn & Cooren, 2009; Putnam & Nicotera, 2008; Taylor & van Every, 2000). This perspective perfectly aligns with the potential medium of viral marketing efforts in the network society, which is characterized by repetitive sharing from a large online audience (Liu-Thompkins, 2012). In addition, because evoked emotion is critical in viral marketing (e.g. Berger & Milkman, 2012) and corporate storytelling efforts (e.g. Dowling, 2006), its influence will also be discussed. However, even in this network society, the communication of CSR and social values through viral marketing has been rarely explored (Inoue & Kent, 2013). This is quite a surprising finding due to the percentage of the population using social media. According to Pew Research Center, 71% of adults who are online use Facebook (Duggan, Ellison, Lampe, Lenhart & Madden, 2015).
In order to practically solidify the theoretical distinctions between strategic CSR, social business, and non-CSR identities and storytelling complexities, digital images (with fictional information) that represent factual mobile phone companies will be used in the present
experimental study. These companies are FairPhone, a social business, Apple, a corporation that practices CSR strategically, and Black Phone, which has an identity unrelated to traditional CSR. Digital images are purposefully used, implying the relevance of storytelling in our Internet-driven world, and representing viral marketing material through the use of hash tags. Drawing upon the
unexplored areas of research and incredible number of consumers that utilize social networking cites, the following research question is proposed:
To what extent does the integration of a social business, strategic CSR, or non-CSR identity into a visual corporate story, and its storytelling complexity (consisting of agenda and frame complexity), influence a) perception of corporate reputation, b) brand loyalty, and c) communicative behavior online (eWOM), when distributed through (potential) online viral marketing, and what is the influence of evoked emotion and the perceived potential to go viral?
This question will be divided into three sub questions regarding identity type, storytelling complexity, and their interaction with one another, as well as two sub questions to determine the mediating effects of emotion evoked from the visual story, and its perceived potential to go viral on reputation, brand loyalty, and eWOM:
SQ1. To what extent does the integration of a (1) social business, strategic CSR, or non-CSR identity into a visual corporate story influence a) perception of corporate reputation, b)
brand loyalty, and c) eWOM?
SQ2. To what extent does the (2) storytelling complexity, which consists of agenda and frame complexity, of a visual corporate story influence a) perception of corporate reputation, b)
brand loyalty, and c) eWOM?
SQ3. To what extent does the (3) interaction between storytelling complexity and identity type in a visual corporate story influence a) perception of corporate reputation, b) brand loyalty,
and c) eWOM?
SQ4. To what extent does the (4) evoked emotion in a visual corporate story mediate the effects of identity type on a) perception of corporate reputation, b) brand loyalty, and c) eWOM?
SQ5. To what extent does the (5) perceived potential to go viral of a visual corporate story mediate the effects of agenda and frame complexity type on a) perception of corporate reputation,
b) brand loyalty, and c) eWOM?
First, this paper will address traditional corporate communication related to CSR, and the ways in which it must accommodate new media changes. Corporate identity will then be
introduced, along with ways in which CSR or social values may be integrated into it, forming strategic CSR and social business identities. Viral marketing will be examined as the vehicle for conveying these identities through visual stories, with varying levels of storytelling complexity. Finally, the extent of the effects of identity type and storytelling complexity, along with the influence of evoked emotion and the perceived potential to go viral, which is a new concept, will be tested through an online experiment. All of this will be regarded within the overarching argumentation that a shift should be made from organizationally produced CM to a CCO view on CSR-CM, as it will be referred to here, for both organizations and social businesses.
Theoretical Background Corporate Communication and CSR in the Network Society
The images and reputation of an organization can be either major advantages or inhibitors to its business success (e.g. Fombrun & Shanley, 1990; Highhouse, Brooks & Gregarus, 2009). Images, in combination with consumer-organization interactions maintained over the course of time, make up the impression that stakeholders have of an organization as a whole (Highhouse et al., 2009). Consequently, this impression can be related back to a corporate reputation, in which substantive, symbolic, and external factors play a part. For example, diversification of an organization may be seen as a substantive factor, whereas CSR is seen as a symbolic factor, and word-of-mouth (WOM) as an external factor (Highhouse et al., 2009). To demonstrate, the
opinion about the respectability and impressiveness of an organization based on CSR. Therefore, CSR images may be quite important in the formation of an overall reputation. This holds
especially true in that reputation is, in part, formed based on concern for the environment, society, and ethics (e.g. McGuire, Sundregen & Schneeweis, 1988; Highhouse et al., 2009). Consequently, as an organization, a focus on social responsibility is arguably an advantage when looking to establish a positive impression and reputation. However, new media platforms introduce various pitfalls to this endeavor, or rewards if managed correctly.
Important actors in reputation formation are both traditional and new media (Fombrun & Shanley, 1990; Schultz et al., 2013). Although traditional media certainly plays a role, the rise of new media is especially relevant to the current research. The reason for this is that new media has the ability to equalize the power of organizations and stakeholders due to the fact that
communication between the two entities has increased (e.g. Castells, 2007; Berger & Reber, 2005). The reality that was formed, developed and conveyed by organizations before the rise of new media is now being challenged, debated, and reconstructed by the input of consumers (Berger & Reber, 2005). Most importantly, in terms of rhetoric and written discourse, consumers now have the ability to produce discourse of their own that has the potential to be widely seen and highly influential, thanks to new media.
New media, and the network society will inevitably influence corporate communication related CSR. Without taking network society power into account, organizations may fail at
establishing the positive images, reputation, and overall impression that are strived for. Instead, an organization should use the network society to its advantage, incorporating the many voices that come with it (Castells, 2007) into the formation of its true identity and story. This may prove to be instrumental for organizational CSR initiatives and, as will be explored, social businesses, in terms of reputation, brand loyalty, and eWOM.
Perceived Reputation, Brand Loyalty and eWOM
The current research aims to theorize and test the outcomes of perceived corporate reputation, brand loyalty, and eWOM after exposure to the stories of organizations with certain identity types and storytelling styles told via new media platforms. First, these terms will be briefly defined, and their use in the current research explained.
Corporate Reputation. Corporate reputation is an invaluable asset to a company’s competitive edge, and is defined as the key organizational attributes that resonate in the minds of consumers (Fombrun & Shanley, 1990; Shrum & Wuthnow, 1988). It is often based on the
opinions of multiple constituents, which then combine to form a negative or positive reputation. It is highly public, and indicative of organizational reliability and capabilities (Powell, 1990;
Shapiro, 1983); negative or no reputation may result in fewer opportunities and more restrictions (Podolny, 1993). This research will regard reputation based on the opinions formed from viewing marketing material. Its usage here is relevant because of its connection to CSR; communicating CSR will positively add to the stakeholder’s formation of a reputation (Bhattacharya & Sen, 2003; Brown & Dacin, 1997).
Brand Loyalty. Next, brand loyalty has been measured and defined many times (e.g. Jacoby & Chestnut, 1978), so a clear and relevant definition of this construct is greatly important. It can be distinguished between attitudinal and behavioral loyalty, with the latter specifying actual purchases as the main indication of loyalty (e.g. Ehrenberg, 2000) and the former indicating a type of psychological commitment to a brand (e.g. Day, 1969; Jacoby & Kyner, 1973). In other words, to be loyal, it has been suggested that consumers must have a positive attitude towards a brand, along with repeat purchases (Dick & Basu, 1994). This research will look at brand loyalty as a combination of both attitudinal and potential behavioral loyalty, as it has been found that both are important determinants (e.g. Bandyopadhyay & Martell, 2007).
EWOM. Finally, eWOM is defined as “any positive or negative statement made by potential, actual, or former customers about a product or company, which is made available to a multitude of people and institutions via the Internet” (Hennig-Thurau, Gwinner, Walsh & Gremler, 2004, p. 39). EWOM has an extreme influence on consumer opinions and intentions in relation to brands, and the ‘online’ factor that has been added to traditional WOM only increases its persuasiveness (Riegner, 2007; Hornik, Satchi, Cesareo, & Pastore, 2015). Although the current research is experimental in nature, the digital images being shown to participants portray the online factor of the study through the use of hashtags.
CSR and Social Business Integration into the Corporate Identity
First, it is essential to delve into the understanding of corporate identity in order to
demonstrate how a social business or organization practicing CSR may integrate social values into it. Corporate identity encompasses various realities or perceptions about an organization’s core (e.g. Balmer & Greyser, 2002; Hatch & Schultz, 2002; Cornelissen & Harris, 2001). These identities include the actual identity, or internally formed reality of the company; the
communicated identity, or the marketing, PR, and media perpetuations; the conceived identity, or the way in which the public perceives the company; the ideal identity, or the company’s optimal future positioning; and the desired identity, or the corporate vision for the company (Balmer & Greyser, 2002). This research aims to portray the possibilities for organizations or social businesses using social values to convey their identities in the above fashion. However, a
misalignment between identities can be damaging (Balmer & Greyser, 2002). The importance of alignment for the general corporate identity arguably translates to that of an organization
representing a strategic CSR or social business identity, in that alignment should be a primary focus in order to avoid harm. However, the question remains: how do organizations practicing
CSR and social businesses differ in their efforts in identity alignment? How do they benefit in the network society?
Strategic CSR identity. Ultimately, many organizations invest in CSR, communicating about a program that benefits society in order to build a favorable image, and increase other positive organizational outcomes (Du et al., 2010). CSR has four components for organizations to consider in their commitment to society. These components include an economic responsibility, which aspires to being profitable, a legal responsibility, which translates to obeying the law, an ethical responsibility, obligating the organization to do no harm, and a philanthropic
responsibility, which aims to better the community and society (Carroll, 1991; Carroll 1998; Kotler & Lee, 2005). Engaging in and communicating CSR can result in many business benefits (e.g. Balmer 1998; Balmer & Greyser, 2006; Hildebrand et al., 2011; Lantos, 2001; Fombrun, Gardberg & Barnett, 2000). However, CSR programs are often separate, strategic organizational functions (Lantos, 2001) rather than unified with the business itself. As such, skepticism may develop due to a low program fit with the core business, perceived lack of transparency (Du, et al., 2010), or ‘greenwashing’ (Elving & van Vuuren, 2012). Greenwashing is the act of using
marketing or public relations to convey a socially responsible image for a company, when some parts of this image may not be completely truthful. Because a CSR program that doesn’t
correspond with the core business has also been shown to increase perceived extrinsic motivations (Du, et al., 2010), and decrease overall consumer attitudes, beliefs and intentions (Becker-Olson, Cudmore & Hill, 2006), organizations practicing CSR may suffer in the network society in which consumers ultimately form their identities, stories, and legitimacy, in part.
Social business identity. Different from organizations practicing CSR, but for which the primary goal is still to make a profit, social businesses have emerged in recent years with a different goal: social responsibility at the core of their identity. They are formed on the basis of a
social purpose, with value creation as the ultimate goal (Austin, 2006; Corner & Ho, 2010; Santos, 2012). That is, the corporate identity and business practices are aimed towards fixing a social problem. A company of focus in this research, FairPhone, is a perfect example, as the production of its smart phones is geared towards bettering certain elements of the environment and society, as well as opening up a platform for discussion on what is truly ‘fair’ in this process (FairPhone, 2015). This differs from CSR in that social business initiatives are not practiced as a separate function from the core business, but as with FairPhone, are the main elements of concern.
Therefore, it may be argued that social businesses are a more accurate and effective representation of identity alignment than organizations portraying a strategic CSR identity. Additionally, building off of the CSR logic, it may be true that social businesses, which possess an inherent fit between the business core and their social initiatives, have the upper hand in the formation of identities, stories, and legitimacy in the network society due to perceived transparency and consumer attitudes towards this natural fit.
Effects of identity type on reputation, brand loyalty, and eWOM. CSR (i.e. ethics and responsibility) is known to be a predictor of reputation (e.g. Fombrun & Shanley, 1990), as well as a product of it (Highhouse et al., 2009). According to Fukukawa, Balmer, and Gray (2007), an ‘ethical’ identity is likely to make stakeholders positively identify with an organization, and give the identity a more ‘authentic’ feeling (Leigh, Peters & Shelton, 2006; Gilmore and Pine, 2007; Thompson, Rindfleisch & Arsel, 2006). The proper alignment of identities is also indicative of a good reputation (Balmer & Greyser, 2002). Therefore, it is clear that those organizations that possess a strategic CSR or social business identity will enjoy the benefits of a more positive reputation than those organizations that do not integrate any form of CSR into their identities. However, with the understanding that a higher fit between the business’s core competencies and CSR initiatives results in more consumer acceptance, it is demonstrated that social businesses
should truly excel. Therefore, a social business identity will possess a more positive reputation in the minds of consumers than both organizations that possess a strategic CSR identity and a non-CSR identity, while a strategic non-CSR identity will also result in a higher reputation than a non-non-CSR identity.
CSR programs have also been linked to increased consumer loyalty and repeat purchase intentions when the program takes on a more socially focused identity (Pirsch, Gupta & Grau, 2007). Positive attitudes by consumers are formed due to organizational transparency about CSR, which also increases the likelihood of purchasing from that brand or organization (Becker-Olson et al., 2005). Once again, a low fit between the organization and its CSR initiatives has already been established to decrease perceived transparency or truthfulness (Du, Bhattacharya & Sen, 2010; Ellen et al., 2006), but is also linked with lower brand loyalty and negative attitudes (Becker-Olson et al., 2005). Therefore, consumers may perceive less honesty in organizations implementing strategic CSR plans, leading to lower WOM and purchase intentions (Kang & Hustvedt, 2014). Thus, social businesses will also possess higher levels of brand loyalty than both companies that have a strategic CSR identity, and those that have an identity unrelated to CSR, while a strategic CSR identity will gain more brand loyalty than a non-CSR identity.
Finally, it has been found that WOM may be influenced by organizational efforts to be socially responsible and reveal company values (e.g. Maxham & Netemeyer, 2003). Kang and Hustvedt (2014) confirmed this finding, showing that consumer perceptions of social
responsibility and transparency of values directly influenced attitude and trust, which then led to purchase intention and more positive WOM. In other words, the way in which consumers perceive certain CSR or social value communication will play a role in their attitudes, and if or how they talk about it to friends or in social networks. A natural fit between the social business’s initiatives
and business core should lead to the perception of more transparency, thus leading to more positive attitudes and WOM intentions (Kang & Hustvedt, 2014).
Based on the above findings, it is expected that:
H1a-c. A social business identity in a visual story will increase a) perceived reputation, b)
brand loyalty, and c) potential eWOM more than a strategic and non-CSR identity, and a strategic CSR identity more than a non-CSR identity.
Complexity of Storytelling in the Network Society
Storytelling and framing are essential in constructing certain realities about an organization (Hallahan, 1999). The corporate story is a narration (Dowling, 2006) that has the potential to form trust and emotional connections between an organization and its consumers, therefore spurring positive organizational image (Gill, 2014) and, ultimately, support for that organization (Heugens, 2002). Essentially, it is a way in which a company exhibits itself to its stakeholders, closely linking it to corporate identity (Johansen & Nielsen, 2012). Therefore, using CSR and social business identities as a viral marketing storytelling tool (the CCO view on CSR-CM that is suggested here) to assist in attaining all of the benefits of effective corporate stories may be seen as productive and unique. However, the content and style of the story needs to be taken into account to do this most constructively.
Specifically, stories can have varying levels of complexity within them, resulting in
different outcomes for consumers. Complexity in storytelling, for this research, will regard agenda complexity, or the number of different issues brought to light (e.g. Jennings, Bevan & John, 2011; Jennings & Wlezien, 2011), and frame complexity, or the connectivity or associations between the different issues presented (e.g. Kleinnijenhuis et al., 2014; Suedfeld & Tetlock, 1977). Research regarding frame and agenda complexity has been plentiful in relation to media coverage of crisis and political contexts, but has not been discussed regarding the content of CSR or social business
stories distributed through new media. However, if the findings in crisis and political contexts are any indication, frame and agenda complexity will have an effect on perceptions (e.g.
Kleinnijenhuis et al, 2014; Hollanders & Vliegenthart, 2011; Wu, Stevenson, Chen & Guner, 2002).
Agenda and frame complexity: high vs. low. In crisis situations, media often reduce agenda complexity in order to reach a larger audience (Galtung & Ruge, 1965), and viewers are essentially told exactly what to focus on (i.e. low agenda complexity and fewer issues). Regarding frame-complexity, low levels (i.e. fewer connections between issues) could increase the difficulty of information processing (Suedfeld & Tetlock, 1977). Simply put, lower agenda complexity is more effective in keeping focus on the important issues during crises, while higher frame complexity is more effective for information processing and lessening uncertainty.
Effects of agenda and frame complexity on reputation, brand loyalty and eWOM. Corporate identity can either help or hurt a reputation (Balmer & Greyser, 2002). Corporate storytelling is closely related to the corporate identity (Johansen & Nielsen, 2012), meaning its influence on reputation is quite relevant. According to Dowling (2006), a good corporate reputation story should be distinctive, yet unified. In other words, the mission and morality of a company, which are the two most important elements of a corporate story, should not be expressed in many different ways. Rather, they should be shown in a simple way that reflects the company’s overall character, resonating in the minds of consumers (Dowling, 2006). Accordingly, in the present research, it is expected that both organizations and social businesses that present their story with fewer pressing issues (i.e. low agenda complexity) will possess a higher overall perceived reputation. Therefore, the following is hypothesized regarding agenda complexity of visual stories and reputation:
H2a. A low agenda complexity level increases perceived reputation more than a high
agenda complexity level.
Studies have not been done on the effect of agenda complexity on brand loyalty and eWOM. With a more positive reputation that may result from lower agenda complexity, it could be expected that brand loyalty and eWOM also increase. Reputation has been found to increase purchase intention (Gatti, Curuana & Snehota, 2012), which is an essential element to the overall idea of brand loyalty. Additionally, higher levels of positive WOM and eWOM have been found to be both a result of corporate reputation, and also a predictor of it (e.g. Rogerson, 1983;
Cornelissen, 2000). Additionally, because high frame complexity highlights specific issues, connects them, and “promotes a particular interpretation, evaluation, and/or solution” (Entman, 2003, p. 417), it could be expected that this is favorable for organizations aiming to elevate reputation, brand loyalty, and eWOM. This will be further explored through the second sub question, with insufficient literature to substantiate formal hypotheses:
SQ2a-c. To what extent does the storytelling complexity, which consists of agenda and
frame complexity, of a visual corporate story influence a) perception of corporate reputation, b) brand loyalty, and c) eWOM?
Additionally, although it may be expected that a social business story interacts most effectively with low agenda and high frame complexity due to its potential benefits over organizations practicing CSR, research on this has not been published. Therefore, this will be explored through the third sub question:
SQ3a-c. To what extent does the interaction between storytelling complexity and
identity type in a visual corporate story influence a) perception of corporate reputation, b) brand loyalty, and c) eWOM?
Evoking Emotion Through Viral Marketing
Finally, the distribution of CSR and social value identity stories through online viral marketing is extremely relevant in the network society and thus, to this research. With the rise of new media, consumer potential for global audience reach (Castells, 2007), and the distribution of power between organizations and stakeholders (Berger & Reber, 2005), online corporate stories are a naturally appropriate choice for marketing efforts. This brings the current argumentation full circle in describing the importance of CSR, social identities, and legitimacy as communicatively constructed ideas by both stakeholders and organizations online.
The term viral marketing “refers to the act of propagating marketing messages through the help and cooperation from individual consumers” (Liu-Thompkins, 2012, p. 465). It is also highly reliant on consumer-generated WOM as the message medium. In order to increase the likelihood of content going viral, it should spark positive (pleasant) emotions that are high-arousal in nature (Berger & Milkman, 2012). In this research, corporate stories are told through the form of images that represent potential viral marketing material, and thus, bring forward the importance of emotion in storytelling that is done through viral marketing.
The social values integrated into strategic CSR or social business identities are,
presumably, inciting positive emotions in consumers due to inherently good attributes. Positive emotion incited by viral marketing efforts should act as a mediator, which has been shown to increase consumer attitudes (Eckler & Bolls, 2011), loyalty, purchase intention (Balakrishnan, Dahnil & Yi, 2014), and the likelihood of going viral (Berger & Milkman, 2012). Naturally, going viral will also increase eWOM, due to the repetitive sharing nature of going viral. The benefits of marketing materials that are positive in emotion can be related back to the corporate story, which is an optimal way to improve reputation through the emotional bond it forms (Dowling, 2006). Therefore, the following is hypothesized regarding positive emotion and identity type:
H3a-c. The emotional pleasantness evoked by a visual story mediates the relationship
between identity type and a) reputation, b) brand loyalty, and c) eWOM.
. Although it may be expected that emotional arousal will follow the same pattern as emotional pleasantness, the mediation effects of emotional arousal on the relationship between identity type and reputation, brand loyalty, and eWOM will be further explored in the fourth sub question:
SQ4a-c. To what extent does the evoked emotion in a visual corporate story mediate the
effects of identity type on a) perception of corporate reputation, b) brand loyalty, and c) eWOM? The Perceived Potential to Go Viral (PPGV)
In addition to the role of emotion in viral storytelling, there may also be a connection worthy of investigation regarding the perceived potential to go viral. This is not to be mistaken with the potential to go viral from sparking emotion, which was previously discussed, but rather a consumer’s belief or perception that a piece of content could go viral on his or her social media networks. In other words, if consumers of online content view that content as having the potential to go viral online, does that make him/her more likely to share it themselves? It could be expected that the PPGV will be higher when the complexity and/or uncertainty felt after the content is viewed is low (i.e. low agenda and high frame complexity), acting as a mediator between the complexity types and reputation, brand loyalty, and eWOM. However, no research exists on the PPGV, as it is a new concept developed here. Therefore, the relationship between PPGV and complexity types will be explored through the fifth sub question:
SQ5a-c. To what extent does the perceived potential to go viral of a visual corporate
story mediate the effects of agenda and frame complexity type on a) perception of corporate reputation, b) brand loyalty, and c) eWOM?
Figure 1. Experimental Model.
Methods Participant and Research Design
A 3 (CSR identity integration: social business, strategic CSR, and non-CSR) x 2
(storytelling complexity: high agenda vs. low agenda complexity) x 2 (storytelling complexity: high frame vs. low frame complexity), between-subjects experiment was conducted. This
experiment aimed to determine how the different identities and complexities affected reputation, brand loyalty, and eWOM. The mediating effects of emotion and the PPGV were also tested.
Prior to the experiment itself, a pretest evaluated the stimulus materials. A sample of 15 participants, who use social media, were recruited through social media posts and email. Next, a sample of 368 participants that use social media were recruited for the main experiment through both social media and personal email messages, as well as through the Amazon software, mTurk, where participants are paid a small compensation for the completion of surveys. Social media usage is relevant to the research at hand because online viral content is, unsurprisingly, most prevalent for social media users. Overall, there were a total of N=281 participants after the data
was inspected for those who did not complete the questionnaire or took under three and a half minutes to finish it. From this sample, 48% were male and 52% were female, with an age range of 21 to 75 years (M=33.9, SD=11.66). Most respondents were American, with other nationalities including Dutch, Russian, Lithuanian, German, Greek, Turkish, Swedish, Portuguese, Italian, British, and Canadian. Most of the participants were either employed for wages, self-employed, or students, with a Bachelor’s degree. All participants reported using social media to some extent; while 95% own and use a smart phone, and 98.6% consider themselves to be at least a little bit environmentally friendly.
Procedure and Materials
Potential participants received a uniform message that explained the general purpose of the study, as well as a guarantee of anonymity and confidentiality. An official fact sheet was attached to this message (Appendix D). At the very end of the message, a link to the active experiment was presented. Once participants clicked on the link, they were again shown the general purpose of the study, instructions, and an informed consent page. They were then randomly assigned to one of 12 conditions, which included the viewing of a particular digital image, as well as accompanying text (Appendix C). The company names FairPhone, Apple, and BlackPhone were not used in the images or text, but were replaced by fictional names to avoid pre-existing reputational bias. The images were almost entirely identical in terms of design, with slight visual and textual differences between identity type and storytelling complexities. Five issues were chosen for incorporation into the images based on their relevance with Apple, FairPhone and Black Phone, as determined by the organization’s websites. These issues were mining conflicts, responsible manufacturing, design, lifecycle/phone longevity, toxins in phone materials, and privacy concerns. Once the subjects indicated that they had finished looking at the images and text, they went on to answer a
and made aware that the images were actually meant to represent real companies, and that this information may be used in future research for FairPhone.
This procedure was identical for the recruitment and conditions of the pretest, except participants were only asked to answer seven questions after being randomly assigned to one of the 12 conditions. Results showed that although the manipulations were successful overall, there were some improvements that could be made with the stimulus material. Therefore, this was taken into consideration and certain elements of the image and questionnaire wording were changed to improve the manipulation attempt prior to the main study.
Independent Measures
Social business identity. This type of social value integration into the identity represents a business that is formed on the basis of a social purpose. This is the social business, and its purpose is to enhance public good (e.g. Austin, 2006). It is fully focused on societal needs rather than the desires of individual consumers, which is fully integrated into its identity. The company of focus is FairPhone (i.e. CarePhone).
Strategic CSR identity. Organizations practicing CSR programs are used in this study to represent a strategic CSR identity. Instead of social values being truly integrated into the strategic CSR identity, they are part of a separate function, strategically portraying responsibility to elevate business profits in the long run (e.g. Lantos, 2001). Its primary focus is on that of the individual needs of consumers and profit rather than society. The company of focus is Apple (i.e. Orange).
Non-CSR identity. This control group is defined as an identity that does not show
traditional CSR or social values. In this case, the identity emphasizes the importance of privacy in the use of mobile devices, which prioritizes individual consumer needs over societal needs, and is fully integrated into the identity. The company of focus is Black Phone (i.e. Dark Phone).
Agenda complexity; high vs. low. Agenda complexity is used here to represent a type of complexity within storytelling of social values. It accounts for the number of issues within the digital image presented to participants (e.g. Jennings et al., 2011), which is either high, with five issues contained in the image, or low, with two issues contained in the image.
Frame complexity; high vs. low. Like agenda complexity, frame complexity is used here as another type of storytelling complexity. It represents the relationship between the issues
displayed in the digital image (e.g. Suedfeld & Tetlock, 1977). This is either high, with clear connectedness between the issues, or low, with the connectedness being unclear. This was done through word choice and through visual connecting lines or lack thereof.
Dependent Measures
Corporate reputation. After observing one of the three experimental conditions, participants will answer a series of questions indicating their perception of the organization’s reputation. Questions for this measure were adapted from Schultz et al., (2011), and answers measured on 7-point Likert scale items ranging from ‘strongly disagree’ to ‘strongly agree’. Examples of this measure include, “This organization delivers products and services of high
quality” and “This organization is responsible”, Cronbach’s α = .92, M = 5.0, SD = .95. Brand loyalty. Questions for this measure were adapted from Schultz et al., (2011), and were measured on a 7-point Likert scale ranging from ‘strongly disagree’ to ‘strongly agree’. One question was removed from the scale after a reliability analysis. Examples include, “If someone
asked me for advice, I’d recommend buying products from the organization” and “I would buy products from this organization”, Cronbach’s α = .94, M = 4.64, SD = 1.22.
EWOM. The items were adapted from Schultz et al., (2011), and answers were measured on 7-point Likert scales, ranging from ‘very unlikely’ to ‘very likely’. The questions included,
“How likely is it that you show this report to others?” and “How likely are you to tell your friends about this story?”, Cronbach’s α = .91, M = 3.02, SD = 1.42.
Mediators: Evoked Emotion and the PPGV
The emotion evoked from the viewed image was measured through scale items adapted from and representative of aspects of Russell’s (1980) ‘Circumplex of Affect’. Questions included, “How would you rate the pleasantness of the image and its content?” with answers including ‘unpleasant’, ‘neutral’ and ‘pleasant’, while PPGV was measured through the question, “I think that this image could go viral online, being shared hundreds of times or more by social
media users”, with answers ranging from ‘strongly disagree’ to ‘strongly agree’. Evoked emotion
variables were later transformed into dummy variables for mediation analyses. Control Variables
Participants were asked to indicate their gender, nationality, occupation, education level, and age. Skepticism of the viewed image, importance of the issues within the images (mining, manufacturing, toxins, design, life cycle, and privacy), fondness of using social and environmental initiatives as a tool to appeal to consumers, political affiliation, dedication to the environment, moral consumption behaviors, social media and smart phone use, and familiarity with viral marketing were also asked, with answers ranging on various 7-point Likert scales.
Results Research Purpose Restated
This experimental study aimed to uncover how the integration of identity type into a visual corporate story influenced consumer perceptions. Specifically, a social business identity, strategic CSR identity, and non-CSR identity (control) were tested within digitally designed images; their potentially viral nature was represented by the use of hashtags. Within these images were stories, which differed in terms of agenda and frame storytelling complexity (high vs. low).
Manipulation Checks and Preliminary Analyses
One-way ANOVAS were run to establish successful randomization, with the image viewed as the independent variable and viral marketing familiarity, political identification, age, overall environmental friendliness, and social media use as the dependent variables. Results indicated that the randomization was successful, Fs > .7, ps >.147, with no significant differences between groups. Next, Chi Square tests also indicated a successful randomization, with no
differences in terms of employment status, X2 (77, N = 280) = 66.21, p = .805, education level, X2
(55, N = 280) = 50.25, p = .656, smart phone use, X2 (11, N = 280) = 14.75, p = .194, or gender, X2 (11, N = 280) = 8.89, p = .632.
Next, correlation analyses showed that issue importance (6), skepticism, fondness of CSR marketing, moral purchasing/consumption tendencies (3), smart phone use, and the idea that organizations should be environment and profit focused significantly correlated with some or all of the dependent variables (Table 4, Appendix A).
To establish a successful manipulation, seven one-way ANOVA’s, with the image viewed (1-12) as the independent variable and the manipulation check questions as the dependent
variables, were conducted. All but one question showed significant differences between groups, Fs > 2.04, ps < .025, suggesting a proper overall manipulation. Specifically, three questions were chosen to confirm the manipulation out of N = 280, with 85 percent (N = 239) indicating the correct manipulation of identity type, 65 percent (N = 182) the correct agenda complexity type, and 51 percent (N = 142) the right frame complexity type. With majority correctness, no additional participants were removed from the study.
Hypothesis Testing
Corporate reputation. A 3 (identity type) x 2 (agenda complexity type) x 2 (frame complexity type) ANOVA was run with reputation as the dependent variable. There was a
significant main effect of identity type F (2, 268) = 7.65, p = .001, η2 = .05; the social business identity condition resulted in a higher perceived reputation (M = 5.24, SD = .74) than the strategic CSR identity (M = 5.02, SD = 1.0) and non-CSR identity conditions (M = 4.7, SD = 1.05). A Boneronni post hoc test found significant differences between the social business identity condition and the non-CSR identity condition, (Mdifference = .54, p < .001). There was not a
significant difference between the social business and strategic CSR identity conditions, (Mdifference
= .21, p = .328), nor the non-CSR and strategic CSR identity conditions (Mdifference = .33, p = .062).
Therefore, H1a is partially supported: a social business identity story does increase reputation more than a non-CSR identity story.
No significant main effects were found for agenda complexity type, F (1, 268) = .01, p = .940, η2 = .00, or frame complexity type F (1, 268) = 1.91, p = .168, η2 = .01. There was also no interaction effect between the two F (1, 268) = .51, p = .477, η2 = .00. It did not matter to participants how many issues were presented in the image, or how connected these issues were, rejecting H3a and answering SQ2a. Additionally, no significant interaction effects were found between identity type and agenda complexity type, F (2, 268) = .91, p = .405, η2 = .01, identity type and frame complexity type, F (2, 268) = .2, p = .819, η2 = .00, or identity type, agenda complexity type, and frame complexity type, F (2, 268) = .96, p = .385, η2 = .01. Therefore, there are no preferences in the combination of identity type and agenda and frame storytelling
complexity, answering SQ3a.
Brand loyalty. A 3 (identity type) x 2 (agenda complexity type) x 2 (frame complexity type) ANOVA with brand loyalty as the dependent variable showed a significant main effect of identity type, F (2, 269) = 16.97, p < .001, η2 = .11, with the social business identity condition resulting in higher brand loyalty (M = 4.99, SD = 1.0) than the strategic CSR (M = 4.8, SD = 1.16) and non-CSR identity conditions (M = 4.05, SD = 1.13). Bonferonni post-hoc tests found
significant differences between the social business identity condition and the non-CSR identity condition (Mdifference = .74, p < .001), as well as the strategic CSR and non-CSR identity conditions
(Mdifference = .93, p < .001), signifying partial support for H1b. Loyalty to a brand is higher for both
social business and strategic CSR identities when compared to a non-CSR identity.
There were no main affects on brand loyalty from agenda complexity type, F (1, 269) = 1.1, p = .296, η2 = .00, frame complexity type, F (1, 269) = .99, p = .322, η2 = .00, or a
combination of the two, F (1, 269) = 1.75, p = .187, η2 = .00. The amount of issues within story marketing materials does not influence brand loyalty, and neither does the connectedness between these issues, rejecting H2a and answering SQ2b. Moreover, there are no interaction effects of identity type and agenda complexity type, F (2, 269) = .58, p = .563, η2 = .00, identity type and frame complexity type, F (2, 269) = .81, p = .447, η2 = .00, or identity type, agenda and frame complexity type, F (2, 269) = 1.17, p = .311, η2 = .01. This answers SQ3b; combinations of identity portrayal and storytelling complexity types do not influence brand loyalty.
EWOM. A 3 (identity type) x 2 (agenda complexity type) x 2 (frame complexity type) ANOVA with eWOM as the dependent variable was run, showing a significant main effect of identity type on eWOM F (2, 269) = 4.06, p = .018, η2 = .03. The social business identity
condition was more likely to encourage eWOM (M = 3.33, SD = 1.44) than the strategic CSR (M = 2.89, SD = 1.41) and non-CSR identity conditions (M = 2.79, SD = 1.35). Bonferonni post hoc tests indicate that the significant difference lies only between the social business identity and the non-CSR identity conditions (Mdifference = .53, p = .031). The differences between the social
business identity and strategic CSR conditions (Mdifference = .44, p = .089), and the strategic CSR
and non-CSR conditions (Mdifference = .1, p = 1.000) were not significant. H1c is partially
supported, with results showing a higher likelihood to engage in eWOM when the organization has a social business or strategic CSR identity than when the identity is unrelated to CSR.
There were no significant effects of agenda complexity type, F (1, 269) = .08, p = .776, η2 = .00, frame complexity type, F (1, 269) = .01, p = .915, η2 = .00, or an interaction of the two, F (1, 269) = 1.08, p = .301, η2 = .00. Neither the number of issues in the visual stories, nor their connectedness affected the potential to engage in eWOM, answering SQ2c. There were also no interaction effects present between identity type and agenda complexity type, F (2, 269) = 1.70, p = .184, η2 = .01, and identity type and frame complexity type, F (2, 269) = .21, p = .807, η2 = .00. However, a significant interaction effect was present for identity type, agenda complexity type, and frame complexity type, F (2, 269) = 4.28, p = .015, η2 = .03. Agenda and frame complexity changed significantly within the social business and non-CSR identity conditions; those who viewed the social business identity condition with high agenda and low frame complexity were the most likely to engage in eWOM (M = 3.68, SD = 1.75), while those who viewed the non-CSR identity condition with low frame and high agenda complexity were the least likely (M = 2.09, SD = .95). Bonferonni post hoc tests show significant differences between the social business identity and non-CSR identity conditions (Mdifference = .53, p = .029), but not the strategic CSR identity
condition (Mdifference = .44, p = .085). No significant differences were found between the
strategic-CSR and non-strategic-CSR identity conditions (Mdifference = .1, p = 1.00). SQ3c is answered in that eWOM
is most likely with a social business identity with high agenda and low frame complexity.
Mediating effect of evoked emotion. The overall regression model with reputation as the dependent variable and emotional pleasantness and identity type as the independent variables was significant F (4, 275) = 26.32, p < .001 (Table 1), and can be used to determine mediation effects. Mediation steps are summarized in Tables 5.1-5.3 (Appendix A). There was an indirect, moderate effect of identity type on reputation through emotional pleasantness, Sobel’s Z = 2.66, p = .008, showing a partial mediation of emotional pleasantness on the relationship between identity type
and reputation. Compared to the social business identity condition, the non-CSR identity condition resulted in lower perceived reputation when the pleasantness scale increased (1 = pleasant).
Next, the regression model with brand loyalty as the dependent variable and emotional pleasantness and identity type as the independent variables was significant, F (4, 276) = 31.09, p < .001 (Table 1). Mediation steps are summarized in Tables 5.1-5.3 (Appendix A). There was a partial mediation, with an indirect, moderate effect of identity type on brand loyalty through emotional pleasantness, Sobel’s Z = -2.74, p = .006. Compared to those who viewed the social business identity condition, those in the non-CSR identity condition rated brand loyalty as significantly lower, when the experienced emotion was more negative (either neutral or unpleasant).
Finally, the regression model with eWOM as the dependent variable and emotional
pleasantness and identity type as the independent variables was significant F (4, 276) = 12.85, p < .001 (Table 1). Mediation steps are summarized in Tables 5.1-5.3 (Appendix A). There was a small, indirect effect of identity type on eWOM through emotional pleasantness, Sobel’s Z = -2.49, p = .013. Emotional pleasantness fully mediated the relationship between identity type and eWOM, with the social business identity condition resulting in a higher inclination to engage in eWOM than the non-CSR identity condition when the pleasantness scale decreased (1 = pleasant). Table 1
Mediation model of emotional pleasantness on the relationship between identity type and reputation, brand loyalty, and eWOM based on mediation steps 1-3 (see Appendix A, Tables 5.1-5.3)
Note. N = 281.
p < .05, ** p < .01, *** p < .001
Reputation b* Brand Loyalty b* eWOM b*
Constant 5.56*** 5.42*** 3.78***
Identity Type (controlled for CSR) -.05 -0.03 -1.69 Identity Type (controlled for non-CSR) -.16*** -.26*** -1.57*** Emotional Pleasantness (controlled for unpleasantness) -.5*** -.46*** -5.57*** Emotional Pleasantness (controlled for neutral) -.28*** -.31*** -5.1***
R2 .27 .30 .15
Emotional arousal did not significantly mediate the relationship between identity type and reputation, brand loyalty, or eWOM, as the first mediation step of identity type predicting
emotional arousal was not significant, Fs (2, 278) < 1.32, ps > = .269 (Appendix A, Tables 5.1-5.3). Therefore, the chance of mediation is nearly zero. H3a-c is supported and SQ4a-c is answered in that emotional arousal does not indirectly reputation, brand loyalty, or eWOM.
Mediating effect of PPGV. PPGV did not significantly mediate the relationship between complexity types and reputation, brand loyalty, or eWOM. The first step of the mediation test with agenda and frame complexity as predictors of PPGV was not significant, F (2, 277) = 1.28, p = .279 (Appendix A, Tables 6.1-6.3), meaning the likelihood of mediation is nearly zero.
Further Findings
PPGV. Through a one-way ANOVA, significant, marginal main effects of PPGV were found on reputation F (2, 236) = 6.11, p = .003, η2 = .05, brand loyalty F (2, 238) = 3.65, p = .027, η2
= .03, and eWOM F (2, 238) = 23.44, p < .001, η2 = .17. Those who thought the image they viewed could go viral indicated higher ratings of reputation (M = 5.48, SD = .74) than those who didn’t think so (M = 4.77, SD = .99). Those who perceived the image viewed as having the
potential to go viral showed significantly more brand loyalty (M = 5.2, SD = 1.13) than those who didn’t think it could (M = 4.33, SD = 1.19). Finally those who thought the image could go viral were more inclined to engage in eWOM about it (M = 3.98, SD = 1.36) than those who didn’t (M = 2.46, SD = 1.18). Overall, consumer’s perceived potential for marketing material to go viral increases reputation, brand loyalty, and eWOM.
Skepticism as a mediator. Further findings also confirmed previous theoretical findings of skepticism as a mediator. The overall regression model with reputation as the dependent
variable and identity type and skepticism as the independent variables was significant F (3, 276) = 24.85, p < .001 (Table 2), allowing the model to predict reputation. Mediation steps are
summarized in Tables 7.1-7.3 (Appendix A). Skepticism fully mediated the relationship when comparing the strategic CSR and social business identity, Sobel’s Z = -3.99, p < .001, and partially mediated the relationship when comparing the non-CSR identity to the social business identity condition, Sobel’s Z = -2.41, p = .016. Compared to the strategic CSR and non-CSR conditions, the social business condition resulted in a higher perceived reputation when skepticism was at a lower level.
Next, the overall model with brand loyalty as the dependent variable and identity type and skepticism as the independent variables was significant, F (3, 277) = 35.33, p < .001 (Table 2). Mediation steps are summarized in Tables 7.1-7.3 (Appendix A). Skepticism partially mediated the relationship between identity type and brand loyalty when comparing the non-CSR identity condition to the social business identity condition, Sobel’s Z = -4.08, p < .001. This indicates a moderate indirect effect of identity type on brand loyalty through skepticism. Compared to the social business identity, the non-CSR identity condition resulted in lower brand loyalty when skepticism was higher.
Finally, the regression model with eWOM as the dependent variable and identity type and skepticism as the independent variables was significant, F (3, 277) = 10.8, p < .001 (Table 2). Mediation steps are summarized in Tables 7.1-7.3 (Appendix A). Skepticism fully mediated the relationship when comparing the non-CSR identity conditions, Sobel’s Z = -3.48, p < .001, to the social business identity condition, but not when comparing the strategic CSR condition to the social business identity condition, Sobel’s Z = -1.51, p = .132. Therefore, in comparison to the non-CSR identity condition, the social business identity condition caused a higher likelihood to engage in eWOM when perceived skepticism also decreased.
Table 2
Mediation model of skepticism on the relationship between identity type and reputation, brand loyalty, and eWOM based on mediation steps 1-3 (see Appendix A, Tables 7.1-7.3).
Reputation b* Brand Loyalty b* eWOM b*
Constant 6.12*** 6.14*** 4.22***
Identity Type (controlled for CSR)
-.05 -.01 -.1
Identity Type (controlled for non-CSR) -.17** -.26*** -.11*** Skepticism -.41*** -.42*** -.28*** R2 .2 .27 .1 F 24.85*** 35.33*** 10.8*** Note. N = 281. p < .05, ** p < .01, *** p < .001
Skepticism does not mediate the relationship between complexity types and reputation, brand loyalty, or eWOM, as the overall model with agenda and frame complexity predicting reputation, F (2, 277) = .92, p = .402, brand loyalty, F (2, 278) = .35, p = .707 and eWOM, F (2, 278) = .24, p = .788, were not significant (Appendix A, Tables 8.1-8.3).
Agenda and frame complexity. Although the results regarding agenda and frame complexity were not significant, some important patterns emerged in the data. It was found that high agenda and high frame complexity resulted in the most positive perceived reputation (M = 5.13, SD = .92), most brand loyalty (M = 4.73, SD = 1.09), and the highest likelihood to engage in eWOM (M = 3.1, SD = 1.34). Therefore, although not significant, these results show participants preferred more issues to be present in the images with more connectedness between them.
Discussion
This research set out to determine the effects of identity types portrayed through corporate stories and their complexities on reputation, brand loyalty, and eWOM, as well as the mediating effects of evoked emotion and the PPGV. The overall research question was:
To what extent does the integration of a social business, strategic CSR, or non-CSR identity into a visual corporate story, and its storytelling complexity (agenda and frame complexity), influence a) perception of corporate reputation, b) brand loyalty, and c)
communicative behavior online (eWOM), when distributed through (potential) online viral marketing, and what are the influences of evoked emotion and perceived potential to go viral?
Overall, analyses revealed several confirmative findings, some unexpected results, and further findings that could open the path for future research. As was expected, the visual story of the social business identity, represented through the company CarePhone, was shown to result in the highest reputation, brand loyalty, and the potential to engage in eWOM; this was followed by Orange, representing the strategic CSR identity, and Dark Phone, representing the non-CSR identity. The CarePhone story increased reputation, brand loyalty, and eWOM significantly more than that of Dark Phone, as was expected in H1a-c, indicating a preference for the social business over a business that does not portray a CSR identity. However, the social business identity did not increase reputation, brand loyalty, and eWOM more than the strategic CSR identity. This was not in full agreement with H1a-c. However, in line with some expectations about brand loyalty in H1b, both the CarePhone and Orange stories were favored over Dark Phone, suggesting that attitudes, potential purchase intention and actual purchase intention are influenced by both social businesses and organizations practicing CSR; consumers will be more loyal to a brand or
organization that creates an identity based on social values. These findings are only somewhat supported by theory. The CM perspective on CSR posited that marketing CSR initiatives is incredibly advantageous in terms of reputation and profit (Balmer, 1998; Balmer & Greyser, 2006), and implementing CSR may predict reputation and help consumers identify with an organization (Fombrun & Shanley, 1990; Fukukawa et al., 2007). However, the Orange story did not result in a significantly higher reputation than the Dark Phone story. Literature also indicated, though, that a strategic CSR identity and marketing position, especially with the state of a network society, may be falling short in terms of reputation (Balmer & Greyser, 2002), brand loyalty (Becker-Olson et al., 2005), and eWOM (Kang & Hustvedt, 2014) due to identity misalignment,
low program fit with the business itself and a perceived lack of transparency (Du et al., 2010; Ellen, et al., 2006; Forehand & Grier, 2003); an alignment that a social business inherently possesses. Even though significant differences were not shown between CarePhone and Orange, for both perceived reputation and eWOM, Orange’s story did not significantly differ from Dark Phone’s story, explicating the social business advantage with consumers. The admirable qualities of a strategic CSR identity story were not appreciated more than a non-CSR story. This is likely due to an appreciation for organizations aiming to accomplish a feat other than acquiring large profits. Positive feelings are engendered from this realization, and participants liked the idea of using this positivity as a marketing tool.
Past studies have found results that were inconsistent with the findings of the current study regarding storytelling complexity. In political and crisis communication contexts, low agenda and high frame complexities have been shown to have the most influence on public perception, putting forward specific ideas to focus on that are related to each other, resulting in higher clarity (e.g. Kleinnijenhuis et al, 2014; Hollanders & Vliegenthart, 2011; Wu et al., 2002). Unexpectedly, storytelling complexity did not show any effect on reputation, brand loyalty or eWOM. It was hypothesized that agenda complexity would influence reputation, but this was rejected (H2a). SQ2a-c was also answered in that frame complexity had no influence on the three outcomes, and agenda complexity did not influence brand loyalty or eWOM. However, results do indicate that within this particular study, visual stories that contained both high agenda and high frame
complexity increased reputation, brand loyalty, and eWOM the most. Regarding the combination of identity type and complexity types, the potential to engage in eWOM was influenced by a combination of identity type, agenda, and frame complexity type, answering SQ3a-c, with the highest likelihood of eWOM from the CarePhone story with high agenda and low frame
trend within social value/CSR marketing in that the more responsibility initiatives an organization takes, the better. Along with a preference for marketing responsibilities, perhaps participants also favored the idea of more issues, covering a wider span of responsibilities both socially and environmentally.
Finally, it was expected that emotional pleasantness would mediate the relationship between identity type and reputation, brand loyalty and eWOM (H3a-c), while SQ4a-c inquired further into the effects of emotional arousal on those outcomes. Theory on emotion in viral
marketing and storytelling specified that marketing materials should be pleasant in nature, evoking high emotional arousal in order to go viral (Berger & Milkman, 2012), while corporate stories should also form a positive emotional bond with consumers (e.g. Dowling, 2006). Stories
communicated through viral marketing should, then, lead to an increase in brand loyalty, eWOM, and reputation due to a formed emotional connection (e.g. Eckler & Bolls, 2011; Balakrishnan et al., 2014). In line with the expectations of H3a-c emotional pleasantness did mediate the
relationship between identity type, which showcased pleasant attributes, and reputation, brand loyalty, and eWOM. This indicated that creating a social value identity to engender positive feelings from consumers is beneficial to use both within a corporate story and as material for viral marketing. This becomes especially relevant in the network society context; in which consumers hold considerable power via new media channels (Berger & Reber, 2005; Castells, 2007; Schultz et al., 2013). Conversely, emotional arousal did not significantly mediate any of these
relationships, answering SQ4a-c, which is likely due to the design of the story images and their content. SQ5a-c questioned the mediation of PPGV on the relationship between agenda and frame complexity and reputation, brand loyalty, and eWOM, however no mediations were found.
Although it was not a successful mediator, further findings uncovered that PPGV had significant main effects on reputation, brand loyalty, and eWOM, perhaps signifying a certain ‘status’ of an
organization whose material is impressionable enough to go viral. However, literature on this subject is not yet available. Lastly, skepticism was found to mediate the relationship between identity type and reputation, brand loyalty, and eWOM. The Dark Phone story resulted in the most skepticism, followed by Orange and CarePhone. Interestingly, this contrasted with existing
literature that suggested skepticism is a result of a low alignment between initiatives and core business competencies (e.g. Du et al., 2010). Although the Dark Phone visual story did not include traditional CSR values, the issue of privacy being its main initiative is in line with its core
competency. This could be a result of uncertainty over the issue of privacy itself.
To summarize, it was shown here that a social business identity story distributed through viral marketing is more influential on the basis of reputation, brand loyalty, and eWOM than a non-CSR identity story, and its advantage over a strategic-CSR identity story has been identified. Agenda and frame complexities do not play a role in social value storytelling, although more responsibilities were insignificantly preferred. Positive emotion incited by marketing material mediated the relationship between identity type and reputation, brand loyalty, and eWOM, while PPGV directly affected reputation, brand loyalty, and eWOM. Finally, skepticism negatively mediated the relationship between identity type and reputation, brand loyalty, and eWOM.
Conclusion Future Research and Limitations
Several findings within this study present opportunities for future research directions, but it is not without its limitations. The primary conclusion is the idea that identity type and portrayal matters to consumers. A social business identity characterized by a natural alignment between the business itself and the responsibilities it aims to uphold is suggested to be the best type of identity to integrate into a viral corporate story. However, subsequent reputation, brand loyalty, and eWOM were evaluated only on the basis of one experimental sample, which limits the connection
to the CCO perspective. This research confirms that these ideas are indeed significant outcomes of identity type portrayed through storytelling, but their prominence within the Internet arena was not established. Future research would be well suited to focus on these outcomes, and others, as communicatively constructed concepts in online communities, confirming the power of the network society. Another limitation is the possibility that storytelling complexity wasn’t shown to play a role in this type of communication because the content was mostly positive and uplifting, without the uncertainty or discomfort that crisis or political communication may cause. Future research should, therefore, focus on storytelling of a social business or CSR identity that is not completely positive in nature, and includes the use of negative imagery or wording. A wider range of emotions could be experienced than were explored here, which only inquired about
pleasantness and arousal, another limitation. Negative emotions could result in uncertainty about the content being viewed and, thus, increase the relevance of agenda and frame complexity. Accordingly, future research in this regard should also include skepticism as a main outcome and/or mediator due to its relationship with uncertainty. Finally, with PPGV being a newly explored concept, the current findings could lead to compelling research in the area of consumer psychology within social media communities, and how organizations and brands can use this to their advantage. Its influence on reputation, brand loyalty, and eWOM should be evaluated in depth, as well as the potential ‘viral status recognition’ that organizations or brands may obtain from creating popular viral content.
A further limitation to the present study is that its experimental nature does not allow for generalization. The stimulus materials, although resulting in a majority of correct manipulations, were not flawless. Specifically, the portrayal of frame complexity within the images could have been improved, and may have been a factor in the lack of significant results in this regard. Additionally, this study focused specifically on societal and environmental responsibility by
