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Understanding  the  motivational  drivers  behind  

the  decision  of  users  to  engage  in  a  sponsored  

User-­‐Generated  Branding  program

.  

Why  do  you  want  to  co-­‐create  a  video  (or  remix)  with  an  artist?  

Master  Thesis  

MSc  in  Business  Studies  -­‐  Marketing  

               

Student  name:  Karla  Flores  Hurtado   Student  number:  10599339  

Date:  15-­‐07-­‐2014  

Supervisor:  prof.  dr.  J.H.J.P  Tettero  

Second  Supervisor:  drs.  Ing,  A.C.J.  Meulemans    

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Table  of  Contents  

INTRODUCTION ... 3

INTERACTION,  EXPERIENCES  AND  CO-­‐CREATIONAL  MARKETING ... 4

USER-­‐GENERATED  CONTENT  (UGC)  AND  USER-­‐GENERATED  BRANDING  (UGB) ... 8

USER-­‐GENERATED  CONTENT ... 8

THE  APPEARANCE  OF  USER-­‐GENERATED  BRANDING  CONCEPT ... 9

CO-­‐CREATION  IN  THE  MUSIC  INDUSTRY ... 13

UGC  AND  UGB  IN  THE  MUSIC  INDUSTRY ... 14

Motivational  Drivers ... 16

MY  STUDY  AND  RESEARCH  QUESTION ... 20

THEORETICAL  FRAMEWORK  AND  METHODOLOGY ... 23

THEORETICAL  FRAMEWORK ... 27

METHODOLOGY ... 28

RESULTS ... 30

MOTIVATIONAL  SOURCES  INVENTORY  PRESENCE ... 32

Overlaps  analysis. ... 43

DISCUSSION  AND  MANAGERIAL  IMPLICATIONS. ... 50

WHY  IS  EXTERNAL  SELF-­‐CONCEPT  BASED  THE  STRONGEST  MOTIVATIONAL  SOURCE? ... 50

IMPLICATIONS  FOR  THE  ARTIST  AS  A  BRAND ... 51

IMPLICATIONS  FOR  BRANDING ... 52

LIMITATIONS  AND  FUTURE  RESEARCH ... 53

CONCLUSION ... 54

REFERENCES: ... 55

APPENDICE ... 59

APPENDIX  1 ... 60

APPENDIX  2 ... 61

UNDERSTANDING  PEOPLE’S  MOTIVATION  TO  ENGAGE  IN  SPONSORED  USER-­‐GENERATED   BRANDING  PROGRAMS. ... 61 APPENDIX  3 ... 62 APPENDIX  4 ... 64 APPENDIX  5 ... 65          

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Introduction  

 

Since   the   appearance   of   the   Internet   and   Web   2.0   technologies,   new   trends   have   come   to   live   and   are   changing   the   way   that   consumers   behave   towards   the   firms.   Consumers   are   in   control   of   their   own   media   consumption   and   they   are   able   to   customize   it     (Daugherty,   Eastin   &   Bright   2008)   in   order   to   create   a   tailored   experience.  Thanks  to  Web  2.0  technologies,  it  has  been  possible  to  freely  publish,   and  share  information  that  has  the  potential  to  reach  millions  of  users.  During  the   past   years   we   have   seen   an   increase   in   the   creation   of   User-­‐Generated   Content   (UGC).  UGC  is  part  of  the  shift  that  is  occurring  in  the  traditional  market  paradigm.   Consumers  are  not  anymore  playing  their  traditional  role  of  consumption,  but  are   taking  active  participation  in  all  the  stages  

of   the   production   system.   Customers   are   co-­‐creating   value   along   with   firms.   Value   is   created   during   interactions   and   such   interactions   are   translated   into   experiences   (Ramaswamy   2011).   As   the   amount   of   User   Generated   Content  

increases,  (i.e.  advertising  of  a  product  not  involved  with  the  firm,  participation  in   blogs,   mash-­‐ups,   online   reviews,   Q&A’s,   video   clips,   social   networks)   marketers   have  been  facing  a  loss  of  control  over  both  the  market  and  users.  In  order  to  gain   ground   back   the   concept   of   User   Generated   Branding   appears   as   an   attempt   to   control  and  manage  UGC.    (Gamble,  Gilmore  2013,  Arnhold  2010)  It  is  still  unclear  

User-Generated Content in numbers in 2012

(source:

http://royal.pingdom.com/2013/01/16/internet-2012-in-numbers/)

• 14 million Vimeo users

• 175 million average number of tweets sent every day throughout 2012 • 2.5 million (number of hours) of

news-related video that was uploaded to YouTube.

• 300 million (number of new) photos added every day to Facebook

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what  are  the  drivers  behind  the  decision  of  users  to  participate  in  UGB  programs.   Due   to   the   scarce   literature   focused   in   understanding   the   motivational   factors   behind  user  engagement  in  UGC  and  UGB  programs  it  is  important  to  pin  down  such   drivers   so   UGB   programs   can   be   more   effective.   For   this   research   I   will   conduct     interviews   targeted   to   users   that   have   participated   in   sponsored   UGB   campaigns,   and  the  data  will  be  analysed.  The  aim  of  this  research  is  to  unveil  the  motivations   behind   users’   participation   and   explain   them   within   a   motivational   theory   framework.  

 

Interaction,  Experiences  and  Co-­‐creational  marketing  

Prahalad   &   Ramwaswamy   are   pioneers   in   the   field   of   co-­‐creation.   They   have   conducted  an  intensive  research  trying  to  define  what  does  co-­‐creaton  is,  its  scope,   evolution  and  future  (2000,  2004,  2012).  Prahalad  &  Ramwaswamy  introduced  the   concept   of   co-­‐creation  

(2000)   after   a   research   where   they   found   out   that   “customers   are   constantly   engaging   themselves   in   an   active   and   explicit   dialogue   with   manufacturers   of  

Examples of shifts in relationships “B2B” and “customer-firm”.

B2B the cooperation between Xerox and P&G. Xerox was given a 5-year contract to manage all of P&G print services. In order to have a fruitful partnership, both companies needed to become much more engaged in sharing their technology, processes and capabilities  (Roser,  DeFillippi  &  Samson  2013) An example of a customer-firm partnership is given by Volvo project of involving customers in the development of a new car; the car would include suggestions from the target market.   (Roser,  DeFillippi  &  Samson  2013)

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products  and  services”  (Prahalad,  Ramaswamy  2000).  Many  developments  such  as   deregulations,  globalization  and  Internet  have  forced  a  shift  in  B2B  relationships  but   also   the   relationship   customer-­‐firm.   The   traditional   market   paradigm   involves   a   passive  audience,  customers  are  presented  the  options  given  by  the  firms  and  they   are  expected  to  take  the  role  of  consumption.  In  the  new  paradigm,  customers  are   seen   as   part   of   an   enhanced   network.   As   noted   by   Prahalad   and   &   Ramaswamy,   customers   co-­‐create   and   extract   business   value   and   are   seen   as   collaborators   and   co-­‐developers   (in   co-­‐creating   value)   and   competitors   (in   extracting   economic   value).   The   latter   happens   consumers’   expectations   to   extract   value   from   their   interactions  with  a  firm.  Customer’s  influence  is  not  only  seen  anymore  in  the  point   of   sale   but   anywhere   in   the   system.     Experiences   are   an   important   part   in   the   concept  of  co-­‐creation  and  are  considered  by  Prahalad  &  Ramaswamy  (2004)  to  be   the   basis   of   value.     Such   experiences   take   place   in   a   model   that   Prahalad   &   Ramaswamy   call     “experience   space”   which   explains   how   the   consumer   defines   value   and   experiences   through   interactions.   In   the   “experience   space”   when   an   event   that   promotes   a   co-­‐creation   experience   occurs,   the   involvement   of   the   consumer  determine  the  personal  meaning  derived  from  such  interaction  and  that   will   be   translated   into   value.   The   experiences   take   place   within   a   network   of  

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company  capabilities  (i.e.  technical  and  social)  and  consumer  interaction  channels.   (i.e.   devices   and   employees)   This   model   requires   a   nodal   company   that   brings   together   “suppliers,   partners   and   consumer   communities   to   form   an   experience   network”  (Prahalad,  Ramaswamy  2004).  This  network  has  to  be  dynamic  because  is   not   possible   to   know   beforehand   the   customer   desired   experiences,   so   it   is   necessary   to   “accommodate   a   range   of   possible   customer-­‐company   interactions”   that   have   the   potential   to   become   co-­‐creation   experiences.   Another   important   aspect  that  needs  to  be  considered  in  the  co-­‐creation  real  is  innovation.  Innovation   should   be   focused   not   only   in   products   but   also   in   creating   experiences   (that   feel   tailored)  that  the  customer  will  translate  into  value.  

 

In  the  realm  of  experiences  as  basis  of  value,  Payne,  Storbacka,  Frow  &  Knox  (2009)   examine  the  co-­‐creation  of  value  within  the  context  of  a  service-­‐dominant  logic  and   propose   a   model   for   comprehending   the   brand   relationship   experience   in   the   service-­‐dominant   model.   The   model   consists   of   four   main   elements:   the   customer’s   value-­‐ creating   process,   the   supplier’s   value  creating  process,  encounters  (where  the  interaction  happens)  and  the  impact   of  additional  sources  of  brand  knowledge.  Payne  et  al,  describes  the  four  elements:   the   customer   value-­‐creating   process   is   defined   as   “a   series   of   activities   through  

KLM provide us with a good example of this with the feature “Meet & Seat” included in their website. Through an application that uses platforms such as Facebook or LinkedIn, customers are able to see who else is flying on the same aircraft and gives them the chance to interact and get to know each other before the flight. In the end this create a better and more enjoyable flying experience for everyone.

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which  the  customer  aims  to  achieve  a  particular  purpose”.  The  second  element,  the   supplier   value-­‐creating   process,   refers   to   the   chain   of   processes   that   facilitate   co-­‐ creation   opportunities,   for   example   the   emotional   engagement   of   customer,   self-­‐ service  experiences,  allowing  customers  to  solve  product  related  problems  on  their   own,   etc.   The   third   element,   encounters,   are   a   “series   of   interactions   and   transactions  occurring  during  the  relationship  between  the  customer  and  supplier”.     (Payne  et  al.  2009)  Such  encounters  can  be  either  company-­‐initiated  (the  company   promote  customer  to  interact  with  them)  or  customer-­‐initiated  (the  customer  takes   the   initiative   to   interact   with   the   company).   Finally   the   fourth   element,   additional   sources  of  brand  knowledge  are  the  sources  that  “can  affect  brand  perceptions”  and   the  whole  experience  itself.  It  is  important  to  understand  that  the  different  sources   of   brand   knowledge   may   be   present   during   interactions   and   they   “provoke   co-­‐ creation  processes”  (Payne  et  al.  2009).  Payne  et  al,  also  focus  on  the  importance  of   the   effect   that   experiences   (that   take   place   during   the   encounters)   have   over   the   customer  and  the  way  they  are  affected  by  the  type  of  experience  they  are  exposed   to.   Similar   to   Payne   et   at   (2009),   Ramaswamy   (2011)   agrees   that   there   are   four   premises  of  value  and  its  creation:  1)  value  is  a  function  of  human  experiences,  2)   experiences   come   from   interactions,   3)   a   firm   is   any   entity   that   facilitates   this   creation   of   experience-­‐bases   value   through   interactions   (Engagement   platforms),   and   4)   co-­‐creation   is   the   process   by   which   mutual   value   is   expanded   together   (Ramaswamy  2011).    

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User-­‐Generated   Content   (UGC)   and   User-­‐Generated  

Branding  (UGB)  

User-­‐Generated  Content  

 

Web   2.0   technologies   “facilitate   inexpensive   content   creation,   interaction   and   interoperability”   (Berthon   et   al.   2012)   these   characteristics   give   consumers   the   chance  to  be  in  charge  of  the  content  that  is  found  on  Internet.  Since  the  appearance   of  Web  2.0  technologies,  three  important  changes  have  taken  place  (Berthon  et  al.   2012).   First,   more   activities   take   place   on   the   Web   rather   than   in   conventional   spaces.   (e.g.   people   communicate   more   through   e-­‐mails   or   instant   messaging   services  than  conventional  mail  by  post)  Second,  a  change  in  the  traditional  model   of   value   production,   from   firms   to   consumers   (e.g.   consumers   extract   also   value   generating  meaningful,  tailored  experiences).  And  third,  the  power  has  passed  from   being  in  the  firm’s  hands  to  be  in  hands  of  the  consumers  (e.g.  consumers  are  able  to   influence   other   peers   to   make   use   of   social   medial   tools).   Some   other   consumers   have  been  taking  the  possibility  of  co-­‐creation  beyond;  they  have  created  their  own   communications  and  brand-­‐related  content  without  any  stimulation  or  instruction   from   marketers.   Muñiz   &   Schau   (2007)   investigate   consumer-­‐generated,   commercially   relevant   artifacts.   In   their   2007   article   they   analyse   how   fans   of   a   discontinued  product  (the  Newton)  from  Apple  in  1998  have  kept  the  product  alive   by   taking   full   responsibility   for   the   brand-­‐sustaining   experience:   modifying,   repairing,  and  innovating  the  product.  In  addition  to  these  activities  members  of  the   community   have   engaged   in   vigilant   marketing   by   creating   brand   artifacts   that  

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resemble   the   advertisements   originally   made   to   promote   the   product,   All   these   actions   have   been   made   order   to   keep   a   sense   of   union   within   the   community.     (Muñiz,   Schau   2007)   Muñiz   &   Schau   discuss   how   consumers   create   their   own   meanings  for  ads  that  might  be  or  not  the  ones  originally  intended  by  the  marketer.   Lately  consumers  can  create  such  content  and  easily  shared  with  a  crowd  online.  As   UGC  evolves,  more  complex  and  innovative  ways  of  content  appear  and  the  scope  is   not   limited   to   advertisement.   Krumm,   Davies   and   Narayanaswami,   propose   four   applications  of  UGC,  especially  when  the  influence  is  not  limited  to  an  online  setting   but  pervade  into  other  parts  of  users  life.  The  four  applications  are:  data  gathering   (i.e.  the  possibility  that  users  have  to  add  photos  they  have  taken  of  places  to  Google   maps),  pattern  recognition  (depending  on  the  type  of  UGC  created  it  is  possible  to   describe   the   patters   that   users   have,   for   example   during   their   trips),   community   building   (fan   bases   of   artists   that   create   their   own   videos)   and   public   art   (For   example,  the  Art  Gallery  of  Ontario  invited  people  to  participate  in  a  program  called   “Collection  X”  that  allowed  them  to  be  the  own  curator  of  their  exhibition)    (Krumm,   Davies  &  Narayanaswami  2008).  

 

The  appearance  of  User-­‐Generated  Branding  concept  

 

With  so  many  user-­‐generated  content  spread  all  over  the  Internet,  marketers  have  a   big  task  ahead  of  them.  Not  all  of  the  content  is  always  positive,  but  also  negative  or   challenging.   It   is   easy   for   users   to   put   their   voices   out   and   express   discontent   or   contentment.   Since   all   of   these   communications   are   not   under   control   of   the  

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understand   how   marketers   can   manage   UGC,   Arhold   (2010)   studies   for   the   first   time   the   User-­‐generated   Branding   (UGB)   as   a   new   concept.   In   his   dissertation   he   analyses  the  components  of  the  UGB  and  links  them  to  define  UGB  as  “the  strategic   and   operative   management   of   brand   related   user   generated   content   (UGC)   to   achieve   brand   goals.   For   Arnhold   UGB   is   to   be   considered   as   a   management   approach   that   deals   with   all   the   types   of   user   generated   brand   related   artefacts.   Such   artefacts   can   be   positive   or   negative   some   examples   are:   original   comments,   reviews,   ratings   and   artistic   work.     (Arnhold   2010)   To   understand   completely   the   definition   of   UGB   is   necessary   not   to   confuse   it   with   mass   customization,   word   of   mouth  (WOM)  and  open  source  brands,  and  also  to  understand  that  it  is  not  limited   to   eBranding.   Managerially   speaking   Arnhold   distinguishes   sponsored   UGB   from   non-­‐sponsored  UGB.  Sponsored  UGB  is  the  management  of  stimulated  brand  related   UGC  created  by  participants  on  demand.  While  non-­‐sponsored  UGB  is  defined  as  the   management   of   UGC   brand-­‐related   that   was   created   naturally   (Arnhold   2010).   Arnhold   found   that   UGB   could   be   used   for   four   management   purposes:   become   a   tool   of   applied   market   research,   commercialisation,   for   customer   retention   and   as   internal  branding.    In  the  same  line  as  Arnhold,  On  his  Editorial  from  2010,  Buurman   proposes   the   term   of   User   Generated   Content   and   define   it   as   the   handling   of   all   kinds  of  voluntarily  created  and  publicly  distributed  brand  messages  undertaken  by   non-­‐marketers.   (Burmann   2010)   Additionally,   the   concept   of   UGB   is   elated   by   Buurman   to   be   used   as   “symbols   of   open   brand   communication,   highlighting   the   brand   transparency   and   responsibility   principles”.     Lawrence,   Fournier   &   Brunel   (2013)   investigate   the   impact   of   consumer   generated   advertising,   and   noted   the  

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increase  in  the  use  of  UGB  as  a  regular  element  of  the  marketing  communications.   As  part  of  the  findings  we  find  that  the  fact  that  using  sponsored  UGB  increases  the   cognitive,   personal,   emotional,   and   behavioural   engagement   levels   of   viewers.     (Lawrence,   Fournier   &   Brunel   2013).   The   latter   occurs   due   to   the   fact   that   consumers  see  this  advertising  mode  as  more  honest  because  its  source  is  an  equal   individual  (another  consumer)  and  not  the  brand  itself.  

 

As  the  concept  of  UGB  is  still  being  formed,  it  has  been  necessary  to  locate  it  within   the  other  types  of  co-­‐creational  marketing,  Gamble  &  Gilmore  (2013)  conducted  a   research  and  they  found  five  typologies  of  co-­‐creational  marketing:  viral  marketing,   sponsored   user   generated   brand   (UGB)   marketing,   user   generated   content   (UGC)   marketing,  vigilante  marketing  and  prosumer  marketing.    (Gamble,  Gilmore  2013)   Distinction  among  the  five  types  of  co-­‐creational  marketing  depends  on  the  level  of   control  that  consumers  and  marketers  have  over  the  content.  They  propose  a  model   that   shows   the   level   of   control   that   consumers   have   on   each   typology,   viral   marketing   has   the   lowest   level   of   control   (involvement)   from   consumers   and   prosumer  marketing  has  the  highest  one.  On  the  viral  marketing,  a  firm  publishes   content  in  hope  that  consumers  will  create  “buzz”  and  will  pass  the  information  via   online   word   of   mouth   and   opposite   to   this   we   find   prosumer   marketing   that   is   present   when   a   consumer   is   involved   in   the   design   and   production   of   goods   and   services   so   they   are   made   to   individual   specification.   (Konczal,   Executive   2008).   According  to  Gamble  &  Gilmore,  in  a  sponsored  UGB  program,  consumers  and  firms   have   each   one   a   medium   level   of   control   over   the   content.   Sponsored   UGB   is  

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important  for  marketers  because  “control  is  initially  maintained  by  the  structured   specification   through   which   consumers   are   encouraged   to   participate   in   the   marketing   process”   (Gamble,   Gilmore   2013).   UGC   (and   its   eventual   branding)   can   take  several  forms:  text  (reviews,  comments),  photographs  (Instagram  or  Pinterest),   music   (mash   ups   and   remixes,   own   music)   and   video   and   film   (YouTube   or   Vine)   (Arnhold  2010).  For  the  purpose  of  this  paper  I  will  focus  on  sponsored  UGB  and  the   factors  that  motivate  users  to  engage  in  an  UGB  program  in  the  music  industry.  The   music  industry  will  be  the  target  of  this  research  due  to  several  reasons.  First,  the   music   industry   across   the   years   have   demonstrated   its   ability   to   adapt   and   adopt   new  trends,  for  example  the  change  from  vinyl  records  to  CD’s  and  then  to  the  MP3   format  (Lam,  Tan  2001).  Second,  

the   music   industry   owns   a   natural   high   level   of   consumer   interaction   (Gamble,   Gilmore   2013),   Third   the   amount   of   available   data   and   resources.   And  fourth,  my  personal  interest   in   the   music   industry.   Buurman  

(2010)  points  the  direction  for  future  research  and  among  the  issues  that  need  to  be   addressed   he   mentions   the   need   to   understand   the   motivational   drivers   for   UGB   program  participation.      

 

LexusInstafilm

In 2013, Lexus invited Instagram users and cars enthusiasts to participate in a project to create a stop-motion short film for Lexus new car. Each participant was asked to take a photo with Instagram from a different angle. Each picture was digitally sequenced to complete the short film. This was the first collaboration of this kind. The final

result can be seen on YouTube:

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Co-­‐creation  in  the  music  industry  

 

Choi  &  Burnes  (2013)  study  the  specific  case  of  the  co-­‐creation  trend  in  the  music   industry.  They  do  not  call  the  co-­‐creation  elicited  by  music  firms  as  sponsored  UGB   but  only  refer  to  it  as  co-­‐creation.  In  their  study,  Choi  &  Burnes  (2013),  also  agree   that  a  change  is  taking  place  in  the  traditional  customer-­‐firms  locus,  they  highlight   the   case   of   the   news   media,   where   the   users   are   also   contributors   that   co-­‐create   value  instead  of  being  “  passive  recipients”.  They  have  two  other  new  contributions.   First,   they   analysed   some   of   the   motivations   behind   the   reasons   that   ordinary   people   were   able   to   publish   and   share   UGC   that   was   meaningful   for   them   and   second,   they   find   significant   examples   of   the   way   that   the   internet   is   enabling   everyone  involved  in  the  music  industry  (fans,  artists,  small  record  labels)  to  create   innovative  approaches  that  generate  win-­‐win-­‐win  situations.  This  means  that  each   party  gains  value  in  an  economic  and  symbolic  way,  breaking  this  way  the  normal   paradigm   of   seeing   the   consumers   (fans)   as   enemies   when   they   create   their   own   content  (Choi,  Burnes  2013).    The  authors  propose  the  idea  (that  they  call  as  daring)   to   stop   seeing   piracy   as   a   bad   thing   but   incorporate   it   and   work   along   the   users   instead  of  declaring  a  war  on  them.  (Choi,  Burnes  2013).  The  main  limitation  of  Choi   &  Burnes  study  is  that  the  findings  are  solely  based  on  the  literature  review  made   and  no  experiment  or  data  was  analysed  to  bring  a  consistent  and  strong  proof.    

Salo  (2012),  analyse  how  online  communities  could  be  useful  for  marketers  when   they  are  used  as  a  tool  for  consumer  experience  management  (CEM).  He  focuses  on   online  communities  because  they  are  based  on  UGC,  because  they  allow  customers  

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to  post  comments,  pictures,  videos,  music,  etc.  UGC  allows  the  interaction  between   users   and   it   is   key   for   the   success   of   such   interaction.   On   his   study,   first,   Salo   distinguishes  between  customers’  level  of  involvement  in  experience  creation,  they   can  have  either  an  active  or  a  passive  role  that  may  require  a  low  or  a  high  level  of   effort  from  the  customer  to  participate.  For  example  when  an  individual  is  watching   a   movie   their   involvement   is   high   but   the   level   of   effort   required   is   low.   Salo   also   studies  different  record  companies,  all  of  them  are  different  among  each  other  (size,   geographical  scope,  budget,  etc.),  but  the  unique  constant  was  the  use  of  an  online   community  to  support  and  make  promotion  of  concert  dates  and  make  promotion  to   the  uploaded  videos  of  the  artist  on  YouTube.  Other  similarities  are:  asking  to  join  a   community   (to   make   it   grow),   advertising   upcoming   releases   and   selling   promotional   merchandise.     Salo   proposes   the   idea   of   firms   giving   customers   the   right  tools  to  create  their  own  content  around  a  brand  (artist).    

 

UGC  and  UGB  in  the  music  industry  

 

Since   the   appearance   of   Internet,   the   music   industry   has   faced   two   important   transformations,  the  way  it  is  distributed  and  how  it  is  marketed.  Along  with  these   two   issues   the   music   industry   has   confronted   problems   such   as   piracy   and   illegal   distribution.  There  is  no  doubt  how  Internet  had  been  influencing  the  way  that  the   music  industry  is  shaped,  record  companies  now  make  use  of  the  Internet  as  a  mean   of  communication  internally  and  externally.  The  whole  structure  of  the  Internet  has   been  modified  into  a  more  dynamic  and  flexible  one.  (Graham  et  al.  2004).  Within   this  paradigm  change  we  can  locate  the  use  of  UGC  as  a  way  to  empower  users  to  

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create  sponsored  content,  breaking  the  old  role  of  the  users  as  only  observers  and   transforming  them  into  an  active  part  in  the  music  industry  supply  chain.  Sponsored   UGB  gives  users  a  voice.    

 

There   is   still   few   literature   related   to   the   impact   of   UGC   content   in   the   music   industry.   Some   of   the   existing   literature   focuses   on   the   impact   of   UGC   in   sales   performances.  Dhar  &  Chang  (2009),  analyse  the  influence  of  the  amount  of  UGC  (in   the  form  of  consumer  reviews  and  ratings)  in  music  blogs  and  on  MySpace  profiles   in  digital  music  sales.    Dhar  &  Change  research  brings  no  definite  conclusion  if  there   is   a   direct   link   between   the   amount   of   UGC   and   the   sales   performance   but   the   findings   points   out   that   UGC   is   a   good   predictor   of   future   sales,   but   other   factors   (support   from   a   major   label,   the   fame   of   the   artist,   etc.)   should   not   be   ignored   because  they  do  play  an  important  role  in  the  sales  performance.  By  noticing  that   UGC  do  plays  a  role  in  the  sales  performance,  it  is  a  starting  point  for  marketers  to   develop  more  strategies  to  leverage  the  power  that  relies  on  consumers.    

 

In   the   motivation   realm   behind   the   creation   of   UGC   in   the   music   industry   context   Lingel  &  Naaman  (2012a)  perform  a  qualitative  analysis  to  understand  why  concert   attendees   record   the   artist   performance   and   upload   the   videos   to   YouTube.   They   interviewed  10  participants  that  have  uploaded  videos  to  YouTube;  5  attended  an   indie  rock  concert  the  other  5  attended  a  concert  of  a  mainstream  band.  The  results   of  their  research  show  three  main  ideas.  First,  the  production  of  UGC  as  a  form  of   attendance  management,  attendees  expect  to  have  “future  gains  by  creating  a  lasting  

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documentation   of   the   event”   (Lingel,   Naaman   2012a).   Second,   such   videos   are   “valued   for   their   ability   to   replicate   a  

sense   of   attending   the   show”   (Lingel,   Naaman  2012a).  And  third,  the  videos   become  a  form  of  contact  between  the   users,   fan   bases   and   (sometimes,   especially   in   the   case   of   the   indie   music)   the   bands.   Lingel   &   Naaman   refer   to   Paasonen   work   (Lingel,   Naaman   2012b,   Paasonen   2010)   where   she   argues   that   amateurs   “are  

willing   to   forgo   monetary   compensation   for   the   creation   of   content   because   they   find  the  work  innately  rewarding”.    Another  explanation  for  the  disposition  to  create   UGB   is   the   complex   needs   that   users   have.   Chandra   &   Lenders,   (2012),   noted   the   importance  of  users  as  trendsetters.  These  users’  desire  to  satisfy  their  needs  results   in  an  active  search  for  a  solution.  Therefore  users  are  seen  as  a  remarkable  source  of   innovation  for  companies.  The  Internet  becomes  a  facilitator  tool  to  reach  out  such   valuable   source,   and   make   it   possible   for   companies   to   capitalize   it   (Chandra,   Leenders  2012).  

 

Motivational  Drivers    

Still  little  research  has  been  done  to  understand  what  drives  people  to  take  part  in   such  activities  but  some  concepts  and  findings  by  previous  research  are  valuable  to  

HP connects on-stage with Ellie Goulding

HP partnered with Universal Music to promote their new music platform. In this occasion they launched a campaign, where few of their users could attend Ellie Goulding’s exclusive

concert, additionally to this HP launched a complementary campaign. Photographers were invited to submit an “artistic and

energetic shot” from another concert; the best shot was selected to be the photographer of Ellie Goulding’s exclusive concert for HP.

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come  closer  to  the  understanding  of  this  matter.  Since  the  literature  on  the  UGB  and   especially  on  the  motivational  drivers  is  scarce,  it  is  necessary  to  look  back  on  the   research  made  on  similar  topics,  for  instance,  the  factors  behind  hackers’  activities   (Lakhani,  Wolf  2003),  how  interactivity  affects  engagement    (van  Noort,  Voorveld  &   van  Reijmersdal  2012)  and  why  users  create  UGC    (Daugherty,  Eastin  &  Bright  2008,   Yang,  Lai  2010).  

 

Lakhani  and  Wolf    (2003)  conducted  a  research  to  understand  why  hackers  engaged   in  activities  such  as  hacking,  developing  software’s,  etc.  The  results  pointed  that  the   main   reasons   for   hackers   were:   enjoyment-­‐related   intrinsic   motivations   (code   for   project   in   intellectually   stimulating   to   write,   like   working   with   this   development   team),  extrinsic  motivations  (improve  programming  skills,  work  need  only,  enhance   professional   status,   payment)   and   obligation/community-­‐related   intrinsic   motivations   (believe   that   source   code   should   be   open,   feel   personal   obligation   to   contribute,   dislike   proprietary   software   and   want   to   defeat   them,   enhance   reputation   within   community)   (Lakhani,   Wolf   2003).   The   participation   in   UGB   programs   require   a   high   level   of   interactivity   of   the   website   or   app   that   the   marketer   decides   to   use.   Interactivity   is   used   as   a   medium   to   encourage   users   to   participate   thus,   creating   a   better   experience   for   them.   Van   Noort   et   al,   (2012)   investigated   how   interactivity   of   a   website   affects   the   “online   flow”   of   the   consumers.   Online   flow   is   the   users’   complete   immersion   (and   engagement)   in   an   online  activity  (van  Noort,  Voorveld  &  van  Reijmersdal  2012).  Their  study  is  based   in  Hoffman  and  Novak  conceptual  model  that  suggest  that  flow  mediates  the  effects  

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of  interactivity  while  navigating  across  web  sites  (Hoffman,  Novak  1996).  Van  Noort   et  al,  conducted  two  studies  on  which  they  found  out  that  online  flow  do  mediates   the   effects   of   web   site   interactivity   on   affective   responses.   Moreover,   the   results   confirmed   that   perceived   interactivity   increases   online   flow   while   also   increasing   the   magnitude   of   cognitive   responses   and   equally   increases   positive   evaluations.     (Hoffman,   Novak   1996,   van   Noort,   Voorveld   &   van   Reijmersdal   2012).   Coming   closer  to  the  drivers  behind  the  creation  of  UGB,  Daugherty  et  al,  (2008)  analyse  the   factors   behind   the   motivations   of   users   to   create   UGC   and   as   they   stated,   “the   introduction   of   Web   2.0   technologies   has   enabled   the   efficient   creation   and   distribution   of   user-­‐generated   content   (UGC)”     (Daugherty,   Eastin   &   Bright   2008)   and  it  is  needed  to  understand  the  sources  of  motivation  of  users  to  create  UGC.  On   their  study,  a  survey  was  made  among  325  participants,  the  results  show  that  ego   defensive  and  social  functions  sources  are  significant  contributors  of  the  creation  of   UGC.   The   study   shows   that   most   of   the   UGC   created   is   focused   on   humour   and   entertaining   topics.   The   most   unexpected   finding   in   this   study   is   the   difference   between   UGC   creation   and   consumption   behaviour,   the   results   show   that   people   who  is  more  prone  to  create  content  is  less  likely  to  consume  UGC,  while  those  who   only  engage  in  UGC  consumption  are  more  likely  to  use  this  content  as  a  traditional   source   and   adapting   a   passive   approach.   These   differences   between   consumption   and   creation   of   UGB   suggest   different   motivations   related   to   specific   behaviours.   UGC  creators  attempt  to  show  self-­‐expression  by  making  use  of  activities  that  allows   them   to   put   their   voices   or   thoughts   out   (e.g.,   forums,   blogs,   websites,   etc.).  

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Daugherty   et   al,   propose   a   deeper   analysis   “to   provide   a   more   thorough   understanding”  (Daugherty,  Eastin  &  Bright  2008).    

 

The  motivations  behind  one  of  the  most  forms  of  UGC  was  analysed  by  Yang  &  Lai   (2010),   they   studied   the   motivations   behind   Wikipedia   content   creators.   They   collected   their   data   only   from   the   English   version   of   the   website   using   an   online   survey.   Their   findings   show   that   in   the   case   of   Wikipedia,   the   biggest   free   online   encyclopedia  written  with  the  help  of  users,  most  of  the  content-­‐creators  decided  to   create   content   in   a   way   to   demonstrate   themselves   their   knowledge,   capabilities   and  influence  on  others  while  sharing  it  publicly.  The  authors  discard  the  possibility   of  the  creators  being  motivated  by  money  or  prize  due  to  the  volunteer  scheme  used   by  Wikipedia  and  noted  that  contributing  for  pleasure  might  be  the  initial  driver  but   is  not  the  dominant  one.    

 

Continuing  with  his  research  in  the  music  industry,  Salo  makes  another  contribution   along   with   Lankinen   &   Mäntymäky,   (2013).   In   their   study   they   investigate   the   motivations   of   people   to   use   social   media   and   how   this   is   related   to   music   consumption.   They   visualize   social   media   as   a   two-­‐way   communication   channel   between   record   labels,   artists   and   consumers.   In   their   theoretical   framework   motivations  are:  reinforcement  of  social  identity,  sense  of  affinity,  participation  and   two-­‐way   interaction.   (Salo,   Lankinen   &   Mäntymäki   2013).   Surprisingly,   individual   that  participated  in  their  research,  do  not  use  social  media  as  a  method  to  reinforce   their   social   identity,   equally   sense   of   affinity   scored   low   in   the   motivations   of   the  

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users.  Is  interesting  to  note  that  in  this  study  is  when  it  comes  to  the  music  business,   consumers   use   social   media   to   guarantee   their   access   to   content.   This   motivation   (access   to   content)   was   not   taken   in   consideration   in   first   place,   but   the   results   showed   that   users   look   for   ways   to   stay   in   touch   with   the   artist,   being   informed   about  the  latest  news  and  have  first  hand  information.  On  the  record  label  side,  the   authors  find  that  bringing  quality  content  is  indispensable  for  artist  marketing.  Salo   et  al.,  focus  mainly  on  the  user’s  motivations  to  make  use  of  social  media  as  a  way  to   gather  information  about  artists  and  their  activities  such  as  concerts,  new  releases,   presentations,  etc.  But  this  study  brings  an  insight  on  how  record  labels  can  make   use   of   these   platforms   (i.e.   MySpace,   Facebook,   Twitter,   YouTube,   Spotify,   etc.)   as   strategies   to   reach   users   and   promote   their   artists.   Record   labels   can   use   social   media   platforms   to   target   group   segmentation,   communicate   with   fans   communities,   encourage   interaction,   create   relevant   content,   evaluate   marketing   programs   and   as   a   performance   measurement   tool     (Salo,   Lankinen   &   Mäntymäki   2013).  

 

My  study  and  research  question  

 

In  this  study,  I  will  focus  on  the  motivational  drivers  of  users  to  engage  in  a  sponsored   UGB   program   within   the   music   industry.   The   music   industry   has   naturally   a   high   level   of   consumer   interaction   (Gamble,   Gilmore   2013).   The   artist   himself   is   considered   a   brand   manager   that   is   constantly   “developing,   nurturing   and   promoting”  their  own  image  as  they  would  do  it  for  a  product  (Schroeder  2005).  In   the   music   industry,   several   actors   have   used   sponsored   UGB   for   example   music  

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firms,   music   channels   and   artists.   One   of   the   most   active   record   firms   in   the   UGB   realm  has  been  Universal  Music;  several  of  their  artists’  marketing  campaigns  have   used   some   type   of   UGB   (i.e.   video   creation,   pictures,   etc.)   On   an   interview   for   the   newspaper  “The  Star”,  Francis  Keeling,  global  head  of  digital  business  for  Universal   Music  Group  talked  about  the  importance  of  UGC  and  how  in  recent  times  UGC  has   helped   the   records   industry   to   generate   more   money   than   from   official   music   videos.  In  words  of  Keeling:  “  It’s  a  massive  growth  area.  We’re  very  excited  about   the  creativity  of  consumers  using  our  repertoire  and  creating  their  own  versions  of   our   videos”.   (Eastwood   2014)   It   is   clear   that   the   main   players   in   the   industry   are   aware   of   the   benefits   and   potential   that   UGC   holds.   This   is   congruent   with   the   previously  discussed  work  of  Choi  &  Burnes  (2013),  users  are  not  longer  threats  or   enemies  by  creating  their  own  content,  on  the  contrary,  consumers  have  become  an   active   part   of   the   value   chain.   As   for   this   matter,   the   inevitable   monetising   of   the   UGC  is  taking  place,  this  means  that  record  companies  and  right  holders  are  earning   money  thanks  to  the  UGC  uploaded  in  platforms  such  as  YouTube.  This  phenomenon   has  been  pushed  up  by  changes  in  the  way  that  UGC  is  being  managed,  for  example   the  inclusion  of  commercial  ad’s  before  a  video  starts  or  the  licensing  of  UGC  that   prevents  it  from  being  removed  and  instead  it  brings  revenue  to  the  right  holders.   (International  Federation  of  the  Phonographic  Industry  2014).    

 

Next   to   the   record   labels,   music   channels   such   as   MTV,   have   been   including   UGC   routinely.  MTV  is  a  pioneer  when  it  comes  to  the  use  of  UGC,  they  have  used  it  from   ad’s,  passing  through  people’s  votes  in  their  annual  music  awards  and  to  including  

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UGC   content   in   their   regular   programs.   As   noted   by   van   Dijck   (2009),   after   the   appearance   of   UGC   sites   (YouTube,   Facebook,   Instagram,   etc.),   firms’   efforts   and   interests   have   moved   from   seeing   individuals   only   as   consumers   to   see   them   as   producers  and  empowering  them  to  create  content  that  add  value  to  the  business.   (van  Dijck  2009).  

  According  to  Gamble  (2013)  sponsored  UGB  in  the  music  industry  can  take  several   forms:    focus  groups  discussions,  SMS  music  video  selection,  collaborative  playlists,   collaborative   artwork,   channel   partner   behaviour   and   live   event   photos/videos.   These   are   just   some   examples,   UGB   can   take   different   forms   and   it   is   constantly   The  Swedish  DJ  and  producer,  Avicii,  gives  one  of  the  latest  examples  of  sponsored  UGB.   The  DJ  is  launching  a  new  project  of  his  own  called  “TrueTube”.  The  project  objective  is   to  give  fans  the  chance  to  make  their  own  music  videos  by  mashing  up  the  songs  taken   from  Avicii  (Anonymous)  album  and  video  footage  from  YouTube.  After  the  users  have   selected   their   preference   “TrueTube”   will   merge   the   video   and   music.   The   users   also   have  the  chance  to  submit  their  creations  for  a  competition.    The  intention  of  this  project   is  to  create  a  “new  and  personalized  experience  to  enjoy  the  music”.  This  example  has  all   the   elements   of   a   sponsored   UGB   campaign.   First   the   artist   (brand)   is   providing   the   platform   where   fans   (users)   can   generate   content   with   the   elements   provided   (music   from   Avicii   and   video   footage   from   YouTube).   The   artist   himself   is   asking   for   the   collaboration  of  his  fans  and  rewarding  the  best  contributions  that  are  submitted  to  the   competition.  Avicci  has  been  recently  known  for  his  previous  projects,  Avicii  x  you  and   Gravity,  in  the  first  one  the  DJ  recruited  fans  from  around  the  world  to  collaborate  with   the   creation   of   a   track   and   the   second   one   is   an   interactive   video   game   enhanced   by   Avicii  tracks  that  vary  from  user  to  user  according  their  own  performances.      

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evolving   and   innovating   according   with   the   platforms   that   users   have.   The   aim   of   this  study  is  to  contribute  with  scientific  knowledge  about  the  motivational  factors   that  make  users  to  engage  in  a  sponsored  UGB  campaign  within  the  music  industry.   The  aim  of  this  thesis  is  to  answer  the  next  question:    

 

What  are  the  drivers  behind  the  motivation  of  users  to  engage  in  a  sponsored   UGB  program?  Are  those  motivations  intrinsic  or  extrinsic  to  the  users?  

 

It   is   important   to   remark   that   such   factors   (motivations)   might   be   not   only   applicable   to   music   industry   examples   but   to   a   broad   type   of   industries.   So   the   contribution  of  this  thesis  will  not  only  be  useful  for  the  music  industry  but  for  any   other   industry   that   has   a   fan   base   and   decides   to   engage   in   sponsored   UGB   programs.   In   the   next   chapters   I   am   going   to   give   the   theoretical   framework   and   develop   hypothesis   based   on   motivational   theories   in   order   to   understand   why   people  engage  in  sponsored  UGB  programs.    

Theoretical  framework  and  Methodology  

To   fully   understand   the   motivations   of   users,   we   need   to   take   in   account   motivational  theories  for  our  framework.  For  the  purpose  of  this  thesis  I  will  use  the   motivational   inventory   proposed   by   Barbuto   (1998).   On   his   article,   Barbuto   develops   an   integrative   inventory   of   motivational   sources   based   on   the   five   motivational  sources  proposed  by  Leonard,  Beauvais  &  Scholl  (1999).  Leonard  et  al,   integrate   relevant   motivational   theories   that   explain   motivation   at   work.   User’s  

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contribution   can   be   considered   a   no-­‐paid   job,   because   it   helps   brands   to   create   material  (videos,  ad’s)  that  is  used  in  favour  of  the  pursuit  of  economical  goals,  this   is  the  reason  why  such  inventory  is  used.  

 

The   five   categories   that   Leonard   et   al,   (1999)propose   are:   intrinsic   process,   extrinsic/instrumental  rewards,  external  self-­‐concept,  internal  self-­‐concept  and  goal   internalization.  For  a  better  understanding  I  will  explain  each  category  and  apply  it   within  the  realm  of  sponsored  UGB.  

 

Intrinsic  Process    

When  people  engage  in  certain  kind  of  work  and  is  motivated  for  the  mere  fun  of  it,   the  intrinsic  process  takes  place  (Barbuto,  Scholl  1998).  Work,  itself,  is  the  incentive   in   this   category   as   workers   find   pleasant   to   do   their   activities.     When   a   person   decides  to  participate  in  a  sponsored  UGB  in  the  music  industry,  they  do  it  because   they   enjoy   performing   the   activity   requested   by   the   firm,   for   example,   creating   a   video,  making  pictures,  writing,  etc.  The  users  have  fun  participating  in  the  program;   no  tangible  reward  is  expected  but  only  enjoying  themselves.  

 

Assumption  1:  Users  engage  in  a  sponsored  UGB  program  because   they   will   have   feelings   related   to:   fun,   pleasure,   excitement   or   happiness  

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Instrumental  motivation    

This   type   of   motivation   is   present   when   the   individuals   have   the   idea   that   their   behaviour  will  have  extrinsic  tangible  consequences  in  the  form  of  awards,  payment,   prizes,  etc(Barbuto,  Scholl  1998).  When  a  consumer  engages  in  a  sponsored  UGB  in   the  music  industry  they  expect  that  after  displaying  their  skills  and  creativity  they   will   receive   more   than   recognition   but   a   tangible   reward.   If   a   prize   for   the   best   submissions   is   being   offered,   the   participants   engage   in   this   program   to   get   such   prize.      

Assumption  2:  Individuals  are  willing  to  engage  to  a  sponsored  UGB   program   when   a   tangible   reward   is   being   offered   because   this   causes   feelings   of:   superiority,   excellence,   proudness   and   importance.  

 

External  Self-­‐concept-­‐based  Motivation    

This   motivational   source   is   based   in   external   factors   that   give   the   individual   self-­‐ reinsurance.   The   individual   would   seek   “affirmation   of   traits,   competencies   and   values”,   hence   the   behaviour   will   try   to   satisfy   the   member   of   certain   reference   group.  The  initial  intention  of  the  individual  behaviour  is  to  be  accepted  and  later  to   gain   status(Barbuto,   Scholl   1998).     In   a   sponsored   UGB   program   in   the   music   industry  scenario,  the  user  that  engage  in  such  activity  is  willing  to  prove  himself  to   the  community  (for  purpose  of  this  thesis  to  the  fan  base  of  an  artist)  as  a  “big  fan”   that  is  willing  to  dedicate  time,  effort  and  sometimes  resources  to  collaborate  with  

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Assumption   3:   Individuals   that   participate   in   a   sponsored   UGB   program  do  it,  to  show  off  their  creations  to  the  other  members  of   the  fan  community  in  order  to  have  feelings  related  to  recognition,   status  and  admiration.  

 

Internal  Self-­‐concept-­‐based  Motivation    

This  motivational  source  refers  to  the  “standards  of  traits,  competencies  and  values”   that   form   part   of   the   individual’s   image   of   ideal   self   and   elates   an   engaging   behaviour   that   reinforce   such   perceptions   and   allow   them   to   become   more   competent   (Barbuto,   Scholl   1998).   In   a   sponsored   UGB   program   in   the   music   industry,   when   a   user   participates,   they   do   it   to   reinsure   the   image   they   have   of   themselves  and  make  use  of  their  skills  and  at  the  same  time  improve  them.  Once   their   skills   are   improved   (editing   videos,   making   photography’s,   writing,   etc.),   the   reinsurance  takes  place.  Thru  this  source  of  motivation  the  users  are  able  to  express   themselves.  

 

Assumption  4.  Users  that  engage  in  a  sponsored  UGB  campaign  do  it  for   the  feelings  of  self-­‐reinsurance,  accomplishment  and  realization  of  their   ideal  self.  

   

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Goal  Internalization  Motivation    

In  this  motivational  source  the  individual  engage  in  certain  attitudes  and  behaviours   because  the  idea  fits  their  personal  value  system.  The  individual’s  identification  with   the  cause  motivates  them  to  work  towards  a  common  goal  (Barbuto,  Scholl  1998).   In  a  sponsored  UGB  program  in  the  music  industry,  when  an  individual  decides  to   participate   in   a   campaign,   they   do   it   because   they   1)   form   part   of   the   artist’s   fan   base,  2)  believe  in  the  artist  and  3)  want  to  help  the  artist  out.  Since  the  users  are   part  of  a  fan-­‐base  they  share  their  values,  ideals  and  passions  with  other  individuals   similar  to  them.  

 

Assumption   5.   Users   that   engage   in   sponsored   UGB   programs   to   have   feelings   of   being   helpful   toward   the   good   of   the   majority,   importance,  and  a  feeling  of  “saving  and  protecting  the  cause”    

Theoretical  framework  

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Methodology  

 

Qualitative   research   was   selected   for   this   study   because   it   has   been   successful   to   deepen   the   understanding   of   social   matters   and   their   dynamics   (Attride-­‐Stirling   2001).   In   order   to   answer   the   research   question   of   this   thesis,   an   exploratory   research  will  be  conducted  in  order  to  create  a  theory  on  the  motivational  sources  of   individuals  that  are  involved  in  sponsored  UGB.  This  thesis’  methodology  can  also   be   referred   as   grounded   theory   because   my   aim   is   to   develop   some   theory   not   previously  done  (Engward  2013)  and  I  am  approaching  to  the  UGB  phenomena  with   still  scarce  sources  despite  the  high  amount  of  UGC  created  nowadays.    

 

The   method   of   this   research   is   a   semi-­‐structured   interview.   A   semi-­‐structured   interview  was  chosen  as  the  best  way  to  approach  respondents  because  it  helps  to   explore   the   opinions   of   respondents   and   due   the   difference   between   each   participant  (contest,  age,  nationality  and  background)  a  standardized  interview  was   not  suitable(Louise  Barriball,  While  1994).  The  respondents  were  contacted  first  to   inform   them   about   the   research.   After   the   first   contact   was   made,   a   second   email   was   sent   with   a   cover   letter   where   full   anonymity   is   guaranteed   and   a   link   to   the   online  questionnaire.  Respondents  answered  11  questions  that  were  adapted  from   the  Motivational  Source  Inventory  questionnaire  proposed  by  Barbuto(1998).  Using   such   questions   (See   Appendix   1)   permitted   that   the   collected   data   followed   the   categories   proposed   by   Baurbuto   and   also   by   making   use   of   a   semi-­‐structured   interview   helped   the   research   to   bring   possible   motivations   not   considered   by  

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