From Social to Sale: The Effects of Firm-Generated Content in Social Media on Customer Behavior

Given the unprecedented reach of social media, firms are increasingly relying on it as a channel for marketing communication. The objective of this study is to examine the effect of firm-generated content (FGC) in social media on three key customer metrics: spending, cross-buying, and customer profitability. The authors further investigate the synergistic effects of FGC with television advertising and e-mail communication. To accomplish their objectives, the authors assemble a novel data set comprising customers’ social media participation data, transaction data, and attitudinal data obtained through surveys. The results indicate that after the authors account for the effects of television advertising and…