This document outlines a research study investigating how online users make decisions in the "Like Economy" and how advertising effectiveness and accumulated likes impact users' willingness to click "like". The study will examine how factors like advertisement vividness, credibility and utility, product familiarity, and accumulated likes influence users' intentions to click like. Data will be collected through surveys measuring these factors and analyzing their relationships. The research aims to provide insights into information management in the Like Economy and aid decisions on advertising investment levels based on accumulated likes.

1. Online user’s decision making in “Like Economy”:
An investigation of advertising effectiveness and
석사 2학기 정효경
2014.06.19
accumulated quantity of like-click

2. • Introduction
• background, motivation, and objective
• Research Model and Hypothesizes
1.
2.
3.
4.
• Methodology and Data Collection
• Expected Implementations

3. 1 Introduction
 1.1 Research background
 1.2 Research motivation & objectives

4. 1.1 Research background
 Online user’s decision making in Like Economy: The impact of
advertisement and existing quantity of lick-click
Title:
Research background:
 On-line contents (service) providers
 Like-click (button)
 Customers’ willingness to conduct a like-click
 Provider’s benefit from obtaining like-clicks

5. 1.2 Research motivations & objective
A large number of accumulated like-clicks can bring several benefits：
 Implies a high popularity among the target users
 Attracts other users
 Attracts more sponsors or investment
 Increases the value of the product (e.g., website)
Research questions:
 Whether the accumulated quantity of like-clicks can attract more like-clicks?
 What is an appropriate advertisement investment under different levels
of accumulated lick-clicks?
 What factors (e.g., product familiarity) will influence the impact of the
above two factors on the users’ willingness to click “like”?

6. 2 Research Model and Hypothesizes
 2.1 Theoretical background
 2.2 Research model & Hypothesizes

7. 2.1 Theoretical background
Literatures about Advertising Effectiveness (vividness, creditability, utility)
 Vividness means the representational richness of a mediated environment as defined by its
formal features; that is, the way in which an environment presented information to the senses.
(Steuer 1991)
 Gibson (1966) defined five distinct perceptual systems which can describe vividness: the
basic orienting system, which is responsible for maintaining body equilibrium; the auditory
system; the haptic or touch, system; the taste-smell system; and the visual system. Inputs to
several of these systems from a single source can be considered informationally equivalent
(Gibson, 1966).
 Gotlieb and Sarel (1991)studied the effect of source creditability on advertising brand and
customer’ s purchase intention. Results suggest that when higher involvement is activated and
a source of higher credibility is included in the advertisements, comparative advertising for a
new brand has a more positive effect on purchase intentions than non-comparative advertising.

8. 2.1 Theoretical background
Literatures about Advertising Effectiveness (vividness, creditability, utility)
 Ad credibility is defined as the extent to which the consumer perceives claims made about the brand
in the ad to be truthful and believable， consisting of three constructs: perceived ad claim
discrepancy, advertiser credibility, and advertising credibility. (Mackenzie and Lutz 1989).
 Advertising credibility represents consumers‘ perceptions of the truthfulness and
believability of advertising in general, not simply the particular ad in question.
 Advertiser credibility, the perceived truthfulness or honesty of the sponsor of the ad.
 Olney defines the utilitarianism of an Ad, means that whether the contents of an Ad can provide
usefulness and valuable information for consumers. According to his study, three attitudinal
components about Ads (hedonism, utilitarianism, and interestingness) have a meaningful impact on
the brand attitude and preference. (Olney 1991)
 Important-not important
 Informative-uninformative
 Helpful-not helpful
 Useful-not useful

9. 2.1 Theoretical background
Literatures about Uncertainty & Product Familiarity:
 Uncertainty was characterized as an artifact of imperfect information. (Knight 1921)
 Product uncertainty was originally proposed by Arrow (1963), was recently identified as a
serious impediment to online market. It is defined as the consumer’s difficulty in evaluating
product attributes and predicting how a product will perform in the future. (Dimoka et al. 2012,
Ghose 2009, Kim and Krishnan 2013)
 Product familiarity is defined as the level of previous knowledge and usage experience with a
product class (Johnson and Russo 1984)
 Product familiarity is based on the person‘s self report of how much she or he knows about
the product. (Lichtenstein and Fischhoff 1977)
 When consumers are not familiar with a product class, they are likely to have a higher
product uncertainty because of unclear preferences that makes it difficult to identify a group
of products and lack of knowledge on the product’s experience attributes. (Rao and Monroe
1988)

10. 2.1 Theoretical background
Literatures about word of mouth (WOM):
 The earliest study on the effectiveness of WOM is survey based (Katz and Lazarsfeld 1955)
and was followed by more than 70 marketing studies, most of them also inferring WOM
from self-reports in surveys (Godes and Mayzlin 2004; Money et al. 1998).
 WOM involves unpaid interpersonal communication between people connected through a
communication channel (Godin, 2001; Reingen and Kernan, 1986), and has a strong impact
on consumers’ adoptions which has been confirmed by many studies on consumer behavior
and attitude (Borgida and Nisbett 1977; Grewal et al. 2003; Herr et al. 1991), especially with
regard to the diffusion of innovations (e.g., Brown and Reingen, 1987; Childers, 1986; Herr
et al, 1991).
 Online WOM usually involves personal experiences and opinions transmitted through some
behaviors (e.g., written). An advantage of the written word is that people can seek
information at their own pace. These behaviors may also transmit the information in a more
intact manner and make the information appear more formal. (Sun et al. 2006)

11. 2.2 Research model & Hypothesizes
Advertising
effectiveness
Credibility
H2a H2b
Measurement(Meas.) of antecedent variables of advertising effectiveness
Variables Meas. 1 Meas. 2 Meas. 3 Meas. 4 Theory
Vividness auditory visual touch / Gibson
Creditability
advertising
credibility
advertiser
credibility
/ /
Mackenzie
and Lutz
Utility
Important or
not
Informative or
not
Helpful or
not
Useful or not Olney
Product
Familiarity
Familiarity or
not
Rao and Mo
nroe
Accumulated quantity
of like-click
Willingness to click
“like”
Product Familiarity
Vividness
（interesting）
Utility
（Useful）
H1a
H1b

12. 2.2 Research model & Hypothesizes
Advertising
effectiveness
Accumulated quantity
of like-click
Product Familiarity
Credibility
Vividness
（interesting）
Utility
（Useful）
H1a
H2a H2b
H1b
H1a: Advertisement effectiveness has a positive impact on users’ like-click intention.
Willingness to click
H1b: Accumulated quantity of like-click has a positive impact on users’ like-click intention.
H2a:
“like”
Product Familiarity moderates the impact of advertisement effectiveness on users’ like-click
intention.
H2b:
Product Familiarity moderates the impact of accumulated quantity of like-click on users’ like-click
intention.

13. 3 Research Method & Data Collection

14. 3. Research Method & Data Collection
Control variables:
 인구통계적 변수 (나이, 성별, 등)
 소셜미디어를 활용 숙련도과 빈도
Data Collection:
 제품에 관한 숙련 정도 도 설문문항으로 응답대상한테 질문
 광고에 관한 효과의 측정은 설문조사로 할 생각
 광고 본 대상한테 설문지를 나누고, 광고에 대해 vividness， credibility， utility세가지 층면에 각각 평가 점수를 얻어
합여서 중합점수로 광고의 효관를 평가할 생각입니다.
Research Method:
 Smart PLS로 수집된 테이터를 분석을 통해 관연 가설과 같이 결과가 나온지 검증

15. 4 Expected Implications

16. 4. Implementations and Contributions
Expected Research Implementations:
 Propose a new sight of information management in Like Economy.
 Analyze users’ willingness to click “like” on the relationship with advertisement and
accumulated like-click.
 Give a decision-making aid for managers to select the appropriate advertisement
investment policy under different levels of accumulated like-clicks.

17. Thank you
감사합니다
Q&A