How Does Firm- and User-Generated Content Benefit Firms and Affect Consumers?

Abstract

Social media marketing is a new form of communication between firms and consumers. The interactive nature of social media platforms enables consumers to share their perceptions about firms by creating their own content in various forms. Besides, firms are able to attract and engage with consumers through creating effective content on their social media channels. Both user-generated content (UGC) and firm-generated content (FGC) have a significant role in firm performance and consumer behavior. However, the previous studies have mostly focused on the effects of UGC and addressed the issue from the consumer side. Therefore, as distinct from existing studies, the study at hand addresses the specific effects and benefits of UGC and FGC from both the firm and consumer sides, within a theoretical framework. In addition, based on the findings of the reviewed studies, the chapter presents some practical implications for business.