Impact of consumer engagement on firm performance

Abstract

PurposeThe aim of this study is to determine the impact of different dimensions of consumer engagement in social media on firm performance in social media.Design/methodology/approachBeyond likes and comments, combined with the interactive behavior of consumer engagement with firms on social media, we proposed a set of metrics for consumer engagement on social media, namely personal engagement, user-interactive engagement, and fan-interactive engagement. We used the fixed-effect model and validated the impact of consumer engagement in different dimensions on firm performance.FindingsThe result shows that personal engagement and user-interactive engagement significantly correlate with firm performance; however, the same effect was not observed in fan-interactive engagement.Originality/valuePrior researches on consumer engagement in social media are mainly about consumer engagement in firm-initiated social media page. In this study, we consider the consumer engagement behavior in firm-initiated and consumer-initiated social media pages, then validate the impact of different dimensions of consumer engagement on firm performance.