Social Media and Value Creation: The Role of Interaction Satisfaction and Interaction Immersion

Abstract

This research examines the effects of social media brand–consumer interactions on three types of customer value: customer lifetime value (CLV), customer influencer value (CIV) and customer knowledge value (CKV). By examining the differential effects of consumers' satisfaction and immersion with social-media brand interactions on CLV, CIV and CKV, the authors identify conditions under which interaction satisfaction and interaction immersion create value for brands. Results suggest that whereas interaction satisfaction positively influences both CLV and CIV, interaction immersion impacts both CIV and CKV. The authors identify social media strategies for brands related to interaction satisfaction and immersion that are based on the three types of customer value studied. The findings reported offer important managerial and theoretical implications with respect to the effects of discrete social media interactions on customer value creation.