Consumer-generated Advertising on YouTube : A quantitative study examining the effects of endorser credibility and coupon proneness on brands

Abstract: Consumer-generated advertising on YouTube is a developing phenomenon that in the last years has grown exponentially. Recent research by Holt (2016) suggests that well-known content creators on YouTube have a large impact on brands, so great that regular firms are unable to compete with these well-known content creators. However, firms do have the opportunity to cooperate with well-known content creators on YouTube. Therefore, examining YouTube as a marketing tool is beneficial for marketing managers globally, while we see that it can theoretically contribute to previous research within the areas of consumer-generated advertising and its effects on branding outcomes. The purpose of this thesis is to examine the effects of endorser credibility and coupon proneness on branding outcomes in the context of consumer-generated advertisements on YouTube. The study focuses on the four branding outcomes, which are brand awareness, brand attitude, brand trust, and brand loyalty. We assess the specific effects of the three components of endorser credibility including endorser attractiveness, endorser expertise and endorser trustworthiness. The components of endorser credibility, and coupon proneness will be measured towards brand awareness, brand attitude and brand trust. In turn, brand awareness, brand attitude, and brand trust will be measured towards brand loyalty. In this thesis, we consider well-known content creators on YouTube as endorsers, while focusing on YouTube videos where a coupon code is implemented. To fulfill the purpose of this study we conducted a quantitative study by distributing a survey on a channel of a well-known content creator on YouTube. There were 500 participants who answered the survey and the data collected was analyzed using multiple regression analysis. The empirical findings from the first multiple regression model show that there are significant positive effects of endorser expertise, endorser trustworthiness and coupon proneness on brand awareness. The second multiple regression model show that there are significant positive effects of endorser attractiveness, endorser expertise, endorser trustworthiness and coupon proneness on brand attitude. The third multiple regression model show that there are significant positive effects of endorser expertise, endorser trustworthiness and coupon proneness on brand trust. The fourth multiple regression model show that there are significant positive effects of brand attitude and brand trust on brand loyalty. The empirical findings of this thesis has theoretically contributed to previous research within the areas of consumer-generated advertisements, endorser credibility, coupon proneness and its effects on brands. The study also provided practical implications for marketers and firms who aim to market their brands through consumer-generated advertisements on YouTube, as well as well-known YouTube creators who aim to endorse brands through their YouTube channel.