A groundbreaking study from the Goa Institute of Management (GIM) has delivered crucial insights for brands navigating the complex world of social media marketing. Published on December 28, the research challenges conventional wisdom by revealing that the quality of user-generated content (UGC) does not directly influence online engagement for brands.
Clarity in the Content Debate
The study, conducted in collaboration with Goa University, Taleigao, and published in the prestigious Journal of Promotion Management, aimed to resolve contradictory findings from past research. It sought to determine whether social media investments yield measurable brand outcomes by examining how content quality and source credibility translate into brand equity and engagement.
Associate Professor Saswat Barpanda explained to PTI that the research brought clarity by analyzing both Firm-Generated Content (FGC) and User-Generated Content (UGC) within a common framework. The team tested their hypotheses across multiple popular platforms consumers use daily, including Facebook, Instagram, and YouTube.
Key Findings: Where Brands Should Focus
The research team employed the Elaboration Likelihood Model (ELM) and Social Identity Theory (SIT) to understand the psychological processes behind how consumers interact with brand content. This approach helped decipher why reactions vary based on a consumer's level of personal identification with a brand.
The core discovery was stark: high-quality firm-generated content significantly boosts social media brand engagement, whereas the quality of user-generated content shows no direct influence. Both FGC and UGC affect customer-based brand equity, but a critical difference lies in source credibility. Only the credibility of brand-created content enhances brand equity; the credibility of UGC does not.
"Brand equity acts as a full mediator," Barpanda stated. "This means social media content builds brand equity first, and this strengthened equity is what then drives consumer engagement."
Strategic Implications for Indian Brands
The study validates that consumers engage with brands when they identify with them and process content meaningfully. Therefore, brands must prioritize strengthening brand identity and trust before expecting substantial engagement.
"Our research showed that not all social media content is born equal," Barpanda explained. "High-quality brand-created content builds trust and identity, which results in brand engagement. Professional, credible content still wins the consumer’s mind and heart, even in the era of user-generated content."
Professor Nandakumar Mekoth of GIM highlighted the practical applications. He suggested brands draft communication strategies that prioritize high-quality FGC designed to connect emotionally with end-users. Investing in visually engaging content like tutorials or product explainers can forge stronger emotional connections and more meaningful interactions.
These insights are not limited to one sector. The findings apply across a wide spectrum of industries, from tourism and FMCG to retail and consumer services, helping brands improve campaign performance and make smarter digital advertising choices.
The study's unique simultaneous comparison of FGC and UGC across multiple platforms, backed by primary data from real consumers, makes it a one-of-its-kind contribution to marketing literature, offering a clear roadmap for brands aiming to maximize their social media impact.
