Commerce-oriented revenue models for content providers: an experimental study of commerciality’s effect on credibility
- 408 Downloads
If content providers want to build successful businesses on the Internet, they have to establish viable revenue models online. Because selling content or ads is less profitable online than offline, content providers have begun to generate revenues by selling products or services related to their content. However, this incentivizes content providers to increase sales by manipulating their content and thus may harm the content’s credibility. We conducted a vignette-based online experiment to test the effect of content providers’ revenue models on the credibility of two different types of content. Although our results revealed significant differences between revenue models for one of the content types, we did not find evidence that users distrust content providers employing commerce-oriented revenue models. Our findings shed light on the relationship between credibility and monetization of content on the Internet and provide helpful insights for practitioners in the media industry regarding optimal revenue generation strategies.
KeywordsContent credibility Content providers Revenue models Affiliate marketing Content-driven commerce
JEL classificationM15 M31
This article is based on the third essay of the author’s dissertation. The author thanks the editors and two anonymous reviewers for their helpful comments during the review process. He is also grateful to Thu Mai Nguyen for first insights into credibility research and to PACIS 2016 participants for valuable feedback on an earlier version of this manuscript.
- Abnett, K. (2015). Condé Nast to transform Style.Com into global e-commerce player. http://www.businessoffashion.com/articles/bof-exclusive/bof-exclusive-conde-nast-to-transform-style-com-into-global-e-commerce-player. Accessed 11 Nov 2015.
- Alexander, J., & Parsehian, S. (2014). Content-driven commerce: Differentiating and driving sales with content in commerce. Short Hills: FitForCommerce.Google Scholar
- Berger, B. (2016). To believe or not to believe - Investigating the effect of commerce-oriented media revenue models on content credibility. In 20th Pacific Asia Conference on Information Systems, Chiayi, Taiwan, June 27–July 1, 2016 (Paper 257).Google Scholar
- Berger, B., & Hess, T. (2015). The convergence of content and commerce: Exploring a new type of business model. In 21st Americas Conference on Information Systems, Fajardo, Puerto Rico, August 13–15, 2015 (Paper 16).Google Scholar
- Cacioppo, J. T., & Petty, R. E. (1984). The elaboration likelihood model of persuasion. Advances in Consumer Research, 11(1), 673–675.Google Scholar
- Cheng, T., Brisson, H., & Hay, M. (2014). The role of content in the consumer decision making process. New York: The Nielsen Company.Google Scholar
- Dennis, A. R., Robert, L. P., Curtis, A. M., Kowalczyk, S. T., & Hasty, B. K. (2011). Research note—Trust is in the eye of the beholder: A vignette study of postevent behavioral controls’ effects on individual trust in virtual teams. Information Systems Research, 23(2), 546–558.CrossRefGoogle Scholar
- Firnkes, M. (2014). Online shop trend narrative retailing: How content marketing is said to optimize shopping. http://marketpress.com/2014/online-shop-trend-narrative-retailing-how-content-marketing-is-said-to-optimize-shopping/. Accessed 6 Aug 2014.
- Fogg, B. J. (2003). Prominence-interpretation theory: Explaining how people assess credibility online. In CHI '03 Extended Abstracts on Human Factors in Computing Systems, Ft. Lauderdale, Forida, April 5-10, 2003 (722-723).Google Scholar
- Forrester Consulting (2012). Using ecommerce to monetize digital content in the media industry. Thought Leadership Papers. Cambridge: Forrester Research.Google Scholar
- Ha, L., & Ganahl, R. (2004). Webcasting business models of clicks-and-bricks and pure-play media: A comparative study of leading webcasters in South Korea and the United States. JMM: The International Journal on Media Management, 6(1/2), 74–87.Google Scholar
- Hess, T. (2014). What is a media company? A reconceptualization for the online world. JMM: The International Journal on Media Management, 16(1), 3–8.Google Scholar
- Hovland, C. I., Janis, I. L., & Kelley, H. H. (1953). Communication and persuasion - psychological studies of opinion change. New Haven: Yale University Press.Google Scholar
- Kursad, A., Nanda, K., & Varghese, S. J. (2012). Pricing models for online advertising: CPM vs. CPC. Information Systems Research, 23(3), 804–822.Google Scholar
- Metzger, M. J., Flanagin, A. J., Eyal, K., Lemus, D. R., & McCann, R. M. (2003). Credibility for the 21st century: Integrating perspectives on source, message, and media credibility in the contemporary media environment. In P. J. Kalbfleisch (Ed.), Communication Yearbook 27 (pp. 295-335, Communication Yearbook, Vol. 27). Mahwah: Lawrence Erlbaum Associates.Google Scholar
- Moore, D. J., Reardon, R., & Mowen, J. C. (1989). Source independence in multiple source advertising appeals: The confederate effect. Advances in Consumer Research, 16(1), 719–722.Google Scholar
- Niedzwiadek, N. (2016). Vox to join other media companies in e-commerce push. http://www.wsj.com/articles/vox-to-join-other-media-companies-in-e-commerce-push-1455188401. Accessed 15 April 2016.
- Nunnally, J. C., & Bernstein, I. H. (1994). Psychometric theory (3rd ed., McGraw-Hill Series in Psychology). New York: McGraw-Hill.Google Scholar
- O’Keefe, D. J. (2002). Persuasion: Theory & research (2nd ed., Current Communication: An Advanced Text Series). Thousand Oaks: Sage Publications.Google Scholar
- Osterwalder, A., Pigneur, Y., & Tucci, C. L. (2005). Clarifying business models: Origins, present, and future of the concept. Communications of the Association for Information Systems, 16, 1–25.Google Scholar
- Pew Research Center. (2015). State of the news media 2015. Washinton, DC: Pew Research Center.Google Scholar
- Ringle, C. M., Wende, S., & Becker, J.-M. (2015). SmartPLS 3. Boenningstedt: SmartPLS GmbH.Google Scholar
- Sundar, S. S. (2008). The MAIN model: A heuristic approach to understanding technology effects on credibility. In M. J. Metzger & A. J. Flanagin (Eds.), Digital media, youth, and credibility (pp. 73–100). Cambridge: The MIT Press.Google Scholar
- Trenz, M., & Berger, B. (2013). Analyzing online customer reviews - An interdisciplinary literature review and research agenda. In 21st European Conference on Information Systems, Utrecht, Netherlands, June 5–8, 2013 (Paper 83).Google Scholar