UGC attributes and effects: implication for luxury brand advertising

Consumers often share their various brand experiences via Instagram, which has users that indirectly enjoy brand experiences from others. Along with this trend, luxury brands have started providing brand experiences through various cultural spaces, such as cafes, restaurants, and exhibitions, and consumers obtain their experiences in those cultural spaces using social media. Consumers experience and produce user-generated content (UGC), including their pictures or videos on social media. UGC has been considered more reliable than advertisements from corporations. We collected real cases of Instagram UGC related to luxury brand experiences, typified them, and analyzed the UGC advertising effects. The analysis reveals the following: (1) the differences in UGC advertising attributes and UGC effects were identified according to the UGC types; and (2) UGC advertisement attributes have positive effects on eWOM, brand attitude, and visit intention. Academic and practical implications were discussed.