Game of Trust: Brand-generated content vs Consumer-generated advertising : A qualitative study of Arla Foods

Sammanfattning: This thesis studies how trust in two different types of social media advertising, brand-generated content (BGC) and consumer-generated advertising (CGA), influence Millennials purchase intention towards brands in the fast-moving consumer goods (FMCG) industry. The phenomenon of CGA has caught researchers’ interest since it is believed to influence consumers’ purchase intention by affecting their trust in the advertising. There is, however, a lack of prior research and contrasting views regarding consumers’ trust in social media advertising and purchase intention derived from viewing BGC and CGA. This study aims to explore and analyze how BGC and CGA on social media influence the relationship between consumers’ trust in social media advertising and purchase intention. A qualitative research approach was employed in which a single case study of Arla Foods was performed by conducting focus groups consisting of Millennials and interviews with Arla Foods’ managers. Key findings include that most consumers trust in BGC rather than CGA regarding purchase intention. The results also show that although some consumers trust in CGA, this type of social media advertising does not necessarily generate purchase intention. Therefore, this study indicates that the impact of BGC and CGA on consumers’ trust and purchase intention varies. In conclusion, this thesis suggests that there are advantages and disadvantages with both types of social media advertising (BGC and CGA) and how they affect consumers’ trust and purchase intention. Hence, it is suggested that both BGC and CGA are needed in social media advertising by FMCG brands since discarding either type of advertising could result in overlooking the positive impact that the other type of advertising has on consumers’ trust and purchase intention.