Abstract:
This study establishes that when social media advertisements appear with disclosures, featuring friend recommendations can result in diametrically opposite effects on advertising effectiveness in the United States and Korea. While friend recommendations reduce perceived credibility, brand attitude, and purchase intention for disclosed advertisements in the United States, they increase advertising effectiveness in Korea. The findings shed light on important distinctions between how Western and Asian consumers evaluate friend recommendations and advertising disclosures on social media that were heretofore absent. Theoretical contributions and practical implications for social media advertising and digital consumer behavior are discussed.
