A Fortune 500 Perspective
Cong Li and Don Stacks
Chapter 2. Research Background
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In this chapter we will present the theoretical framework of our research and discuss how social media have changed the practices of advertising, marketing, and public relations/corporate communication nowadays. Several key concepts will be introduced, such as third-party endorsement, owned media, paid media, earned media, outputs, outtakes, and outcomes. Specifically, we intend to address the following questions in this chapter:
• What is third-party endorsement?
• What are the differences between owned media, paid media, and earned media?
• How are social media related to the effects of third-party endorsement?
• What is the communication lifecycle, and how have social media affected it?
• What are the differences between outputs, outtakes, and outcomes?
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