In the current study, we directly measure consumers’ physiological responses (i.e., brain waves via electroencephalogram [EEG]) to advertising stimuli (digital storyteller vs. human storyteller) to confirm the narrative transportation process of storytelling immersion.

Luxury consumers are highly social online, and with approximately 80 percent of luxury shoppers using social media on a monthly basis (Mckinsey & Company, 2015), the experience luxury brands provide on social networking services (SNS) becomes imperative. Interaction through social streams is about building a relationship with people who may continue to use the luxury product for the next 25 years (The Guardian, 2015). Hence, from magazines to smartphones, luxury brands are seeking new opportunities to communicate with their customers. Brands such as Burberry and Gucci are becoming increasingly active by uploading visuals, narratives, and films that represent their brand, and others are slowly following suit. Although various contents are now being posted online, when it comes to luxury brands, what separates them from others is the rich and unique brand heritage (LinkedIn, 2015; Mckinsey & Company, 2015). Despite this strength, it is a not implemented effectively as a strategy (The Guardian, 2015). In this study, we want to emphasize the need for luxury brands to go digital and to spread their brand stories as a form of advertisement. Stories in advertising and their effects on consumer behavior has been dealt by previous research (Deighton, Romer, & Mcqueen, 1989; Escalas, 2007; Escalas, 2004; Wang & Calder, 2006). Deighton, Romer, and Mcqueen (1989) found that dramatization influenced viewers’ processing to become more empathetic than argumentative, which made dramatized commercials more persuasive than argument-oriented ones. Escalas (2004) showed that narrative advertisement processing is positively correlated with brand attitude and behavioral intention and that narratively structured advertisements persuade others through the experience known as narrative transportation. This experience has been explained by Green and Brock (2000) as “a convergent process where all mental systems and capacities become focused on events occurring in the narrative.” Narrative transportation theory explains the process of being lost in a story and that it takes place when a consumer experiences a feeling of stepping into a world stimulated by narratives due to the empathy with the characters and imagination of the story plot (Laer, Ruyter, Visconti, & Wetzels, 2014). This process can be effective in changing attitudes and beliefs of individuals who read stories (Green & Brock, 2000). For luxury brands, brand heritage can be transformed into stories that can transport readers to other worlds, and this can affect consumer attitudes, intentions, and behaviors (Laer, Ruyter, Visconti, & Wetzels, 2014). This experience is what this study pursues to delve into and understand.

The popularity of visual communication in social network sites (SNS) can guide an important question about its effectiveness and the optimization for luxury brand advertising: How do visual communication messages via SNS work for consumer information processing and their evaluation of luxury hotels? To address this question, we examine consumer information processing in SNS in which visual communication messages work as narratives based on narrative transportation theory (Green & Brock, 2002; van Laer, Ruyter, Visconti, & Wetzels, 2014). Specific purposes are: (1) to identify key features of consumer information processing as narrative persuasion (i.e., narrative transportation), (2) to examine how consumers’ perceptions of fluency with visual messages (i.e., comprehension fluency and imagery fluency) influence the narrative persuasion process, and (3) to explore how the narrative persuasion process develops consumer responses with respect to positive affect and visit intention. First, we predict that increased fluency of information processing (comprehension fluency and imagery fluency) would increase narrative transportation. Second, increased narrative transportation would increase affective response and visit intention. Lastly, as for the two consequences, we predict that affective response would positively affect visit intention. A web-based survey was used for data collection. Measurement items of research variables were adapted from previous studies. A total of 193 usable responses were recruited from Amazon Mechanical Turk. Participants were directed to explore one randomly assigned luxury hotel Instagram page (Four Seasons or Ritz Carlton) and complete the questionnaire based on the experience. Results showed that comprehensive fluency, rather than imagery fluency, has significant impact on narrative transportation. Narrative transportation in turn influences affective response and visit intention; affective response influences visit intention. Additional tests suggest that narrative transportation and affective response play a mediating role in the narrative persuasion process. These findings highlight the power of narrative transportation in advertising for luxury brands, advising that marketers need to put efforts on enhancing visual storytelling in SNS communication.

The dynamics of communications powered by the Internet, specifically from the increased use of social media, has led marketers to find creative channels to engage with the customers. One of the recent channels, “branded entertainment”, is becoming familiar as an advertising strategy in which the content presented is a marketing tool for the advertising of certain brands. The current study examined the case of a branded-entertainment channel and the mechanism of the advertising instrument that leads to purchase intention. The specific purpose of this research is to investigate whether there is evidence of the role of narrative transportation and the fantasy proneness leading towards purchase of the brand advertised. To arrive at the conclusion, the study using web series sponsored by an artificial sweetener brand and employs a quantitative survey to question the audience. The findings contribute toward the understanding of how consumers respond to branded entertainment via video-sharing platforms. It is indicated that the stories presented in the web series can stimulate the audience to fantasize. Thus, the advertising message conveyed through narrative persuasion can form a favorable attitude toward the brand, which leads to intention to purchase. Practical elements are identified along with limitations and future research suggestions.