Advertising and Word-of-Mouth Effects on Pre-launch Consumer Interest and Initial Sales of Experience Products

This study examines how consumers' interest in a new experience product develops as a result of advertising and word-of-mouth activities during the pre-launch period. The empirical settings are the U.S. motion picture and video game industries. The focal variables include weekly ad spend, blog volume, online search volume during pre-launch periods, opening-week sales, and product characteristics. We treat pre-launch search volume of keywords as a measure of pre-launch consumer interest in the related product. To identify probable persistent effects among the pre-launch time-series variables, we apply a vector autoregressive modeling approach. We find that blog postings have permanent, trend-setting effects on pre-launch consumer interest in a new product, while advertising has only temporary effects. In the U.S. motion picture industry, the four-week cumulative elasticity of pre-launch consumer interest is 0.187 to advertising and 0.635 to blog postings. In the U.S. video game industry, the elasticities are 0.093 and 1.306, respectively. We also find long-run co-evolution between blog and search volume, which suggests that consumers' interest in the upcoming product cannot grow without bounds for a given level of blog volume

Interactive Food and Beverage Marketing: Targeting Children and Youth in the Digital Age

Looks at the practices of food and beverage industry marketers in reaching youth via digital videos, cell phones, interactive games and social networking sites. Recommends imposing governmental regulations on marketing to children and adolescents

Same Same but Different? The Predictive Power of Association Types in Brand Buzz for Investor Returns

Brand buzz sentiment–the favorability of public communications about the brand–has become a major source to gauge brand reputation and predict investor returns. In this research, the authors build a prediction model of investor returns by empirically elaborating on its intricate relations with two novel sentiment measures by integrating brand reputation literature with brand buzz research. Accordingly, investor returns are conceptualized as a function of the favorability of buzz associated with the brand’s ability to deliver its outputs (brand ability buzz sentiment) and the favorability of buzz associated with the brand’s societal impact (brand responsibility buzz sentiment) along with their interaction, respectively. Deploying support vector machine learning and panel vector autoregression, preliminary evidence suggests that brand ability buzz sentiment but not brand responsibility buzz sentiment drives investor returns, yet their interaction inhibits investor returns. The proposed model outperforms extant prediction models of investor returns

Digital Food Marketing to Children and Adolescents: Problematic Practices and Policy Interventions

Examines trends in digital marketing to youth that uses "immersive" techniques, social media, behavioral profiling, location targeting and mobile marketing, and neuroscience methods. Recommends principles for regulating inappropriate advertising to youth

Is Firms’ Social Media Engagement Informative about Firm Performance?

Abstract In this paper, I examine whether the volume of a firm’s tweets and its followers’ engagement is informative to capital market participants and financial intermediaries, namely investors and analysts. My data comprises of 178,236 firm-quarters (46,449 Tweet firm-quarters) and approximately 17.50 million firm-initiated tweets collected from the Primary Twitter sites of 2,229 public US firms between 2006 and 2017. I find that the volume of a firm’s tweets and the followers’ engagement during a quarter predicts the firm value during that period. The results also suggest that changes in tweet (engagement) volume are informative to investors and the information gets impounded in the stock prices concurrently. I also find evidence that followers’ engagement is more informative than the firm’s tweet volume for predicting firm-value. My findings further indicate that analysts may be using this additional information in the firm’s tweet (engagement) volume to make more accurate earnings and sales forecast, which reduces the Tweet firm’s unexpected earnings and unexpected sales growth. In additional analysis, I find that the level of tweets (engagement) helps predict a firm’s earnings and sales whereas changes in tweet (engagement) volume incrementally explain the firm’s sales growth and this may be the source of additional information to investors and analysts

Social Media and the Hospitality Industry: Holding the Tiger by the Tail

Hospitality industry executives and managers have been scrambling to work through the ever-shifting maze of social media, with a goal of staying in greater touch with customers, strengthening brands, and improving sales. Presentations and panel discussions at the 2010 Cornell Hospitality Research Summit, held at the Cornell University School of Hotel Administration, made clear both the remarkable potential of a well-drawn social media strategy and the hazards of ill-considered tactics. Without doubt, a customer relationship management strategy calls for hospitality firms to be active in social media, but the question remains regarding exactly what activity is appropriate, and what will offend consumers. In particular, hospitality operators must integrate their marketing efforts with social media—a process which will require new approaches to marketing

Buzz vs. Sales: Big Social Data Analytics of Style Icon Campaigns and Fashion Designer Collaborations on H&M’s Facebook Page

This paper examines the relationship between social media engagement and financial performance of the global fast fashion company, H&M. We analyze big social data from Facebook on the seven H&M style collections that occurred during 2012 and 2013 to investigate if style icon campaigns have a larger effect on quarterly sales than designer collaborations. We find that style icons such as David Beckham generate more social buzz than designer collaborations. Social Set Analysis of the Facebook data shows that the overlap between the users H&M reach with their different style collections is fairly small. The deviations between forecasted quarterly sales and actual quarterly sales are analyzed. Our results show that that style icon campaigns have a larger impact on sales than designer collaborations and reveal that the quarters with the largest deviations coincide with the quarter in which H&M ran a style icon campaign. We discuss the implications of our findings and outline directions for future research

Generational Differences in Use of Social Media in Today’s Workplace

This study examined the use of social media at work. Undergraduate students and professors were surveyed to try to find a generational relationship between the younger generation’s view of using sites such as Facebook while working and how some participants from an older generation perceived it. We also examined the effects of Facebook outside of work and whether or not postings made there could jeopardize a position at work. The results from our survey and research conclude that social media is an increasing problem because it serves as a distraction and predict that with increasing individual use of social media it will become more of a problem at work if it is not properly managed by the employer

WWW visibility in marketing

Abstract. Social media is a vital channel for marketers nowadays. Customers are more empowered today than ever before and the Internet is accelerating the trend toward greater customer empowerment. In few years Web 2.0 has become a highly important media and it has changed the Web into platform where individuals can communicate, assemble and organize data. Web 2.0 also offers a variety of different “tools” for companies to be used in marketing. Because companies and products are visible and discussed in social media, it is recommendable that companies try to seek positive publicity in these media. Thesis aims to describe the opportunities social media provides in organizational use, as well as, to provide an overview of the current situation in social media utilization in Finland. Further, it seeks to investigate the challenges organizations have in social media or in a whole field of E-marketing, and what kind of plans organizations have for the future in a field of E-marketing. The study consists of theoretical and empirical parts. Literature part scrutinizes the literature that covers different sides of online marketing. Empirical part of the study was conducted as a survey research. Results are based on a questionnaire and interviews that were conducted among Finnish companies during time period of spring and autumn 2012. The data was gathered among companies operating in different fields of business. Interviews were transcribed and conclusions were made from those. Because of the limited number of participants that took part to the questionnaire, the results derived from it are merely suggestive. Nevertheless, interviews did strengthen the understanding that was inherited from the questionnaire. The findings reveal that e-marketing has a very important role in the companies’ marketing strategy. Majority of the firms see social media marketing as a positive thing. Yet, the companies were unsure whether they possess the needed skills to do marketing in social media effectively. The results imply that the reason for this is related to the skills and experience the companies have in social media marketing. Those are such issues though, that company will learn and will develop its own way to use social media. This was also showed in the results.Tiivistelmä. Sosiaalinen media on tärkeä markkinointikanava nykypäivänä. Kuluttajilla on nykyään enemmän mahdollisuuksia vaikuttaa kuin koskaan ennen, minkä lisäksi Internet tarjoaa yhä kasvavassa määrin vaikuttamiskeinoja. Muutamassa vuodessa Web 2.0:sta on tullut erittäin tärkeä media, joka on muuttanut Internetin alustaksi, jossa ihmiset voivat kommunikoida sekä koota ja järjestää tietoa. Web 2. tarjoaa useita ”työkaluja” myös yrityksille käytettäväksi markkinoinnissa. Koska yritykset ja tuotteet ovat näkyvissä ja keskustelun kohteena sosiaalisissa medioissa, on suositeltavaa, että yritykset yrittävät hakea positiivista julkisuutta näissä medioissa. Tämä pro gradu -tutkielma pyrkii kuvailemaan mahdollisuuksia, joita sosiaalinen media tarjoaa organisaatioille, minkä lisäksi se tarjoaa yleiskuvan sosiaalisen median hyödyntämisestä Suomessa. Lisäksi tavoitteena on selvittää haasteita, joita organisaatioilla on sosiaalisessa mediassa tai laajemmin sähköisessä kaupankäynnissä, sekä selvittää yritysten tulevaisuuden visioita sähköiselle kaupankäynnille. Tämä työ koostuu kirjallisuuteen perustuvasta teoriaosuudesta sekä empiirisestä osuudesta. Kirjallisuusosuus tarjoaa laajan katsauksen tieteelliseen kirjallisuuteen verkkomarkkinoinnin eri puolilta. Työn empiiristä osuutta varten järjestettiin survey-tutkimus. Tulokset perustuvat kyselytutkimukseen ja haastatteluihin, jotka suoritettiin suomalaisten yritysten piirissä kevään ja syksyn 2012 välisenä aikana. Data kerättiin yrityksiltä, jotka edustivat eri toimialoja. Haastattelut litteroitiin ja päätelmät tehtiin niistä. Koska kyselyyn osallistuneiden yritysten määrää jäi rajalliseksi, kyselystä saadut tulokset ovat lähinnä suuntaa antavia. Siitä huolimatta, suoritetut haastattelut vain vahvistivat kuvaa, joka saatiin kyselystä. Tuloksista ilmenee, että sähköinen markkinointi on tärkeä osa yritysten markkinointistrategiaa. Suurin osa yrityksistä näkee sosiaalisessa mediassa tapahtuvan markkinoinnin positiivisena asiana. Kuitenkin yritykset olivat epävarmoja siltä, osaavatko he tehdä tehokasta markkinointia sosiaalisessa mediassa. Tulokset näyttävät, että epävarmuuden syy löytyy yritysten rajallisesta osaamisesta ja kokemuksesta sosiaalisen median markkinoinnin alueella. Nämä ovat tietenkin asioita, jotka yritys oppii ajan kuluessa ja joissa se kokemuksen karttuessa löytää oman, itselleen sopivan tavan toimia. Tämä tuli näytetyksi myös tuloksissa

Limitations of Nonfinancial Metrics Reported by Social Media Companies

Publicly traded companies in the U.S. are required by the Securities and Exchange Commission (SEC) to file annual and quarterly financial statements (form 10-K and form 10-Q respectively). The Management Discussion and Analysis (MD&A) section of these reports, as per SEC requirements, should include the identification and discussion of nonfinancial performance metrics that are critical to management and important to investors. This paper examines a set of common nonfinancial metrics reported by some well-known social media companies. These metrics include such quantities as number of registered users, monthly average users, and number of unique visitors. The definition and use of metrics such as these have gained increased importance as the recent stratospheric market valuations of a number of social media companies seem to be supported by them, as opposed to more traditional measures, such as profitability. This paper points to a number of limitations of these reported metrics, including that: What a metric actually measures may lie in the details of how it’s calculated; that is, relying on the name of the metric to indicate its meaning may be an error. Many of the metrics reported are inexact but the companies reporting them do not specify ranges of uncertainty around these point estimates. Important nonfinancial metrics (e.g., user demographics and customer churn rates) may simply not be reported at all. Typically, corporate nonfinancial metrics are not audited as is financial data. The contribution of this paper is in providing investors and other interested parties with a better understanding of the meaning and limitations of nonfinancial metrics reported by social media companies. Further, in highlighting some problematic issues in the current reporting of these nonfinancial metrics, we hope to raise interest in improving MD&A reporting standards