Social Media Effectiveness

Over the last decade, the advent of social media such as online product reviews (e.g., Amazon.com),blogs and other social networking sites (e.g., Facebook.com) has dramatically changed the way consumers obtain and exchange information about products. This dissertation investigates the impact of various types of social media on product performance and compares the effectiveness of social and traditional media under various conditions. Specifically, the first chapter performs a meta-analysis of consumer-generated WOM elasticity in social media to identify the factors that influence the impact of WOM on product sales and to assess the generalizability of the relationship. The second chapter examines how social media may influence product performance in different product contexts as compared with traditional media, which assists managers in making better media decisions. Taken together, this dissertation evaluates the progress in this field, and then takes a step further by applying past findings to understand how social media may perform at various stages in the product lifecycle

Anonymous Social Networks versus Peer Networks in Restaurant Choice

abstract: I compare the effect of anonymous social network ratings (Yelp.com) and peer group recommendations on restaurant demand. I conduct a two-stage choice experiment in which restaurant visits in the first stage are informed by online social network reviews from Yelp.com, and visits in the second stage by peer network reviews. I find that anonymous reviewers have a stronger effect on restaurant preference than peers. I also compare the power of negative reviews with that of positive reviews. I found that negative reviews are more powerful compared to the positive reviews on restaurant preference. More generally, I find that in an environment of high attribute uncertainty, information gained from anonymous experts through social media is likely to be more influential than information obtained from peers.Dissertation/ThesisM.S. Agribusiness 201

Three Essays on the Role of Unstructured Data in Marketing Research

This thesis studies the use of firm and user-generated unstructured data (e.g., text and videos) for improving market research combining advances in text, audio and video processing with traditional economic modeling. The first chapter is joint work with K. Sudhir and Minkyung Kim. It addresses two significant challenges in using online text reviews to obtain fine-grained attribute level sentiment ratings. First, we develop a deep learning convolutional-LSTM hybrid model to account for language structure, in contrast to methods that rely on word frequency. The convolutional layer accounts for the spatial structure (adjacent word groups or phrases) and LSTM accounts for the sequential structure of language (sentiment distributed and modified across non-adjacent phrases). Second, we address the problem of missing attributes in text in constructing attribute sentiment scores---as reviewers write only about a subset of attributes and remain silent on others. We develop a model-based imputation strategy using a structural model of heterogeneous rating behavior. Using Yelp restaurant review data, we show superior accuracy in converting text to numerical attribute sentiment scores with our model. The structural model finds three reviewer segments with different motivations: status seeking, altruism/want voice, and need to vent/praise. Interestingly, our results show that reviewers write to inform and vent/praise, but not based on attribute importance. Our heterogeneous model-based imputation performs better than other common imputations; and importantly leads to managerially significant corrections in restaurant attribute ratings. The second essay, which is joint work with Aniko Oery and Joyee Deb is an information-theoretic model to study what causes selection in valence in user-generated reviews. The propensity of consumers to engage in word-of-mouth (WOM) differs after good versus bad experiences, which can result in positive or negative selection of user-generated reviews. We show how the strength of brand image (dispersion of consumer beliefs about quality) and the informativeness of good and bad experiences impacts selection of WOM in equilibrium. WOM is costly: Early adopters talk only if they can affect the receiver’s purchase. If the brand image is strong (consumer beliefs are homogeneous), only negative WOM can arise. With a weak brand image or heterogeneous beliefs, positive WOM can occur if positive experiences are sufficiently informative. Using data from Yelp.com, we show how strong brands (chain restaurants) systematically receive lower evaluations controlling for several restaurant and reviewer characteristics. The third essay which is joint work with K.Sudhir and Khai Chiong studies success factors of persuasive sales pitches from a multi-modal video dataset of buyer-seller interactions. A successful sales pitch is an outcome of both the content of the message as well as style of delivery. Moreover, unlike one-way interactions like speeches, sales pitches are a two-way process and hence interactivity as well as matching the wavelength of the buyer are also critical to the success of the pitch. We extract four groups of features: content-related, style-related, interactivity and similarity in order to build a predictive model of sales pitch effectiveness

The effect of User-Generated Content to promote tourism destinations : the importance of perceived authenticity and trust

Nowadays, choosing the right travel destination is not easy. Destinations are numerous, as well as the information available, thanks to Internet and the User-Generated Content shared. Moreover, as a shift towards experiential tourism is taking place, accommodation alone is no longer enough to create an experience. A search for authenticity grows, together with the need to trust that what is advertised is actually real. This thesis aims to examine if destinations can increase their competitive advantage if the destination is advertised with UGC and if the effect on travel and sharing intention would be grater due to the perceived authenticity and trust of the content presented. The hypotheses were tested through an online experimental study using a promotional video created by the firms’ professional or by travellers. The data have been collected through MTurk measuring perceptions of authenticity, trust and travelling and WOM intentions. A significant higher preference for travelling and recommend were showed when the promotional ad was UGC and a mediation effect was found both for trust and authenticity. Four types of travellers were identified, and the perceived authenticity was found to be higher for the Drifter just compared to the Individual Mass Tourist. Our findings can assist travel companies and tourism bodies to promote their destinations by using UGC in their marketing strategy. Such strategies are perceived as more authentic and overcome consumers mistrust in firm generated marketing communications consequently increasing the intention to visit and to recommend. Limitations and future research are also discussed.Hoje em dia, escolher o destino de viagem certo não é fácil. Os destinos são numerosos, assim como a informação disponível, graças à Internet e ao Conteúdo Gerado pelo Utilizador. Além disso, como está a ocorrer uma mudança para o turismo experimental, o alojamento por si só já não é suficiente para criar uma experiência. A procura da autenticidade cresce, juntamente com a necessidade de confiar que o que é anunciado é real. Esta tese visa examinar se os destinos podem aumentar a sua vantagem competitiva se anunciado com a UGC e se o efeito sobre as viagens e a intenção de partilha seria maior, devido à perceção da autenticidade e confiança no conteúdo apresentado. As hipóteses foram testadas através de um estudo experimental em linha utilizando um vídeo promocional criado pelo profissional da empresa ou por viajantes. Os dados foram recolhidos através do MTurk. Foi demonstrada uma preferência significativamente maior por viajar e recomendar quando o anúncio promocional era UGC e foi encontrado um efeito de mediação tanto para a confiança como para a autenticidade. Foram identificados quatro tipos de viajantes, e a percepção da autenticidade foi mais elevada para The Drifter apenas em comparação com Individual Mass Tourist. As nossas conclusões podem ajudar as empresas de viagens e os organismos turísticos a promover os seus destinos, utilizando a UGC na sua estratégia de marketing. As limitações e a investigação futura são também discutidas

Cross-Promotion in Social Media: Choosing the Right Allies

This paper investigates the strategic use of cross-promotion for content producers in social media. In particular, we study how a producer chooses other producers to cross-promote so as to maximize the expected benefits of them cross-promoting him/her in return. Theories on homophily effect and social influence suggest that cross-promoted producers are more likely to cross-promote the initiator in return when they are in the similar categories or share more common friends and when the initiator has higher status. However, the cross-promotion from producers of different categories and social groups (i.e., share fewer common friends) tend to benefit the initiator more. The benefits also increase as the status of the initiator increases. We collected a panel of data consisting of 27,356 producers’ profile and status information, content categories, and their cross-promotion activities over a period of two months from YouTube. To test our hypotheses, we first employ a cox proportional hazard model to estimate the probability of cross-promotion in return. Then, we use a difference-in-differences method with panel fixed effects to evaluate the effect of cross-promotion in return on the initiator. Our results strongly support our hypotheses and provide valuable insights for both content producers and social media platforms

Creating Social Contagion through Viral Product Design: A Randomized Trial of Peer Influence in Networks

We examine how firms can create word-of-mouth peer influence and social contagion by designing viral features into their products and marketing campaigns. To econometrically identify the effectiveness of different viral features in creating social contagion, we designed and conducted a randomized field experiment involving the 1.4 million friends of 9,687 experimental users on Facebook.com. We find that viral features generate econometrically identifiable peer influence and social contagion effects. More surprisingly, we find that passive-broadcast viral features generate a 246% increase in peer influence and social contagion, whereas adding active-personalized viral features generate only an additional 98% increase. Although active-personalized viral messages are more effective in encouraging adoption per message and are correlated with more user engagement and sustained product use, passive-broadcast messaging is used more often, generating more total peer adoption in the network. Our work provides a model for how randomized trials can identify peer influence in social networks

Click to Success? The Temporal Effects of Facebook Likes on Crowdfunding

Small and medium-sized businesses as well as individuals are increasingly using online crowdfunding platforms to raise funds in the fintech world. Creators of crowdfunding projects depend heavily on social networks like Facebook to publicize their projects. Social media activities such as “liking” on Facebook bring massive traffic to crowdfunding projects and attract contributions. Using data collected from Facebook and Kickstarter, our empirical tests demonstrate that social media activities significantly and positively impact the likely success of crowdfunding. Our duration model analysis reveals that the impact of social media activities on crowdfunding outcomes follows a J-curve in the temporal space. We explain the J-curve by identifying two important effects of social media activities throughout the crowdfunding process: a quality-signaling effect in the opening period and a herding effect in the closing period. Especially in the “last mile,” there is a strong herding effect that helps crowdfunding projects reach their respective fundraising goals. Our results offer useful contributions to the literature and suggestions for practitioners

Anonymous Social Networks versus Peer Networks in Restaurant Choice

ABSTRACT I compare the effect of anonymous social network ratings (Yelp.com) and peer group recommendations on restaurant demand. I conduct a two-stage choice experiment in which restaurant visits in the first stage are informed by online social network reviews from Yelp.com, and visits in the second stage by peer network reviews. I find that anonymous reviewers have a stronger effect on restaurant preference than peers. I also compare the power of negative reviews with that of positive reviews. I found that negative reviews are more powerful compared to the positive reviews on restaurant preference. More generally, I find that in an environment of high attribute uncertainty, information gained from anonymous experts through social media is likely to be more influential than information obtained from peers