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Social and Behavioral Sciences Commons™
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Full-Text Articles in Social and Behavioral Sciences
When Do Consumers Talk?, Ishita Chakraborty, Joyee Deb, Aniko Öry (Oery)
When Do Consumers Talk?, Ishita Chakraborty, Joyee Deb, Aniko Öry (Oery)
Cowles Foundation Discussion Papers
The propensity of consumers to talk after a good versus bad experience with a product can differ based on information available from other marketing channels, for example the brand image or advertising. This can result in selection of positive/negative word-of-mouth for reasons outside of product quality. We develop a unifying framework of WOM, brand image, product advertising, and pricing with a focus on the instrumentality motive of word-of-mouth: early adopters talk to inform new buyers’ purchasing decisions. The different marketing channels shape the information sharing behavior of the early adopter as well as the target consumer’s purchase decision. We show …
Influence Or Advertise: The Role Of Social Learning In Influencer Marketing, Ron Berman, Aniko Öry (Oery), Xudong Zheng
Influence Or Advertise: The Role Of Social Learning In Influencer Marketing, Ron Berman, Aniko Öry (Oery), Xudong Zheng
Cowles Foundation Discussion Papers
We compare influencer marketing to targeted advertising from information aggregation and product awareness perspectives. Influencer marketing leverages network effects by allowing consumers to socially learn from each other about their experienced content utility, but consumers may not know whether to attribute promotional post popularity to high content or high product quality. If the quality of a product is uncertain (e.g., it belongs to an unknown brand), then a mega influencer with consistent content quality fosters more information aggregation than a targeted ad and thereby yields higher profits. When we compare influencer marketing to untargeted ad campaigns or if the product …