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Social Media

Singapore Management University

2020

Consumer Pressure

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Business Practice Of Social Media - Platform And Customer Service Adoption, Shujing Sun, Yang Gao, Huaxia Rui Dec 2020

Business Practice Of Social Media - Platform And Customer Service Adoption, Shujing Sun, Yang Gao, Huaxia Rui

Research Collection School Of Computing and Information Systems

This paper examines the key drivers in business adoptions of the platform and customer service within the context of social media. We carry out the empirical analyses using the decision trajectories of the international airline industry on Twitter. We find that a firm's decision-making is subject to both peer influence and consumer pressure. Regarding peer influence, we find that the odds of both adoptions increase when the extent of peers' adoption increases. We also identify the distinctive role of consumers. Specifically, before the platform adoption, firms learn about potential consequences from consumer reactions to peers' adoptions. Upon the platform adoption, …