“…They were seven times more effective than newspapers and magazines, four times more effective than personal selling, and twice as effective as radio advertising in influencing consumers to switch brands. Recent studies lend further support to the importance of peer-generated marketing communication (e.g., Brown and Reingen 1987;Donaton 2003;Duhan et al 1997;Katz and Lazarsfeld 1955;Kotler 2000;Park and Lee 2008;Rosen 2002;Sweeney et al 2008;Valente and Davis 1999).…”
Section: Merchant and Peer As The Sources Of Discount Coupon Disseminmentioning
confidence: 99%
“…Due to the change in roles, the social capital effect may not apply here. Indeed, the literature on consumers' purchase decision and intention to be a referrer has highlighted that while consumers' higher confidence towards a discount coupon forwarded by a peer may encourage their use of the coupon (Donaton 2003;Kotler 2000;Park and Lee 2008;Rosen 2002;Sweeney et al 2008), it is the level of satisfaction after they have used the coupon (i.e., consumption-related fulfillment ) that determines their likelihood of being a referrer (Sudaraman et al 1998;Swan and Oliver 1989;Wangenheim and Bayón 2007;Westbrook 1987). Leading from this, we could argue that while the redemption rate of the discount coupon could be higher when the source of the coupon dissemination is a peer rather than a merchant, the forwarding rate of the discount coupon may not be different regardless of whether the source is a peer or a merchant.…”
Section: Merchant and Peer As The Sources Of Discount Coupon Disseminmentioning
How to effectively distribute coupons digitally to consumers who may exercise them remains an enduring, yet important, issue to address. In this study, we seek to answer two questions. First, would the dissemination of product discount coupons through mobile technology, such as the mobile phone network via the short-message-service (SMS), yield different effects on consumers, compared to a more traditional communication technology such as e-mail? Second, does the source, that is, the merchant or referral from peers, matter to a consumer? We build on the theoretical lens of cognitive effort (technology) and social capital (source) to theorize and empirically validate the conjectures through a real-world field experiment spanning four weeks. In terms of technology, the results indicate no significant difference in terms of the usage rate of coupons between the two technological means through which the coupons were disseminated. However, in terms of the source, we observed a higher propensity of using coupons received from a peer as compared to coupons received from a merchant. Furthermore, the forwarding rate of the discount coupons was significantly higher via e-mail as compared to SMS. Implications for research and practice are discussed.
“…They were seven times more effective than newspapers and magazines, four times more effective than personal selling, and twice as effective as radio advertising in influencing consumers to switch brands. Recent studies lend further support to the importance of peer-generated marketing communication (e.g., Brown and Reingen 1987;Donaton 2003;Duhan et al 1997;Katz and Lazarsfeld 1955;Kotler 2000;Park and Lee 2008;Rosen 2002;Sweeney et al 2008;Valente and Davis 1999).…”
Section: Merchant and Peer As The Sources Of Discount Coupon Disseminmentioning
confidence: 99%
“…Due to the change in roles, the social capital effect may not apply here. Indeed, the literature on consumers' purchase decision and intention to be a referrer has highlighted that while consumers' higher confidence towards a discount coupon forwarded by a peer may encourage their use of the coupon (Donaton 2003;Kotler 2000;Park and Lee 2008;Rosen 2002;Sweeney et al 2008), it is the level of satisfaction after they have used the coupon (i.e., consumption-related fulfillment ) that determines their likelihood of being a referrer (Sudaraman et al 1998;Swan and Oliver 1989;Wangenheim and Bayón 2007;Westbrook 1987). Leading from this, we could argue that while the redemption rate of the discount coupon could be higher when the source of the coupon dissemination is a peer rather than a merchant, the forwarding rate of the discount coupon may not be different regardless of whether the source is a peer or a merchant.…”
Section: Merchant and Peer As The Sources Of Discount Coupon Disseminmentioning
How to effectively distribute coupons digitally to consumers who may exercise them remains an enduring, yet important, issue to address. In this study, we seek to answer two questions. First, would the dissemination of product discount coupons through mobile technology, such as the mobile phone network via the short-message-service (SMS), yield different effects on consumers, compared to a more traditional communication technology such as e-mail? Second, does the source, that is, the merchant or referral from peers, matter to a consumer? We build on the theoretical lens of cognitive effort (technology) and social capital (source) to theorize and empirically validate the conjectures through a real-world field experiment spanning four weeks. In terms of technology, the results indicate no significant difference in terms of the usage rate of coupons between the two technological means through which the coupons were disseminated. However, in terms of the source, we observed a higher propensity of using coupons received from a peer as compared to coupons received from a merchant. Furthermore, the forwarding rate of the discount coupons was significantly higher via e-mail as compared to SMS. Implications for research and practice are discussed.
“…In order to understand consumer demands, enterprises are therefore investing a substantial amount of money in the collection and analysis of eWOM content. However, the tremendous amount of such information that is available online often overwhelms these collection and analysis efforts, and results in information overload (Park and Lee 2009).…”
Consumer opinions are one of the most valuable assets that enterprises have, and thus questionnaires are often employed to investigate the views of consumers. However, this approach requires a large amount of human labor and time, and, most importantly, it cannot automatically find out consumers' needs. However, many consumers now share their appraisals of products or services through electronic word-of-mouth (eWOM). Since these usually reflect consumer needs, and thus their demands, collecting and analyzing eWOM data has become a key task for many businesses. Nonetheless, current eWOM-related research focuses on its transmission, influence, issues, and marketing, and there seem to be very few studies that apply eWOM to develop consumer needs analysis systems. In order to effectively collect and analyze eWOM data, this study proposes a computer-based approach for analyzing consumer demands. The approach utilizes sentiment analysis to develop extraction methods for use with eWOM appraisals. It thus uses eWOM appraisals to find out consumer demands. This work integrates eWOM with information technology to develop an approach to computerize consumer needs analysis. It is expected that the results will help enterprises to improve the quality of their products and market competitiveness.
“…Social media also allows customers to review and evaluate their purchased product, and thus provides information to other people in their social community [6]. As a number of positive reviews and recommendations grow, consumers have more favorable attitude toward a product [7]. Hence, firms are encouraged to use various social proof techniques offered by social media to drive consumers' purchase [8].…”
Abstract. The practices of social proof techniques to attract consumers to shop on social media have proliferated over time and been used extensively. The reviewed literature uncovers that social community recommendation, customers' ratings and reviews, celebrity's endorser and numbers of likes, affect consumers' purchasing decisions. However, the effect of different types of social proof techniques on purchasing intention is unknown. This study empirically compares the effect of number of followers, celebrity endorser and social community recommendation on consumers' purchasing intention. An experiment has been conducted and the results reveal that the consumers' purchasing intention differs between groups. Further analysis discovers that the impact on consumers' purchasing intention is different between high number of followers and low number of followers, and between having social community recommendation and not having social community recommendation. Though, the impact of these two techniques is equal wherein no technique is superior to other. In order to gain purchasing engagement and boost online sales, online businesses on social media are encouraged to use the power of social proof technique, either by increasing the number of followers or providing more social community recommendations.
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