Advertising and Word-of-Mouth Effects on Pre-launch Consumer Interest and Initial Sales of Experience Products |
| |
| Institution: | 1. University of Missouri-St. Louis, College of Business Administration, 1 University Blvd, St. Louis, MO 63121, USA;2. UCLA Anderson School of Management, 110 Westwood Plaza, Los Angeles, CA 90095-1481, USA;1. Economics Department, University of Maryland, College Park, United States;2. Universidad Pública de Navarra, Campus de Arrosadia, Pamplona, Spain;1. Department of Marketing, John Cook School of Business, Saint Louis University, St. Louis, MO 63103, United States;2. Department of Marketing, School of Business Administration, Ulsan National Institute of Science and Technology, Republic of Korea;3. Department of Marketing, Williams College of Business, Xavier University, Cincinnati, OH 45207, United States;4. Department of Marketing, College of Business Administration, San Diego State University, San Diego, CA 92182, United States;1. Sawyer Business School, Suffolk University, Boston, United States;2. Quinlan School of Business, Loyola University Chicago, United States;3. Isenberg School of Management, University of Massachusetts, Amherst, United States;1. Paul Merage School of Business, University of California, Irvine, CA 92697-3125, United States;2. Department of Economics, University of California, Irvine, CA 92697-5100, United States;3. E. J. Ourso College of Business, Louisiana State University, Baton Rouge, LA 70803, United States;1. University of Nevada, Reno, NV, United States;2. Tulane University, New Orleans, LA, United States;3. University of Texas at Austin, Austin, TX, United States |
| |
| Abstract: | 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. |
| |
| Keywords: | |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
