The impact of social media conversations on consumer brand choices

This paper estimates the impact of social media conversations on consumer valuation of brand characteristics and demand for carbonated soft drinks (CSDs). We formulate a random coefficient, discrete choice model of consumer demand that includes social media conversations, and estimate it matching Ni...

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Bibliographic Details
Published in:Marketing letters 2016-03, Vol.27 (1), p.1-13
Main Authors: Liu, Yizao, Lopez, Rigoberto A.
Format: Article
Language:English
Subjects:
Advertising
Beverages
Brand loyalty
Brand preferences
Brands
Business and Management
Caffeine
Consumer behavior
Consumer behaviour
Consumer goods industries
Consumer preferences
Consumers
Consumption
Internet
Market prices
Market share
Market shares
Marketing
Nutrition
Product reviews
Public health
Social media
Social networks
Soft drinks
Studies
Sugars
Valuation
Verbal communication
Word of mouth advertising
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Summary:This paper estimates the impact of social media conversations on consumer valuation of brand characteristics and demand for carbonated soft drinks (CSDs). We formulate a random coefficient, discrete choice model of consumer demand that includes social media conversations, and estimate it matching Nielsen sales data on carbonated soft drinks to social media conversations on Facebook, Twitter, and YouTube. Empirical results indicate that consumers' conversations about brands and nutritional aspects of CSDs have a significant impact on their valuation of brand characteristics and ultimately on their choices of CSDs. These findings have important implications not only for firms using social media as a strategic tool for effective brand promotion and product design but also for public health policies aimed at reducing the consumption of sugary beverages and high-calorie foods.
ISSN:0923-0645
1573-059X
DOI:10.1007/s11002-014-9321-2