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How do likes influence revenue? A randomized controlled field experiment

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  • Grahl, Jörn
  • Hinz, Oliver
  • Rothlauf, Franz
  • Abdel-Karim, Benjamin M.
  • Mihale-Wilson, Cristina

Abstract

This article presents a randomized controlled field experiment to study the influence of likes on revenue. The results indicate that likes can have a substantial positive impact on revenue, but this effect is moderated by the time of the shopping visits. Likes are mainly effective during non-work time (evenings or weekends) when people may have more time to consider additional information. During non-work hours, the control group (without likes) spent 9,293.40 Euro while the treatment group (who observed likes) spent 11,241.71 Euro. Overall, we estimate the value of a like during non-work hours at .14 % of the focal store’s average product price. We also find that likes benefit most the already popular products. The positive effect of likes during non-work hours is mainly driven by an increased propensity to buy (i.e., conversion). We do not observe significant changes in the money spent once the buying decision has been made.

Suggested Citation

  • Grahl, Jörn & Hinz, Oliver & Rothlauf, Franz & Abdel-Karim, Benjamin M. & Mihale-Wilson, Cristina, 2023. "How do likes influence revenue? A randomized controlled field experiment," Journal of Business Research, Elsevier, vol. 167(C).
    • Handle: RePEc:eee:jbrese:v:167:y:2023:i:c:s0148296323004927
    DOI: 10.1016/j.jbusres.2023.114133
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