IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v127y2018icp217-226.html
   My bibliography  Save this article

Technology-enabled community data for gaining pre-release brand insights

Author

Listed:
  • Ponnamma Divakaran, Pradeep Kumar

Abstract

In the past, studies have investigated brand equity only in the ‘post-launch’ context, hence missing opportunities to make early corrections in cases of negative favourability. Using technology-enabled online community data, this study examines whether ‘pre-launch’ brand favourability can predict community's post-launch purchase decisions, by introducing a new construct called community-based brand equity (CoBBE). This study also investigates whether CoBBE can predict future sales of new products. Weekly data are collected for eight weeks before and after product launch from a movie-based online community for a period of 16months. The results show that community-based variables such as pre-launch brand awareness level, brand favourability and brand strength have a significant influence on 1) community members' post-release purchase decisions both in the opening week as well as the entire lifetime of products, and 2) satisfaction level. The study also finds that CoBBE is a significant predictor of future market sales, thus showing the usefulness of CoBBE as an early warning diagnostic tool which will enable movie studios to gain early brand-related insights as well as to make early corrective actions when needed.

Suggested Citation

  • Ponnamma Divakaran, Pradeep Kumar, 2018. "Technology-enabled community data for gaining pre-release brand insights," Technological Forecasting and Social Change, Elsevier, vol. 127(C), pages 217-226.
    • Handle: RePEc:eee:tefoso:v:127:y:2018:i:c:p:217-226
    DOI: 10.1016/j.techfore.2017.09.024
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0040162517312787
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techfore.2017.09.024?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Barnes, Stuart J. & Mattsson, Jan & Hartley, Nicole, 2015. "Assessing the value of real-life brands in Virtual Worlds," Technological Forecasting and Social Change, Elsevier, vol. 92(C), pages 12-24.
    2. Jehoshua Eliashberg & Anita Elberse & Mark A.A.M. Leenders, 2006. "The Motion Picture Industry: Critical Issues in Practice, Current Research, and New Research Directions," Marketing Science, INFORMS, vol. 25(6), pages 638-661, 11-12.
    3. Karniouchina, Ekaterina V., 2011. "Impact of star and movie buzz on motion picture distribution and box office revenue," International Journal of Research in Marketing, Elsevier, vol. 28(1), pages 62-74.
    4. Gensler, Sonja & Völckner, Franziska & Liu-Thompkins, Yuping & Wiertz, Caroline, 2013. "Managing Brands in the Social Media Environment," Journal of Interactive Marketing, Elsevier, vol. 27(4), pages 242-256.
    5. Elberse, Anita & Anand, Bharat, 2007. "The effectiveness of pre-release advertising for motion pictures: An empirical investigation using a simulated market," Information Economics and Policy, Elsevier, vol. 19(3-4), pages 319-343, October.
    6. Amit M. Joshi & Dominique M. Hanssens, 2009. "Movie Advertising and the Stock Market Valuation of Studios: A Case of “Great Expectations?”," Marketing Science, INFORMS, vol. 28(2), pages 239-250, 03-04.
    7. van Nierop, J.E.M. & Leeflang, P.S.H. & Teerling, M.L. & Huizingh, K.R.E., 2011. "The impact of the introduction and use of an informational website on offline customer buying behavior," International Journal of Research in Marketing, Elsevier, vol. 28(2), pages 155-165.
    8. David Godes & Dina Mayzlin, 2004. "Using Online Conversations to Study Word-of-Mouth Communication," Marketing Science, INFORMS, vol. 23(4), pages 545-560, June.
    9. Smith, Andrew N. & Fischer, Eileen & Yongjian, Chen, 2012. "How Does Brand-related User-generated Content Differ across YouTube, Facebook, and Twitter?," Journal of Interactive Marketing, Elsevier, vol. 26(2), pages 102-113.
    10. Vijay Mahajan & Eitan Muller & Subhash Sharma, 1984. "An Empirical Comparison of Awareness Forecasting Models of New Product Introduction," Marketing Science, INFORMS, vol. 3(3), pages 179-197.
    11. Bambauer-Sachse, Silke & Mangold, Sabrina, 2011. "Brand equity dilution through negative online word-of-mouth communication," Journal of Retailing and Consumer Services, Elsevier, vol. 18(1), pages 38-45.
    12. Khim-Yong Goh & Cheng-Suang Heng & Zhijie Lin, 2013. "Social Media Brand Community and Consumer Behavior: Quantifying the Relative Impact of User- and Marketer-Generated Content," Information Systems Research, INFORMS, vol. 24(1), pages 88-107, March.
    13. Gyrd-Jones, Richard I. & Kornum, Niels, 2013. "Managing the co-created brand: Value and cultural complementarity in online and offline multi‐stakeholder ecosystems," Journal of Business Research, Elsevier, vol. 66(9), pages 1484-1493.
    14. Giuseppe Delmestri & Fabrizio Montanari & Alessandro Usai, 2005. "Reputation and Strength of Ties in Predicting Commercial Success and Artistic Merit of Independents in the Italian Feature Film Industry," Journal of Management Studies, Wiley Blackwell, vol. 42(5), pages 975-1002, July.
    15. Yoshida, Daichi & Miyazawa, Jun-ichi & Takahashi, Shingo, 2014. "Role of community in user innovation generation and diffusion—Focusing on non-brand communities in the mountain climbing market," Technological Forecasting and Social Change, Elsevier, vol. 88(C), pages 1-15.
    16. Macdonald, Emma K. & Sharp, Byron M., 2000. "Brand Awareness Effects on Consumer Decision Making for a Common, Repeat Purchase Product:: A Replication," Journal of Business Research, Elsevier, vol. 48(1), pages 5-15, April.
    17. Vicki McKinney & Kanghyun Yoon & Fatemeh “Mariam” Zahedi, 2002. "The Measurement of Web-Customer Satisfaction: An Expectation and Disconfirmation Approach," Information Systems Research, INFORMS, vol. 13(3), pages 296-315, September.
    18. Kim, Angella J. & Ko, Eunju, 2012. "Do social media marketing activities enhance customer equity? An empirical study of luxury fashion brand," Journal of Business Research, Elsevier, vol. 65(10), pages 1480-1486.
    19. Zaglia, Melanie E., 2013. "Brand communities embedded in social networks," Journal of Business Research, Elsevier, vol. 66(2), pages 216-223.
    20. Arthur De Vany & W. Walls, 1999. "Uncertainty in the Movie Industry: Does Star Power Reduce the Terror of the Box Office?," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 23(4), pages 285-318, November.
    21. Jun, Seung-Pyo & Park, Do-Hyung, 2016. "Consumer information search behavior and purchasing decisions: Empirical evidence from Korea," Technological Forecasting and Social Change, Elsevier, vol. 107(C), pages 97-111.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Perano, Mirko & Casali, Gian Luca & Liu, Yulin & Abbate, Tindara, 2021. "Professional reviews as service: A mix method approach to assess the value of recommender systems in the entertainment industry," Technological Forecasting and Social Change, Elsevier, vol. 169(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Divakaran, Pradeep Kumar Ponnamma & Xiong, Jie, 2022. "Eliciting brand association networks: A new method using online community data," Technological Forecasting and Social Change, Elsevier, vol. 181(C).
    2. Hofmann, Julian & Clement, Michel & Völckner, Franziska & Hennig-Thurau, Thorsten, 2017. "Empirical generalizations on the impact of stars on the economic success of movies," International Journal of Research in Marketing, Elsevier, vol. 34(2), pages 442-461.
    3. Divakaran, Pradeep Kumar Ponnamma & Palmer, Adrian & Søndergaard, Helle Alsted & Matkovskyy, Roman, 2017. "Pre-launch Prediction of Market Performance for Short Lifecycle Products Using Online Community Data," Journal of Interactive Marketing, Elsevier, vol. 38(C), pages 12-28.
    4. Divakaran, Pradeep Kumar Ponnamma, 2017. "The netnographic method as early warning: Linking antecedents of pre-release behavior of technology-enabled community to future market trends," Technological Forecasting and Social Change, Elsevier, vol. 125(C), pages 245-257.
    5. Delre, Sebastiano A. & Panico, Claudio & Wierenga, Berend, 2017. "Competitive strategies in the motion picture industry: An ABM to study investment decisions," International Journal of Research in Marketing, Elsevier, vol. 34(1), pages 69-99.
    6. Angela (Xia) Liu & Tridib Mazumdar & Bo Li, 2015. "Counterfactual Decomposition of Movie Star Effects with Star Selection," Management Science, INFORMS, vol. 61(7), pages 1704-1721, July.
    7. Lee, Youseok & Kim, Sang-Hoon & Cha, Kyoung Cheon, 2021. "Impact of online information on the diffusion of movies: Focusing on cultural differences," Journal of Business Research, Elsevier, vol. 130(C), pages 603-609.
    8. Kim, Ho & Hanssens, Dominique M., 2017. "Advertising and Word-of-Mouth Effects on Pre-launch Consumer Interest and Initial Sales of Experience Products," Journal of Interactive Marketing, Elsevier, vol. 37(C), pages 57-74.
    9. Kick, Markus, 2015. "Post ≠ Post: An Experimental Study on Corporate Brand Posts on Facebook," EconStor Preprints 182507, ZBW - Leibniz Information Centre for Economics.
    10. Alice Mazzucchelli & Roberto Chierici & Angelo Di Gregorio & Claudio Chiacchierini, 2021. "Is Facebook an effective tool to access foreign markets? Evidence from international export performance of fashion firms," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 25(4), pages 1107-1144, December.
    11. Amin Ansary & Nik M. Hazrul Nik Hashim, 2018. "Brand image and equity: the mediating role of brand equity drivers and moderating effects of product type and word of mouth," Review of Managerial Science, Springer, vol. 12(4), pages 969-1002, October.
    12. Pauwels, Koen & Aksehirli, Zeynep & Lackman, Andrew, 2016. "Like the ad or the brand? Marketing stimulates different electronic word-of-mouth content to drive online and offline performance," International Journal of Research in Marketing, Elsevier, vol. 33(3), pages 639-655.
    13. Ana Babić Rosario & Kristine Valck & Francesca Sotgiu, 2020. "Conceptualizing the electronic word-of-mouth process: What we know and need to know about eWOM creation, exposure, and evaluation," Journal of the Academy of Marketing Science, Springer, vol. 48(3), pages 422-448, May.
    14. Angela Liu & Yong Liu & Tridib Mazumdar, 2014. "Star power in the eye of the beholder: A study of the influence of stars in the movie industry," Marketing Letters, Springer, vol. 25(4), pages 385-396, December.
    15. Sheng, Jie, 2019. "Being Active in Online Communications: Firm Responsiveness and Customer Engagement Behaviour," Journal of Interactive Marketing, Elsevier, vol. 46(C), pages 40-51.
    16. Roma, Paolo & Aloini, Davide, 2019. "How does brand-related user-generated content differ across social media? Evidence reloaded," Journal of Business Research, Elsevier, vol. 96(C), pages 322-339.
    17. Marchand, André & Hennig-Thurau, Thorsten & Wiertz, Caroline, 2017. "Not all digital word of mouth is created equal: Understanding the respective impact of consumer reviews and microblogs on new product success," International Journal of Research in Marketing, Elsevier, vol. 34(2), pages 336-354.
    18. Marchand, André & Hennig-Thurau, Thorsten, 2013. "Value Creation in the Video Game Industry: Industry Economics, Consumer Benefits, and Research Opportunities," Journal of Interactive Marketing, Elsevier, vol. 27(3), pages 141-157.
    19. Jurui Zhang & Raymond Liu, 2017. "Popularity of digital products in online social tagging systems," Journal of Brand Management, Palgrave Macmillan, vol. 24(1), pages 105-127, January.
    20. Jiayu Qian & Jee-Sun Park, 2021. "Influencer-brand fit and brand dilution in China’s luxury market: the moderating role of self-concept clarity," Journal of Brand Management, Palgrave Macmillan, vol. 28(2), pages 199-220, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:tefoso:v:127:y:2018:i:c:p:217-226. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/00401625 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.