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The Demand Effects of Joint Product Advertising in Online Videos

Author

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  • Anuj Kumar

    (Warrington College of Business Administration, University of Florida, Gainesville, Florida 32611)

  • Yinliang (Ricky) Tan

    (A. B. Freeman School of Business, Tulane University, New Orleans, Louisiana 70118)

Abstract

Joint product display in videos may help customers to not only evaluate the attributes of products that can influence their individual demands (direct effect) but also learn about the complementarity between them that may cause additional correlation in their demands (spillover effect). To estimate the demand effects, we introduced videos displaying apparel with matching accessories for a few randomly selected apparel on a fashion retailer’s website. We found that introducing a video resulted in a 14.5% increase in apparel sales and a 28.3% increase in accessories sales. The estimated increase in accessories sales was largely attributed to the spillover effect of videos. Moreover, introducing videos with other product promotions resulted in a significantly higher effect of videos on product demands. Overall, we show how video display of related products can increase their demands in an online product network. This paper was accepted by Sandra Slaughter, information systems .

Suggested Citation

  • Anuj Kumar & Yinliang (Ricky) Tan, 2015. "The Demand Effects of Joint Product Advertising in Online Videos," Management Science, INFORMS, vol. 61(8), pages 1921-1937, August.
    • Handle: RePEc:inm:ormnsc:v:61:y:2015:i:8:p:1921-1937
    DOI: 10.1287/mnsc.2014.2086
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    References listed on IDEAS

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    2. Xitong Li & Jörn Grahl & Oliver Hinz, 2022. "How Do Recommender Systems Lead to Consumer Purchases? A Causal Mediation Analysis of a Field Experiment," Information Systems Research, INFORMS, vol. 33(2), pages 620-637, June.
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    5. Jun Pei & Bayi Cheng & Xinbao Liu & Panos M. Pardalos & Min Kong, 2019. "Single-machine and parallel-machine serial-batching scheduling problems with position-based learning effect and linear setup time," Annals of Operations Research, Springer, vol. 272(1), pages 217-241, January.
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    7. Schwenzow, Jasper & Hartmann, Jochen & Schikowsky, Amos & Heitmann, Mark, 2021. "Understanding videos at scale: How to extract insights for business research," Journal of Business Research, Elsevier, vol. 123(C), pages 367-379.
    8. Tobias Kretschmer & Christian Peukert, 2020. "Video Killed the Radio Star? Online Music Videos and Recorded Music Sales," Information Systems Research, INFORMS, vol. 31(3), pages 776-800, September.
    9. Min Kong & Xinbao Liu & Jun Pei & Panos M. Pardalos & Nenad Mladenovic, 2020. "Parallel-batching scheduling with nonlinear processing times on a single and unrelated parallel machines," Journal of Global Optimization, Springer, vol. 78(4), pages 693-715, December.
    10. Xingyue (Luna) Zhang & Yuliang Yao & Jiantong Zhang & Chencheng Fang, 2023. "Post‐promotion redemption, exposure, and spillover effects of electronic coupons: An empirical analysis," Production and Operations Management, Production and Operations Management Society, vol. 32(2), pages 603-617, February.
    11. Jaeung Sim & Daegon Cho & Youngdeok Hwang & Rahul Telang, 2022. "Frontiers: Virus Shook the Streaming Star: Estimating the COVID-19 Impact on Music Consumption," Marketing Science, INFORMS, vol. 41(1), pages 19-32, January.
    12. Niu, Baozhuang & Yu, Xinhu & Li, Qiyang & Wang, Yulan, 2023. "Gains and Losses of Key Opinion Leaders’ Product Promotion in Livestream E-commerce," Omega, Elsevier, vol. 117(C).
    13. Sheng-Yeh, Wu & Guan-Ru, Chen & Ilia, Tetin, 2022. "An Economic Model for Popular Event Promotions," Bulletin of Applied Economics, Risk Market Journals, vol. 9(2), pages 169-173.
    14. Pei, Jun & Liu, Xinbao & Fan, Wenjuan & Pardalos, Panos M. & Lu, Shaojun, 2019. "A hybrid BA-VNS algorithm for coordinated serial-batching scheduling with deteriorating jobs, financial budget, and resource constraint in multiple manufacturers," Omega, Elsevier, vol. 82(C), pages 55-69.
    15. Haiqing Hu & Pandu R. Tadikamalla, 2020. "When to launch a sales promotion for online fashion products? An empirical study," Electronic Commerce Research, Springer, vol. 20(4), pages 737-756, December.
    16. Liu, Baolong & Wang, Weilong, 2023. "Live commerce retailing with online influencers: Two business models," International Journal of Production Economics, Elsevier, vol. 255(C).
    17. Yixin Lu & Alok Gupta & Wolfgang Ketter & Eric van Heck, 2019. "Information Transparency in Business-to-Business Auction Markets: The Role of Winner Identity Disclosure," Management Science, INFORMS, vol. 65(9), pages 4261-4279, September.
    18. Haibing Gao & Subodha Kumar & Yinliang (Ricky) Tan & Huazhong Zhao, 2022. "Socialize More, Pay Less: Randomized Field Experiments on Social Pricing," Information Systems Research, INFORMS, vol. 33(3), pages 935-953, September.
    19. Anuj Kumar & Kartik Hosanagar, 2019. "Measuring the Value of Recommendation Links on Product Demand," Information Systems Research, INFORMS, vol. 30(3), pages 819-838, September.
    20. Cheng, Bayi & Leung, Joseph Y.-T. & Li, Kai & Yang, Shanlin, 2019. "Integrated optimization of material supplying, manufacturing, and product distribution: Models and fast algorithms," European Journal of Operational Research, Elsevier, vol. 277(1), pages 100-111.
    21. Parshakov, Petr & Naidenova, Iuliia & Barajas, Angel, 2020. "Spillover effect in promotion: Evidence from video game publishers and eSports tournaments," Journal of Business Research, Elsevier, vol. 118(C), pages 262-270.
    22. Dokyun Lee & Kartik Hosanagar, 2021. "How Do Product Attributes and Reviews Moderate the Impact of Recommender Systems Through Purchase Stages?," Management Science, INFORMS, vol. 67(1), pages 524-546, January.
    23. Shuai Yang & Xinyu Chang & Sixing Chen & Shan Lin & William T. Ross, 2022. "Does music really work? The two-stage audiovisual cross-modal correspondence effect on consumers’ shopping behavior," Marketing Letters, Springer, vol. 33(2), pages 251-276, June.

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