IDEAS home Printed from https://ideas.repec.org/a/spr/joamsc/v45y2017i2d10.1007_s11747-016-0484-7.html
   My bibliography  Save this article

Synergistic effects of social media and traditional marketing on brand sales: capturing the time-varying effects

Author

Listed:
  • V. Kumar

    (Georgia State University)

  • JeeWon Brianna Choi

    (Georgia State University)

  • Mallik Greene

    (Otsuka Pharmaceutical Development & Commercialization)

Abstract

As social media gains more importance, managers are challenged to quantify its return on sales. The academic understanding in the effectiveness of social media is limited, and in fact the synergistic effects between social media and traditional marketing efforts have rarely been investigated. Despite the dynamics in marketing effectiveness on sales, the time-varying effectiveness of social media has never been studied either. In this study, we capture the time-varying effects of social media and the time-varying synergistic effects of social media and traditional marketing with a time-varying effect model (TVEM) approach. The empirical analyses of a large U.S. ice-cream brand sales reveal that a) the effectiveness of social media and traditional marketing vary over time, b) the synergistic effects vary over time for social media with product sampling and with in-store promotions, c) the proposed TVEM approach has a higher predictive accuracy than the benchmark models, and d) the proposed TVEM approach saves marketing costs by $0.4 million per year, compared to the time-invariant benchmark model. Overall, this study enables managers to not only better understand the synergistic effects of social media marketing and traditional marketing, but also the time-varying effectiveness of their marketing efforts with TVEM approach for better resource allocation.

Suggested Citation

  • V. Kumar & JeeWon Brianna Choi & Mallik Greene, 2017. "Synergistic effects of social media and traditional marketing on brand sales: capturing the time-varying effects," Journal of the Academy of Marketing Science, Springer, vol. 45(2), pages 268-288, March.
    • Handle: RePEc:spr:joamsc:v:45:y:2017:i:2:d:10.1007_s11747-016-0484-7
    DOI: 10.1007/s11747-016-0484-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11747-016-0484-7
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11747-016-0484-7?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. Kumar, V. & Leone, Robert P. & Gaskins, John N., 1995. "Aggregate and disaggregate sector forecasting using consumer confidence measures," International Journal of Forecasting, Elsevier, vol. 11(3), pages 361-377, September.
    2. René Algesheimer & Sharad Borle & Utpal M. Dholakia & Siddharth S. Singh, 2010. "The Impact of Customer Community Participation on Customer Behaviors: An Empirical Investigation," Marketing Science, INFORMS, vol. 29(4), pages 756-769, 07-08.
    3. Kapil Bawa & Robert Shoemaker, 2004. "The Effects of Free Sample Promotions on Incremental Brand Sales," Marketing Science, INFORMS, vol. 23(3), pages 345-363, November.
    4. King, Robert Allen & Racherla, Pradeep & Bush, Victoria D., 2014. "What We Know and Don't Know About Online Word-of-Mouth: A Review and Synthesis of the Literature," Journal of Interactive Marketing, Elsevier, vol. 28(3), pages 167-183.
    5. S. Sriram & Pradeep K. Chintagunta & Ramya Neelamegham, 2006. "Effects of Brand Preference, Product Attributes, and Marketing Mix Variables in Technology Product Markets," Marketing Science, INFORMS, vol. 25(5), pages 440-456, September.
    6. Russell Abratt & Stephen Donald Goodey, 1990. "Unplanned buying and in‐store stimuli in supermarkets," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 11(2), pages 111-121, May.
    7. Koen Pauwels, 2004. "How Dynamic Consumer Response, Competitor Response, Company Support, and Company Inertia Shape Long-Term Marketing Effectiveness," Marketing Science, INFORMS, vol. 23(4), pages 596-610, June.
    8. Kumar, V. & Sunder, Sarang & Sharma, Amalesh, 2015. "Leveraging Distribution to Maximize Firm Performance in Emerging Markets," Journal of Retailing, Elsevier, vol. 91(4), pages 627-643.
    9. Malthouse, Edward C. & Haenlein, Michael & Skiera, Bernd & Wege, Egbert & Zhang, Michael, 2013. "Managing Customer Relationships in the Social Media Era: Introducing the Social CRM House," Journal of Interactive Marketing, Elsevier, vol. 27(4), pages 270-280.
    10. Leeflang, Peter S.H. & Bijmolt, Tammo H.A. & van Doorn, Jenny & Hanssens, Dominique M. & van Heerde, Harald J. & Verhoef, Peter C. & Wieringa, Jaap E., 2009. "Creating lift versus building the base: Current trends in marketing dynamics," International Journal of Research in Marketing, Elsevier, vol. 26(1), pages 13-20.
    11. Labrecque, Lauren I. & vor dem Esche, Jonas & Mathwick, Charla & Novak, Thomas P. & Hofacker, Charles F., 2013. "Consumer Power: Evolution in the Digital Age," Journal of Interactive Marketing, Elsevier, vol. 27(4), pages 257-269.
    12. de Vries, Lisette & Gensler, Sonja & Leeflang, Peter S.H., 2012. "Popularity of Brand Posts on Brand Fan Pages: An Investigation of the Effects of Social Media Marketing," Journal of Interactive Marketing, Elsevier, vol. 26(2), pages 83-91.
    13. Burke, Raymond R & Srull, Thomas K, 1988. "Competitive Interference and Consumer Memory for Advertising," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 15(1), pages 55-68, June.
    14. Leeflang, P.S.H. & Wittink, Dick R., 2000. "Building models for marketing decisions: past, present and future," Research Report 00F20, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    15. Raman, Kalyan & Mantrala, Murali K. & Sridhar, Shrihari & Tang, Yihui (Elina), 2012. "Optimal Resource Allocation with Time-varying Marketing Effectiveness, Margins and Costs," Journal of Interactive Marketing, Elsevier, vol. 26(1), pages 43-52.
    16. Naik, Prasad A. & Peters, Kay, 2009. "A Hierarchical Marketing Communications Model of Online and Offline Media Synergies," Journal of Interactive Marketing, Elsevier, vol. 23(4), pages 288-299.
    17. Douglas Bowman & Hubert Gatignon, 1996. "Order of Entry as a Moderator of the Effect of the Marketing Mix on Market Share," Marketing Science, INFORMS, vol. 15(3), pages 222-242.
    18. Stefan Stremersch & Aurélie Lemmens, 2009. "Sales Growth of New Pharmaceuticals Across the Globe: The Role of Regulatory Regimes," Marketing Science, INFORMS, vol. 28(4), pages 690-708, 07-08.
    19. repec:dgr:rugsom:00f20 is not listed on IDEAS
    20. Prasad A. Naik & Kalyan Raman & Russell S. Winer, 2005. "Planning Marketing-Mix Strategies in the Presence of Interaction Effects," Marketing Science, INFORMS, vol. 24(1), pages 25-34, June.
    21. M. P. Wand, 2003. "Smoothing and mixed models," Computational Statistics, Springer, vol. 18(2), pages 223-249, July.
    22. 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.
    Full references (including those not matched with items on IDEAS)

    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. Saeed M.Z.A. Tarabieh, 2017. "The Synergistic Impact of Social Media and Traditional Media on Purchase Decisions: The Mediating Role of Brand Loyalty," International Review of Management and Marketing, Econjournals, vol. 7(5), pages 51-62.
    2. V Kumar & Amalesh Sharma & Shaphali Gupta, 2017. "Accessing the influence of strategic marketing research on generating impact: moderating roles of models, journals, and estimation approaches," Journal of the Academy of Marketing Science, Springer, vol. 45(2), pages 164-185, March.
    3. Peters, Kay & Chen, Yubo & Kaplan, Andreas M. & Ognibeni, Björn & Pauwels, Koen, 2013. "Social Media Metrics — A Framework and Guidelines for Managing Social Media," Journal of Interactive Marketing, Elsevier, vol. 27(4), pages 281-298.
    4. Leeflang, Peter S.H. & Bijmolt, Tammo H.A. & van Doorn, Jenny & Hanssens, Dominique M. & van Heerde, Harald J. & Verhoef, Peter C. & Wieringa, Jaap E., 2009. "Creating lift versus building the base: Current trends in marketing dynamics," International Journal of Research in Marketing, Elsevier, vol. 26(1), pages 13-20.
    5. 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.
    6. Rydén, Pernille & Ringberg, Torsten & Wilke, Ricky, 2015. "How Managers' Shared Mental Models of Business–Customer Interactions Create Different Sensemaking of Social Media," Journal of Interactive Marketing, Elsevier, vol. 31(C), pages 1-16.
    7. Tony Cooper & Constantino Stavros & Angela R. Dobele, 2019. "The levers of engagement: an exploration of governance in an online brand community," Journal of Brand Management, Palgrave Macmillan, vol. 26(3), pages 240-254, May.
    8. Lijuan Bai & Xiangbin Yan, 2023. "Impact of social media capability on firm performance: new evidence from China," Asian Business & Management, Palgrave Macmillan, vol. 22(1), pages 118-136, February.
    9. Lu, Qiang Steven & Miller, Rohan, 2019. "How Social Media Communications Combine with Customer Loyalty Management to Boost Green Retail Sales," Journal of Interactive Marketing, Elsevier, vol. 46(C), pages 87-100.
    10. 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.
    11. 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.
    12. Arora, Anshu Saxena & Sivakumar, K. & Pavlou, Paul A., 2021. "Social capacitance: Leveraging absorptive capacity in the age of social media," Journal of Business Research, Elsevier, vol. 124(C), pages 342-356.
    13. Thomas Niemand & Sascha Kraus & Sophia Mather & Antonio C. Cuenca-Ballester, 2020. "Multilevel marketing: optimizing marketing effectiveness for high-involvement goods in the automotive industry," International Entrepreneurship and Management Journal, Springer, vol. 16(4), pages 1367-1392, December.
    14. 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.
    15. Thomas Niemand & Sascha Kraus & Sophia Mather & Antonio C. Cuenca-Ballester, 0. "Multilevel marketing: optimizing marketing effectiveness for high-involvement goods in the automotive industry," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-26.
    16. Sood, Ashish & Kappe, Eelco & Stremersch, Stefan, 2014. "The commercial contribution of clinical studies for pharmaceutical drugs," International Journal of Research in Marketing, Elsevier, vol. 31(1), pages 65-77.
    17. Marchand, André & Hennig-Thurau, Thorsten & Flemming, Jan, 2021. "Social media resources and capabilities as strategic determinants of social media performance," International Journal of Research in Marketing, Elsevier, vol. 38(3), pages 549-571.
    18. Malthouse, Edward C. & Haenlein, Michael & Skiera, Bernd & Wege, Egbert & Zhang, Michael, 2013. "Managing Customer Relationships in the Social Media Era: Introducing the Social CRM House," Journal of Interactive Marketing, Elsevier, vol. 27(4), pages 270-280.
    19. Schaefers, Tobias & Falk, Tomas & Kumar, Ashish & Schamari, Julia, 2021. "More of the same? Effects of volume and variety of social media brand engagement behavior," Journal of Business Research, Elsevier, vol. 135(C), pages 282-294.
    20. Jonathan Z. Zhang & Chun-Wei Chang, 2021. "Consumer dynamics: theories, methods, and emerging directions," Journal of the Academy of Marketing Science, Springer, vol. 49(1), pages 166-196, January.

    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:spr:joamsc:v:45:y:2017:i:2:d:10.1007_s11747-016-0484-7. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.