IDEAS home Printed from https://ideas.repec.org/a/spr/joamsc/v46y2018i5d10.1007_s11747-018-0578-5.html
   My bibliography  Save this article

Online group influence and digital product consumption

Author

Listed:
  • Jifeng Mu

    (Alabama A&M University
    Microfoundation Institute)

  • Ellen Thomas

    (New Jersey Institute of Technology)

  • Jiayin Qi

    (Shanghai University of International Business and Economics
    Ministry of Education)

  • Yong Tan

    (University of Washington)

Abstract

This article examines the differential effects of online group influence on digital product consumption, using the context of online music listening with a distinction between mainstream music and niche music. The results suggest that the relationship between online groups, product category, and digital product consumption is more complex than previously conceived. We find that superordinate in-groups have a stronger influence on mainstream music listening, while subordinate in-groups have a higher impact on niche music listening. Music listeners can cross in-group lines to listen to music, although the effect on digital music consumption is not as strong as with superordinate in-groups on mainstream listening and subordinate in-groups on niche music listening. Our results also suggest that the positive effect of groups on online music listening reaches an initial ceiling effect before it hits a tipping point and accelerates. The findings provide novel insights into the role of online group influence in the growing reality of digital products and changing consumer behavior.

Suggested Citation

  • Jifeng Mu & Ellen Thomas & Jiayin Qi & Yong Tan, 2018. "Online group influence and digital product consumption," Journal of the Academy of Marketing Science, Springer, vol. 46(5), pages 921-947, September.
  • Handle: RePEc:spr:joamsc:v:46:y:2018:i:5:d:10.1007_s11747-018-0578-5
    DOI: 10.1007/s11747-018-0578-5
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11747-018-0578-5
    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/s11747-018-0578-5?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. Johannes Hörner, 2002. "Reputation and Competition," American Economic Review, American Economic Association, vol. 92(3), pages 644-663, June.
    2. Hsiao, Cheng & Hashem Pesaran, M. & Kamil Tahmiscioglu, A., 2002. "Maximum likelihood estimation of fixed effects dynamic panel data models covering short time periods," Journal of Econometrics, Elsevier, vol. 109(1), pages 107-150, July.
    3. Tandy Chalmers Thomas & Linda L. Price & Hope Jensen Schau, 2013. "When Differences Unite: Resource Dependence in Heterogeneous Consumption Communities," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 39(5), pages 1010-1033.
    4. Raghuram Iyengar & Christophe Van den Bulte & Jae Young Lee, 2015. "Social Contagion in New Product Trial and Repeat," Marketing Science, INFORMS, vol. 34(3), pages 408-429, May.
    5. Jennifer Edson Escalas & James R. Bettman, 2005. "Self-Construal, Reference Groups, and Brand Meaning," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 32(3), pages 378-389, December.
    6. Yinlong Zhang & Adwait Khare, 2009. "The Impact of Accessible Identities on the Evaluation of Global versus Local Products," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 36(3), pages 524-537.
    7. Wlömert, Nils & Papies, Dominik, 2016. "On-demand streaming services and music industry revenues — Insights from Spotify's market entry," International Journal of Research in Marketing, Elsevier, vol. 33(2), pages 314-327.
    8. Dhar, Vasant & Chang, Elaine A., 2009. "Does Chatter Matter? The Impact of User-Generated Content on Music Sales," Journal of Interactive Marketing, Elsevier, vol. 23(4), pages 300-307.
    9. Fisher, Robert J & Price, Linda L, 1992. "An Investigation into the Social Context of Early Adoption Behavior," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 19(3), pages 477-486, December.
    10. Richard A. Peterson, 2005. "In Search of Authenticity," Journal of Management Studies, Wiley Blackwell, vol. 42(5), pages 1083-1098, July.
    11. Robert F. Phillips, 2018. "Quasi maximum likelihood estimation of dynamic panel data models," Communications in Statistics - Theory and Methods, Taylor & Francis Journals, vol. 47(16), pages 3970-3986, August.
    12. Ravi Bapna & Akhmed Umyarov, 2015. "Do Your Online Friends Make You Pay? A Randomized Field Experiment on Peer Influence in Online Social Networks," Management Science, INFORMS, vol. 61(8), pages 1902-1920, August.
    13. Erik Brynjolfsson & Yu (Jeffrey) Hu & Duncan Simester, 2011. "Goodbye Pareto Principle, Hello Long Tail: The Effect of Search Costs on the Concentration of Product Sales," Management Science, INFORMS, vol. 57(8), pages 1373-1386, August.
    14. Oliver, Richard L & DeSarbo, Wayne S, 1988. "Response Determinants in Satisfaction Judgments," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 14(4), pages 495-507, March.
    15. Ordanini, Andrea & Nunes, Joseph C., 2016. "From fewer blockbusters by more superstars to more blockbusters by fewer superstars: How technological innovation has impacted convergence on the music chart," International Journal of Research in Marketing, Elsevier, vol. 33(2), pages 297-313.
    16. Frank M. Bass, 1969. "A New Product Growth for Model Consumer Durables," Management Science, INFORMS, vol. 15(5), pages 215-227, January.
    17. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    18. Bryan Bollinger & Kenneth Gillingham, 2012. "Peer Effects in the Diffusion of Solar Photovoltaic Panels," Marketing Science, INFORMS, vol. 31(6), pages 900-912, November.
    19. Joshua J. Clarkson & Chris Janiszewski & Melissa D. Cinelli, 2013. "The Desire for Consumption Knowledge," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 39(6), pages 1313-1329.
    20. Sudip Bhattacharjee & Ram D. Gopal & Kaveepan Lertwachara & James R. Marsden & Rahul Telang, 2007. "The Effect of Digital Sharing Technologies on Music Markets: A Survival Analysis of Albums on Ranking Charts," Management Science, INFORMS, vol. 53(9), pages 1359-1374, September.
    21. Karen Page Winterich & Vikas Mittal & William T. Ross Jr., 2009. "Donation Behavior toward In-Groups and Out-Groups: The Role of Gender and Moral Identity," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 36(2), pages 199-214.
    22. Sebastian Kripfganz, 2016. "Quasi–maximum likelihood estimation of linear dynamic short-T panel-data models," Stata Journal, StataCorp LP, vol. 16(4), pages 1013-1038, December.
    23. Bearden, William O & Etzel, Michael J, 1982. "Reference Group Influence on Product and Brand Purchase Decisions," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 9(2), pages 183-194, September.
    24. Anja Lambrecht & Avi Goldfarb & Alessandro Bonatti & Anindya Ghose & Daniel Goldstein & Randall Lewis & Anita Rao & Navdeep Sahni & Song Yao, 2014. "How do firms make money selling digital goods online?," Marketing Letters, Springer, vol. 25(3), pages 331-341, September.
    25. Carlos J. Torelli & Rohini Ahluwalia & Shirley Y. Y. Cheng & Nicholas J. Olson & Jennifer L. Stoner, 2017. "Redefining Home: How Cultural Distinctiveness Affects the Malleability of In-Group Boundaries and Brand Preferences," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 44(1), pages 44-61.
    26. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-438, July.
    27. Urbany, Joel E & Dickson, Peter R & Wilkie, William L, 1989. "Buyer Uncertainty and Information Search," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 16(2), pages 208-215, September.
    28. Jonah Berger & Chip Heath, 2007. "Where Consumers Diverge from Others: Identity Signaling and Product Domains," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 34(2), pages 121-134, June.
    29. Bikhchandani, Sushil & Hirshleifer, David & Welch, Ivo, 1992. "A Theory of Fads, Fashion, Custom, and Cultural Change in Informational Cascades," Journal of Political Economy, University of Chicago Press, vol. 100(5), pages 992-1026, October.
    30. Yaniv, Ilan & Milyavsky, Maxim, 2007. "Using advice from multiple sources to revise and improve judgments," Organizational Behavior and Human Decision Processes, Elsevier, vol. 103(1), pages 104-120, May.
    31. Dale Russell & Cristel Russell, 2010. "Here or there? Consumer reactions to corporate social responsibility initiatives: Egocentric tendencies and their moderators," Marketing Letters, Springer, vol. 21(1), pages 65-81, March.
    32. Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-329, March-Apr.
    33. Jurui Zhang & Yong Liu & Yubo Chen, 2015. "Social Learning in Networks of Friends versus Strangers," Marketing Science, INFORMS, vol. 34(4), pages 573-589, July.
    34. Kristine de Valck & Roberts V. Kozinets & Andrea C. Wojnicki & Sarah J.S. Wilner, 2010. "Networked Narratives: Understanding Word-of-Mouth Marketing in Online Communities," Post-Print hal-00458424, HAL.
    35. Michelle D. Steward & James A. Narus & Michelle L. Roehm, 2018. "An exploratory study of business-to-business online customer reviews: external online professional communities and internal vendor scorecards," Journal of the Academy of Marketing Science, Springer, vol. 46(2), pages 173-189, March.
    36. Alba, Joseph W & Hutchinson, J Wesley, 1987. "Dimensions of Consumer Expertise," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 13(4), pages 411-454, March.
    37. Sanjeev Dewan & Jui Ramaprasad, 2012. "Research Note ---Music Blogging, Online Sampling, and the Long Tail," Information Systems Research, INFORMS, vol. 23(3-part-2), pages 1056-1067, September.
    38. Graham Loomes & Robert Sugden, 1986. "Disappointment and Dynamic Consistency in Choice under Uncertainty," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 53(2), pages 271-282.
    39. Abhijit V. Banerjee, 1992. "A Simple Model of Herd Behavior," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(3), pages 797-817.
    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. Xingyu Chen & Xing Li & Dai Yao & Zhimin Zhou, 2019. "Seeking the support of the silent majority: are lurking users valuable to UGC platforms?," Journal of the Academy of Marketing Science, Springer, vol. 47(6), pages 986-1004, November.
    2. Jifeng Mu & Jonathan Z. Zhang, 2021. "Seller marketing capability, brand reputation, and consumer journeys on e-commerce platforms," Journal of the Academy of Marketing Science, Springer, vol. 49(5), pages 994-1020, September.
    3. Jiaqi Liu & Jiayin Qi, 2022. "Online Public Rumor Engagement Model and Intervention Strategy in Major Public Health Emergencies: From the Perspective of Social Psychological Stress," IJERPH, MDPI, vol. 19(4), pages 1-22, February.
    4. Wang, Le & Luo, Xin (Robert) & Li, Han, 2022. "Envy or conformity? An empirical investigation of peer influence on the purchase of non-functional items in mobile free-to-play games," Journal of Business Research, Elsevier, vol. 147(C), pages 308-324.
    5. Abhishek Borah & Francesca Bonetti & Angelito Calma & José Martí-Parreño, 2023. "The Journal of the Academy of Marketing Science at 50: A historical analysis," Journal of the Academy of Marketing Science, Springer, vol. 51(1), pages 222-243, January.
    6. Jiaqi Liu & Zhenping Zhang & Jiayin Qi & Hong Wu & Manyi Chen, 2019. "Understanding the Impact of Opinion Leaders’ Characteristics on Online Group Knowledge-Sharing Engagement from In-Group and Out-Group Perspectives: Evidence from a Chinese Online Knowledge-Sharing Com," Sustainability, MDPI, vol. 11(16), pages 1-28, August.
    7. Nima Jalali & Sangkil Moon & Moon-Yong Kim, 2023. "Profiling diverse reviewer segments using online reviews of service industries," Journal of Marketing Analytics, Palgrave Macmillan, vol. 11(2), pages 130-148, June.

    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. Jiaqi Liu & Zhenping Zhang & Jiayin Qi & Hong Wu & Manyi Chen, 2019. "Understanding the Impact of Opinion Leaders’ Characteristics on Online Group Knowledge-Sharing Engagement from In-Group and Out-Group Perspectives: Evidence from a Chinese Online Knowledge-Sharing Com," Sustainability, MDPI, vol. 11(16), pages 1-28, August.
    2. Shan Huang & Sinan Aral & Yu Jeffrey Hu & Erik Brynjolfsson, 2020. "Social Advertising Effectiveness Across Products: A Large-Scale Field Experiment," Marketing Science, INFORMS, vol. 39(6), pages 1142-1165, November.
    3. Li, Feng & Du, Timon C. & Wei, Ying, 2023. "This is what’s in store for you: How online social learning affects product positioning," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 179(C).
    4. Viswanathan, Vijay & Sese, F. Javier & Krafft, Manfred, 2017. "Social influence in the adoption of a B2B loyalty program: The role of elite status members," International Journal of Research in Marketing, Elsevier, vol. 34(4), pages 901-918.
    5. Liangfei Qiu & Arunima Chhikara & Asoo Vakharia, 2021. "Multidimensional Observational Learning in Social Networks: Theory and Experimental Evidence," Information Systems Research, INFORMS, vol. 32(3), pages 876-894, September.
    6. Zheyin (Jane) Gu & Yunchuan Liu, 2014. "Consumer Learning on Social Networks and Retailer Digital Platform Strategies Access," Working Papers 14-02, NET Institute.
    7. 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.
    8. Liangfei Qiu & Zhan (Michael) Shi & Andrew B. Whinston, 2018. "Learning from Your Friends’ Check-Ins: An Empirical Study of Location-Based Social Networks," Information Systems Research, INFORMS, vol. 29(4), pages 1044-1061, December.
    9. Maecker, Olaf & Grabenströer, Nadja Sophia & Clement, Michel & Heitmann, Mark, 2013. "Charts and demand: Empirical generalizations on social influence," International Journal of Research in Marketing, Elsevier, vol. 30(4), pages 429-431.
    10. Anjana Susarla & Jeong-Ha Oh & Yong Tan, 2012. "Social Networks and the Diffusion of User-Generated Content: Evidence from YouTube," Information Systems Research, INFORMS, vol. 23(1), pages 23-41, March.
    11. Keuschnigg, Marc, 2015. "Product Success in Cultural Markets: The Mediating Role of Familiarity, Peers, and Experts," MPRA Paper 63444, University Library of Munich, Germany.
    12. Xingyu Chen & Xing Li & Dai Yao & Zhimin Zhou, 2019. "Seeking the support of the silent majority: are lurking users valuable to UGC platforms?," Journal of the Academy of Marketing Science, Springer, vol. 47(6), pages 986-1004, November.
    13. Li, Feng & Du, Timon Chih-ting & Wei, Ying, 2019. "Offensive pricing strategies for online platforms," International Journal of Production Economics, Elsevier, vol. 216(C), pages 287-304.
    14. Belleflamme,Paul & Peitz,Martin, 2015. "Industrial Organization," Cambridge Books, Cambridge University Press, number 9781107687899.
    15. Sanjeev Dewan & Jui Ramaprasad, 2012. "Research Note ---Music Blogging, Online Sampling, and the Long Tail," Information Systems Research, INFORMS, vol. 23(3-part-2), pages 1056-1067, September.
    16. Christian Catalini & Catherine Tucker, 2016. "Seeding the S-Curve? The Role of Early Adopters in Diffusion," NBER Working Papers 22596, National Bureau of Economic Research, Inc.
    17. Ye Hu & Kitty Wang & Ming Chen & Sam Hui, 2021. "Herding Among Retail Shoppers: the Case of Television Shopping Network," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 8(1), pages 27-40, June.
    18. Matherly, Ted & Arens, Zachary G. & Arnold, Todd J., 2018. "Big brands, big cities: How the population penalty affects common, identity relevant brands in densely populated areas," International Journal of Research in Marketing, Elsevier, vol. 35(1), pages 15-33.
    19. 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.
    20. Bing Jing, 2011. "Social Learning and Dynamic Pricing of Durable Goods," Marketing Science, INFORMS, vol. 30(5), pages 851-865, September.

    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:46:y:2018:i:5:d:10.1007_s11747-018-0578-5. 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.