The Impact of Social Media on Consumer Demand: The Case of Carbonated Soft Drink Market
AbstractThis article estimates the impact of social media exposure on consumer valuation of product characteristics. We apply the Berry, Levinsohn and Pakes (1995) model of market equilibrium to sales data for 18 carbonated soft drink brands sold in 12 cities over 17 months (June 2011 to October 2012) and social media conversations on Facebook, Twitter and YouTube. Empirical results show that social media exposure is a significant driver of consumer behavior through altering evaluation of product characteristics and purchase choices.
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Bibliographic InfoPaper provided by Agricultural and Applied Economics Association in its series 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. with number 148913.
Date of creation: 2013
Date of revision:
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Social Media; Demand; Consumer behavior; Internet; Carbonated soft drinks; Consumer/Household Economics; Demand and Price Analysis; Industrial Organization; D12; M37; L66;
Find related papers by JEL classification:
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- M37 - Business Administration and Business Economics; Marketing; Accounting - - Marketing and Advertising - - - Advertising
- L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-05-24 (All new papers)
- NEP-COM-2013-05-24 (Industrial Competition)
- NEP-CUL-2013-05-24 (Cultural Economics)
- NEP-MKT-2013-05-24 (Marketing)
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- repec:zwi:journl:v:44:y:2012:i:22:p:2859-2865 is not listed on IDEAS
- Stan J. Liebowitz & Alejandro Zentner, 2012. "Clash of the Titans: Does Internet use Reduce Television Viewing?," The Review of Economics and Statistics, MIT Press, vol. 94(1), pages 234-245, February.
- Rigoberto A. Lopez & Kristen L. Fantuzzi, 2012. "Demand for carbonated soft drinks: implications for obesity policy," Applied Economics, Taylor & Francis Journals, vol. 44(22), pages 2859-2865, August.
- Smith, Michael D. & Telang, Rahul, 2010. "Piracy or promotion? The impact of broadband Internet penetration on DVD sales," Information Economics and Policy, Elsevier, vol. 22(4), pages 289-298, December.
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