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Social media sentiment and consumer spending dynamics

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  • Gao, Mengxi
  • Xu, Sheng
  • Zhang, Xin

Abstract

Social media platforms have risen rapidly and become an important component of daily life. This paper aims to investigate how social media sentiment influences individual spending behavior. Leveraging the BERT model for text analysis and consumption data from Alipay, we offer robust evidence that positive social media sentiment improves consumer spending, while negative sentiment suppresses it. The relation is stronger when the social platform has higher daily active users. The finding is consistent across various robustness checks. Overall, this research delineates the role of social media sentiment in consumer spending, thus complementing the literature on social media and individual consumption.

Suggested Citation

  • Gao, Mengxi & Xu, Sheng & Zhang, Xin, 2026. "Social media sentiment and consumer spending dynamics," Finance Research Letters, Elsevier, vol. 95(C).
    • Handle: RePEc:eee:finlet:v:95:y:2026:i:c:s1544612326002084
    DOI: 10.1016/j.frl.2026.109677
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    References listed on IDEAS

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