IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v64y2011i11p1239-1244.html
   My bibliography  Save this article

Valuing customers for social network services

Author

Listed:
  • Joo, Young-Hyuck
  • Kim, Yunsik
  • Yang, Suk-Joon

Abstract

In the current Internet environment, many online service companies based on community factors (networks) produce and sell new types of digital products. For example, SNS (social network service) companies now sell customers digital decorative products for the adornment of online avatars. Not only do individual customers consume these digital products, but they also exchange them as gifts in their local neighborhoods. While previous studies on customer valuation (e.g. CLTV, RFM, etc.) focus on some important issues for identifying valuable customers, the literature does not resolve issues related to the effects on customer value of products purchased as gifts for another person. This study attempts to verify empirically the effects of two representative social network properties (tie strength and the number of ties) on customer monetary value.

Suggested Citation

  • Joo, Young-Hyuck & Kim, Yunsik & Yang, Suk-Joon, 2011. "Valuing customers for social network services," Journal of Business Research, Elsevier, vol. 64(11), pages 1239-1244.
    • Handle: RePEc:eee:jbrese:v:64:y:2011:i:11:p:1239-1244
    DOI: 10.1016/j.jbusres.2011.06.030
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296311002177
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2011.06.030?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. Becker, Gary S, 1974. "A Theory of Social Interactions," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1063-1093, Nov.-Dec..
    2. Childers, Terry L & Rao, Akshay R, 1992. "The Influence of Familial and Peer-Based Reference Groups on Consumer Decisions," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 19(2), pages 198-211, September.
    3. Belk, Russell W & Coon, Gregory S, 1993. "Gift Giving as Agapic Love: An Alternative to the Exchange Paradigm Based on Dating Experiences," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 20(3), pages 393-417, December.
    4. Garner, Thesia I & Wagner, Janet, 1991. "Economic Dimensions of Household Gift Giving," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 18(3), pages 368-379, December.
    5. Markus Giesler, 2006. "Consumer Gift Systems," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 33(2), pages 283-290, August.
    6. Sherry, John F, Jr, 1983. "Gift Giving in Anthropological Perspective," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 10(2), pages 157-168, September.
    7. Mittal, Vikas & Huppertz, John W. & Khare, Adwait, 2008. "Customer complaining: The role of tie strength and information control," Journal of Retailing, Elsevier, vol. 84(2), pages 195-204.
    8. 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.
    9. Yamamoto Sublaban, Cleusa Satico & Aranha, Francisco, 2009. "Estimating cellphone providers' customer equity," Journal of Business Research, Elsevier, vol. 62(9), pages 891-898, September.
    10. Joy, Annamma, 2001. "Gift Giving in Hong Kong and the Continuum of Social Ties," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 28(2), pages 239-256, September.
    11. Lowrey, Tina M & Otnes, Cele C & Ruth, Julie A, 2004. "Social Influences on Dyadic Giving over Time: A Taxonomy from the Giver's Perspective," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 30(4), pages 547-558, March.
    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. Beck, Thorsten & Lu, Liping & Yang, Rudai, 2015. "Finance and Growth for Microenterprises: Evidence from Rural China," World Development, Elsevier, vol. 67(C), pages 38-56.
    2. Gitae Kim & Bongsug Chae & David Olson, 2013. "A support vector machine (SVM) approach to imbalanced datasets of customer responses: comparison with other customer response models," Service Business, Springer;Pan-Pacific Business Association, vol. 7(1), pages 167-182, March.
    3. Chiu, Chao-Min & Cheng, Hsiang-Lan & Huang, Hsin-Yi & Chen, Chieh-Fan, 2013. "Exploring individuals’ subjective well-being and loyalty towards social network sites from the perspective of network externalities: The Facebook case," International Journal of Information Management, Elsevier, vol. 33(3), pages 539-552.
    4. Petr Parshakov & Iuliia Naidenova & Carlos Gomez-Gonzalez & Cornel Nesseler, 2023. "Do LGBTQ-Supportive Corporate Policies Affect Consumer Behavior? Evidence from the Video Game Industry," Journal of Business Ethics, Springer, vol. 187(3), pages 421-432, October.
    5. Pilar, Ladislav & Balcarova, Tereza & Rojik, Stanislav & Ticha, Ivana & Polakova, Jana, 2018. "Customer experience with farmers’ markets: what hashtags can reveal," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(6), July.
    6. Gonzalez, Reyes & Llopis, Juan & Gasco, Jose, 2015. "Social networks in cultural industries," Journal of Business Research, Elsevier, vol. 68(4), pages 823-828.
    7. Hyejong Min & Junghwan Yun & Youngjung Geum, 2018. "Analyzing Dynamic Change in Customer Requirements: An Approach Using Review-Based Kano Analysis," Sustainability, MDPI, vol. 10(3), pages 1-17, March.
    8. 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.

    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. Ye Yang & Angela Paladino, 2015. "The case of wine: understanding Chinese gift-giving behavior," Marketing Letters, Springer, vol. 26(3), pages 335-361, September.
    2. Ent, Michael R., 2024. "Durable gifts are more common in committed (vs. New) relationships," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 111(C).
    3. Ertimur, Burçak & Muñoz, Caroline & Hutton, James G., 2015. "Regifting: A multi-perspective processual overview," Journal of Business Research, Elsevier, vol. 68(9), pages 1997-2004.
    4. Bernard Cova & Eric Remy, 2014. "Consumption Seen From the Gift: State of the Art and Prospective [La consommation en clé de don : état des lieux rétrospectif et prospectif]," Post-Print hal-01581986, HAL.
    5. Vanhamme, Joëlle & de Bont, Cees J.P.M., 2008. "“Surprise Gift” Purchases: Customer Insights from the Small Electrical Appliances Market," Journal of Retailing, Elsevier, vol. 84(3), pages 354-369.
    6. Luo, Biao & Fang, Wenpei & Shen, Jie & Cong, Xue Fei, 2019. "Gift–image congruence and gift appreciation in romantic relationships: The roles of intimacy and relationship dependence," Journal of Business Research, Elsevier, vol. 103(C), pages 142-152.
    7. Guido, Gianluigi & Pino, Giovanni & Peluso, Alessandro M., 2016. "Assessing individuals' re-gifting motivations," Journal of Business Research, Elsevier, vol. 69(12), pages 5956-5963.
    8. Branco-Illodo, Ines & Heath, Teresa, 2020. "The ‘perfect gift’ and the ‘best gift ever’: An integrative framework for truly special gifts," Journal of Business Research, Elsevier, vol. 120(C), pages 418-424.
    9. Bénédicte de Peyrelongue & Olivier Masclef & Valérie Guillard, 2017. "The Need to Give Gratuitously: A Relevant Concept Anchored in Catholic Social Teaching to Envision the Consumer Behavior," Journal of Business Ethics, Springer, vol. 145(4), pages 739-755, November.
    10. Cheng, Andong & Meloy, Margaret G. & Polman, Evan, 2021. "Picking Gifts for Picky People," Journal of Retailing, Elsevier, vol. 97(2), pages 191-206.
    11. Guglielmo Faldetta, 2011. "The Logic of Gift and Gratuitousness in Business Relationships," Journal of Business Ethics, Springer, vol. 100(1), pages 67-77, March.
    12. Chen, Ning & Petersen, Francine E. & Lowrey, Tina M., 2022. "The effect of altruistic gift giving on self-indulgence in affordable luxury," Journal of Business Research, Elsevier, vol. 146(C), pages 84-94.
    13. Schiffman, Leon G. & Cohn, Deborah Y., 2009. "Are they playing by the same rules? A consumer gifting classification of marital dyads," Journal of Business Research, Elsevier, vol. 62(11), pages 1054-1062, November.
    14. Olsen, Barbara, 2012. "Reflexive introspection on sharing gifts and shaping stories," Journal of Business Research, Elsevier, vol. 65(4), pages 467-474.
    15. Vanhamme, J. & de Bont, C.J.P.M., 2005. "“Surprise Gift” Purchases of Small Electric Appliances: A Pilot Study," ERIM Report Series Research in Management ERS-2005-081-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    16. Park, Yookyung & Yi, Youjae, 2022. "Is a gift on sale “heart-discounted†? Givers’ misprediction on the value of discounted gifts and the influence of service robots," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    17. Nguyen, Hieu P. & Munch, James M., 2011. "Romantic gift giving as chore or pleasure: The effects of attachment orientations on gift giving perceptions," Journal of Business Research, Elsevier, vol. 64(2), pages 113-118, February.
    18. Gupta, Aditya & Eilert, Meike & Gentry, James W., 2020. "Can I surprise myself? A conceptual framework of surprise self-gifting among consumers," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).
    19. Russell Belk, 2007. "Why Not Share Rather Than Own?," The ANNALS of the American Academy of Political and Social Science, , vol. 611(1), pages 126-140, May.
    20. He, Xue-Zhong & Li, Kai & Santi, Caterina & Shi, Lei, 2022. "Social interaction, volatility clustering, and momentum," Journal of Economic Behavior & Organization, Elsevier, vol. 203(C), pages 125-149.

    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:eee:jbrese:v:64:y:2011:i:11:p:1239-1244. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    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.