IDEAS home Printed from https://ideas.repec.org/a/inm/ormksc/v29y2010i4p756-769.html
   My bibliography  Save this article

The Impact of Customer Community Participation on Customer Behaviors: An Empirical Investigation

Author

Listed:
  • René Algesheimer

    () (University of Zurich, 8032 Zurich, Switzerland)

  • Sharad Borle

    () (Jesse H. Jones Graduate School of Business, Rice University, Houston, Texas 77005)

  • Utpal M. Dholakia

    () (Jesse H. Jones Graduate School of Business, Rice University, Houston, Texas 77005)

  • Siddharth S. Singh

    () (Jesse H. Jones Graduate School of Business, Rice University, Houston, Texas 77005)

Abstract

Many firms increasingly offer community venues to their customers to facilitate social interactions amongst them. Prior studies have shown that community participants have high engagement and loyalty toward the firm and provide useful feedback and referrals. However, it is not clear whether community participants are the firm's "fans" to begin with and self-select themselves into the community, or whether community participation leads to increased relational customer behaviors. In the current research, we employ data from a field experiment to help answer this question. The data come from a year-long study conducted by eBay Germany, and they reveal that a simple e-mail invitation significantly increased customer participation in the firm's community. Results also show that community participation had mixed effects on customers' likelihoods of participating in buying and selling behaviors. Community participation did not translate into increased behaviors, as would be commonly expected. Although there is no impact of participation on the number of bids placed or the revenue earned, there is a negative impact of participation on the number of listings and the amount spent. Together, these results suggest that the community participants become more selective and efficient sellers, and they also become more conservative in their spending on the items for which they bid. The results also show that customer community marketing programs may be targeted to a broader set of the firm's customers than just the fans.

Suggested Citation

  • 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.
  • Handle: RePEc:inm:ormksc:v:29:y:2010:i:4:p:756-769
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mksc.1090.0555
    Download Restriction: no

    References listed on IDEAS

    as
    1. Ganesh Iyer & Amit Pazgal, 2003. "Internet Shopping Agents: Virtual Co-Location and Competition," Marketing Science, INFORMS, vol. 22(1), pages 85-106, November.
    2. Vella, Francis & Verbeek, Marno, 1999. "Estimating and Interpreting Models with Endogenous Treatment Effects," Journal of Business & Economic Statistics, American Statistical Association, vol. 17(4), pages 473-478, October.
    3. Angrist, Joshua D, 2001. "Estimations of Limited Dependent Variable Models with Dummy Endogenous Regressors: Simple Strategies for Empirical Practice," Journal of Business & Economic Statistics, American Statistical Association, vol. 19(1), pages 2-16, January.
    4. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
    5. Francis Vella, 1998. "Estimating Models with Sample Selection Bias: A Survey," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 127-169.
    6. Stock, James H & Wright, Jonathan H & Yogo, Motohiro, 2002. "A Survey of Weak Instruments and Weak Identification in Generalized Method of Moments," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(4), pages 518-529, October.
    7. James Heckman & Salvador Navarro-Lozano, 2004. "Using Matching, Instrumental Variables, and Control Functions to Estimate Economic Choice Models," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 30-57, February.
    8. Angrist, Joshua D, 2001. "Estimations of Limited Dependent Variable Models with Dummy Endogenous Regressors: Simple Strategies for Empirical Practice: Reply," Journal of Business & Economic Statistics, American Statistical Association, vol. 19(1), pages 27-28, January.
    9. Ganesh Iyer & Amit Pazgal, 2003. "Erratum: Internet Shopping Agents: Virtual Co-Location and Competition," Marketing Science, INFORMS, vol. 22(2), pages 271-271, November.
    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. repec:eee:joinma:v:28:y:2014:i:3:p:167-183 is not listed on IDEAS
    2. David Trafimow & James M. Leonhardt & Mihai Niculescu & Collin Payne, 2016. "A method for evaluating and selecting field experiment locations," Marketing Letters, Springer, vol. 27(3), pages 437-447, September.
    3. Hinz, Oliver & Schulze, Christian & Takac, Carsten, 2014. "New product adoption in social networks: Why direction matters," Journal of Business Research, Elsevier, vol. 67(1), pages 2836-2844.
    4. Popp, Bastian & Woratschek, Herbert, 2016. "Introducing branded communities in sport for building strong brand relations in social media," Sport Management Review, Elsevier, vol. 19(2), pages 183-197.
    5. Zaglia, Melanie E., 2013. "Brand communities embedded in social networks," Journal of Business Research, Elsevier, vol. 66(2), pages 216-223.
    6. Liao, Junyun & Huang, Minxue & Xiao, Bangming, 2017. "Promoting continual member participation in firm-hosted online brand communities: An organizational socialization approach," Journal of Business Research, Elsevier, vol. 71(C), pages 92-101.
    7. repec:bla:jconsa:v:51:y:2017:i:2:p:448-462 is not listed on IDEAS
    8. repec:eee:joinma:v:27:y:2013:i:4:p:242-256 is not listed on IDEAS
    9. repec:eee:tefoso:v:128:y:2018:i:c:p:10-21 is not listed on IDEAS
    10. repec:eee:tefoso:v:124:y:2017:i:c:p:283-294 is not listed on IDEAS

    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:inm:ormksc:v:29:y:2010:i:4:p:756-769. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc). General contact details of provider: http://edirc.repec.org/data/inforea.html .

    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 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.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.