IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v61y2015i8p1921-1937.html
   My bibliography  Save this article

The Demand Effects of Joint Product Advertising in Online Videos

Author

Listed:
  • Anuj Kumar

    () (Warrington College of Business Administration, University of Florida, Gainesville, Florida 32611)

  • Yinliang (Ricky) Tan

    () (A. B. Freeman School of Business, Tulane University, New Orleans, Louisiana 70118)

Abstract

Joint product display in videos may help customers to not only evaluate the attributes of products that can influence their individual demands (direct effect) but also learn about the complementarity between them that may cause additional correlation in their demands (spillover effect). To estimate the demand effects, we introduced videos displaying apparel with matching accessories for a few randomly selected apparel on a fashion retailer’s website. We found that introducing a video resulted in a 14.5% increase in apparel sales and a 28.3% increase in accessories sales. The estimated increase in accessories sales was largely attributed to the spillover effect of videos. Moreover, introducing videos with other product promotions resulted in a significantly higher effect of videos on product demands. Overall, we show how video display of related products can increase their demands in an online product network. This paper was accepted by Sandra Slaughter, information systems .

Suggested Citation

  • Anuj Kumar & Yinliang (Ricky) Tan, 2015. "The Demand Effects of Joint Product Advertising in Online Videos," Management Science, INFORMS, vol. 61(8), pages 1921-1937, August.
  • Handle: RePEc:inm:ormnsc:v:61:y:2015:i:8:p:1921-1937
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.2014.2086
    Download Restriction: no

    References listed on IDEAS

    as
    1. Kapil Bawa & Robert Shoemaker, 2004. "The Effects of Free Sample Promotions on Incremental Brand Sales," Marketing Science, INFORMS, vol. 23(3), pages 345-363, November.
    2. Zhenhui Jiang & Izak Benbasat, 2007. "Research Note---Investigating the Influence of the Functional Mechanisms of Online Product Presentations," Information Systems Research, INFORMS, vol. 18(4), pages 454-470, December.
    3. 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.
    4. Luis M.B. Cabral, 2000. "Stretching Firm and Brand Reputation," RAND Journal of Economics, The RAND Corporation, vol. 31(4), pages 658-673, Winter.
    5. Jay Pil Choi, 1998. "Brand Extension as Informational Leverage," Review of Economic Studies, Oxford University Press, vol. 65(4), pages 655-669.
    6. Puhani, Patrick A. & Sonderhof, Katja, 2010. "The effects of a sick pay reform on absence and on health-related outcomes," Journal of Health Economics, Elsevier, vol. 29(2), pages 285-302, March.
    7. Puneet Manchanda & Asim Ansari & Sunil Gupta, 1999. "The “Shopping Basket”: A Model for Multicategory Purchase Incidence Decisions," Marketing Science, INFORMS, vol. 18(2), pages 95-114.
    8. Felix Oberholzer-Gee & Koleman Strumpf, 2007. "The Effect of File Sharing on Record Sales: An Empirical Analysis," Journal of Political Economy, University of Chicago Press, vol. 115, pages 1-42.
    9. Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-329, March-Apr.
    10. Chrysanthos Dellarocas & Zsolt Katona & William Rand, 2013. "Media, Aggregators, and the Link Economy: Strategic Hyperlink Formation in Content Networks," Management Science, INFORMS, vol. 59(10), pages 2360-2379, October.
    11. Nelson, Philip, 1974. "Advertising as Information," Journal of Political Economy, University of Chicago Press, vol. 82(4), pages 729-754, July/Aug..
    12. Dina Mayzlin & Hema Yoganarasimhan, 2012. "Link to Success: How Blogs Build an Audience by Promoting Rivals," Management Science, INFORMS, vol. 58(9), pages 1651-1668, September.
    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:spr:jglopt:v:70:y:2018:i:2:d:10.1007_s10898-017-0585-y 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:ormnsc:v:61:y:2015:i:8:p:1921-1937. 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.