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The effect of in-store electronic word of mouth on local competitor spillovers in the quick service restaurant industry

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Listed:
  • Syagnik Banerjee

    (University of Michigan)

  • Argha Sen

    (Salisbury University)

  • Debra Zahay

    (St. Edward’s University, The Bill Munday School of Business)

Abstract

The quick service restaurant (QSR) industry operates in a highly competitive environment with close proximity, facilitating switching behavior. Therefore, QSRs have experimented with menus, developed personalized experiences, and pioneered new methods of ordering and delivery to improve sales and revenue. A less used method by QSRs is managing social media resources, particularly electronic word-of-mouth (eWOM), to obtain competitive advantage. This paper explores the effect of in-store engagement in the form of geolocated social media messages containing product-brand mentions in QSRs by combining data from multiple digital data sources. This research supports the ideas that parasocial (not face-to-face) interactions such as likes, retweets, and replies fully mediate the effect of in-store engagement on local competitor visits over the next 30 days, and that the direction of this effect can vary with competitor density in the location. This research suggests how QSRs can use social media to improve local market positions.

Suggested Citation

  • Syagnik Banerjee & Argha Sen & Debra Zahay, 2025. "The effect of in-store electronic word of mouth on local competitor spillovers in the quick service restaurant industry," Electronic Commerce Research, Springer, vol. 25(3), pages 2135-2153, June.
    • Handle: RePEc:spr:elcore:v:25:y:2025:i:3:d:10.1007_s10660-023-09742-0
    DOI: 10.1007/s10660-023-09742-0
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