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The Impact of Social Media on Consumer Demand: The Case of Carbonated Soft Drink Market


  • Liu, Yizao
  • Lopez, Rigoberto A.


This article estimates the impact of social media exposure on consumer valuation of product characteristics. We apply the Berry, Levinsohn and Pakes (1995) model of market equilibrium to sales data for 18 carbonated soft drink brands sold in 12 cities over 17 months (June 2011 to October 2012) and social media conversations on Facebook, Twitter and YouTube. Empirical results show that social media exposure is a significant driver of consumer behavior through altering evaluation of product characteristics and purchase choices.

Suggested Citation

  • Liu, Yizao & Lopez, Rigoberto A., 2013. "The Impact of Social Media on Consumer Demand: The Case of Carbonated Soft Drink Market," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 148913, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea13:148913

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    References listed on IDEAS

    1. repec:zwi:journl:v:44:y:2012:i:22:p:2859-2865 is not listed on IDEAS
    2. Smith, Michael D. & Telang, Rahul, 2010. "Piracy or promotion? The impact of broadband Internet penetration on DVD sales," Information Economics and Policy, Elsevier, vol. 22(4), pages 289-298, December.
    3. Stan J. Liebowitz & Alejandro Zentner, 2012. "Clash of the Titans: Does Internet use Reduce Television Viewing?," The Review of Economics and Statistics, MIT Press, vol. 94(1), pages 234-245, February.
    4. Rigoberto A. Lopez & Kristen L. Fantuzzi, 2012. "Demand for carbonated soft drinks: implications for obesity policy," Applied Economics, Taylor & Francis Journals, vol. 44(22), pages 2859-2865, August.
    5. Berry, Steven & Levinsohn, James & Pakes, Ariel, 1995. "Automobile Prices in Market Equilibrium," Econometrica, Econometric Society, vol. 63(4), pages 841-890, July.
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    Cited by:

    1. Huang, Lu & Liu, Yizao, 2014. "The Dynamics of Brand Value in the Carbonated Soft Drinks Industry," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 172389, Agricultural and Applied Economics Association.
    2. Chen, Xuqi & Gao, Zhifeng & House, Lisa, 2016. "Own and Cross-effect of Social Media on Demand for Fresh Produce: A Case of Consumer Preference for California versus Florida Strawberry," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230137, Southern Agricultural Economics Association.

    More about this item


    Social Media; Demand; Consumer behavior; Internet; Carbonated soft drinks; Consumer/Household Economics; Demand and Price Analysis; Industrial Organization; D12; M37; L66;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

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