The Effect of Customers
[ABSTRACT READ IN FULL at the Crossref item record; full text not read] Rishika, R., Kumar, A., Janakiraman, R., & Bezawada, R. (2013). 'The Effect of Customers' Social Media Participation on Customer Visit Frequency and Profitability: An Empirical Investigation.' Information Systems Research, 24(1), 108-127. doi:10.1287/isre.1120.0460. they assemble a novel data set that combines customers' social media participation data with individual customer-level transaction data, and to account for endogeneity arising from customer self-selection they combine propensity score matching with difference-in-differences analysis. The result: participation increases the frequency of customer visits, the effect is greater when activity on the social media site is high and for customers with strong patronage who buy premium products and show lower buying focus and deal sensitivity, and the same results hold for customer profitability. THE MODERATOR IS THE FINDING, AND IT CUTS AGAINST THE STRATEGY: the effect is largest for customers who already have a strong relationship with the firm, so even taking the design at face value, what it describes is an amplifier on existing patronage rather than an engine of new patronage. Matching plus difference in differences is a serious attempt on self-selection and is not randomisation.
[ABSTRACT READ IN FULL at the Crossref item record; full text not read] Rishika, R., Kumar, A., Janakiraman, R., & Bezawada, R. (2013). 'The Effect of Customers' Social Media Participation on Customer Visit Frequency and Profitability: An Empirical Investigation.' Information Systems Research, 24(1), 108-127. doi:10.1287/isre.1120.0460. they assemble a novel data set that combines customers' social media participation data with individual customer-level transaction data, and to account for endogeneity arising from customer self-selection they combine propensity score matching with difference-in-differences analysis. The result: participation increases the frequency of customer visits, the effect is greater when activity on the social media site is high and for customers with strong patronage who buy premium products and show lower buying focus and deal sensitivity, and the same results hold for customer profitability. THE MODERATOR IS THE FINDING, AND IT CUTS AGAINST THE STRATEGY: the effect is largest for customers who already have a strong relationship with the firm, so even taking the design at face value, what it describes is an amplifier on existing patronage rather than an engine of new patronage. Matching plus difference in differences is a serious attempt on self-selection and is not randomisation.
Written from the aBSTRACT READ IN FULL at the Crossref item record; full text not read.
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Social Media Participation on Customer Visit Frequency and Profitability: An Empirical Investigation.' Information Systems Research, 24(1), 108-127. doi:10.1287/isre.1120.0460