News Media Channels: Complements or Substitutes? Evidence from Mobile Phone Usage

Journal of Marketing, Forthcoming

56 Pages Posted: 13 Apr 2014

See all articles by Jiao Xu

Jiao Xu

Georgia Institute of Technology - Scheller College of Business

Chris Forman

Cornell University - Dyson School of Applied Economics and Management; Georgia Institute of Technology - Scheller College of Business

Jun B. Kim

HKUST Business School

Koert van Ittersum

University of Groningen

Date Written: April 11, 2014

Abstract

The media industry has undergone a fundamental shift over the last decade as new online distribution channels have proliferated in an unprecedented manner. Although mobile devices have experienced rapid adoption among consumers, their effect on consumer behavior and their subsequent implications for publishers and advertisers have yet to be understood. The authors examine consumers’ news consumption behavior on mobile news websites in response to the introduction of a mobile news app. Pseudo-panel analysis based on repeated cross-sectional data suggests that the introduction of a mobile app by a major national media company leads to a significant increase in demand at the corresponding mobile news website. In addition, the authors report that this effect is greater for consumers with higher appreciation for concentrated news content, with stronger propensity for a particular political viewpoint, and with fewer time constraints. The results are consistent with the interpretation that adoption of a provider’s news app stimulates corresponding mobile news website visits. The authors discuss the implications of these findings for advertisers, media publishers, and policy makers.

Keywords: online media consumption, mobile news app, mobile news website, complementarity, pseudo panel analysis

JEL Classification: C2, C23, C3, C33, M3, M31, M37, D1, L6, L63, L68, L86

Suggested Citation

Xu, Jiao and Forman, Chris and Kim, Jun B. and van Ittersum, Koert, News Media Channels: Complements or Substitutes? Evidence from Mobile Phone Usage (April 11, 2014). Journal of Marketing, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2423960

Jiao Xu (Contact Author)

Georgia Institute of Technology - Scheller College of Business ( email )

800 West Peachtree St.
Atlanta, GA 30308
United States

Chris Forman

Cornell University - Dyson School of Applied Economics and Management ( email )

Ithaca, NY
United States

Georgia Institute of Technology - Scheller College of Business ( email )

800 West Peachtree St.
Atlanta, GA 30308
United States

Jun B. Kim

HKUST Business School ( email )

HKUST
Clearwater Bay
Kowloon
Hong Kong

Koert Van Ittersum

University of Groningen ( email )

Postbus 72
9700 AB Groningen
Netherlands

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