Product Fit Uncertainty and Interplay between Traditional Advertising and Social Media Marketing

39 Pages Posted: 28 Jul 2015 Last revised: 3 Aug 2020

See all articles by Yinan Yu

Yinan Yu

Desautels Faculty of Management, McGill University

Liangfei Qiu

University of Florida - Warrington College of Business Administration

Hailiang Chen

HKU Business School

Benjamin P. C. Yen

The University of Hong Kong - School of Business

Date Written: July 2020

Abstract

Although brands have widely adopted multiple marketing communication media, our understanding of how to effectively coordinate traditional advertising and social media marketing to improve business outcomes is still limited. This paper examines the role of product fit uncertainty in determining how traditional advertising, social media marketing, and their interaction affect product sales differently in the context of the motion picture industry. We first find that traditional advertising is more effective for products with a lower level of fit uncertainty, while social media marketing benefits products with a higher level of fit uncertainty more. More importantly, the interplay between traditional advertising and social media marketing is more likely to be substitutive for low fit uncertainty products and complementary for high fit uncertainty products. Consistent with this finding, we show that marketers’ social media posts featuring experience attributes have a larger effect on the sales of high fit uncertainty products, while social media posts featuring search attributes benefit low fit uncertainty product more. This study sheds lights on how firms can align their multi-channel marketing strategy with product characteristics and effectively communicate the relevant product information with customers to enhance sales.

Keywords: social media channel, channel management, product appeal, substitution, complementarity, movie promotion

Suggested Citation

Yu, Yinan and Qiu, Liangfei and Chen, Hailiang and Yen, Benjamin P. C., Product Fit Uncertainty and Interplay between Traditional Advertising and Social Media Marketing (July 2020). Available at SSRN: https://ssrn.com/abstract=2630910 or http://dx.doi.org/10.2139/ssrn.2630910

Yinan Yu (Contact Author)

Desautels Faculty of Management, McGill University ( email )

526 Bronfman Building
1001 Sherbroke West
Montreal, Quebec
Canada

Liangfei Qiu

University of Florida - Warrington College of Business Administration ( email )

Gainesville, FL 32611
United States

HOME PAGE: http://sites.google.com/site/qiuliangfei/

Hailiang Chen

HKU Business School ( email )

K. K. Leung Building
University of Hong Kong
Hong Kong

HOME PAGE: http://www.fbe.hku.hk/people/academic/hailiang-chen

Benjamin P. C. Yen

The University of Hong Kong - School of Business ( email )

Meng Wah Complex
Pokfulam Road
Hong Kong
China

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