Interplay between Traditional Media and Social Media: Moderating Role of Product Appeal

35 Pages Posted: 28 Jul 2015 Last revised: 23 Sep 2018

Yinan Yu

Desautels Faculty of Management, McGill University

Liangfei Qiu

University of Florida - Warrington College of Business Administration

Hailiang Chen

City University of Hong Kong - Department of Information Systems

Benjamin P. C. Yen

The University of Hong Kong - School of Business

Date Written: August 2018

Abstract

Multiple media have been widely employed to promote brands, but previous literature documents different and opposing results in terms of how media interaction affects business outcomes and operations. This paper extends the multichannel management literature in operations management by examining the interplay between traditional media and social media channels and how product appeal moderates this interaction in the motion picture industry. Our results provide important implications for movie distributors’ operations decisions (e.g., distribution planning): We first develop a stylized analytical model to show that traditional media channel is more likely to complement social media channel for narrow appeal products, but is more likely to substitute social media channel for broad appeal products. Then, we empirically test this analytical result using social media data collected from Facebook and traditional advertising expenditure data from Kantar Media. The empirical results lend support to our central hypothesis. This study provides a theoretical explanation that reconciles the mixed results in the multichannel management literature and offers managerial implications for channel coordination decisions.

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., Interplay between Traditional Media and Social Media: Moderating Role of Product Appeal (August 2018). 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

City University of Hong Kong - Department of Information Systems ( email )

Kowloon Tong
Hong Kong

HOME PAGE: http://www.cb.cityu.edu.hk/staff/hailchen/

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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