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

37 Pages Posted: 28 Jul 2015 Last revised: 29 Aug 2016

Yinan Yu

The University of Hong Kong

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 1, 2016

Abstract

Multiple media have been widely employed by marketers to promote brands, but previous literature documents different and opposing results in terms of how media interaction affects business outcomes. This paper extends the multichannel management literature by examining the interplay between traditional media advertising and social media marketing and how product appeal moderates this interaction. We first develop a stylized analytical model to show that traditional media advertising is more likely to complement social media marketing for narrow appeal products, but is more likely to substitute social media marketing for broad appeal products. Then, we empirically test this analytical result in the motion picture industry 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 marketing literature and offers managerial implications for channel coordination decisions.

Keywords: social media marketing, traditional media advertising, multiple media interplay, product appeal, motion picture industry, substitution, complementarity

Suggested Citation

Yu, Yinan and Qiu, Liangfei and Chen, Hailiang and Yen, Benjamin P. C., Interplay between Traditional Media and Social Media: The Moderating Role of Product Appeal (August 1, 2016). Available at SSRN: https://ssrn.com/abstract=2630910 or http://dx.doi.org/10.2139/ssrn.2630910

Yinan Yu (Contact Author)

The University of Hong Kong ( email )

Pokfulam Road
Hong Kong, Pokfulam HK
China

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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