Interplay between Traditional Media and Social Media: Moderating Role of Product Appeal
35 Pages Posted: 28 Jul 2015 Last revised: 23 Sep 2018
Date Written: August 2018
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
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