How Does Popularity Information Affect Choices? A Field Experiment

• Published in: Management science Vol. 57; no. 5; pp. 828 - 842
• Main Authors: Tucker, Catherine, Zhang, Juanjuan
• Format: Journal Article
• Language: English
• Published: Hanover, MD INFORMS 01.05.2011; Institute for Operations Research and the Management Sciences
• Series: Management Science
• Subjects: Analysis; Applied sciences; Catering; Computer science; control theory; systems; Computer systems and distributed systems. User interface; Consumer behaviour; Consumer preferences; Customer relations; Customers; Empirical research; Enrollments; Exact sciences and technology; Expected utility; Experiments; field experiment; Field experiments; Firm modelling; Flower shops; Hypotheses; Impact analysis; Influence; Information; Information services; Internet; Internet marketing; Management science; Market share; Marketing; Marketing strategies; Observational learning; Online information services; Online services; Operational research and scientific management; Operational research. Management science; Popularity; popularity information; Probability; Sales; Sales management; Software; Studies; Taste; Vendors; Websites; Wedding supplies and services industry; Weddings; United States; Information market; Internet marketing; field experiment; Market survey; observational learning; Marketing; Sales; popularity information; Market information; Data field; Internet; Niche market; Web site
• ISSN: 0025-1909; 1526-5501
• DOI: 10.1287/mnsc.1110.1312

Popularity information is usually thought to reinforce existing sales trends by encouraging customers to flock to mainstream products with broad appeal. We suggest a countervailing market force: popularity information may benefit niche products with narrow appeal disproportionately, because the same level of popularity implies higher quality for narrow-appeal products than for broad-appeal products. We examine this hypothesis empirically using field experiment data from a website that lists wedding service vendors. Our findings are consistent with this hypothesis: narrow-appeal vendors receive more visits than equally popular broad-appeal vendors after the introduction of popularity information. This paper was accepted by Pradeep Chintagunta, marketing.