How Does Popularity Information Affect Choices? A Field Experiment
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...
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| Published in | Management science Vol. 57; no. 5; pp. 828 - 842 |
|---|---|
| Main Authors | , |
| Format | Journal Article |
| Language | English |
| Published |
Hanover, MD
INFORMS
01.05.2011
Institute for Operations Research and the Management Sciences |
| Series | Management Science |
| Subjects | |
| Online Access | Get full text |
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| Abstract | 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. |
|---|---|
| AbstractList | 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. 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. 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. Reprinted by permission of the Institute for Operations Research and Management Science (INFORMS) 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. Key words: popularity information; observational learning; field experiment; Internet marketing History: Received October 15, 2009; accepted January 6, 2011, by Pradeep Chintagunta, marketing. Published online in Articles in Advance March 25, 2011. 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. 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. [PUBLICATION ABSTRACT] |
| Audience | Trade Academic |
| Author | Tucker, Catherine Zhang, Juanjuan |
| Author_xml | – sequence: 1 givenname: Catherine surname: Tucker fullname: Tucker, Catherine – sequence: 2 givenname: Juanjuan surname: Zhang fullname: Zhang, Juanjuan |
| BackLink | http://www.econis.eu/PPNSET?PPN=662651626$$DView this record in ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften http://pascal-francis.inist.fr/vibad/index.php?action=getRecordDetail&idt=24158318$$DView record in Pascal Francis http://econpapers.repec.org/article/inmormnsc/v_3a57_3ay_3a2011_3ai_3a5_3ap_3a828-842.htm$$DView record in RePEc |
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| Snippet | Popularity information is usually thought to reinforce existing sales trends by encouraging customers to flock to mainstream products with broad appeal. We... |
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| SubjectTerms | 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 |
| Title | How Does Popularity Information Affect Choices? A Field Experiment |
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