Purchase now and consume later: Do online and offline environments drive online social interactions and sales?

Jikyung (Jeanne) Kim, Sanghwa Kim, Jeonghye Choi

Research output: Contribution to journalArticlepeer-review

2 Citations (Scopus)

Abstract

For small local retailers, promoting social interactions on an online platform can be a cost-effective tool to enhance short-term sales and nurture long-term relationships. This paper examines how online purchase and offline consumption environments affect the generation of social interactions as well as sales. Of many environmental variables, we focus mainly on the presence of other offers (online) and retailers (offline). We find that online and offline environmental factors have significant but different effects on the outcomes. Specifically, when more offers of the same kind are displayed in an online platform page, there are less sales and product discussion but more social referral. When a local retailer is in a region populated more by the same kind of service, sales and social interactions are both greater overall. The results suggest that these retailers should optimize their strategies according to their specific objectives when using such platforms.

Original languageEnglish
Pages (from-to)274-285
Number of pages12
JournalJournal of Business Research
Volume120
DOIs
Publication statusPublished - 2020 Nov

Bibliographical note

Funding Information:
The authors are grateful to Kyung Min Park and Hee Jin Mun for generously sharing data. They also thank seminar participants at 2017 Global Fashion Management Conference in Vienna, Austria and at 2018 Global Marketing Conference in Tokyo, Japan. This work is conducted during the second author’s masters study at Yonsei University. This work was supported by the Ministry of Education of the Republic of Korea and the National Research Foundation of Korea ( NRF-2017S1A3A2066788 ). Appendix A

Funding Information:
The authors are grateful to Kyung Min Park and Hee Jin Mun for generously sharing data. They also thank seminar participants at 2017 Global Fashion Management Conference in Vienna, Austria and at 2018 Global Marketing Conference in Tokyo, Japan. This work is conducted during the second author's masters study at Yonsei University. This work was supported by the Ministry of Education of the Republic of Korea and the National Research Foundation of Korea (NRF-2017S1A3A2066788).

Publisher Copyright:
© 2019 Elsevier Inc.

All Science Journal Classification (ASJC) codes

  • Marketing

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