Purchase Decisions From Social Media Marketing, Product Innovation, and Celebrity Endorser

Product Innovation and Product Innovation Marketing: Theory and Microeconometric Evidence

This paper derives a three stage Cournot–oligopoly game for product innovation, expenditure on introducing the product and competition on the product market. Product innovation is assumed to increase consumer utility but is effective only if the innovating firm invests in marketing, so that consumers become aware of the newly developed product. Firms first decide whether or not to conduct produ...

Repeat Purchase Decisions under Sequential Innovation

Improving technologies create a “buy or wait?” dilemma. In this paper, we consider repeat purchases when the consumer faces an infinite stream of new technologies. We develop a probabilistic model and focus on the role of “more variability” on the process of technological innovation. Similar to real options models, we find that variability in the technological process increases value for the co...

Persuasiveness of Celebrity Endorsed Advertising and a New Model for Celebrity Endorser Selection

Advertising Effectiveness on Social Network Sites: An Investigation of Tie Strength, Endorser Expertise and Product Type on Consumer Purchase Intention

Social network sites (SNSs) can create new marketing opportunities by leveraging on members’ online social networks. In particular, such sites can produce a new type of product endorser – “friend endorser”, whose effectiveness remains unknown as compared to other types of product endorsers. This paper investigated the impact of three critical factors on advertising effectiveness of different ty...

From Social Media to Social Product Development: The Impact of Social Media on Co-Creation of Innovation

The objective of this paper is to discuss the impact of social media on customer co-creation in the innovation process. Customer cocreation denotes an active, creative and social collaboration process between producers and customers (users), facilitated by a company, in the context of new product or service development. We propose a typology of co-creation activities in order to develop concept...