Header

UZH-Logo

Maintenance Infos

The Effects of Shared Consumption on Product Life Cycles and Advertising Effectiveness: The Case of the Motion Picture Market


Delre, Sebastiano A; Broekhuizen, Thijs L J; Bijmolt, Tammo H A (2016). The Effects of Shared Consumption on Product Life Cycles and Advertising Effectiveness: The Case of the Motion Picture Market. Journal of Marketing Research, 53(4):608-627.

Abstract

Consumers frequently consume hedonic products together with other consumers and derive value from this shared experience. This article investigates the impact of shared consumption, a type of social influence that determines the enjoyment of joint experiences, in the context of a typical hedonic product: movies. The authors argue that this type of influence has important consequences for the diffusion curves of hedonic goods that are consumed together and the effectiveness of advertising in generating launch and postlaunch sales. An empirically validated agent-based model simulates the U.S. motion picture market, with new movies launching, competing, and exiting. The agent-based model serves as a means to demonstrate the essential role of shared consumption for explaining movie life cycles and tests how advertising expenditures accelerate and/or acquire movies’ demand in markets with varying levels of shared consumption. The results provide key theoretical insights for the new product diffusion of hedonic products and help managers predict the financial consequences of their strategic decisions.

Abstract

Consumers frequently consume hedonic products together with other consumers and derive value from this shared experience. This article investigates the impact of shared consumption, a type of social influence that determines the enjoyment of joint experiences, in the context of a typical hedonic product: movies. The authors argue that this type of influence has important consequences for the diffusion curves of hedonic goods that are consumed together and the effectiveness of advertising in generating launch and postlaunch sales. An empirically validated agent-based model simulates the U.S. motion picture market, with new movies launching, competing, and exiting. The agent-based model serves as a means to demonstrate the essential role of shared consumption for explaining movie life cycles and tests how advertising expenditures accelerate and/or acquire movies’ demand in markets with varying levels of shared consumption. The results provide key theoretical insights for the new product diffusion of hedonic products and help managers predict the financial consequences of their strategic decisions.

Statistics

Citations

Dimensions.ai Metrics
7 citations in Web of Science®
10 citations in Scopus®
Google Scholar™

Altmetrics

Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Business Administration
08 Research Priority Programs > Social Networks
Dewey Decimal Classification:330 Economics
Language:English
Date:1 August 2016
Deposited On:03 Apr 2019 15:23
Last Modified:03 Apr 2019 15:24
Publisher:Sage Publications Ltd.
ISSN:0022-2437
OA Status:Closed
Publisher DOI:https://doi.org/10.1509/jmr.14.0097

Download

Full text not available from this repository.
View at publisher

Get full-text in a library