The Impact of Social Media on Consumer Demand: The Case of Carbonated Soft Drink Market

Yizao Liu () and Rigoberto Lopez

No 148913, 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. from Agricultural and Applied Economics Association

Abstract: This article estimates the impact of social media exposure on consumer valuation of product characteristics. We apply the Berry, Levinsohn and Pakes (1995) model of market equilibrium to sales data for 18 carbonated soft drink brands sold in 12 cities over 17 months (June 2011 to October 2012) and social media conversations on Facebook, Twitter and YouTube. Empirical results show that social media exposure is a significant driver of consumer behavior through altering evaluation of product characteristics and purchase choices.

Keywords: Consumer/Household Economics; Demand and Price Analysis; Industrial Organization (search for similar items in EconPapers)
Pages: 9
Date: 2013
New Economics Papers: this item is included in nep-com, nep-cul and nep-mkt
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea13:148913

DOI: 10.22004/ag.econ.148913

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