Understanding Social Effects in the In-Flight Marketplace: Characterization and Managerial Implications

Pedro M. Gardete
Additional contact information
Pedro M. Gardete: Stanford University

Research Papers from Stanford University, Graduate School of Business

Abstract: This paper investigates the in-flight marketplace. It uses detailed data of inflight purchases to understand social effects in purchase behavior, and determine their potential for designing marketing promotions. We find that on average a passenger is approximately 30% more likely to buy after being exposed to a lateral purchase. Analyses on the underlying mechanisms reveal that the classical social influence theories do not suffice to explain all the patterns in the data. Omission neglect, product contagion and goal balancing are proposed as complementary theories. Finally, we find that consumers' willingness-to-buy is positively correlated with responsiveness to social influence. Because of this homophily and social feedback effects, classically seen as nuisances, can provide targeting value for the firm. Taking them into account in behavioral-based targeting can up to double the social spillovers of marketing actions.

Date: 2014-10
New Economics Papers: this item is included in nep-mfd and nep-mkt
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.gsb.stanford.edu/faculty-research/worki ... erization-managerial
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.gsb.stanford.edu/faculty-research/working-papers/social-effects-flight-marketplace-characterization-managerial [301 Moved Permanently]--> https://www.gsb.stanford.edu/faculty-research/working-papers/social-effects-flight-marketplace-characterization-managerial)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecl:stabus:3134

Access Statistics for this paper

More papers in Research Papers from Stanford University, Graduate School of Business Contact information at EDIRC.
Bibliographic data for series maintained by ().