Technology-enabled community data for gaining pre-release brand insights

Pradeep Kumar Ponnamma Divakaran
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Pradeep Kumar Ponnamma Divakaran: ESC [Rennes] - ESC Rennes School of Business

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Abstract: In the past, studies have investigated brand equity only in the ‘post-launch' context, hence missing opportunities to make early corrections in cases of negative favourability. Using technology-enabled online community data, this study examines whether ‘pre-launch' brand favourability can predict community's post-launch purchase decisions, by introducing a new construct called community-based brand equity (CoBBE). This study also investigates whether CoBBE can predict future sales of new products. Weekly data are collected for eight weeks before and after product launch from a movie-based online community for a period of 16 months. The results show that community-based variables such as pre-launch brand awareness level, brand favourability and brand strength have a significant influence on 1) community members' post-release purchase decisions both in the opening week as well as the entire lifetime of products, and 2) satisfaction level. The study also finds that CoBBE is a significant predictor of future market sales, thus showing the usefulness of CoBBE as an early warning diagnostic tool which will enable movie studios to gain early brand-related insights as well as to make early corrective actions when needed.

Keywords: Online community; Brand awareness; Brand favourability; Brand equity; Sales prediction (search for similar items in EconPapers)
Date: 2018-02
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Citations: View citations in EconPapers (1)

Published in Technological Forecasting and Social Change, 2018, 127, pp.217-226. ⟨10.1016/j.techfore.2017.09.024⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01999624

DOI: 10.1016/j.techfore.2017.09.024

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