Social Sharing, Public Perception, and Brand Competition in a Horizontally Differentiated Market
研究了消费者在社交媒体上分享品牌购买行为如何影响水平差异化市场中优势品牌和劣势品牌的利润，发现社交分享会强化优势品牌的竞争地位，而劣势品牌扩大忠诚客户群反而可能更易受损。
We examine how social sharing of consumers’ brand purchases (via posting selfies on social media platforms) affects brand competition in a market where different types of consumers, characterized by their distinct personal characteristics (i.e., personalities, hobbies, and lifestyles) and brand preferences (i.e., being loyal to one of two horizontally differentiated brands or neither), all desire accurate public perception of their true type. Our analysis shows that social sharing enhances the profit of the advantaged brand that attracts a larger size of loyal consumers but can hurt the profit of the disadvantaged brand that attracts a smaller size of loyal consumers. That is, in a horizontally differentiated market, social sharing may further strengthen the competitive status of the advantaged brand. Interestingly, the disadvantaged brand may become more likely to suffer from social sharing if it follows the conventional wisdom to expand the loyal segment. When the public can learn a consumer’s true type from other information sources (e.g., the consumer’s online blog), social sharing of consumers’ brand purchases brings a smaller profit gain to the advantaged brand. Our theoretical findings shed light on how brands can devise competitive strategies to leverage the power of social media.