SOCIAL MEDIA, CONSUMER ATTENTION, AND ABSOLUTE ABNORMAL RETURNS

Alex Jiyoung Kim,Hang Dong,Jikyung (Jeanne) Kim,Jeonghye Choi,Yi Dong 글로벌지식마케팅경영학회 2019 Global Fashion Management Conference Vol.2019 No.07

THE RELATIONSHIP BETWEEN CONSUMER CLICKS AND ADVERTISER BIDS IN SEARCH ADVERTISING

Alex Jiyoung Kim,Sungha Jang,Hyun S. Shin 글로벌지식마케팅경영학회 2018 Global Marketing Conference Vol.2018 No.07

Sponsored search advertising is the largest form of the Internet advertising in terms of advertising expenditure. Although researchers have studied various issues in the sponsored search advertising, they have mainly focused on managing each keyword separately without considering the relationship between different keyword queries. However, this is not consistent with the industry practice, and fails to account for the consumers’ search patterns. Online retailers carry various brands and products from competing manufacturers and their advertising strategy needs to include multiple keywords consistent to their product line. Similarly, consumers sequentially search and click on a number of different keywords at different stages of their decision journey. While it is important to understand advertisers’ bidding strategy and consumers’ search behavior in an integrated manner, the previous research in marketing has less explored the interplay between advertisers bids and consumer searches in a multiple keyword setting. We address these issues and offer practical implications on how advertisers should optimally and simultaneously bid on multiple keywords, incorporating consumers click behavior on multiple keywords. This study empirically examines the relationships between consumers’ clicks and online retailers’ bidding strategy on multiple keywords of competing manufacturer brands of 242 retailers. Our data contain daily information of the most popular keywords in a running shoes category on different search advertising metrics. Based on the consumer decision journey and purchase funnel framework, we classify the keywords into different groups following a hierarchical structure of the generic, brands, and models levels and examine the relationships between different keyword groups. Our main findings show that consumers usually click on multiple keywords of each manufacturer brand in a manner consistent with the consumer decision journey or purchase funnel framework, and that consumers are less likely to click on keywords across competing brands. However, online retailers’ bidding pattern is different from consumers’ click behavior in that they simultaneously bid on multiple keywords of competing manufacturer brands at the different hierarchy levels. In sum, our results provide online retailers useful insights to improve their keyword management practice, based on the relationship we identified on the consumer clicks and advertiser bids.

MULTIPLE KEYWORD MANAGEMENT IN SPONSORED SEARCH ADVERTISING

Alex Jiyoung Kim,Sungha Jang,Hyun S. Shin 글로벌지식마케팅경영학회 2017 Global Fashion Management Conference Vol.2017 No.07

Search advertising, the paid listings on a search engine website based on consumers’ keyword searches, has become one of the most important advertising formats and have thus received a huge amount of attention from both academics and practitioners. While many researchers have studied search advertising in a single keyword framework, in practice, consumers’ search usually involve multiple keywords related to their purchase, and similarly, firms advertise on a set of related keywords. Thus, understanding a utilization of multiple keywords is important for firms to efficiently allocate their advertising budget to each keyword, based on consumers’ decision of which keywords to search and which advertising to click. Therefore, this study aims to examine consumers’ search behavior in terms of their click decisions and retailers’ bidding strategy over a set of related multiple keywords. We empirically examine the aforementioned issues regarding consumer clicks and advertiser bids in a search advertising campaign. We use in our empirical analysis a unique dataset containing a number of related keywords in a running shoes product category, in which consumers frequently make online purchases, pertaining to two leading brands in the product category, Nike and Adidas. Based on the consumer purchase funnel framework, we have classified the keywords into five keyword groups at three different levels, the category, brand, and model level keywords. Our data contain daily information from 242 online retailers on their search advertising metrics such as payments per clicks, bids, quality scores, ranks, and the number of clicks from September 1, 2012 to November 30, 2012. Our empirical findings show that overall, consumers search for keywords in a manner consistent with purchase funnel, although some inconsistencies exist in the detailed behavior, depending on different keyword groups and brands. Our findings also show that retailers simultaneously bid on multiple keywords at different stages of the consumer purchase funnel, suggesting that retailers regard the different keywords as strategic complements. However, our findings suggest that retailers’ allocation of their bids across multiple keywords are often inconsistent with the consumer search behavior. Those findings provide advertisers with new insights on multiple keyword management to develop and implement a more effective search advertising strategy.

COMPETITION BETWEEN GENERALIST AND SPECIALIST IN A SMALL BUSINESS CONTEXT

Jeeyeon Kim,Woo Yong Jo,Alex Jiyoung Kim,Jeonghye Choi 글로벌지식마케팅경영학회 2017 Global Fashion Management Conference Vol.2017 No.07

This paper aims to expand our understanding on the success factors of small businesses, which comprise of more than 90 percent of all businesses in U.S. in 2016. One of the most critical issues behind small business success is the competition, which becomes increasingly intense. Not only small businesses fiercely compete with larger competitors (e.g. Emergence of mega-retailers such as Wal-Mart has intensified the competition in the grocery industry, and, as a result, many mom and pop stores have gone out of business.), but also the competition against each other (i.e. competition between small businesses) becomes increasingly aggressive. Yet, the current literature in marketing have less investigated the issue of competition between small businesses, while issues on competition between small and large businesses have been somewhat explored. Another phenomenon in small business that has not received much attention is the competition between generalist and specialist firms. This phenomenon of specialist versus generalist competition is in fact frequently observed in many industries. Therefore, we study competition between small businesses, focusing on the competition between generalist and specialist small businesses. We examine how competitive intensity, as well as market environmental factors, affect the performance of small businesses. Specifically, we decompose the competitive intensity into two types, one between generalists and the other between specialists, in order to identify the differential effects of competition between generalist and specialist, and examine their impacts on the generalist and specialist performance. Given the research questions above, we develop the following hypotheses based on the past research in marketing. First, we expect competition has a positive effect on generalist performance, while we expect the opposite effect on specialist performance. We also expect that the effect of competition becomes weaker, as the competition becomes more intense. That is, the positive (negative) impact of competition on generalist (specialist) performance becomes less significant as there are more competitors in the market. We further expect that competition between the same type of businesses (e.g. between generalists) has a positive effect on their performance, while competition between the difference types (e.g. between generalist and specialist) has a negative effect on their performance. Moreover, we expect that market environmental factors have differential effects on the performance of generalist and specialist. To test the aforementioned hypotheses on the small business competition between generalist and specialist, we collected data from the health care industry on private physician practices (offices) in Korea. Out data contain, for each practice, monthly sales, number of doctors, number of nurses, type of practice, number of beds and zip code it is located in. We also have data on average consumer spending, average medical spending, percentage of patients over sixty years old for each zip code. Moreover, we have data on competition between the same type of offices (e.g. between generalists and between specialists) and competition between different types (e.g. between generalist and specialist). Note that our data collected from the Korean health care industry fit our research questions well. First, the majority of medical service providers in Korea are small private practices with an average number of two doctors, and the share of generalist and specialist practices are about half-and-half. Second, unlike the U.S. health care industry, generalist physicians in Korea usually practice a number of different fields, while specialist physicians focus on their own specialties. Third, patients in Korea do not usually distinguish between generalist and specialist offices, and they do not usually have a primary care physician. As a result, patients can easily switch between physicians, and in fact the switching is highly likely, as all medical information is centralized by government. Our main findings are as follows. First, we find that competition has a positive effect on generalist performance, while it has a negative effect on specialist performance. Specifically, we find that generalist benefits from competition with both generalist and specialist, while specialist suffers from the competition with both specialist and generalist. As competition becomes intense, meaning the number of physician offices increases, it would attract more patients to visit the area where physician offices are clustered (clustering effect), while it becomes easier for patients to switch from one to the other nearby offices. In particular, as generalist usually treats multiple fields (specialties), generalist tends to benefit from the patients who switch from specialist. In other words, generalists benefit from competition, as they free ride on clustering of physicians including specialists, while specialists would suffer from competition. Second, our findings show that as the competition becomes more intense, its effect on business performance becomes weaker. That is, a high level of competition weakens the benefits and damages imposed on the performance of generalist and specialist, respectively. When there are more physician offices to switch, the effect of free riding becomes weaker, as patients have more options to choose from. Thus, the benefit of generalist from free riding becomes weaker, as well as the negative effect on specialist performance. Moreover, our findings suggest that market environmental factors do influence the business performance. Specifically, the performance of both generalist and specialist improves as the number of doctors increases. However, an increase in the number of nurses has a different effect on generalist and specialist. Employing a larger group of nurses has a negative effect on generalist because it might cause the operation of the office to be less efficient. However, since specialist’s practice usually involves a more technical and sophisticated processes, a larger group of nurses could make the office more efficient having a positive impact on the sales performance. Similarly, we find the effects of other environmental factors have differential impacts on the performance of specialist versus generalist.

ELDERLY CONSUMERS AND SPATIAL COMPETITION: EVIDENCE FROM THE HEALTH CARE SERVICE INDUSTRY

Jeeyeon Kim,Alex Jiyoung Kim,Wooyong Jo,Jeonghye Choi 글로벌지식마케팅경영학회 2020 Global Marketing Conference Vol.2020 No.11

스마트 제품 혁신성과 소비자 가치 평가: 스마트폰 제품을 중심으로

이건웅(Gunwoong Lee),김지영(Alex Jiyoung Kim),배경한(Kyeonghan Bae),황정현(JaungHyun Hwang) 대한경영학회 2020 大韓經營學會誌 Vol.33 No.8

THE EFFECTS OF MERGERS AND ACQUISITIONS ON BRAND LOYALTY IN LUXURY BRANDS

Yerim Chung,Jeonghye Choi,Alex Jiyoung Kim,Hangeun Lee 글로벌지식마케팅경영학회 2018 Global Marketing Conference Vol.2018 No.07

This paper examines the effects of the mergers and acquisitions (M&A) announcement through social media on the consumer perception of the luxury brand consumption. A M&A is becoming more wide spread in the luxury market. Yet, the academic research examining the M&A in the luxury brand context has been sparse albeit the growing interests. Moreover, previous research has not paid attention to the effect of social media as a vehicle to communicate the M&A deal with consumers although social media is increasingly used by luxury brands in their brand communication these days. We aim to fill the gap in the luxury brand literature by examining how a horizontal M&A announcement delivered through social media would affect the brand loyalty derived from the luxury consumption values. Specifically, our research focuses on the four distinctive luxury brand values, which are symbolic, experiential, economic and quality values as well as the perceived sustainability of the M&A deal. We examine how a M&A announcement would affect these five values which in turn influence the brand loyalty, as well as examining the differential effect of social media and non-social media as a brand communication vehicle. In addition, we examine how the vertically differentiated luxury brand perceptions (i.e. different luxury tiers) between acquiring and acquired brands influence the consumption values and brand loyalty. Using a scenario-based online survey, our results reveal several interesting insights on the luxury brand M&A. First, our results show that use of social media as a communication vehicle has differential effects on how the M&A announcement influences consumption values and brand loyalty, comparing with the non-social media communication vehicle. Second, we find that a M&A announcement via social media has a positive impact on the consumer values. Third, the symbolic and experiential values have a positive influence on the brand loyalty, regardless of the luxury tier difference between brands. Fourth, our results show that the perceived sustainability has a positive impact on the brand loyalty as long as the M&A was completed between brands at different tiers. Fourth, the perceived quality has a positive impact on the brand loyalty only if the brand is acquired by a less prestigious brand. Lastly, economic value has a positive impact on the brand loyalty only if the acquiring brand is of more luxurious. In sum, our paper provides useful insights to both academics as well as practitioners in the luxury brand M&A context.

제품 및 리뷰 유형이 리뷰 의존도에 미치는 영향

배경한(Kyeonghan Bae),정동영(Dongyoung Jeong),김지영(Alex Jiyoung Kim) 한국소비문화학회 2023 소비문화연구 Vol.26 No.1

최근 COVID-19 확산과 함께 온라인 쇼핑 빈도가 증가하며, 소비자들은 온라인 쇼핑에 내재되어 있는 제품 불확실성을 줄이기 위해 제품 리뷰에 의존하는 경향이 높아지고 있다. 마케팅 맥락에서의 리뷰 연구들은 주로 제품 유형(물질재 vs. 경험재)에 따라 달라지는 소비자들의 리뷰 의존도에 초점을 두고 진행되어 왔지만 일관된 결과를 제시하지 못하고 있는 실정이다. 더욱이, 시각적인 정보를 제공하여 객관성을 전달하는 사진 및 동영상이 추가된 리뷰(vs. 텍스트)에 대한 제품 판매자 및 소비자들의 수요가 늘어나고 있음에도 이에 대한 고찰과 마케팅적 가치에 대한 연구는 부족하다. 따라서 본 연구에서는 제품 유형에 따라 달라지는 소비자 리뷰 의존도에 대한 일관되지 못한 연구 결과를 통합하고, 리뷰의 유형에 따른 조절 효과를 알아보고자 한다. 국내 검색 엔진의 쇼핑 데이터에 바탕을 둔 연구 결과는 다음과 같다. 먼저 소비자는 물질재 제품을 구매할 때 보다 경험재 제품을 구매할 때 리뷰에 덜 의존하는 경향이 있는 것으로 나타났으며, 텍스트 리뷰가 사진 및 동영상이 추가된 리뷰 보다 리뷰 의존도에 더 긍정적 영향을 미치는 것으로 파악되었다. 하지만 경험재 제품을 구매할 때 사진 및 동영상이 추가된 리뷰가 제시되면 부정적이던 리뷰 의존도가 상쇄되는 것으로 나타났다. 이는 사진 및 동영상이 추가된 리뷰가 온라인 쇼핑의 불확실성을 감소시킬 수 있다는 사실로 해석될 수 있다. 따라서 본 연구는 소비자는 물질재 제품을 구매 할 때 리뷰에 더 의존한다는 결과를 제시함으로써 일관되지 못한 선행 연구 결과를 통합하며, 사진 및 동영상이 포함된 리뷰가 쇼핑 불확실성을 줄이는데 효과적임을 제시할 수 있다. As consumers' online shopping has increased due to the recent spread of COVID-19, consumers are increasingly relying on product reviews to reduce the uncertainty inherent in online shopping. Accordingly, many previous research have emphasized the importance of reviews, but studies related to reviews in the marketing context have mainly focused on the impact of reviews that vary rely on product types (materials vs. experiential). Nevertheless, the results of previous research are mixed. In particular, there is a lack of research on the marketing value and consideration of reviews (vs. text) with added photos and videos that can be used as a tool to reduce the uncertainty of online shopping. Therefore, this research analyzes the effect of product types on review rely and integrates mixed research results. In addition, we would like to find out how reviews with added photos and videos affect the rely on reviews that vary relying on the product type. The research results based on shopping data of domestic search engines are as follows. First, it was found that consumers tend to rely more on reviews when purchasing material goods products. Reviews with added photos and videos were found to have a negative effect on review dependence rather than reviews consisting only of text, which was found to be offset when purchasing experienced products. This can be interpreted as the fact that photo and video reviews can reduce the uncertainty of online shopping. Therefore, this research integrates mixed previous research results by first suggesting that consumers rely more on reviews when purchasing material products to reduce shopping uncertainty, and second, it can suggest that reviews containing photos and videos are effective in reducing this uncertainty.

THE IMPACT OF COVID-19 ON ONLINE SEARCH ADVERTISING MARKET

Sehyun Lee,Dongyoung Jeong,Kyeonghan Bae,Jaunghyun Hwang,Alex Jiyoung Kim 글로벌지식마케팅경영학회 2023 Global Marketing Conference Vol.2023 No.07

Covid-19 pandemic has significantly affected online advertising market. The pandemic has changed customers’ shopping behavior by decreasing customer traffic in offline businesses but increasing customers’ online activities that has led to growth of online shopping and advertising. While the outbreak of Covid-19 has sparked growth of online advertising in general, its impact on various industries may not be the same, given the differences in product characteristics and consumer behavior across different products and services. This paper aims to address this question by empirically examining how Covid-19 has affected online search advertising market. First, we examine how Covid-19 has affected the behavior of online users and advertisers, the main stakeholders in the search advertising market, in terms of user traffic and clicks and advertiser bids and payments. Second, we examine if the impacts of Covid-19 on behavior of online users and advertisers would be different in various industries.