2. Chae et al. (2017): Spillover effects in seeded word-of-mouth marketing campaigns

Question 1

WOM strong and weak ties

Answer 1

although strong ties are trusted more, weak ties are more influential on a macro-level, because we tend to seek new information from networks that are not our personal network

Question 2

WOM marketing is

Answer 2

the intentional influencing of consumer-to-consumer communications by professional marketing techniques

Question 3

influencer marketing:

Answer 3

seeded marketing campaigns involve firms sending products to selected customers and encouraging them to spread WOM

Question 4

why influencers better than product placement and celebrity endorsement? 5

Answer 4

influencers can target more specific segments
influencers are often closer to their audience
posts are potentially perceived as more authentic
influencers are also community managers
trigger WOM networks

Question 5

Seeded Marketing Campaigns (SMCs) involve

Answer 5

firms sending products to selected customers and encouraging them to spread word of mouth (WOM)

Question 6

WOM spillover effects 3

Answer 6

focal product spillovers (positive) > the largest effect
brand spillover (negative) > the smallest effect
category spillover (negative)

Question 7

Empirical model
to test our hypotheses

Answer 7

we are interested in how FocalSeedSpecialist, which tracks the number of posts about the focal product in SMC in week t by seeds, affects each of the six outcome variables that measure the amount of WOM generated by non-seed consumers

Question 8

WOM spillover effects =

Answer 8

the positive or negative influence of seed WOM about an SMC’s focal product on non-seed WOM about the focal product, the brand or other category products

Question 9

ocal product spillovers =

Answer 9

change in amount of non-seed WOM about focal product

Question 10

brand spillovers =

Answer 10

change in amount non-seed WOM about same brand products

Question 11

category spillovers =

Answer 11

change in amount of non-seed WOM about same category products

Question 12

Results

Answer 12

SMCs increase non-seed WOM about a focal product, and can also reduce WOM about related products at the brand and category levels
followers talk about Chanel lipstick more
followers talk about Chanel powders less
followers talk about L’Oréal lipstick less