NDLI: Title The role of online buzz for leader versus challenger brands : the case of the MP 3 player market Permalink

Content Provider	Semantic Scholar
Author	Hanssens
Copyright Year	2016
Abstract	Online buzz reflects the perceived quality of products in a positive, negative, or neutral way. We have limited understanding of how customers' quality perceptions, often referred to as e-sentiment, affect the movement of prices. In this paper, we examine the effect of e-sentiment on the daily price fluctuations of MP3 players by using daily buzz information collected from diverse online documents. Econometric panel data modeling reveals that e-sentiment is a leading indicator of price fluctuations. Furthermore, we find the effect is moderated by the brand's market position: the leading (challenger) brand's price responds more strongly to negative (positive) online buzz. In other words, negative buzz has a greater adverse effect on leading brands, whereas positive buzz has a greater beneficial effect on challenger brands. These findings establish the relevance of e-sentiment information to online price movements and suggest that managers should frequently monitor the online buzz surrounding their products, especially as it relates to their relative perceived quality.
File Format	PDF HTM / HTML
Alternate Webpage(s)	https://cloudfront.escholarship.org/dist/prd/content/qt26w3z8w3/qt26w3z8w3.pdf?t=oldl6m
Language	English
Access Restriction	Open
Content Type	Text
Resource Type	Article

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