IDEAS home Printed from https://ideas.repec.org/a/pal/jobman/v31y2024i2d10.1057_s41262-023-00318-9.html
   My bibliography  Save this article

Peer effects on brand activism: evidence from brand and user chatter on Twitter

Author

Listed:
  • Mithila Guha

    (San José State University)

  • Daniel Korschun

    (San José State University
    Drexel University)

Abstract

Although brands appear to be taking public stands on sociopolitical issues with increasing frequency, the predictors of such strategies are still under-explored. In this research, we investigate whether the activism of peers has an effect on a brand’s decision to engage in social media activism. Analysing tweets from 177 brands over a five-year period on three prominent sociopolitical issues (Black Lives Matter, LGBTQIA rights, and COVID-19 policies), we find evidence that brands not only monitor and react to peer social media activism, but that such peer effects occur across industries. Furthermore, the data support the notion that brands also monitor consumer reactions to peer social media activism in order to weigh the risk of taking a stand as well as the risk of staying silent. Overall, the findings suggest that while weighing the risks and benefits of engaging in activism on social media, brand managers monitor not only the activism of other brands, but also the real-time public reactions to those initiatives.

Suggested Citation

  • Mithila Guha & Daniel Korschun, 2024. "Peer effects on brand activism: evidence from brand and user chatter on Twitter," Journal of Brand Management, Palgrave Macmillan, vol. 31(2), pages 153-167, March.
  • Handle: RePEc:pal:jobman:v:31:y:2024:i:2:d:10.1057_s41262-023-00318-9
    DOI: 10.1057/s41262-023-00318-9
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41262-023-00318-9
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1057/s41262-023-00318-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Mark T. Leary & Michael R. Roberts, 2014. "Do Peer Firms Affect Corporate Financial Policy?," Journal of Finance, American Finance Association, vol. 69(1), pages 139-178, February.
    2. Childers, Terry L & Rao, Akshay R, 1992. "The Influence of Familial and Peer-Based Reference Groups on Consumer Decisions," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 19(2), pages 198-211, September.
    3. Beth L. Fossen & David A. Schweidel, 2019. "Measuring the Impact of Product Placement with Brand-Related Social Media Conversations and Website Traffic," Marketing Science, INFORMS, vol. 38(3), pages 481-499, May.
    4. Payam Zarafshan & S. Ali A. Moosavian, 2011. "Rigid--flexible interactive dynamics modelling approach," Mathematical and Computer Modelling of Dynamical Systems, Taylor & Francis Journals, vol. 18(2), pages 175-199, July.
    5. Chris Hydock & Neeru Paharia & T. J. Weber, 2019. "The Consumer Response to Corporate Political Advocacy: a Review and Future Directions," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 6(3), pages 76-83, December.
    6. Yuchi Zhang & David Godes, 2018. "Learning from Online Social Ties," Marketing Science, INFORMS, vol. 37(3), pages 425-444, May.
    7. Scharfstein, David S & Stein, Jeremy C, 1990. "Herd Behavior and Investment," American Economic Review, American Economic Association, vol. 80(3), pages 465-479, June.
    8. Aron Culotta & Jennifer Cutler, 2016. "Mining Brand Perceptions from Twitter Social Networks," Marketing Science, INFORMS, vol. 35(3), pages 343-362, May.
    9. Mukherjee, Sourjo & Althuizen, Niek, 2020. "Brand activism: Does courting controversy help or hurt a brand?," International Journal of Research in Marketing, Elsevier, vol. 37(4), pages 772-788.
    10. Seshadri Tirunillai & Gerard J. Tellis, 2012. "Does Chatter Really Matter? Dynamics of User-Generated Content and Stock Performance," Marketing Science, INFORMS, vol. 31(2), pages 198-215, March.
    11. Hee Mok Park & Puneet Manchanda, 2015. "When Harry Bet with Sally: An Empirical Analysis of Multiple Peer Effects in Casino Gambling Behavior," Marketing Science, INFORMS, vol. 34(2), pages 179-194, March.
    12. Ravi Bapna & Akhmed Umyarov, 2015. "Do Your Online Friends Make You Pay? A Randomized Field Experiment on Peer Influence in Online Social Networks," Management Science, INFORMS, vol. 61(8), pages 1902-1920, August.
    13. Sinan Aral & Dylan Walker, 2011. "Creating Social Contagion Through Viral Product Design: A Randomized Trial of Peer Influence in Networks," Management Science, INFORMS, vol. 57(9), pages 1623-1639, February.
    14. Sourjo Mukherjee & Niek Althuizen, 2020. "Brand Activism: Does Courting Controversy Help or Hurt a Brand?," Post-Print hal-03095886, HAL.
    15. David Godes & Dina Mayzlin, 2004. "Using Online Conversations to Study Word-of-Mouth Communication," Marketing Science, INFORMS, vol. 23(4), pages 545-560, June.
    16. Hoppner, Jessica J. & Vadakkepatt, Gautham G., 2019. "Examining moral authority in the marketplace: A conceptualization and framework," Journal of Business Research, Elsevier, vol. 95(C), pages 417-427.
    17. M. Cecilia Bustamante & Laurent Frésard, 2021. "Does Firm Investment Respond to Peers’ Investment?," Management Science, INFORMS, vol. 67(8), pages 4703-4724, August.
    18. Kaustia, Markku & Rantala, Ville, 2015. "Social learning and corporate peer effects," Journal of Financial Economics, Elsevier, vol. 117(3), pages 653-669.
    19. Slater, Stanley F. & Narver, John C., 1994. "Market orientation, customer value, and superior performance," Business Horizons, Elsevier, vol. 37(2), pages 22-28.
    20. Berendt, Johannes & Uhrich, Sebastian & Thompson, Scott A., 2018. "Marketing, get ready to rumble—How rivalry promotes distinctiveness for brands and consumers," Journal of Business Research, Elsevier, vol. 88(C), pages 161-172.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Klement Podnar & Urša Golob, 2024. "Brands and activism: ecosystem and paradoxes," Journal of Brand Management, Palgrave Macmillan, vol. 31(2), pages 95-107, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wei He & Qian Wang, 2020. "The peer effect of corporate financial decisions around split share structure reform in China," Review of Financial Economics, John Wiley & Sons, vol. 38(3), pages 474-493, July.
    2. Jiali Liu & Xinran Xie & Yu Duan & Liang Tang, 2023. "Peer effects and the mechanisms in corporate capital structure: evidence from Chinese listed firms," Oeconomia Copernicana, Institute of Economic Research, vol. 14(1), pages 295-326, March.
    3. Khim-Yong Goh & Cheng-Suang Heng & Zhijie Lin, 2013. "Social Media Brand Community and Consumer Behavior: Quantifying the Relative Impact of User- and Marketer-Generated Content," Information Systems Research, INFORMS, vol. 24(1), pages 88-107, March.
    4. Francis, Bill & Hasan, Iftekhar & Mani, Sureshbabu & Ye, Pengfei, 2016. "Relative peer quality and firm performance," Journal of Financial Economics, Elsevier, vol. 122(1), pages 196-219.
    5. Pauwels, Koen & Aksehirli, Zeynep & Lackman, Andrew, 2016. "Like the ad or the brand? Marketing stimulates different electronic word-of-mouth content to drive online and offline performance," International Journal of Research in Marketing, Elsevier, vol. 33(3), pages 639-655.
    6. Shen, Xieyang & Yang, Sijie & Chen, Yulin & Zeng, Jianyu, 2022. "How does economic policy uncertainty influence managers' learning from peers' stock prices? Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 74(C).
    7. Jaehwuen Jung & Ravi Bapna & Joseph M. Golden & Tianshu Sun, 2020. "Words Matter! Toward a Prosocial Call-to-Action for Online Referral: Evidence from Two Field Experiments," Information Systems Research, INFORMS, vol. 31(1), pages 16-36, March.
    8. Chen, Mingqin & Xie, Jing & Li, Yue, 2022. "Heterogeneity of dividend smoothing: A strategic response to peer competition in China," Pacific-Basin Finance Journal, Elsevier, vol. 76(C).
    9. M. Cecilia Bustamante & Laurent Frésard, 2021. "Does Firm Investment Respond to Peers’ Investment?," Management Science, INFORMS, vol. 67(8), pages 4703-4724, August.
    10. Miguel Godinho de Matos & Pedro Ferreira & Michael D. Smith & Rahul Telang, 2016. "Culling the Herd: Using Real-World Randomized Experiments to Measure Social Bias with Known Costly Goods," Management Science, INFORMS, vol. 62(9), pages 2563-2580, September.
    11. Christof Naumzik & Stefan Feuerriegel & Markus Weinmann, 2022. "I Will Survive: Predicting Business Failures from Customer Ratings," Marketing Science, INFORMS, vol. 41(1), pages 188-207, January.
    12. Khalid Alharbi & Joon Kyoung Kim & Christopher Noland & Jackson Carter, 2022. "When Corporate Social Advocacy Meets Controversial Celebrity: The Role of Consumer–Brand Congruence and Consumer-Celebrity Congruence," Sustainability, MDPI, vol. 14(3), pages 1-19, February.
    13. Hsu, Yuan-Teng & Huang, Chia-Wei & Koedijk, Kees G., 2023. "Unintended consequences of compensation peer groups on corporate innovation," Journal of Corporate Finance, Elsevier, vol. 78(C).
    14. Zhen Peng & Yujun Lian & Joseph A. Forson, 2021. "Peer effects in R&D investment policy: Evidence from China," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(3), pages 4516-4533, July.
    15. Jing Wang & Anocha Aribarg & Yves F. Atchadé, 2013. "Modeling Choice Interdependence in a Social Network," Marketing Science, INFORMS, vol. 32(6), pages 977-997, November.
    16. Mina Ameri & Elisabeth Honka & Ying Xie, 2019. "Word of Mouth, Observed Adoptions, and Anime-Watching Decisions: The Role of the Personal vs. the Community Network," Marketing Science, INFORMS, vol. 38(4), pages 567-583, July.
    17. Peng, Zhen & Lian, Yujun & Forson, Joseph Ato, 2017. "Peer Effects in R&D Investment Policy: Evidence from China," MPRA Paper 102394, University Library of Munich, Germany, revised 20 Jun 2019.
    18. Bitty Balducci & Detelina Marinova, 2018. "Unstructured data in marketing," Journal of the Academy of Marketing Science, Springer, vol. 46(4), pages 557-590, July.
    19. HaiYue Liu & ShiYi Liu & JiaTian Li & Peng Wu, 2021. "An empirical study of Chinese listed firms’ herd behaviour in cross‐border mergers and acquisitions," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(5), pages 6295-6331, December.
    20. Ahmad, Fayez & Guzmán, Francisco & Kidwell, Blair, 2022. "Effective messaging strategies to increase brand love for sociopolitical activist brands," Journal of Business Research, Elsevier, vol. 151(C), pages 609-622.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jobman:v:31:y:2024:i:2:d:10.1057_s41262-023-00318-9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.