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Social Contagion and Customer Adoption of New Sales Channels

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  • Bilgicer, Tolga
  • Jedidi, Kamel
  • Lehmann, Donald R.
  • Neslin, Scott A.

Abstract

We develop and test hypotheses regarding the role of social contagion in customer adoption of new sales channels. We examine two aspects of social contagion (local contagion and homophily) and two channels (Internet and bricks-and-mortar store). Drawing on diffusion theory, we propose a conceptual framework that identifies the factors associated with new channel adoption. Using longitudinal data from a major catalog company and a discrete-time hazard model, we find that (1) social contagion plays a major role in the adoption of new sales channels, (2) both local contagion and homophily influence channel adoption, (3) longer-tenured customers are less influenced by social contagion, and (4) adoption of the Internet channel is more influenced by social contagion than adoption of the bricks-and-mortar store. Managerially, our results suggest that marketing programs that encourage social contagion, for example, word-of-mouth campaigns, be targeted based on both physical and socio-economic proximity, and that such campaigns will play a bigger role in the adoption of new-to-the-world channels.

Suggested Citation

  • Bilgicer, Tolga & Jedidi, Kamel & Lehmann, Donald R. & Neslin, Scott A., 2015. "Social Contagion and Customer Adoption of New Sales Channels," Journal of Retailing, Elsevier, vol. 91(2), pages 254-271.
    • Handle: RePEc:eee:jouret:v:91:y:2015:i:2:p:254-271
    DOI: 10.1016/j.jretai.2014.12.006
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    5. Saghiri, Soroosh & Wilding, Richard & Mena, Carlos & Bourlakis, Michael, 2017. "Toward a three-dimensional framework for omni-channel," Journal of Business Research, Elsevier, vol. 77(C), pages 53-67.
    6. Barwitz, Niklas & Maas, Peter, 2018. "Understanding the Omnichannel Customer Journey: Determinants of Interaction Choice," Journal of Interactive Marketing, Elsevier, vol. 43(C), pages 116-133.
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    8. TANASE, George Cosmin, 2019. "The Influence of Digital Transformation on the Retailing Value Chain," Romanian Distribution Committee Magazine, Romanian Distribution Committee, vol. 10(3), pages 30-34, September.
    9. Vaishnav, Bharat & Ray, Sourav, 2023. "A thematic exploration of the evolution of research in multichannel marketing," Journal of Business Research, Elsevier, vol. 157(C).
    10. TANASE, George Cosmin, 2021. "Global Retail Trends: Rethinking The Strategy Of Doing Business," Romanian Distribution Committee Magazine, Romanian Distribution Committee, vol. 11(4), pages 27-31, January.
    11. Liu, Huan & Sese, F. Javier, 2022. "The Impact of Mobile App Adoption on Cross-buying: The Moderating Roles of Product Category Characteristics and Adoption Timing," Journal of Retailing, Elsevier, vol. 98(2), pages 241-259.
    12. Loïc Plé & Catherine Demangeot, 2019. "Social contagion of online and offline deviant behaviors and its value outcomes: The case of tourism ecosystems," Post-Print hal-02509372, HAL.
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