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The Demand Effects of Joint Product Advertising in Online Videos

Author

Listed:
  • Anuj Kumar

    (Warrington College of Business Administration, University of Florida, Gainesville, Florida 32611)

  • Yinliang (Ricky) Tan

    (A. B. Freeman School of Business, Tulane University, New Orleans, Louisiana 70118)

Abstract

Joint product display in videos may help customers to not only evaluate the attributes of products that can influence their individual demands (direct effect) but also learn about the complementarity between them that may cause additional correlation in their demands (spillover effect). To estimate the demand effects, we introduced videos displaying apparel with matching accessories for a few randomly selected apparel on a fashion retailer’s website. We found that introducing a video resulted in a 14.5% increase in apparel sales and a 28.3% increase in accessories sales. The estimated increase in accessories sales was largely attributed to the spillover effect of videos. Moreover, introducing videos with other product promotions resulted in a significantly higher effect of videos on product demands. Overall, we show how video display of related products can increase their demands in an online product network. This paper was accepted by Sandra Slaughter, information systems .

Suggested Citation

  • Anuj Kumar & Yinliang (Ricky) Tan, 2015. "The Demand Effects of Joint Product Advertising in Online Videos," Management Science, INFORMS, vol. 61(8), pages 1921-1937, August.
    • Handle: RePEc:inm:ormnsc:v:61:y:2015:i:8:p:1921-1937
    DOI: 10.1287/mnsc.2014.2086
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    2. Schwenzow, Jasper & Hartmann, Jochen & Schikowsky, Amos & Heitmann, Mark, 2021. "Understanding videos at scale: How to extract insights for business research," Journal of Business Research, Elsevier, vol. 123(C), pages 367-379.
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    9. Haiqing Hu & Pandu R. Tadikamalla, 2020. "When to launch a sales promotion for online fashion products? An empirical study," Electronic Commerce Research, Springer, vol. 20(4), pages 737-756, December.
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    12. Shuai Yang & Xinyu Chang & Sixing Chen & Shan Lin & William T. Ross, 2022. "Does music really work? The two-stage audiovisual cross-modal correspondence effect on consumers’ shopping behavior," Marketing Letters, Springer, vol. 33(2), pages 251-276, June.
    13. Ruohong Hao & Bingjia Shao & Rong Ma, 2019. "Impacts of Video Display on Purchase Intention for Digital and Home Appliance Products—Empirical Study from China," Future Internet, MDPI, vol. 11(11), pages 1-19, October.
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    15. Xinbao Liu & Xiaofei Qian & Jun Pei & Panos M. Pardalos, 2018. "Security investment and information sharing in the market of complementary firms: impact of complementarity degree and industry size," Journal of Global Optimization, Springer, vol. 70(2), pages 413-436, February.
    16. Jun Pei & Qingru Song & Baoyu Liao & Xinbao Liu & Panos M. Pardalos, 2021. "Parallel-machine serial-batching scheduling with release times under the effects of position-dependent learning and time-dependent deterioration," Annals of Operations Research, Springer, vol. 298(1), pages 407-444, March.
    17. Xingyue (Luna) Zhang & Yuliang Yao & Jiantong Zhang & Chencheng Fang, 2023. "Post‐promotion redemption, exposure, and spillover effects of electronic coupons: An empirical analysis," Production and Operations Management, Production and Operations Management Society, vol. 32(2), pages 603-617, February.
    18. Sheng-Yeh, Wu & Guan-Ru, Chen & Ilia, Tetin, 2022. "An Economic Model for Popular Event Promotions," Bulletin of Applied Economics, Risk Market Journals, vol. 9(2), pages 169-173.
    19. Pei, Jun & Liu, Xinbao & Fan, Wenjuan & Pardalos, Panos M. & Lu, Shaojun, 2019. "A hybrid BA-VNS algorithm for coordinated serial-batching scheduling with deteriorating jobs, financial budget, and resource constraint in multiple manufacturers," Omega, Elsevier, vol. 82(C), pages 55-69.
    20. Liu, Baolong & Wang, Weilong, 2023. "Live commerce retailing with online influencers: Two business models," International Journal of Production Economics, Elsevier, vol. 255(C).
    21. Haibing Gao & Subodha Kumar & Yinliang (Ricky) Tan & Huazhong Zhao, 2022. "Socialize More, Pay Less: Randomized Field Experiments on Social Pricing," Information Systems Research, INFORMS, vol. 33(3), pages 935-953, September.
    22. Cheng, Bayi & Leung, Joseph Y.-T. & Li, Kai & Yang, Shanlin, 2019. "Integrated optimization of material supplying, manufacturing, and product distribution: Models and fast algorithms," European Journal of Operational Research, Elsevier, vol. 277(1), pages 100-111.
    23. Parshakov, Petr & Naidenova, Iuliia & Barajas, Angel, 2020. "Spillover effect in promotion: Evidence from video game publishers and eSports tournaments," Journal of Business Research, Elsevier, vol. 118(C), pages 262-270.
    24. Dokyun Lee & Kartik Hosanagar, 2021. "How Do Product Attributes and Reviews Moderate the Impact of Recommender Systems Through Purchase Stages?," Management Science, INFORMS, vol. 67(1), pages 524-546, January.

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