Estimating the Helpfulness and Economic Impact of Product Reviews: Mining Text and Reviewer Characteristics

We have all been there, scrolling through all the reviews before we buy something. You want to see all of this user-generated content, since you are afraid you will regret the wrong choice (Tsekouras, 2017). Also, this information overload leads to being less satisfied, less confident and more confused (Park & Lee, 2009). You could look at the average rating of the product, however these are often bimodal distributed and therefore less helpful (Zhang & Pavlou, 2009). How can you feel confident that you have seen all the important reviews, without having to read all of them?

This is what Ghose & Ipeirotis (2011) studied.

The authors looked at data from Amazon over a period of 15 months to study the impact of reviews on products sales and perceived usefulness. They looked at audio and video players (144 products), digital cameras (109 products) and DVDs (158 products) and their reviews.

The paper identified multiple features that affect product sales and helpfulness, by incorporating two streams of research. First, the information within the review is relevant. Second, reviewer attributes might influence consumer response.

What did they find?

An explanatory study found that the following factors are important:


Thus, perceived helpfulness does not necessarily lead to higher product sales.

They also performed a predictive model, which showed the importance of reviewer-related, subjectivity and readability features on predicting the impact of reviews. Furthermore, the predictive model showed that the predictions were less accurate for experience goods, like DVDs, in comparison to search goods, such as electronics.

What are the managerial implications?

Amazon currently uses ‘spotlight reviews’, which displays the most important reviews. However, it requires enough votes on reviews before a ‘spotlight review’ is determined. The predictive model is able to overcome this limitation, since it is possible to immediately identify reviews that are expected to be helpful for consumers and display them first.

On the other hand, it is useful for manufacturers, since they are able to modify future versions of the product or the marketing strategy, based on the reviews that affected sales most.

The main strength of this paper is that it has relevant managerial implications for both consumers and manufacturers, since it studied both the effect on sales and on helpfulness for consumers.

Would the findings be similar on different websites?

Probably, findings will be similar for other retailers of electronics, therefore Coolblue and Mediamarkt could benefit. On the other hand, book reviews on are not expected to have as much benefit from the model, since they are experience goods, similar to DVDs.

Not as straightforward, are the implications for clothing retailers. However, I expect these retailers will not benefit as much from the model, since often there is no overload of reviews on clothing websites and therefore there is no need to reduce the information.


Ghose, A., & Ipeirotis, P. G. (2011). Estimating the helpfulness and economic impact of product reviews: Mining text and reviewer characteristics. IEEE Transactions on Knowledge and Data Engineering23(10), 1498-1512.

Hu, N., Zhang, J. and Pavlou, P.A. (2009). Overcoming the J-shaped distribution of product reviews. Communications of the ACM, 52(10), pp.144-147.

Park, D. H., & Lee, J. (2009). eWOM overload and its effect on consumer behavioral intention depending on consumer involvement. Electronic Commerce Research and Applications7(4), 386-398.

Tsekouras, D. (2017). Customer centric digital commerce: Personalization & Product Recommendations [PowerPoint slide]. Retrieved from Blackboard.

Feature image retrieved from: Enzer, J. (2016, August 17). How to reward product reviews and supercharge your e-commerce business. Retrieved from: Crowdfunding for a customized movie experience

Movie theaters regardless of size are facing declining attendance (Business Insider, 2017).  Customers are unwilling to pay a lot of money when they can simply stay home and stream movies. Also, a lot of people’s tastes in movies is just not as “mainstream” but the movies they crave are not shown at most theatres (Business Insider, 2017).

Still, let’s face it, staying home watching a movie is simply not the same as on the big screen. So, what if you let customers demand a movie? is an Australian firm which takes a crowdfunding approach to cinema-on-demand (also available in UK, Ireland, NZ) by enabling users (age 18+) to request a movie event at local partnering theatres. The majority of movies offered are studio classics, indies, artsy- and foreign films. While the concept is not entirely new (see Graphr and Tugg), is the first larger on-demand cinema platform serving markets beyond the US. Moreover, it uses blockchain technology to support producers, distributors and exhibitors with transparent and reliable sales data (Forbes, 2017).

How does it work?


Efficiency Criteria: Weighing Cost And Benefits

For a user, the time and effort needed to place or support a request is really low and tickets only have to be paid by the attendees if the screening is confirmed to happen (leapfrogfilms, 2017). Partnering theatres of course will have to check their schedule and also determine required attendance thresholds.

How does this crowdfunding approach create value for customers, theatres and platform?

Customers co-create by driving the entire process from requesting (incl. time, date and location) to “spreading the word” about the screening of their wishes. If successful, a whole crowd of friends and strangers can finally enjoy “their” movie on a big screen, in a social atmosphere outside the own house.

Theatres help making it happen by approving the request. Further, hence they use capacities more wisely and can generate additional revenue without uncertainty: if the event happens, this money is “safe”. They meet customers’ demand and have the opportunity to welcome (potentially) new customers at their venue. The insights can be a trigger for theatres to think about future events and screenings by illustrating potential demand (Saarijärvi et al., 2013).

Even the filmmakers gain increased exposure and reach for their films; especially those which are not regular movie material.

Finally, Demand.Film only wins if everyone else wins by charging a ticket fee (~ GBP 1.65 per ticket).

The contractual obligations are addressed by Demand.films “terms of use” which reflect standard contract law, all under one condition: if the attendance threshold is not met, the screening will not happen. Naturally, films are legally obtained and of appropriate content. While users can spread the word about a proposed event by any means, all payments and organization are performed through as the intermediary.

What does the future hold for

Naturally, the main goal is expanding the partner and user network as well as geographical reach. Can it be a success? Certainly, never underestimate the power of niche markets and don’t forget about the reach of social media! Will it be a success? The on-demand economy is still on the rise in offline settings and competition never sleeps, so it will remain interesting. All I know is that “I would be in”, would you?



Business insider (2017). “Movie theater attendance is declining as cord cutting becomes more popular”. last accessed 28.02.2017

Forbes (2017). “Tugg And Gathr Face Competition From A New Cinema-On-Demand Platform“ Online: last accessed 28.02.2017

Leapfrogfilms (2017).

Leapfrogfilms (2017). example

Saarijärvi, H., Kannan, P.K. K, Kuusela, H. (2013). European Business Review 25 (1), pp. 6-19

COVER: Leapfrogfilms (2017).




Online Display Advertising: Targeting and Obtrusiveness

We all have been in situations where you are browsing the internet and the advertising is targeted on the content on the website and they are shown to you. Hereby, advertising is targeted. And what is maybe even more intrusive, that the advertising pops up. It definitely gets your attention. However, are you more willing to click on the advertising and buy the product? This is what Goldfarb & Tucker (2011) researched. They study the effect of targeted display advertising and obtrusiveness on sales, and what the effect is when these two are combined.

This question is interesting. Because even with all these new techniques, display advertising success drops. People avoid online display advertising because they infer them in their browsing goals (Drèze & Hussherr 2003). Do obtrusive advertising works exactly in the opposite way and affects the effectiveness of advertising negatively?

To find out, this study uses data from a large randomized field experiment on 2,892 web advertising campaigns. For every campaign on average 852 surveys were distributed. Where the half of them were to consumers who have seen the advertising and the other half were on the website without the advertisement on it.

The main results of this study are that targeting the advertising improves the effectiveness of online display advertising and obtrusiveness does also. However, when these two techniques are combined the effectiveness decreases. This is because privacy concerns temper the appreciation of formativeness in targeted advertising. So, for advertising in categories where privacy matters more, the effect is tempered more than in categories where privacy matters less.

The strength of this paper is the fact that it, in contrast to earlier research, propose that obtrusive advertising is not very effective in the contextually targeted situations. Earlier research study the effect of the obtrusiveness on advertising recall, which is of course positive. By adding the privacy concerns and the feelings of manipulation to the fact that advertising can be perceived as useful makes advertising perceived as intrusive, and therefore result the effectiveness negatively.

This paper shows a reason for the unexpected success of search advertising, where the advertising is highly targeted on the context (the advertising is based on search keywords) but is absolutely not obtrusive or attractive. For managers, this means that in choosing the right way to advertise they must not only consider whether to target their audience with contextually targeted advertising, but also consider the negative influence if these advertisements are obtrusive. Economically, 5.3 percent of advertising spending could be cut, without affecting the effectiveness of advertising. This, solely because the wrong combination of advertising content and format is used.

In short terms, either choose to reach your audience with targeted advertising, or with obtrusive advertising. But don’t combine the two.

Drèze, X. & Hussherr, F.X., 2003. Internet advertising: Is anybody watching? Journal of Interactive Marketing, 17(4), pp.8–23.

Goldfarb, A. & Tucker, C., 2011. Online Display Advertising: Targeting and Obtrusiveness. Marketing Science, 30(3), pp.389–404.

A framework for emotional bidding

According to Ariely and Simonson (2003), online auctions have turned out to be “one of the greatest success stories of web-based services”.

Nowadays almost every user of the Internet did joined an online auction. The best know online auction is eBay, but there are lots of them. Focusing on The Netherlands, the most known auction websites are and If you ask your friends or family about their online auctions experience, they will probably have an experience to tell you. Often these stories are based on success or unsuccessful auction biddings, using emotional bidding. Ariely and Simonson (2003) found that 76.8% of the bidders perceive other bidders as “competitors” and refer to auction outcomes as “winning” and “losing.” This feeling about winning and losing is also discussed during class. Losing an auction will often lead to the feeling of wasting your time. Such feelings are part of human’s emotions, and that’s a link to the paper of Adam et all.

The paper of Adam et al is interesting because they are the first that made a framework for emotional bidding.

framework Continue reading A framework for emotional bidding

ARTO – The Easiest Way to Discover Art You Love

As the housing market continues to grow, the walls of  new homes need some decoration. You decide you want a nice piece of art but where to start, what is your personal taste? Even if you know your preferences, you may find it rather difficult to describe them to find the type of art you are looking for. Now there is ARTO Gallery, the application that helps you find your perfect art match!

What is ARTO?    

picture5ARTO Gallery, launched in 2016 by Jonie Oostveen who was a former Director Business Development at Spotify, is a new way to discover and buy art from your mobile device. The app helps experts as well as non-experts to discover great paintings based on their personal preferences, while also giving artists a platform to sell and promote their artworks. The platform offers art of both independent artists and galleries but also partners with renowned museums (e.g. the Rijks Museum and the National Gallery of Art).  Currently the platform has a database of 5.500 artists and more than 20.000 pieces, which is expected to grow to 50.000 by the end of the year.

How does it work?      

Once you open the app, you will see your “Art Stream”. Customers participate as active “co-creators”(Tsekouras, lecture 2017) by indicating per artwork whether they like it or not through swiping it left or right. The more the customer swipes, the better ARTO Gallery understands their personal preferences. By using the Artificial Intelligent “Art Recommendation Engine” ARTO can recommend artworks from their database to the customer. Furthermore, it is possible to stream artwork to your TV to imagine how the piece would look in your room, ask questions to the artists and see similar artworks to the ones you liked. Artists pay for the service if a transaction takes place as ARTO Gallery charges the artists’ account a certain percentage of the value of artworks sold. For customers the platform is free of charge.

ARTO Gallery impression

Efficiency Criteria

ARTO is the first two-sided personalized platform that connects art seekers to galleries and artists. The platform maximizes the joint profitability of both partners (Carson et al., 1999). On one side, art seekers are now enabled to find artworks they love more efficiently as their choice overload is reduced by personalized recommendations. Moreover, the invested effort is relatively low as using the application requires much less time than browsing gallery websites.
On the other side, galleries and artists have easy and low cost access to a new customer base, increasing their potential returns. Moreover, through this process ARTO Gallery allows the long tail of art to grow (Brynjolfsson et al., 2006) as more customers discover unfamiliar artwork styles while artists and galleries can adapt their supply to this.

Futhermore, I consider criterion for the feasibility of required reallocations  (Carson et al., 1999) to be met. However, evaluating the institutional environment, I would say that legally there is the largest threat for platform abuse. One might want to sell copies of paintings as if it is original work (intellectual property issues), which may both harm the potential buyer as well as the reputation of ARTO Gallery as a platform. Nonetheless, ARTO Gallery addressed this by their notifications of copyright infringement. Moreover, artists are carefully screened before they are allowed to upload work on the platform. In addition, artists and galleries are always responsible for their own artworks and personal information may be handed over to legal institutions at all times.


I think the ARTO Gallery application is unique and considerably differs from its competition by offering personalized art recommendations. This feature makes it a great way to discover your personal taste and new artworks, while it offers a platform for art suppliers to expose their works. However, as the application is launched recently it is difficult to tell whether it will establish itself into the marketplace. I think first some marketing investments need to be done as the application is still quite unknown, but there is definitely potential!


Brynjolfsson, E., Hu, Y., and Smith, M.D. 2006. From Nichees to Riches: Anotomy of the Long Tail. Management Review 47(4) 67-71.

Carson, S. J., Devinney, T. M., Dowling, G. R., & John, G. (1999). Understanding institutional designs within marketing value systems. Journal of Marketing, 115-130

Arto Gallery.(2017, February 24). Our Company. Retrieved from Arto.Gallery

Artworldforum. (2017, February 24). press-arto-gallery. Retrieved from

Tsekouras, D. (2 February 2017), Lecture Customer Centric Digital Commerce, “Introduction to value co-creation”.

Polarsteps – Automatically track and share your trip

Imagine you just came back home from a long trip abroad and you want to share your experiences with your friends and family by writing a blog. Travel blogging, however, is time-consuming. So, you decide to post your photos on Facebook. Not a bad way to share your journey, but it does not really capture the essence of your awesome experiences either..

Polarsteps – Why was it created, what is it and how does it work?

Just before leaving for his sailing trip, Polarsteps co-founder Niek wrote a small script that read off his coordinates from a GPS tracker and sent them to a server via satellite phone (Ho, 2016). Niek’s website went viral among travelers, who loved the idea of telling your travel story on a beautiful map and sharing it with their loved ones back at home. This inspired Niek to further develop the idea (Ohr, 2016).

Polarsteps is an Amsterdam-based app that automatically tracks travelers’ journeys. Travelers don’t need to worry about internet costs, because the app uses offline GPS-tracking. Once Wi-Fi-connection is available, the app seamlessly transfers all tracked information to the traveler’s Polarsteps webpage. Here, the trip is displayed on an interactive map showing the traveler’s routes, key locations and photos. Polarsteps tracks a ton of other statistics, such as kilometers traveled. Furthermore, travelers can keep their friends and family updated as to where in the world they are by sharing their trip real-time. Users can instantly add photos and locations to the interactive map or do it afterwards. Thus, no need to worry about battery drain either. Travelers can also follow other travelers and explore their trips. Finally, Polarsteps offers printed travel books, which includes all travel routes, statistics and photos, turning travel moments into lifetime memories.


Efficiency criterion – Joint profitability

  • Polarsteps automatically generates users’ travel story on a beautiful map which can be shared real-time with their loved ones back at home. Polarsteps also functions as a platform where users can follow other travelers’ trips and share theirs. Additionally, users can buy a personal travel book, so they can look back on their journey.
  • The founders of Polarsteps are passionate travelers who focus primarily on helping other passionate travelers log their travels and tell their stories. Polarsteps wants its platform to enable travel organizations to create branded accounts where they can share their routes and tell their stories. The company considers adding features such as sharing the content on social media and incorporating booking reservations. Eventually Polarsteps wants to become THE app for discovering, logging and sharing beautiful routes. Other sources of income may come from selling travel books and gift cards. However, this is not the core of the business model (

Required reallocations

Polarsteps has an extensive terms and privacy statement that users must agree to. It includes the following:

  • Users are responsible and liable for all activity on their account.
  • Polarsteps collects personal information provided by the user, information collected automatically and information it receives from third parties.
  • Users can choose between 3 privacy levels: Only me, Only my followers or Everyone.
  • Polarsteps urges users to think carefully about the consequences of using the Trvavel Tracker functionality, when Everyone can view their account.


Ho, J. (2016, April 25). A Dutchman sails across the Atlantic and innovates travel logging. Retrieved February 22, 2017, from

Ohr, T. (2016, March 17). Thomas Ohr. Retrieved February 22, 2017, from

Startup pitch: Polarsteps automagically tracks and plots worldwide jaunts. (2015, April 2). Retrieved February 22, 2017, from

Customer-centric in the airline-industry? It’s possible!

Southwest Airlines is one of the most customer centric companies of 2016 per If we look at their mission statement you could tell: “Dedication to highest quality of customer service delivered with a sense of warmth, friendliness, individual pride and company spirit.” Southwest Airlines goal is to make every journey an unforgettable one and with this they have achieved a very loyal customer base. I will go through Southwest’s customer centric business model by emphasizing on the efficiency criteria joint profitability discussed in class. So, I will look through Southwest Airlines business model by finding out if the system design is maximizing the joint pay offs of the partners involved (CCDC, 2017).

Southwest Airlines understands that happy employees will guarantee happy customers. “Our people are our single greatest strength and most enduring long-term competitive advantage’’ (  So, it is not surprising that the employees stay with the airline even though they are paid less compared to other airlines. Before you can be customer centric you must be employee centric is what turns out here. Competitive prices, free checked luggage, and friendly employees are what they are also known for but Southwest reputation is at its best when things don’t go well. That’s when their good system is in place. An experience many Southwest Airlines passengers could recall is when the gate-agent of already book tickets for the next flight to their destination when the they were supposed to fly was grounded due to bad weather conditions. Even before you requested it. What was supposed to be an inconvenience turned out to be a moment of pleasant surprise for the customer. This is all the joint profitability is about: with emphasizing on customer happiness they create a loyal customer base which, in the end, will result in more revenue.

So, Southwest Airlines sees the importance of moving from a tactical to a more strategic approach of customer participation and this is critical for all their forms of social marketing. Southwest Airlines could embrace social business as a natural evolution of their business model, because they have always been customer-centric. Southwest Airlines, at least relative to their peers, have always viewed themselves as “agents of the customer,” focusing first on creating superior customer value, while understanding that profit is one outcome of successfully creating customer value. Companies that pursue any social business initiative as another tactic to improve shot-term profitability, are increasingly at risk, given the exponential increase in customers’ access to information. Southwest Airlines has done a great job with enhancing information and participation with their customers and, thus, creating a top of the bill customer centric business model.




Ready for a Recharge? Instantly book and only pay for the time you need!


Trying to find a place to relax briefly between your meetings? Do you need to work for a couple of hours on your project but you consider Starbucks a noisy place to go to? Did you just have a run and need to have a shower before you get back to the office, but your house is quite far? No matter what your situation might be, Recharge is the mobile app that can provide you with all of the above facilities!

What is Recharge?

Recharge is a pay-as-you-go or short-term hotel booking app. As many other newly born apps or platforms, such as Uber and Airbnb, it puts some of our spare resources in great use while at the same time creating profits and value for its participants.

How does it work?

By opening the app, you are provided with a map 57517f51dd0895370a8b4890-720showing the nearest hotels with available rooms. You select the room of your preference and press “Book now”. After your booking, you are given 30 minutes to arrive at the hotel before Recharge starts charging you for your stay. Your only transaction with reception would be to pick up your key and return it there since, checking-in & out as well as payment, are facilitated through the app. No advance bookings are allowed since Recharge is an on-demand service. Hotels have the freedom to update their inventory real-time according to their own needs and plans, thus maintaining full control over their assets.

How much does it cost?

The payment structure is either by minute or by the hour and indicatively could cost $0.66 / minute or $40-50 / hour for a stay at a 4-star hotel.


What about efficiency criteria?

The business model of Recharge is relatively new but has already been proven to bring joint profitability for all stakeholders (Carson et al. 1999). As far as the customers are concerned, it maximizes their utility by serving an unmet or under-served need. Taking hotels’ side into account, Recharge is providing them with increased occupancy of their assets which in turns brings 250K – 1M annually in additional revenue, depending upon hotel size and inventory allocation.

Examining the investment and effort that the hotels and customers must exert in order to enjoy that service, Recharge seems to be dealing effectively with keeping both at a minimal level. The customer only need 2 clicks to submit their bookings. Furthermore, hotel managers report, according to Recharge’s website, that they find Recharge’s dashboard very easy to use.

Recharge has also taken into account the institutional arrangements really seriously. In order to protect hotels from unwanted visitors and the app from negative publicity, Recharge is providing hotels the possibility to rate visitors. Much like drivers rating passengers at Uber, this feature provides the functionality needed to keep unwanted customers out of the ecosystem and ensure a positive experience for all the parties involved.

What are its future plans?

The services provided by the app are currently available in San Francisco and New York for iPhone users only. Additional locations such as, Los Angeles and London are going to become available in the near future though. Moreover, an application for Android users will be available in the spring.



Carson, S.J., Devinney, T.M., Dowling, G.R. and John, G., 1999. Understanding institutional designs within marketing value systems. The Journal of Marketing, pp.115-130.

48hourslogo, Affordable Logo Designs Done Fast…

There are multiple reasons why a company should want a good logo. A good logo can make good first impressions on costumers, the moment a customer sees your logo they decide if they want to trust you or not. When a logo is good this can thus attract new customers and it can also make you stand out from the competition. To do this the logo must stand out in comparison with other companies in the same industry.

A logo is also one of the most important aspects of a company marketing wise. The logo represents the company and is seen on the company’s emails, social media platforms and marketing campaigns. The first thing a person will notice in all those things is probably the logo, because logos are a visual and those are more appealing to people than text.

It is clear that each company should want a good logo, but how to obtain one? If you hire a professional designer the cost can quickly become very high. For very small companies or startups this amount of money is not feasible. That’s why a lot of these companies go for the crowdsource option. This is the process where the work or funding is made or raised by a crowd of people and is a combination of the words crowd and outsourcing.

The idea of crowdsourcing your logo design would be to tell your requirements to a crowd of designers, tell them how much their reward is and when the design has to be finished. All of the participating designers will enter their own designed logo(s) and the company decides which logo they want to use and thus which designer gets the reward.

An online platform that provides such service at a very high speed is They offer the service as described above and their standard contests run a lot shorter than most other logo design websites, as suggested by the name, for only 48 hours instead of multiple weeks.

To create a project you simply login to the website, create a project with a title, some info about you business, your target audience and you choose from some standard styles a couple which you like best to give designers an indication of what your taste is like. You can also select your preferred colors and some ideas, concepts or sample logos of your own. After you filled in all of the information needed for the design. Here you have to set your contest prize, the prize the winning designer would win set as a minimum of $99, and you can select some options as a private contest or featuring you contest to make it more noticeable on the website of 48hourslogo.

After you’ve done this the option comes where you can choose how you want to start your logo design. You can choose to only pay the listing price of your contest to 48hours and postpone the contest price till you’ve actually found a well suited design or to pay the full amount in one time. This gives you the option to only lose $29, the listing fee, if there is no design among the submissions. If there are less than 10 design submissions you can even get a full refund.

The contest itself is divided into 3 stages. In the first stage designers enter their designs according to the above described information. During this stage the contest holder can also give some group feedback or feedback to individual designers and rate the designs. In the second phase, the contest holder can select up to 3 designers, who can revision their designs for a week before the contest holder selects the winner. The last stage is the finalization of the project where the designer and contest holder will work together. Only after this stage when the contest holder downloads and confirms the logo package file, 48hourlogo will release the contest prize to the winning designer.

Encouraging and rewarding consumer creativity: How to motivate consumers involved in creative contests?

Brands increasingly rely on creativity contests to integrate consumers into their new product developments processes. The main purpose is to stimulate creativity of internal marketing teams or quickly trigger original ideas for their brands. Not surprisingly, much of recent research is focused on the determinants of success and creativity in those innovation contests.

A study by Salgado & Barnier (2016) seeks to determine the effects of rewards, brand feedback and its interactions on creativity in innovation contests. The research focuses on the first stage of the new product development process, since this is argued to be the most critical stage in the entire innovation process (Hauser et al., 2006). To test their hypotheses, an experiment is carried out with respondents participating in a mock innovation contest. Within the general model, the reward and brand feedback variables are manipulated such that causal relations can be proven (Evrard et al., 2010).

The authors find that brand feedback acts as a moderator on rewards and creativity, and association of brand feedback with reputation rewards strongly stimulates creative designs. The paper highlights that extrinsic rewards (monetary and non-monetary) do not reduce, but instead improve creativity when they are accompanied with brand feedback. Besides, the effect of the choice of rewards is not neutral, but entails different impacts on creativity and therefore should be considered wisely.

The main strength of this paper is its relevance from both a managerial and theoretical standpoint. On the managerial level, the research provides practitioners with insights into the incentives that encourage participation and creativity in producing desired results. Therefore, the nature of rewards offered by brands (monetary and non-monetary) should be taken into consideration when designing an optimal consumer integration process in new product development. Especially for large ‘unblind’ co-creation platforms, where designs are not visible and feedback is rare, restructuring their model may be considered to generate additional creativity. From a theoretical standpoint, this study bridges the longstanding research gap with respect to reward effects on creativity in the context of an innovation competition. Currently, there exists a paradox between academic literature, which emphasize the wide range of participants’ intrinsic and extrinsic motivations in creative contests and managerial practices, which mainly focus on monetary rewards. This research solves this paradox by addressing both factors.

As a downside, the authors did not take into consideration the potential interactions between intrinsic and extrinsic motivations, which could have influenced the impact on the expected creativity level. The paper finds that extrinsic motivations are ‘at the service’ of intrinsic motivations, since extrinsic motivations have no negative effect on creativity when associated with feedback, but intrinsic motivations play a determining role in the accomplishment of creative designs. However, the level of intrinsic motivation is dependent on individual traits and therefore dynamic effects can exist between intrinsic motivation and the effect of rewards. Future research should focus on investigating the interactions between intrinsic and extrinsic motivations. As a last note, I would suggest to include the impact of culture on creative designs. A study by Chua et al. (2014), proposed that creativity heavily depends on ‘cultural narrowness’ and therefore the impact of country origin could have an influence on participation and creativity in an innovation contest. What effect do you think country origin has on this relationship? And what role would brand feedback play in this relationship?

Chua RYJ, Roth Y and Lemoine J-F (2014) The impact of culture on creativity: How cultural tightness and cultural distance affect global innovation crowd- sourcing work. Administrative Science Quarterly 20(10): 1–39

Evrard, Y., Pras, B. and Roux E (2010). ) Market: Études et recherches en marketing, 4e édition. Dunod. Dunod.

Hauser, J.R. Tellis, G.J. and Griffin, A. (2006) Research on innovation: A review and agenda for marketing science. Marketing Science, 25(6), 687–717.

Salgado, S. and Barnier, V. (2016). Encouraging and rewarding consumer creativity in new product development processes: How to motivate consumers involved in creative contests? Recherche et Applications en Marketing, 31(3), 88-110.

Reshaping the recruitment industry

Have you ever applied to a certain position for job or an internship and felt like the recruitment process was exhausting? That it takes weeks to receive any response either positive or negative; and that when the later happens no real reason was given to you? If you did experience this kind of situation, you may ask yourself, why is this so often the case?

Well, the problem predominantly comes from companies’ recruiting practices. According to theLadders a recruiter will merely spend more than 6 seconds reading through a candidate’s resume. While BeHiring found out that a cover letter has only 17% of chance of being read, and most recruiters do not even bother replying to candidates.


Overall, an inefficient and unfair system has been going on for decades which is based on two documents which use is outdated. Moreover, this lengthy process is very expensive to companies who spends a lot of resources on those recruitments.

Those are the reasons why the online SaaS platform Scoringline was founded. Scoringline is an innovative and collaborative tool which value proposition is to ultimately allows companies to capture the most skilled candidates out of a large pool of applicants. It promises companies an endless to save time on both reading resumes and sorting CVs while allowing them to offer a better experience to their candidates.


How do companies benefit?

  • (Automatic qualification)  CV-sorting is replaced by an automatic score
  • (Confirm skill sets) – Prescreening phone calls are replaced by role playing simulation
  • (Save time) – The best candidates are invited to follow up interviews, recruiters save up to 50% of their time as it only takes a few clicks to send an answer to all candidates regarding their applications
  • (Enhance employer brand) – The employer’s brand is enhanced by using an innovative hiring process
  • (Candidates profile expanded) – The company’s pool of candidates naturally grows by including people that may not have the usual profile but do have the skills necessary to perform in the position


How do applicants benefit?

  • (Outstanding experience) – Companies can forget about the long ATS’ forms and only ask relevant questions to applicants
  • (Let candidates express themselves) – It gives an opportunity to reveal applicants’ skills and motivation
  • (Equity) The process is fair as every application is treated similarly – Guaranteeing equal opportunities


How do Scoringline benefit?

Scoringline business model consist of two different offers.

The first one consist of offering a monthly subscription that allows clients to use the platform in their recruitment process. While the second offer consist of selling a HR service where Scoringline’s take care of finding the right candidate for a company who decided to outsource its HR capabilities.

Value Co-creation

Companies using the new online recruitment processes will be able to enjoy network value creation: as more and more job seekers apply through the platform, companies will gradually have a larger database of candidate profiles as all applications are saved, and rejected applicants could still be called back at later stages, saving great time in the process. Furthermore, different departments of a multinational company may decide to share their pool of candidates.

On the other hand, as it performs its recruiting service, Scoringline saves the profiles of all candidates who applied to one of their client’s position. This allow Scoringline to enjoy an ever-growing pool of candidate within which it may find the right profile for its clients.

In either case, the value of this network grows with time as more profiles enter the database, promising a sustainable future to it.

Efficiency Criteria

Scoringline business model is adapted to most political, social or legal regulations of the countries in which it operates. It promotes the transparency of company’s recruiting processes, supports equal opportunities and revolutionize candidates’ experience which are now able to fully express themselves and to not be left without any update about where does their application stands.



Know Yourself And Know Your Enemy

‘If you know yourself and know your enemy, you need not fear the result of a hundred battles’ (Sun Tzu, Art of War)

Online retailers currently implement and leverage a variety of sales support tools. This article provides insight in consumer (users) behaviour on those e-commerce websites (Adomavicius and Tuzhilin 2005). It looks at different factors that might affect consumer behaviour (specifically consumers’ decisions whether or not to buy a product) (Hennig-Thurau et al. 2012). In this research the effect of two things on sales of a product is examined. One is recommendation systems (generated by the firm) and the other is online review systems (generated by customers). Previous literature has primarily focused on both loose effects; this study particularly looks at how these two factors might combine together to affect consumers’ behaviour.

Recommendation systems are where each product will give you recommendations to other (similar) products (Oestreicher-Singer and Sundararajan 2012). This study argues that we should see recommendations systems as networks with a number of different products linked to each other. This study seeks to analyse the whole network of related product referrals. The author predicts that the position of all the different products within a network might affect the sales of a product. Any product near to the centre of the recommendation network will get more attention. So, if the Product A is near to the centre of the network it will get more sales. If the competing product (or normally products) is near to the centre these will get more attention, taking attention away from the Product A, and so Product A will get less sales.
Online review systems (eWOM: electronic word-of-mouth) are where users of this site write a review of a product. This study observes when the consumers is shopping on the site, they can see both reviews of the product they are considering and also all reviews of other recommended products. The author predicts that the fact that they can see these other reviews creates competition, which makes the customer less likely to buy the particularly product.

The empirical analysis are performed with collected data from on 1.740 randomly selected books within four categories (programming, business, health and guide books) over a period from two years. This empirical analysis yields three major findings. The research has shown that recommendation systems intensify the competition between products. The authors state that the products which are linked to recommendation systems generate more sales if they have a central place in the referral recommendation network. There have been extensive findings that these sales gains are impeded by improvements in the reviews (eWOM) of competing products. This indicates that a positive eWOM received by a competing book worsen the rank of the focal book.

The main limitation of this study is that they used data at aggregate level, and not at individual consumer level. Therefore, the collected data does not track the actual activity of reviews/recommendations. This is a missing link for virtually all eWOM studies. The solution to this limitation could may be collecting click-stream data to better connect behavior and action.



Adomavicius, G., and Tuzhilin, A. 2005. “Towards the Next Generation of Recommender Systems: A Survey of the State-of- the-Art and Possible Extensions,” IEEE Transactions on Knowl- edge and Data Engineering (17:6), pp. 734-749.

Hennig-Thurau, T., Marchand, A., and Marx, P. 2012. “Can Auto- mated Group Recommender Systems Help Consumers Make Better Choices?,” Journal of Marketing (76:5), pp. 89-109.

Oestreicher-Singer, G., and Sundararajan, A. 2012. “Recommen- dation Networks and the Long Tail of Electronic Commerce,” MIS Quarterly (36:1), pp. 65-83



Hello! Fresh

Not a good cook? Don’t know what to eat for dinner? Too busy to buy fresh vegetables and meats? Well, the solution is now delivered at your doorstep.

Meal-delivery Services are surging in popularity, retailers like Blue Apron, Hello Fresh and Plated surface to deliver fresh vegetables and meats to create your own meals at home with their well-designed recipes.


As a leading meal-kit service provider, HelloFresh, a Germany-based company, is founded by MasterChef finalist Tom Rutledge. It has already made its appearance in several Western European and North American countries, as well as Australia since official operation in December 2011. Tom Rutledge’s agricultural heritage inspired him to offer this farm-to-table experience for busy commuters, combining fresh, quality ingredients with simple cooking ideas. According to its website, HelloFresh has shipped over a million meals per month in its covered area. Not to mention, the company more than quadrupled sales last year to 70 million euros. Moreover, it is a purely independent business model that relies on large-scale customer fulfillment center for centralized storage, picking up and distribution.

How does it work?

You start to order meal-kit box at least one week in advance. Every week a box of ingredients for the entire week are packed and delivered to you. Essentially every meal will be equipped with the necessary proportioned food in insulated packages, even spices such as curry powder, rosemary and ginger will be contained, along with recipe cards, which allow users to replicate the dishes by simply following the detailed instructions to prepare and cook. Besides, its membership plan varies from two-person to family-size plan with a compact three-meal or five-meal per week, while Hellofresh also supplies separate vegetarian boxes as well as fruit boxes for special dietary requirements.


Even though meal-kit services are unlike restaurant delivery that you still have to prepare the meals, you are saving loads of time from grocery shopping and recipe searching. More importantly, given the fact that Hellofresh will only serve right amount of what you need for specific recipe, there will be no food residual to worry about.

Default recipes

Cooking with fresh ingredients is what Hellofresh is promoting to their users. As their dedicated team of chefs and dietitians create recipes on a weekly basis to ensure that the meals they prepared are balanced and wholesome. The default recipes have always been considered as HelloFresh’s one of the most critical competitiveness. When speaking of designing recipes, Hellofresh lacks information about users ‘tastes or preferences, therefore, it decides mass default recipes which apply for all users, without taking users’ individual preference into account (Goldstein et al, 2008). However, Hellofresh has covered seven countries across West Europe, North America and Australia, it adjusts recipes according to geographic custom. Nevertheless, HelloFresh also forces its users to accept set meals for a week without actively engaging users to pick recipes. On the other hand, default recipes may increase the risk that HelloFresh users will skip weeks of subscribe in case they don’t favor the food.

One thing worth mentioning is that HelloFresh partnered with Jamie Oliver in 2015, a British celebrity chef, to design recipes aiming to stress the importance of healthy and fresh meal other than food takeaway. Their collaboration delivers users with a wider variety of alternatives yet creative recipes and encouraging them to cook from scratch while enjoying their thoughtful recipes.


Future path

In light of HelloFresh’s large distribution network, huge expense is inevitable. In order to take advantage of their idle logistics, improving transportation efficiency and reducing the cost of warehouse, Hellofresh could consider to expand its customers base to wholesales like supermarkets, cafés and snack bar to deliver fresh uncooked food. Both the company and the third party could benefit from open logistics and gain profitability. Additionally, not only to offer adults’ meals, Hellofresh could also target at the market of infant food for time-pressed parents wanting to provide their babies with notorious and freshly prepared meal. picture_1


Goldstein, D.G., Johnson, E.J., Herrmann, A., & Heitmann, M. (2008). Nudge your customers toward better choices. Harvard Business Review, 86(12), 99-105.

Sounds Like Music To My Ears

By: Madeleine van Spaendonck (365543ms)

The Problem Situation

Do you ever pay attention to the music you hear in your favorite store? Many shops and hospitality businesses in the Netherlands still make use of outdated mix-CDs and standard playlists. Considering it has become increasingly important for retail businesses to provide a dynamic brand experience, how can background music be used to optimize the customer journey?

Atmosphere and its business model

Amsterdam-based Rockstart-startup ‘’ addresses this situation with its new B2B music service, ‘Atmosphere’. Its key resource is its pool of musicians, DJs and producers, called ‘curators’. New clients undergo an extensive intake-procedure that allows Atmosphere to create a ‘music identity’ that reflects the company’s brand identity, target audience and desired customer experience. Consisting of a collection of moods, sounds and emotions, this allows the platform to match brands with the most suitable curators for them. Atmosphere allows curators to use the music on its platform to continuously assemble new playlists on a monthly basis. A streaming app is then used to play the music on-location. (Atmosphere, 2017)

Atmosphere’s value proposition is a better customer experience for brands and a new earning model for artists and music experts. It also incorporates feedback to create better playlists every month and learn from each brand profile to improve its services. Businesses pay Atmosphere on a monthly basis for using the platform, and the curators on the platform decide the price of their service.

Co-Creation Efficiency Criteria (Carson et al., 1999)

Atmosphere is a two-sided platform that connects retail/hospitality businesses with ‘curators’. The business model allows for joint profitability, as it enables businesses and curators to interact to create value together and maximize their payoffs. A study conducted by the Stockholm School of Economics found that background music that matches brand identity can increase store sales by at least 30% (Johansson & Moradi, 2015), which presents a measurable potential financial output for businesses. The curators suggested by the platform are picked by a particular company on the basis of the quality of their playlists and close fit with the brand, which incentivizes them in terms of effort to deliver the most suitable music sets and thus get rewarded in return. To facilitate this, Atmosphere invests in algorithms and models to create accurate brand profiles.

Furthermore, internal institutional arrangements are present in the form of ‘rules of the game’. Multiple curators are suggested to the client, who can make the final choice based on music samples. To stay ‘matched’ with a company, the chosen curator must continuously produce high quality work; otherwise, the company will switch to another curator. In terms of institutional environment factors, the legal environment of the business model poses the most significant threat, as songs are often copyrighted. Atmosphere has addressed this issue by acquiring the license rights for all the music that is available on its platform. This allows it to be used for commercial purposes. However, this is a continuous process; if Atmosphere wishes to attract and keep customers on its platform, it needs to constantly update its music offering.


Atmosphere. 2017. How We Work. [ONLINE] Available at: [Accessed 14 February 2017].

Carson, S. J., Devinney, T. M., Dowling, G. R., & John, G. (1999). Understanding institutional designs within marketing value systems. Journal of Marketing, 115-130.

Johansson, G., & Moradi, J. (2015). What Does Your Brand Sound Like?. [ONLINE] Available at: [Accessed 13 February 2017]. 2017. Company Web Page. [ONLINE] Available at: [Accessed 14 February 2017].

RetailTech. 2017. Artists Select Music For Retailers . [ONLINE] Available at: [Accessed 14 February 2017].

Silicon Canals. 2017.’s Atmosphere will find the right tunes for every company. [ONLINE] Available at: [Accessed 13 February 2017].

What are you going to eat tonight?

We all have that moment once in a while that we don’t want to cook. But also ordering at Deliveroo or Foodora doesn’t sound that attractive anymore, since you feel like a regular customer already. You miss the home cooked meals of your mother, but don’t want to spend hours in the kitchen to make an attempt of copying her dish. What to do? AirDnD offers the solution.

What is AirDnD?
AirDnD is founded in 2015 by Rob Lagendijk and his motive is simple: it provides amateur and home chefs – you, me, your neighbour – the possibility to start their own mini restaurant in their home. “This is the moment to participate in the share economy and food is hot” are the words of CEO and founder Rob. AirDnD stands for Air Drink ‘n Dine. The platform is intended for home chefs, not for entrepreneurs. Other people can enjoy a home cooked mail by one of their neighbours by looking for interesting dishes on the platform itself.

So, how does it work exactly?
The platform is a two-sided market and creates a community between home chefs and people who wants to go out for a lovely home cooked meal. It solely depends on the value creation of the users and they put the customer in charge! Home chefs can create their own page where they can state their menu card, the prices for their different kind of dishes and even mention when they are ‘open’. You can specify your profile by telling other people how you live, what you like and how your house looks like.

People who wants to eat are also creating a profile, so that they can look for a home chef in their neighbourhood. After finding the ideal chef, you can make a reservation on the site. And before you know it, you are at the table with a couple of strangers at one of your neighbour’s house enjoying a nice, home cooked meal!


Home chefs determine their own price for their dishes. For €15 you can enjoy a “Fishy lunch” or pay some more for a four-course menu including wine. AirDnD is asking 10% for each reservation. So if a home chef is asking €15 for their dish, the guest will pay €16,50. The payments are done through the platform.

Challenges of new business idea’s
A new business idea is always facing some challenges. Like many other starters, take UBER or Airbnb for example, AirDnD is coping with these challenges. The biggest burden AirDnD has to cope with is the “Koninklijke Horeca Nederland”. Royal Horeca Netherlands (KHN) pursues its activities to the best possible business environment for the hospitality industry. They are scared that AirDnD will take the customers away from current restaurants. The KNH thinks that the home chefs who are using AirDnD must comply to the same rules as restaurants. Otherwise the competition is unfair they claim.

And now?
The founder of AirDnD is not worried about this challenges and believes in his idea. In the first couple of weeks there were already 700 home chefs registering on the site. Within a year they have grown to over 2000 different home chefs, opening up their house to strangers to enjoy a home cooked meal and they are still growing. The philosophy of AirDnD is simple: they just want to create a unique experience and offer great food for food lovers!

What do you think?
Will AirDnD be a succes? And will you make use of the opportunity to eat a lovely home cooked meal by one of your neighbors?

Tsekouras, D. (2017, 2 February). Introduction to Customer Centric Digital Commerce. Accessed on



Open supplier innovation?

In class, it was stated that the best ideas in crowdsourcing come from people outside the topic or differently stated, without much knowledge on the good or service. In this post, I would like to take the opportunity to stress the influence of supplier involvement when discussing open innovation to generate ideas. Thus, using a different perspective, more B2B and upstream focused. Would it be helpful in idea generation to include knowledgeable suppliers?

In the article by Alexy et al. (2011), it was noticed that input delivered by suppliers was interesting as specific technical needs are known, resulting in higher quality ideas submitted. Therefore, concluding that signaling more requirements or restrictions to consumers could increase the number of valuable submissions. This could address an aspect also mentioned during the class, where companies (e.g., Philips and Dell) face issues with the quality delivered by submissions of the crowd.

First, supplier involvement can be considered as “the integration of the capabilities that suppliers can contribute to NPD projects” (Johnsen, 2009, p. 187).  A literature review by Johnsen (2009) states factors that successfully affect supplier involvement. The successful factors studied are supplier selection, supplier relationship development & adaption, and internal customer capabilities. These factors facilitate a shorter time for the product to enter the market as well as improve the product quality, and reduce development and product costs. More importantly, the review indicates that supplier involvement should be further studied in-depth as different thoughts on innovation related to the involvement of suppliers exist. Namely, the article states that existing suppliers could be too familiar with the product leading to limited innovation. Thus, in line with earlier mentioned, a ‘crowd’ without prior knowledge provides better solutions.

Later, a North American longitudinal study by Yeniyurt et al. (2014), specifically on supplier involvement in buyer’s NPD, indicates that among various aspects, buyer-supplier communication and suppliers’ trust of a buyer significantly influences the participation of a supplier towards co-innovation and supplier involvement in a buyer’s NPD. Furthermore, the study found that co-innovation as well as financial performance of both the supplier and buyer increases when suppliers are actively involved in the buyers NPD. Hence, more reasons supporting the involvement of suppliers when aiming to generate ideas.

A related business an example can be taken from the Unilever. In 2012, Unilever launched an ‘Open Innovation Submission Portal’ to collaborate with its suppliers. Currently, the platform is still perceived as successful and therefore, still operating and evolving (Procurementleaders, 2012; Unilever, 2017). The portal provides experts of certain processes to share and optimize products from their specialist or technical view.

All in all, I do believe that it is valuable for companies, aiming to be innovative, to include suppliers in generating ideas on product development. Not only to create submissions of higher quality, and a trustful relationship. Moreover, a broad and diverse crowd consisting of both consumers and suppliers might be optimal in order to include all viewpoints to generate the best value for the customer.


Alexy, O., Criscuolo, P., & Salter, A. (2011). No soliciting: strategies for managing unsolicited innovative ideas. California Management Review, 54(3), 116-139.

Johnsen, T., E., (2009). Supplier involvement in new product development and innovation: Taking stock and looking to the future. Journal of Purchasing and Supply Management, 15 (3), 187-197.

Yeniyurt, S., Henke, J.W., & Yalcinkaya, G. (2014) A longitudinal analysis of supplier involvement in buyers’ new product development: working relations, inter-dependence, co-innovation, and performance outcomes. Journal of Academey of Marketing Science, 42, 291-308.


Designing Warning Messages for Detecting Biased Online Product Recommendations: An Empirical Investigation

Companies might be inclined to recommend products with the highest profit rating or unsellable stock using recommendation agents. This paper presents and tests countermeasures for biased product recommendation agents. The researchers conducted an experiment in which they exposed users of an e-Commerce website with warning messages about the risks of relying on recommendations provided by the website in three different styles; a warning without advice, a warning with positively framed advice and a warning with negatively framed advice.


All three of the methods led to an increased perceived bias by the users of the website in comparison to the control group, indicating that showing a warning message influences the choices a consumer makes after being warned.

The authors conclude that the best method to warn consumers about biased product recommendations is the negatively worded warning. This method led to the highest score of perceived bias by the users, and was the only method that did not increase the number of false positives reported by the users.


The use of recommendation agents to recommend the most profitable product is a valid concern and widely discussed and proven in other research, providing a good practical example to start the research.

The authors have countered the biased recommendations using simple measures that could easily be implemented in the real world.

In the supplementary research the authors note that the number of users using the search-by-brand functionality to verify the suggestions made by the product recommendation system increased from 12.9% to 43.1%. This suggests that the users did not simple suggest bias, but actively used the tools at their disposal to verify the validity of the warning message.


By using the perceived bias as the DV, the authors measured the opinion of the user whether they thought they were being tricked or not. This might have left out valuable results of people who were tricked but were not aware of it even after receiving the warning. Since the study contained relatively few choices, the authors could also have used the actual value for money rating of the selected products.  This would have provided a more accurate view of whether people were influenced by the biased recommendation system.

The proposed solution of a browser extension feels a bit too extensive. How many times do you need to be reminded to be wary of bias in product recommendations? A government issued cautionary commercial (SIRE in the Netherlands) could possibly achieve the same results by triggering people to think before trusting a recommendation.

Plan who you’ll cross paths with on Tripr

People like to travel together with family and friends. Tripr is a new way of experiencing this. It is an app in which you enter where you are travelling to and when is your trip. Besides this, it has a function like Tinder, you can put preferences for who you would like to meet during your trip. Tripr will then show users who will be in the same city during your given dates and who match your criteria. Because you are able to enter all these details before, you will be able to meet new travel mates months before your trip.

Continue reading Plan who you’ll cross paths with on Tripr

Crowdsourcing as solution to distant search

Crowdsourcing may have been around for a long time, but the advent of the Internet and other communication technologies has opened up many possibilities for the phenomenon to play out. Nowadays crowdsourcing plays a bigger role in strategic management than ever before. This paper adresses that under certain circumstances crowdsourcing transforms distant search into local search, improving the effectiveness of problem solving for firms. Under certain circumstances a firm may choose to crowdsource problem solving rather than solve the problem internally or contract it to a designated supplier.

These circumstances depend on several factors: the characteristics of the problem, the knowledge required for the solution, the crowd, and the solutions to be evaluated. In the paper, the authors compare the different forms (designated contractor, internal sourcing and crowdsourcing) for every aforementioned factor. By outlining the circumstances under which crowdsourcing may be a better mechanism for solving some problems, this article helps deepen our understanding of firm boundaries. However, the paper mainly highlights the circumstances in which crowdsourcing is the optimal form, but does not consider the consequences of crowdsourcing. The paper was lacking of considering the legal base of crowdsourcing, in most crowdsource cases there is no contract. Workers can run anytime they want, and an idea might be reused in anytime. If the authors would consider some (negative) consequences the paper would increase in reliability.

A related business example which can be linked to the article is the Netflix Prize. Adding this competition element, the Netflix example is a typical form of tournament-based crowdsourcing. In 2006, Neflix launched the Netflix Prize, “a machine learning and data mining competition for movie recommendations.” Netflix intention with the $1 million prize  was that it may encourage a range of algorithmic solutions to improve the company’s existing recommendation program, Cinematch, by 10%. The Netflix Prize demonstrates the power of crowdsourcing in developing innovative solutions for complex problems. Further, it is an interesting example of how setting various stages in the competition can help further push teams to achieve new success by combining their solutions with other contestants.

As mentioned above, the characteristics of the required solution knowledge, the problem to be solved, the crowd, and the solutions to be evaluated all have an impact on a focal agent’s probability of crowdsourcing a problem. Furthermore, the paper addresses that IT moderates that relation. How? The Internet facilitates the performance of tasks through crowdsourcing, which involves more arm’s-length transactions than traditional outsourcing to a designated contractor. The potential improvements in problem solving costs and effectiveness that come from crowdsourcing could have important consequences for both existing and emerging strategies.


Afuah, A., & Tucci, C. (2012). Crowdsourcing as a solution to distant search. The Management Review


The Power of the Like button

Traditionally movie studios have used the same marketing strategies to promote their movies. Think about advertisements through different channels on the television, release announcements in the newspapers or even advertisement which are visible for us to see on different billboards. According to McKinsey the global cinema advertising expensive where approximately 2.1 billion US dollars in 2014. This amount is expected to grow up to 2.8 billion dollars in 2018. So, in the near future we can state that the advertising expediture will grow. From a logical perspective I would assume that companies are blessed with the arrival of different great social media platforms. These platforms have a gigantic reach where consumers make use of but also corporations. In the past consumers could only inform eachother about a certain product verbally or via letters. Nowadays, the consumer has a much greater reach due to social platforms such as Facebook etc. These platforms make it easier and also less expensive for us to communicate. Thus, companies should also make use of these platform to have less expenditures, right?


To argue that the use of social media platforms can indeed decrease the advertisement expenditure and still increase box office performances I read an article about ‘the Power of the Like button’. The authors in this article state that before a certain movie is released the ‘likes’ of this prerelease have a signigicantly positive impact on box office performance. With box office performances the authors mean the opening week box office records. Thus, they state that a 1% increase in the number of ‘likes’ in the week prior to the release of the movie, is associated with an increase of the opening week box office records with 0,2% (Cheng et al, 2017). The authors did the research by firstly collecting data from the websites IMDb, Facebook and Box Office Mojo throughout the calendar year 2013. The data that they collected included movie-specific characteristic, ‘like’ activities on Facebook and the box office performance which is the amount of opening box office records. In the figure below you can see that the opening records of Star wars: The Force Awakens is roughly 248 billion US dollars.


There are two main stages in which the generated data was analysed. Firstly the authors wanted to understand the relationship between prerealesed ‘likes’ and box office performances by running a cross-sectional regression.  Secondly the authors applied the Fama-McBeth regression to estimate the prerelease ‘like’ impact over time. It is interest to see that a 1% increase in ‘likes’ prior to the release of the movie indeed increased the opening week box office record with 0,2%. Even more interesting to see that the prerealesed ‘like’ effect becomes stronger as it approaches the release date. This research makes a huge contribution to businesses that are considering to use the Facebook like button as a marketing tool. On the other hand, this article does not take the popularity of the actors in the movies into consideration and it is not clear whether the results of this research apply for other products which are movie related.

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Ding, C., Cheng, H., Duan, Y. and Jin, Y. (2017). The power of the “like” button: The impact of social media on box office. Decision Support Systems, 94, pp.77 84.

McKinsey & Company, Global media report 2015, 2015. 16.08.17).