Clashing on social media
Exploring the impact of Twitter banter between competing fast-food brands
Keywords:
brand-to-brand communication, social media, new product introduction, causal inferenceAbstract
We quantify the causal effects of viral banter on social media among rivals in the context of a new product launch by a focal brand. We argue that such a banter would not only increase user engagement but also have a substantial sales impact for the brands involved. Our analysis shows that the viral banter caused a 426% jump in online search and lead to a 54% increase in offline sales for the focal brand. Although rival brands benefited from increased user engagement, they did not see a significant change in online search and offline sales. Beyond initial success, we observe a sustained long-term growth (30%) in focal brand’s sales. Our study has key implications for firms. We suggest that brands exercise caution before disparaging their competitors on social media.
Key words: brand-to-brand communication, social media, new product introduction, causal inference
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