Leveraging social network sites for new product launch
| Pages | 2400-2416 |
| Date | 04 December 2017 |
| DOI | https://doi.org/10.1108/IMDS-11-2016-0472 |
| Published date | 04 December 2017 |
| Author | Deborah Lynn Roberts,Marina Candi,Mathew Hughes |
| Subject Matter | Information & knowledge management,Information systems,Data management systems,Knowledge management,Knowledge sharing,Management science & operations,Supply chain management,Supply chain information systems,Logistics,Quality management/systems |
Leveraging social network sites
for new product launch
Deborah Lynn Roberts
Department of Marketing,
Nottingham University Business School, Nottingham, UK
Marina Candi
Center for Research on Innovation and Entrepreneurship, School of Business,
Reykjavik University, Reykjavik, Iceland, and
Mathew Hughes
School of Business and Economics, Loughborough University, Loughborough, UK
Abstract
Purpose –The ability to make use of social network sites (SNSs) to promote new products and facilitate
positive word of mouth around new product launch (NPL) presents an important opportunity. However, the
mechanisms and motivations of SNS users are not well understood and businesses frequently fail to realise
these opportunities. The purpose of this paper is to examine some of the forces that motivate people to spend
time on SNS sites and how these motivations are related with people’s propensity to engage in behaviours
that can be beneficial for NPL.
Design/methodology/approach –Hypotheses are tested using data collected using an online survey from
a broad sample of SNS users worldwide.
Findings –People who spend time on SNSs to be challenged, to escape, or to connect with others are more
likely than other users to pay attention to advertisements on SNS. Users that spend time on SNSs in the
pursuit of information, to be challenged, or to connect with others are more likely than other users to provide
word of mouth reviews and recommendations about products.
Research limitations/implications –The authors make an empirical contribution to knowledge by
providing evidence about the categories of user motivations for engagement with SNSs that might be related
with their contributions to NPL activities, namely, paying attention to advertisements and providing WOM
recommendations.
Practical implications –By understanding what motivates SNS users, firms can identify potentially
valuable users and develop a more strategic and targeted approach to NPL. This can help firms turn
disappointing social media campaigns into more successful ones.
Social implications –Whilst the growth in usage of SNS has important implications for business and NPL
there are also wider societal implications. Arguably, even before the widespread adoption of SNSs, society has
been in a state of flux and transition as people sought to liberate themselves from the norms and social codes
of previous generations. We have witnessed a rise of individualism, associated with values such as personal
freedom and where people actively construct their own identities. Somewhat ironically, individualism has
motivated people to seek alternative social activities and form communities, such as those on SNSs where
they can fulfil their need for connection and belonging. SNSs appear to have accelerated this trend.
Originality/value –This study provides new insights about the use of SNSs for NPL and what motivates
users to engage in behaviours that are beneficial to NPL.
Keywords Motivation theory, Social media, Social networks, Advertising, New product launch
Paper type Research paper
Introduction
New product launch (NPL) constitutes the final, and often very expensive, stage of the
innovation process. Successful NPL is a key driver of business performance (Bruce et al.,
2007; Di Benedetto, 1999; Hultink et al., 1997) and is vital to ensure income streams, and
growth (Pauwels et al., 2004). As such, it represents a major commitment in terms of the
marketplace and resource allocation (Hultink et al., 2000). However, despite the importance
of NPL, research in this area remains under-developed (Calantone and Di Benedetto, 2012),
and the successful introduction of new products to the market continues to be a key
Industrial Management & Data
Systems
Vol. 117 No. 10, 2017
pp. 2400-2416
© Emerald PublishingLimited
0263-5577
DOI 10.1108/IMDS-11-2016-0472
Received 2 November 2016
Revised 24 March 2017
Accepted 27 March 2017
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/0263-5577.htm
2400
IMDS
117,10
challenge for managers (Kuester et al., 2012). Complicating this matter, it is not sufficient for
new products to be innovative and have a clear product advantage (Langerak et al., 2004;
Henard and Szymanski, 2001); they also need to be communicated effectively and launched
in innovative ways. Novel opportunities to do so are rapidly emerging as new internet-based
technologies, and in particular social network sites (SNSs) become an integral part of the
innovation landscape. According to Ainin et al. (2015), using platforms such as Facebook
has become “a must”for business. The various SNS platforms differ in both their scope and
functionality (Kane et al., 2014). Some applications are largely text-based and relatively
simple, whilst others, e.g. Facebook, enable creativity and the sharing of text, pictures and
videos (Kaplan and Haenlein, 2010).
Existing researchhas attempted to identify the determinants of successfulNPL (Calantone
and Di Benedetto,2007; Harmancioglu et al., 2009), and hasfocused primarily on the strategic
and tactical decisions undertaken (Hultink et al., 2000; Guiltinan, 1999; Di Benedetto, 1999).
Tactical decisions tend to focus on traditional elements of the marketing mix, such as how to
price and promote new products. However, other possibilities such as the use of SNSs for
product launch have received little attention to date –presumably because of their relatively
recent emergence.Many firms have rushed to SNSsin the hopes of profiting from the potential
opportunities afforded. Similarly, scholars have been eager to provide evidence of these
opportunities, but may have neglected the complexities of engaging with SNS users and
under-appreciated the challengesof leveraging the potentialof SNSs (Roberts and Candi, 2014;
Roberts and Piller, 2016; Marion et al., 2016). We contend that anecdotal validation about the
value of SNSs is at risk of outpacing its conceptual and empirical development, particularly
regarding why it might be valuable and how such value might be accrued.
Given the phenomenal growth in SNS use and the potential to improve new product
performance, understanding how to leverage SNSs for the successful launch of new
products is an important priority for research and practice. Proficiency in NPL activities is
an essential requirement for new product success (Maidique and Zirger, 1984; Langerak
et al., 2004), but what understanding is needed to be proficient in an age of social
connectivity? In an environment crowded with virtual communities (Rheingold, 2000) and
users deeply engaged in social networks (Lea et al., 2006), it is important to understand what
motivates users to spend time on SNSs and how these motivations are related with users’
propensity to engage in behaviours of value for NPL. Examining these issues is important
as individuals generally do not enter or spend time on SNSs to engage with firms or learn
about their new product launches but to meet their own socially-oriented goals (Piskorski,
2011). Only by understanding users’motivations and behaviours can firms potentially hope
to leverage them for NPL.
By understanding SNS users’motivations and expected behaviours in engaging with
SNSs, we can start to comprehend how firms can leverage SNS users to benefit their NPL
activities and develop new NPL strategies that are fitting for the social networking era.
We focus on two specific behaviours, first, the more passive behaviour of paying attention
to advertisements on SNSs, and second, the more active behaviour of providing word-of-
mouth (WOM) reviews or recommendations about products.
To achieve ourobjectives and provide evidenceabout what motivates people to spendtime
on SNSs and how these motivations are related with the propensity to exhibit behaviours of
value for NPL, a survey was conducted amongover 200 users of SNSs. The sample includes
SNS users of all ages from aroundthe world. It includes users of the currently popular SNSs
and also offered the opportunity for respondents to answer for less well known SNSs.
The remainder of this paper is structured as follows: first we outline the theoretical
background and develop hypotheses. Second, we describe the data collection and analysis.
Third, we present the results of the data analysis. The paper closes with a discussion of the
findings and implications for theory and practice.
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Social network
sites for NPL
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