Rational spamming
Name
974488479-MIT.pdf
Description
Full printable version
Size
2.89 MB
Format
Adobe PDF
Checksum (MD5)
984bcc8c6f1b5e7a187e4032a0730681
Author(s)
Cao, Xinyu.
Advisor(s)
Juanjuan Zhang.
Date Issued
2016
Publisher
Massachusetts Institute of Technology
Abstract
Advertising on social media faces a new challenge as consumers can actively choose which advertisers to follow. Tracking company accounts, owned by 93 TV shows on the most popular tweeting website in China, provides evidence that firms advertise intensively, although doing so appears to drive followers away. An analytical model suggests that consumers with limited attention may rationally choose to unfollow a firm. This happens if consumers already know enough about the firm's quality and if the firm advertises too intensely. However, firms might still find intensive advertising the optimal strategy - if a firm is perceived as having a lesser quality offering, it wants to advertise aggressively to change consumers' beliefs about its quality; if a firm is perceived as having a higher quality offering, it also wants to advertise intensively, but in an effort to crowd-out advertising messages from its competitors.
Description
Thesis: S.M. in Management Research, Massachusetts Institute of Technology, Sloan School of Management, 2016.
Cataloged from PDF version of thesis.
Includes bibliographical references (pages 57-58).
Subjects
Sloan School of Management.
MIT Department
Sloan School of Management
Terms of Use
MIT theses are protected by copyright. They may be viewed, downloaded, or printed from this source but further reproduction or distribution in any format is prohibited without written permission.
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