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Primary product network size on complementary product sales Moderating effects of customer characteristics

Primary product network size on complementary product sales Moderating effects of customer... Purpose – The purpose of this paper is to examine the relationship between primary product network size and the sales of complementary products, and to suggest customer characteristics moderating this relationship. Design/methodology/approach – A panel dataset in the online video game industry was used to verify the proposed theoretical framework. Two‐level hierarchical linear modeling is used to test several hypotheses. Findings – The authors' analysis results suggest there is a positive relationship between the primary product network size and the sales of complementary products. Also, two customer characteristics (previous transaction value and customer purchase frequency) were found to positively influence the complementary product sales. The primary product's network size has a stronger impact on complementary product sales for light buyers compared to heavy buyers. Research limitations/implications – This study only focused on online video industry, and the price differentiation of the products might not be adequately significant. Other relevant factors (such as word‐of‐mouth (WOM)) or other customer characteristics could also be relevant to complementary product sales. Therefore, future research could use data triangulation to collect data in different contexts, through a longer period of time, to test and verify the proposed relationships. Practical implications – Product managers need to better understand the relationship between the primary product network size and the complementary product sales. They should adjust the marketing strategies toward different customer purchase frequency segments correspondingly. For example, to benefit further from the primary product network size, complementary product retailers can create online forums for all primary product users to influence light complementary product buyers. Originality/value – This research is one of the first empirical investigations of establishing the relationship between primary product network size and complementary product sales, with customer characteristics as moderators. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Retail & Distribution Management Emerald Publishing

Primary product network size on complementary product sales Moderating effects of customer characteristics

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Publisher
Emerald Publishing
Copyright
Copyright © 2011 Emerald Group Publishing Limited. All rights reserved.
ISSN
0959-0552
DOI
10.1108/09590551111177963
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to examine the relationship between primary product network size and the sales of complementary products, and to suggest customer characteristics moderating this relationship. Design/methodology/approach – A panel dataset in the online video game industry was used to verify the proposed theoretical framework. Two‐level hierarchical linear modeling is used to test several hypotheses. Findings – The authors' analysis results suggest there is a positive relationship between the primary product network size and the sales of complementary products. Also, two customer characteristics (previous transaction value and customer purchase frequency) were found to positively influence the complementary product sales. The primary product's network size has a stronger impact on complementary product sales for light buyers compared to heavy buyers. Research limitations/implications – This study only focused on online video industry, and the price differentiation of the products might not be adequately significant. Other relevant factors (such as word‐of‐mouth (WOM)) or other customer characteristics could also be relevant to complementary product sales. Therefore, future research could use data triangulation to collect data in different contexts, through a longer period of time, to test and verify the proposed relationships. Practical implications – Product managers need to better understand the relationship between the primary product network size and the complementary product sales. They should adjust the marketing strategies toward different customer purchase frequency segments correspondingly. For example, to benefit further from the primary product network size, complementary product retailers can create online forums for all primary product users to influence light complementary product buyers. Originality/value – This research is one of the first empirical investigations of establishing the relationship between primary product network size and complementary product sales, with customer characteristics as moderators.

Journal

International Journal of Retail & Distribution Management – Emerald Publishing

Published: Oct 11, 2011

Keywords: Consumer behaviour; Video games; Internet; Online video game industry; Complementary products retailing; Network size; Customer characteristics; Purchase frequency

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