Supporting New Product Launches With Social Media Communication and Online Advertising: Sales Volume and Profit Implications

Richard L. Gruner, Arnd Vomberg, Christian Homburg, Bryan A. Lukas

OnderzoeksoutputAcademicpeer review

11 Citaten (Scopus)


The question of how important firms’ investments in digital communication formats are for the commercial success of new products remains unexplored in the product innovation management literature. Drawing on reactance theory, the authors examine the extent to which investments in social media communication and online advertising are related to the sales volume and profits of new products within six months of being launched. Using dyadic survey data, an analysis of new products launched by 122 consumer durable goods firms reveals that sales volume and profits of new products are associated with (1) social media communication in a positive but diminishing shape, and (2) online advertising in an inverted U‐shape. Further analyses show that those curvilinear relationships are steeper for social media communication and flatter for online advertising at respective (1) higher levels of customer product involvement and (2) lower levels of product superiority. The results imply that there is an optimal level of investment in social media communication and online advertising, with the optimum dependent on a new product’s consumer involvement and superiority levels.
Originele taal-2English
Pagina's (van-tot)172-195
Aantal pagina's24
TijdschriftJournal of Product Innovation Management
Nummer van het tijdschrift2
Vroegere onlinedatum10-sep-2018
StatusPublished - 5-okt-2018
Extern gepubliceerdJa

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