Pay Easy, Buy More

An Empirical Study of the Purchase Feature in Social Media Apps

Chenhui Guo, Xi Chen, Bin Zhang, Paulo B Goes

Research output: Contribution to conferencePaper

Abstract

As a new transaction channel, the purchase feature in social media mobile apps enables consumers to pay merchant accounts directly. The convenience of mobile payment and the richness of product information and promotions may trigger more demand. The aim of this study is to quantify the effect of such a purchase feature on business sales revenue. Using transaction data from a large hotel chain company, we rely on variations in the timing of users enabling the purchase feature in the mobile app to identify the effect of adopting the mobile channel on hotel room reservation. To mitigate endogeneity caused by the nonrandom selection of being adopters and nonadopters, we apply the difference-in-differences approach with propensity score matched individuals. Our results show that adopting the purchase feature in mobile social media apps will significantly increase sales, and such increase is attributed to more transactions from social media channel.

Original languageEnglish (US)
StatePublished - Jan 1 2018
Event38th International Conference on Information Systems: Transforming Society with Digital Innovation, ICIS 2017 - Seoul, Korea, Republic of
Duration: Dec 10 2017Dec 13 2017

Other

Other38th International Conference on Information Systems: Transforming Society with Digital Innovation, ICIS 2017
CountryKorea, Republic of
CitySeoul
Period12/10/1712/13/17

Fingerprint

Application programs
Hotels
Sales
Industry

Keywords

  • Difference-in-differences
  • Instrumental variables method
  • Matching estimator
  • Mobile payment
  • Social media
  • Transaction channels

ASJC Scopus subject areas

  • Computer Science Applications
  • Information Systems

Cite this

Guo, C., Chen, X., Zhang, B., & Goes, P. B. (2018). Pay Easy, Buy More: An Empirical Study of the Purchase Feature in Social Media Apps. Paper presented at 38th International Conference on Information Systems: Transforming Society with Digital Innovation, ICIS 2017, Seoul, Korea, Republic of.

Pay Easy, Buy More : An Empirical Study of the Purchase Feature in Social Media Apps. / Guo, Chenhui; Chen, Xi; Zhang, Bin; Goes, Paulo B.

2018. Paper presented at 38th International Conference on Information Systems: Transforming Society with Digital Innovation, ICIS 2017, Seoul, Korea, Republic of.

Research output: Contribution to conferencePaper

Guo, C, Chen, X, Zhang, B & Goes, PB 2018, 'Pay Easy, Buy More: An Empirical Study of the Purchase Feature in Social Media Apps' Paper presented at 38th International Conference on Information Systems: Transforming Society with Digital Innovation, ICIS 2017, Seoul, Korea, Republic of, 12/10/17 - 12/13/17, .
Guo C, Chen X, Zhang B, Goes PB. Pay Easy, Buy More: An Empirical Study of the Purchase Feature in Social Media Apps. 2018. Paper presented at 38th International Conference on Information Systems: Transforming Society with Digital Innovation, ICIS 2017, Seoul, Korea, Republic of.
Guo, Chenhui ; Chen, Xi ; Zhang, Bin ; Goes, Paulo B. / Pay Easy, Buy More : An Empirical Study of the Purchase Feature in Social Media Apps. Paper presented at 38th International Conference on Information Systems: Transforming Society with Digital Innovation, ICIS 2017, Seoul, Korea, Republic of.
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