Start Date

11-12-2016 12:00 AM

Description

Consumers’ purchase decisions can be affected by their offline peers, or offline neighborhoods, and their online peers, or online friendships. Although both offline and online peer influence have been shown to affect consumer behavior, researchers have provided limited insights into how these two forms of social influence might differ from and interact with each other. Using a unique panel data set, this study examines two issues regarding the two forms of peer influence: (1) their impact on consumer purchase behavior, and (2) their interaction effects. Our findings reveal that both offline and online peer influence can affect customer purchase decisions, and there is a substitution effect between them. The theoretical and practical implications of this study are also discussed.

Share

COinS
 
Dec 11th, 12:00 AM

Impact of Offline and Online Peer Influence on Customer Purchase Behavior: An Empirical Investigation

Consumers’ purchase decisions can be affected by their offline peers, or offline neighborhoods, and their online peers, or online friendships. Although both offline and online peer influence have been shown to affect consumer behavior, researchers have provided limited insights into how these two forms of social influence might differ from and interact with each other. Using a unique panel data set, this study examines two issues regarding the two forms of peer influence: (1) their impact on consumer purchase behavior, and (2) their interaction effects. Our findings reveal that both offline and online peer influence can affect customer purchase decisions, and there is a substitution effect between them. The theoretical and practical implications of this study are also discussed.