Abstract
This article presents a randomized controlled field experiment to study the influence of likes on revenue. The results indicate that likes can have a substantial positive impact on revenue, but this effect is moderated by the time of the shopping visits. Likes are mainly effective during non-work time (evenings or weekends) when people may have more time to consider additional information. During non-work hours, the control group (without likes) spent 9,293.40 Euro while the treatment group (who observed likes) spent 11,241.71 Euro. Overall, we estimate the value of a like during non-work hours at .14 % of the focal store’s average product price. We also find that likes benefit most the already popular products. The positive effect of likes during non-work hours is mainly driven by an increased propensity to buy (i.e., conversion). We do not observe significant changes in the money spent once the buying decision has been made.
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