Product Engagement and Identity Signaling: The Role of Likes in Social Commerce for Fashion Products

Abstract

User engagement with products in the forms of clicks and likes is a key success factor for social commerce websites. Motivated by a lack of understanding on user engagement with identity-relevant products, we examine how it evolves as a function of existing likes at a fashion-focused social commerce website. We distinguish two mechanisms by which existing likes may affect users’ subsequent engagement: observational learning (OL) by observing aggregate likes, and social influence (SI) by learning latest likes by people they follow. Using a unique panel data set of 930 handbags, we find that, contrary to most OL studies, but consistent with the identity signal theory, users avoid liking a handbag when it has already received many likes, but this negative OL effect is mitigated by SI (i.e., when users learn that people they follow like the handbag). The opposite happens for private engagement behaviors that do not signal identity: users click a handbag (to find product details) more when it has already received many likes, and this positive OL effect is attenuated by SI. Our findings contribute to the literature of OL, SI, and identity signaling, and hold important implications for research and practice on product engagement.