Professional Documents
Culture Documents
a
Information Systems & Analytics, Jindal Global Business School, O.P. Jindal Global University, Haryana 131001, India
b
Management Information Systems, Indian Institute of Management Calcutta, Kolkata, India
Keywords: Social networking site (SNS) driven e-commerce, the latest social commerce (s-commerce) phenomenon, gains
Social commerce prominence with the introduction of the call-to-action feature. The call-to-action feature on any sponsored
Facebook likes post or advertisement on SNS redirects the user to a linked e-commerce website that offers the product.
Social networking site (SNS) Information cues available on the SNS are expected to influence user decision making on the linked e-com
Social proof
merce site. Set in the context of Facebook driven e-commerce, this study explores how likes on Facebook
Attitude transfer
Controlled experiments
influence user's purchase and recommendation decisions on a linked e-commerce website. Using controlled
experiments we find that a higher volume of likes on Facebook leads to a higher likelihood of purchasing and
recommending a product on the linked e-commerce site. This effect is found to be mediated by the user's initial
product attitude formed on Facebook. An additional analysis examining the strength of the influence reveals
that the mere presence of likes is not sufficient to impact the user's decision making. In fact, a low volume of
likes elicits user behavior similar to absence of likes. The influence is effective only if the number of likes is
substantially high. The findings of the study add to the s-commerce literature by establishing the inter-site
influence of Facebook likes on user's purchase and post-purchase decisions and providing empirical evidence
of the efficacy of SNS-driven e-commerce.
1. Introduction sponsored posts about products and services. After an initial evaluation
of the products on the SNS they may choose to click on the call-to-
Recently marketers have started leveraging social networking sites action button to visit the linked e-commerce site where they can finally
(SNSs) not only to promote their products but also to facilitate com evaluate the product. The initial evaluation of the product on the SNS
mercial transactions through the channel, giving a boost to social and the final evaluation of the product on the e-commerce site are
commerce (s-commerce). S-commerce, the newest paradigm of e-com expected to be impacted by the information cues available on the SNS.
merce, refers to the convergence of e-commerce and social networking One of the most common information cues on SNSs is one-click
sites that facilitates “the delivery of e-commerce activities and trans social cue such as like (on Facebook) or love (on Instagram).1 Although
actions via social media environment” [1]. SNSs such as Facebook, non-lexical or symbolic in nature [2], such one-click social cues convey
Pinterest, Instagram, etc., have extended their capabilities from merely positively connoted user opinion [3,4] and indicate user preference or
hosting advertisements to providing avenues to carry out commercial interest [5] for the ‘liked’ item. Thus, it can serve as an indirect form of
transactions through their sites. The latest call-to-action (e.g., shop now, recommendation and act as a source of social influence [6,7]. Facebook
subscribe now) feature on sponsored posts and advertisements on SNSs is like, a common form of one-click social cue, has gained a considerable
an example of the extended capabilities in this regard. The call-to-ac amount of attention in the academic research recently. This is due to
tion feature redirects users from SNSs to a linked e-commerce site that the fact that Facebook is the most popular SNS among individuals and
sells the product, giving rise to SNS-driven e-commerce purchases. organizations [8,9]. As of 2020, Facebook has more than 1.7 billion
Users browsing their accounts on SNSs get exposed to advertisements or daily active users accounting for 37% of global internet users.2 It is also
Corresponding author.
⁎
https://doi.org/10.1016/j.dss.2020.113383
Received 24 January 2020; Received in revised form 13 August 2020; Accepted 13 August 2020
Available online 24 August 2020
0167-9236/ © 2020 Elsevier B.V. All rights reserved.
S. Bhattacharyya and I. Bose Decision Support Systems 138 (2020) 113383
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S. Bhattacharyya and I. Bose Decision Support Systems 138 (2020) 113383
have investigated the causal relationship between likes and users' pro act [21]. Thus, social proof is essentially informational social influence
duct perception [10] and tendency of impulse buying [12] through that leads to genuine acceptance of others' actions or opinions [32].
experiments, have done so by restricting the likes and the purchase to Research suggests that the strength of social proof depends on a number
take place on the same platform. The inter-site influence of Facebook of factors, such as the number of information sources, and the nature of
like is rarely investigated. We intend to address the gaps by conducting the information source. The same information coming from multiple
a controlled experiment to establish the causal influence of likes re sources is perceived to be more credible and has a higher propensity to
ceived by a product on Facebook and users' intention to buy and re be accepted [21]. Social proof becomes stronger if the information is
commend the product on a linked e-commerce site. Second, researchers shared by reputed or trustworthy sources or peers rather than un
have mainly focused on purchase or sales as the outcomes when familiar sources [20]. For example, studies show that information (e.g.,
studying the influence of likes [5,6,12,15,17]. For instance, some of online reviews) shared by reputed sources (reviewers) are of higher
them have examined the impact of likes on group-deal purchases quality and exert greater social influence on others [33]. Social proof
[6,15], whereas others have checked the effect on Facebook consumer- comes into play in case of online purchases where consumers are un
to-consumer and second-hand marketplace purchases [5,12], and certain about the quality of the product or the credibility of the mar
movie ticket sales [17]. We notice a lack of attention to identification of keter. In such cases people seek information from fellow consumers in
the effect of likes on users' social sharing behavior, one of the critical their network as social proof.
aspects of s-commerce [18]. We intend to advance the research by
examining the effect of Facebook likes on users' social sharing behavior
3.2. Attitude transfer hypothesis
in terms of their intention to recommend a product in the linked e-
commerce site. Finally, although a few studies have underlined the
Individuals' perceptions and attitudes can be transferred from one
economic value of social media or SNSs as marketing and transactional
entity to other related entities. It is referred to as the attitude transfer
channels in e-commerce purchases [27–30], there is a paucity of studies
hypothesis [22]. For instance, attitudes can be transferred from an ad
that provide empirical evidence of the value of social cues in SNS-
vertisement (source) to advertised product (target) and parent brand
driven e-commerce. Also, there is a lack of studies that empirically
[34], or from retailers' physical stores (source) to their online shopping
examine the additional value of s-commerce over e-commerce. In our
websites (target) [35]. The attitude transfer hypothesis has been widely
study, we not only investigate the role of social cues (on SNS) in SNS-
used in social psychology for explaining the formation of impression
driven e-commerce but also compare it with direct e-commerce pur
[35,36]. Studies have shown that congruity between the source and the
chases to demonstrate the additional value that SNSs offer in s-com
target increases the chance of attitude transfer. When two entities are
merce transactions. Table 1 depicts the summary of related literature
closely related or the target entity is identified to a previously defined
and the gaps in them.
source, attitude transfer is more pronounced. For example, [35] have
shown that congruity between a retailer's known offline store and the
3. Theoretical background online website increases the influence of prior attitudes on consumers'
evaluation of the website. Our current research context involves the
The theoretical foundation of our study is based on the concepts of evaluation of a product on two closely related entities: Facebook and a
social proof [21] and attitude transfer [22]. The central tenet of this study linked e-commerce site. We expect transference of product attitude
is that a social cue such as Facebook like acts as a social proof that from Facebook to the linked e-commerce site during product evaluation
positively impacts users' perceptions and actions including their inter- and subsequent purchase decision. In the context of our study, we ex
site purchase and recommendation decisions. Further the transference pect Facebook like to act as a social proof as it indicates fellow con
of this influence of likes from Facebook to another site (the linked e- sumers' preference for a product. When users observe a product on
commerce site) is mediated by the initial product attitude formed on Facebook being liked by many of their peers, they are likely to form a
Facebook, as expounded by the attitude transfer hypothesis. favourable attitude towards the product. When they visit the linked e-
commerce site, we expect the initial product attitude to be carried over
(attitude transfer process) to the e-commerce site and shape their final
3.1. Social proof heuristic
product attitude. The conceptualized process is shown in Fig. 2.
Social proof heuristic is a socio-psychological concept that explains
the human tendency to follow opinions or actions of others while un 4. Hypotheses development
dertaking any decision. Rooted in the works of Cialdini, social proof is a
form of social influence that leads to the tendency of a large group of 4.1. Effect of likes on product attitude on Facebook and likelihood of
individuals conforming to a particular choice, also known as herd be purchase on a linked e-commerce site
havior [21]. Social influence can be either normative or informational.
Normative social influence implies conformity to be liked or accepted by According to the social proof heuristic, individual's perceptions and
others [31], whereas informational social influence occurs under un actions are influenced by the opinions and actions of others [20,21].
certainty where we seek information from others in order to decide or For example, the effect of e-WoM on sales of movie tickets [37], sales of
Table 1
A summary of related literature and key gaps in the literature.
Major themes Description and key literature Gaps in literature
Association between Facebook likes and Positive association of Facebook likes with sales [6,15,17], product's • AThecausal influence of Facebook likes is not established
user outcomes in e-commerce quality perception [10], brand evaluation and purchase likelihood
[23,24], and consumers' impulse buying tendency [12]
• inter-site influence of Facebook likes is not explored
Relationship between Facebook likes
and e-commerce purchases or sales
Effect of Facebook likes on group-deal purchases [6,15], movie-ticket sales
[17], and Facebook C2C and marketplace purchases [5,12]
• The effect of Facebook likes on social sharing
behavior (e.g., recommendations) is rarely studied
Value of SNSs in e-commerce Economic value of social media as a marketing channel in e-commerce
[27–30]
• Empirical evidence of value of social cues in SNS-
driven e-commerce is not provided
• Lack of empirical investigation of additional value of s-
commerce over conventional e-commerce
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S. Bhattacharyya and I. Bose Decision Support Systems 138 (2020) 113383
digital microproducts [38], etc. Facebook likes being a form of peer 4.3. Mediating role of product attitude on Facebook
opinion [6] can act as social proof and influence prospective buyers.
The fact that likes are provided by real users, some of them being fa Prior research on attitude transfer has shown that formation of at
miliar sources such as friends and acquaintances, further strengthens titude towards an entity is influenced by previously developed attitude
the influence [20]. The social proof heuristic also suggests that in towards the same or other related entities [22]. Several studies have
dividuals give more credence to the same information generated by applied attitude transfer hypothesis in online settings. For example,
multiple sources [21]. Since a user can like a content only once, each studies have demonstrated how initial attitude towards a company's
like indicates opinion from a unique user. Therefore, a higher number website leads to attitudinal responses towards the company itself
of likes for a product indicates preference of a higher number of in [35,36], or how positive attitude towards e-WoM services transfers to
dividuals, creating a higher degree of social proof. This will translate mobile-WoM services [41]. Accordingly, in our context, when users
into a positive attitude towards the product on Facebook. Thus, we visit a linked e-commerce site from Facebook, they carry the initial
propose the following hypothesis: attitude towards the product formed on Facebook to the e-commerce
site. Due to the relatedness of Facebook and the linked e-commerce site,
H1a. A higher volume of likes for a product advertised on Facebook will lead
the initial product attitude is expected to influence the formation of the
to a more favourable attitude towards the product on Facebook as compared
final product attitude on the linked e-commerce site, which in effect is
to a lower volume of likes.
expected to shape users' purchasing and recommending decisions [42].
A higher degree of social proof, resulting from a higher number of Thus, we can say that product attitude on Facebook will mediate the
likes is likely to amplify user's tendency to click on the call-to-action inter-site influence of likes on users' likelihood of purchase and like
button and visit the linked e-commerce site. Hence, we propose the lihood of recommendation through the process of attitude transfer.
following hypothesis: Hence, we propose the following hypotheses:
H1b. A higher volume of likes for a product advertised on Facebook will lead H3a. Users' attitude towards the product on Facebook will mediate the effect
to a higher likelihood of visiting the linked e-commerce site that offers the of likes on the likelihood of purchasing the product on a linked e-commerce
product as compared to a lower volume of likes. site.
Furthermore, studies indicate a positive relationship between social H3b. Users' attitude towards the product on Facebook will mediate the effect
proof and online purchases (e.g., [38]). Therefore, we posit that a of likes on the likelihood of recommending the product on a linked e-
higher degree of social proof resulting from a higher volume of likes on commerce site.
Facebook will increase user's propensity to buy the product on the
linked e-commerce site. This leads us to the following hypothesis:
5. Research methodology
H1c. A higher volume of likes for a product advertised on Facebook will lead
to a higher likelihood of purchasing the product on a linked e-commerce site Existing research has predominantly used secondary data for ex
as compared to a lower volume of likes. amining the influence of likes (e.g., [6,15,17]), that has weaker causal
claims. To establish causality and increase the accuracy of con
ceptualization of constructs, we conducted scenario-based controlled
4.2. Effect of Facebook likes on likelihood of product recommendation on a experiments, as used in many previous studies (e.g., [43,44]). A ran
linked e-commerce site domized controlled experiment is the best method to establish causality
as it minimizes the problems created by confounding variables and self-
Individuals' intention to recommend a product to their peers is pro selection bias6 [45]. Also, the scenarios used in the experiments emu
pelled by various social and psychological motivations, such as intention late the case of real-life SNS driven e-commerce as closely as possible,
to help others, expressing own choices, or even reduction of one's post- evoking responses that are more realistic.
purchase dissonance or anxiety [39]. However, recommendation beha
vior involves costs such as time and effort expended in providing the
5.1. Design of experiment
recommendation and the risk of reputation loss [39]. Although online
channels have reduced the time and effort involved in providing re
We created a simulated online shopping scenario where participants
commendations, the risk of reputation loss still exists. If a receiver is
were exposed to an advertisement on Facebook with a ‘shop now’
dissatisfied with a purchase resulting from the recommendation, the
button which redirected them to a linked e-commerce site offering the
relationship between the recommender and the receiver suffers [40].
product. The number of likes on Facebook was manipulated using two
Thus, while recommending, users become cautious about the quality of
the product and tend to seek social proof to alleviate the uncertainty
involved in the process. Therefore, we can say a higher number of likes 6
Randomized controlled experiments are ideally immune to endogeneity
on Facebook elicits a higher likelihood of product recommendation problems as the treatments are directly under the control of the researchers.
among users. This leads to the following hypothesis: The random assignment of subjects to different treatment conditions ensures
that any systematic variation in the outcome variable, potentially caused by any
H2. A higher volume of likes for a product advertised on Facebook will lead unobserved factors, is countered. Moreover, controlled experiments ensure that
to a higher likelihood of recommending the product on a linked e-commerce the occurrence of the outcome is temporally preceded by the treatment, thus
site as compared to a lower volume of likes. ensuring the treatment to cause the outcome and not the other way round.
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S. Bhattacharyya and I. Bose Decision Support Systems 138 (2020) 113383
levels: low and high, to test the impact of likes on the outcome variables. Table 2
The aggregated product rating on the simulated e-commerce site was Treatment conditions.
also manipulated using two levels: low and high. Since aggregated Treatment no. T1 T2 T3 T4
product rating plays an important role in users' purchase decisions
[46,47], we examined whether our proposed relationships would hold Facebook likes x Aggregate High x High x Low x Low x
product rating High Low High Low
good under conditions of high and low product rating. This resulted in a
2 (Facebook likes: low and high) x 2 (Aggregated product rating: low and
high) full-factorial experimental design. The experiment was conducted
Table 3
in such a manner that each participant went through all four treatment
The Latin-square design of the experiment.
conditions, making it a within-subject design. Within-subject design is
more sensitive to the treatment than between-subject design and de Selfie-stick Travel adapter Power bank Headphones
mands a smaller number of respondents to produce reliable results. To Sequence 1 T1 T2 T3 T4
alleviate the problem of demand effect [48], a Latin-square design Sequence 2 T4 T1 T2 T3
approach is used. In Latin-square design each subject goes through all Sequence 3 T3 T4 T1 T2
the treatments, with the sequence of the treatments being randomized Sequence 4 T2 T3 T4 T1
among subjects [49]. Table 2 shows the treatment conditions mapped
to different combinations of input factors.
Each treatment condition was coupled with a unique product to Table 4
Pre-tested values for likes.
form a sequence which was varied across groups to ensure randomi
zation. The four products selected for the experiment were: selfie-stick, Product Threshold value Number of likes Number of likes
travel adapter, power bank, and headphones. All the products were for Facebook likes considered as low considered as high
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S. Bhattacharyya and I. Bose Decision Support Systems 138 (2020) 113383
disagree” to 7 = “Strongly agree”). These two statements were used to attitude on social media (F (1, 149.34) = 7.60, p < 0.01), and in
capture the participants' attitude towards the product on Facebook. tention to visit e-commerce site (F (1, 150.67.34) = 13.08, p < 0.001).
Next, the participants visited the layout of the fictitious online store Thus, hypotheses H1a and H1b are supported. Table A1 of Appendix
‘The Travel Store’ where the product was displayed along with in shows the results.
formation cues such as aggregated product rating, price, brief descrip To test the next set of hypotheses, similar analyses were conducted
tion, and the number of customer reviews. The objective was to make with likelihood of purchase and likelihood of recommendation as outcome
the layout look realistic. Only aggregated product rating was varied variables and number of likes and aggregated rating as the independent
across scenarios using the respective pre-tested values while controlling variables. Product type, participants' age, gender, familiarity with s-
for other elements of the layout. commerce, and susceptibility to informational and normative social
Following each treatment condition, the participants were re influence were again used as control variables in the model. Table A2
quested to respond to a set of questions which included the measure and A3 of Appendix presents the results. We observe a positive sig
ment of two dependent variables (DV) pertaining to their behavioral nificant effect of Facebook likes on both likelihood of purchase (F
intention: likelihood of purchasing the product and likelihood of re (1,149.79) = 7.74, p < 0.01) and likelihood of recommendation (F
commending the product to their friends. The DVs were measured using (1,148.86) = 7.07, p < 0.01) for the product. The interaction effect of
standard one-item scales adapted from previous studies [50,51]. The Facebook likes and aggregated product rating turned out to be insig
respondents were required to rate their agreement to the statements on nificant for likelihood of purchase (p = 0.84) as well as likelihood of
a 7- point Likert scale: “I would purchase this product” (1 = “Strongly recommendation (p = 0.79). This indicated that the effect of Facebook
disagree” to 7 = “Strongly agree”), and “I would recommend this product likes was independent of the aggregated product rating. Hence, hy
to my friends” (1 = “Strongly disagree” to 7 = “Strongly agree”). Along potheses H1c and H2 are supported. To identify the differences in the
with the main responses, the participants were asked to answer a set of outcome variables for different scenarios we compared their estimated
questions for manipulation check. After four treatment conditions and marginal means. Table 5 shows the estimated marginal means of like
the corresponding set of questions, a general section was presented to lihood of purchase and likelihood of recommendation, respectively.
capture the respondents' demographics (age and gender), their famil Next, we explored whether the effects of Facebook likes on the
iarity with s-commerce and their susceptibility to informational and outcome variables were mediated by the participants' product attitude
normative social influence. Finally, they were debriefed and thanked on Facebook. We used the three-step procedure of Baron and Kenny for
for their participation. 42 respondents going through 4 treatments re mediation analyses [53]. The first step of this method required that the
sulted in 168 unique data points. independent factor (i.e., Facebook likes) to be significantly related to
both the outcome variables and the proposed mediator. Since each
6. Analysis and results subject went through repeated treatments, to handle the correlation of
standard errors within measurements we used regression analysis with
6.1. Manipulation checks clustered standard errors that allowed for intragroup correlation, re
laxing the usual requirement of the observations to be independent. The
To check whether our manipulation had worked as intended, we analysis revealed that number of likes had a positive influence on the
asked the participants questions regarding their perception about the mediator i.e., product attitude on Facebook (β = 0.67, t = 2.22,
number of Facebook likes: “According to you the number of likes the p < 0.05), and also on the outcomes: likelihood of purchase (β = 0.71,
product got on Facebook is:” (1 = “Extremely low” to 7 = “Extremely t = 2.83, p < 0.01) and likelihood of recommendation (β = 0.67,
high”). The perception about aggregated product rating was also cap t = 3.31, p < 0.01). The second step required that the outcome
tured using the question: “According to you the rating of the product is:” (1 variables be regressed on the mediator variable (product attitude on
= “Extremely low” to 7 = “Extremely high”). A comparison of mean Facebook) and the independent factor (Facebook likes). The regression
values using a t-test revealed that participants perceived low and high analysis revealed that likelihood of purchase was significantly predicted
Facebook likes differently (MLow = 2.59; SD = 1.65 & MHigh = 4.96; by product attitude on Facebook (β = 0.29, t = 3.62, p < 0.001) as
SD = 1.81; t (162) = 8.72, p < 0.001). Similarly, a t-test for product well as the independent variable (β = 0.51, t = 2.19, p < 0.05).
rating also indicated a significant difference between its low and high However, the effect of the independent variable on purchase likelihood
values (MLow = 2.30; SD = 1.70 & MHigh = 5.26; SD = 1.63; t became less salient after the introduction of the mediator. Similarly, the
(162) = 11.33, p < 0.001). From the observed values we concluded likelihood of recommendation was significantly predicted by product
that the manipulations worked as intended. Since these questions were attitude on Facebook (β = 0.19, t = 2.14, p < 0.01) and the in
administered after each treatment, to avoid any possibility of hy dependent variable (β = 0.53, t = 2.83, p < 0.01). Sobel-Goodman
potheses guessing two filler questions regarding the participants' per tests were conducted to check whether the direct effect of the in
ception about the product's price and number of customer reviews were dependent variable (Facebook likes) significantly reduced when adding
also asked for each product. Responses to the filler questions were not the mediator (i.e., product attitude on Facebook) to the models. Indeed,
analyzed.
Table 5
6.2. Results of the main experiment Estimated marginal means for likelihood of purchase and likelihood of re
commendation.
The Latin-square design with repeated measurements on each re
DV: Likelihood of purchase DV: Likelihood of
spondent introduced the possibility of correlation between observa recommendation
tions. To address the issue, we used linear mixed model analysis to
analyze our data. It is a generalized and flexible approach that allows Mean (Std. error) Mean (Std. error)
correlation between observations and handles the issue of missing data
Likes Likes
[52]. To test hypotheses H1a and H1b linear mixed model-based ana
lyses were carried out with product attitude on Facebook and intention to Low High Low High
visit linked e-commerce site as the outcome variables and number of likes
as the independent variable. Product type, participants' age, gender, Aggregate product 2.27 (0.25) 3.03 2.18 (0.19) 2.81 (0.21)
rating low (0.28)
familiarity with s-commerce, and susceptibility to informational and
Aggregate product 4.84(0.26) 5.49 4.37 (0.23) 5.02 (0.22)
normative social influence were used as control variables in the model. rating high (0.22)
The results showed a positive significant effect of likes on users' product
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S. Bhattacharyya and I. Bose Decision Support Systems 138 (2020) 113383
we found a significant reduction in the direct effect when the mediator Table 7
variable was introduced (likelihood of purchase: z = 2.2, p < 0.05; Treatment conditions for the baseline experiment.
likelihood of recommendation: z = 1.86, p = 0.05). Thus, as hypothe Selfie-stick Travel adapter Power bank Headphones
sized in hypotheses H3a and H3b the effects of Facebook likes on
likelihood of purchase and likelihood of recommendation were (par Sequence1 High rating Low rating High rating Low rating
Sequence2 Low rating High rating Low rating High rating
tially) mediated by product attitude on Facebook.
Baron and Kenny's mediation analysis has been criticized by some
scholars lately [54], as the method does not provide specific indirect
A comparison of means using the t-test revealed that likelihood of
effects of the mediators. Therefore as a robustness check, we followed
purchase was not significantly different between the baseline condition
the approach of mediation analysis suggested by Zhao et al. [54]. This
and low Facebook likes condition, irrespective of product rating.
method has been followed in several other IS studies (e.g., [55]). It
However, there was a significant difference between the baseline con
suggests that a significant indirect effect is the sole basis of mediation,
dition and high likes condition, as shown in Table 8a. The results for
and if an indirect effect is detected then we check the direct effect.
likelihood of recommendation also followed the same pattern, as shown
Depending on the significance of the direct effect a full or a partial
in Table 8b. Our findings indicated that product evaluation under the
mediation can be claimed [54]. We ran two mediation analysis using
low likes condition was essentially the same as the conditions when
Structural Equation Modelling (SEM) with maximum likelihood esti
likes were absent. The presence of Facebook likes only exerted sub
mation to check if product attitude on Facebook mediates the effects of
stantial influence when its number was sufficiently high. Fig. 3 shows
Facebook likes on purchase and recommendation likelihood. We found
the likelihood of purchase and likelihood of recommendation, respec
significant indirect effect of Facebook likes on likelihood of purchase
tively for baseline, high likes, and low likes conditions.
with a value of 0.22 (p < 0.05). The direct effect of Facebook likes on
likelihood of purchase was also significant (β = 0.495, p < 0.05. So
we claim partial mediation. Similarly, a significant indirect effect of 8. Discussion and conclusion
Facebook likes on likelihood of recommendation was detected with a
value of 0.17 (p < 0.05). The direct effect of Facebook likes on like 8.1. Summary of results
lihood of recommendation was found to be significant (β = 0.523,
p < 0.05), justifying partial mediation. The results of the robustness SNS driven e-commerce has given rise to the possibility of users'
check corroborate the results of the Baron and Kenny method in our purchase decisions getting impacted by likes on the SNS. In this study,
case, supporting hypotheses H3a and H3b. Table 6 presents the sum we theorize and test the effect of likes on Facebook on users' product
marized results of testing for all hypotheses. attitude on Facebook, and purchase and recommendation decisions in a
linked e-commerce site. The results indicate that Facebook likes exert a
7. Additional analysis positive inter-site influence on users' likelihood of purchase and re
commendation on the linked e-commerce site, through the initial pro
As an extension to our main study we verified whether individuals duct attitude developed on Facebook. Further, as an additional analysis
showed any differences in their decision making about e-commerce we compare our results with the case of direct transactions on the e-
facilitated by Facebook and e-commerce by visiting the site directly. To commerce site. We find that the strength of Facebook likes becomes a
accomplish this, we needed to measure likelihood of purchase and like decisive factor in users' e-commerce purchases and recommendations.
lihood of recommendation in case of a direct visit to an e-commerce site, Low number of Facebook likes does not demonstrate sufficient strength
which constituted the baseline condition. In a separate experimental to sway users' decisions. This implies that mere presence of a social cue
setting, a group of 24 respondents were randomly assigned to one of the (Facebook likes) does not provide any extra leverage over direct e-
two sequences presented in Table 7. They were exposed to the fictitious commerce, and the value of SNS-driven e-commerce can truly be reaped
e-commerce site (The Travel Store) directly and were instructed to if the volume of the social cue on the SNS is significantly high.
evaluate the products. The layouts of the e-commerce site were similar We attempt to provide a possible explanation of the observed results
to the second part of the main experiment, where the aggregated pro using the information integration theory. According to the theory in
duct rating was manipulated across scenarios while controlling for dividuals combine several co-acting information from different sources
other information such as price, product description, and the number of to produce a response, in terms of attitudes, preferences, behavior, etc.
customer reviews. The participants rated their likelihood of purchase [56]. Multiple information cues are integrated on the basis of their
and likelihood of recommendation for each case. 24 respondents going respective valence (positive or negative) and weight (strong or weak)
through 4 treatments resulted in 96 unique records. Next, we compared [57]. Information has a positive valence if its presence strengthens in
the values of outcomes for the baseline condition with the values ob dividuals' existing attitude and a negative valence if it contradicts that
tained in the main experiment. attitude. The weight relates to the degree of influence. A piece of
Table 6
Summarized results of hypotheses testing.
Proposed hypotheses Results of hypotheses testing
H1a. A higher volume of likes for a product advertised on Facebook will lead to a more favourable attitude towards the product on Facebook as Supported
compared to a lower volume of likes.
H1b. A higher volume of likes for a product advertised on Facebook will lead to a higher likelihood of visiting the linked e-commerce site that Supported
offers the product as compared to a lower volume of likes.
H1c. A higher volume of likes for a product advertised on Facebook will lead to a higher likelihood of purchasing the product on a linked e- Supported
commerce site as compared to a lower volume of likes.
H2. A higher volume of likes for a product advertised on Facebook will lead to a higher likelihood of recommending the product on a linked e- Supported
commerce site as compared to a lower volume of likes.
H3a. Users' attitude towards the product on Facebook will mediate the effect of likes on the likelihood of purchasing the product on a linked e- Supported
commerce site.
H3b. Users' attitude towards the product on Facebook will mediate the effect of likes on the likelihood of recommending the product on a linked e- Supported
commerce site.
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S. Bhattacharyya and I. Bose Decision Support Systems 138 (2020) 113383
Baseline Low 'likes' High 'likes' Baseline Low 'likes' High 'likes'
Fig. 3. The likelihood of purchase and likelihood of recommendation for baseline, low likes, and high likes conditions.
8
S. Bhattacharyya and I. Bose Decision Support Systems 138 (2020) 113383
Table 9
Key contributions of the study vis-à-vis the gaps in extant literature.
Gaps in literature Key contributions of this study
The inter-site influence of Facebook likes is not explored Simulate SNS-driven e-commerce scenarios examining the effects of Facebook likes on purchase and
recommendation outcomes on a linked e-commerce site, establishing the inter-site influence of Facebook
likes
The causal influence of Facebook likes is not established Establish the causal influence of Facebook likes on product attitude, and purchase and recommendation
decisions through controlled experiments
The effect of Facebook likes on social sharing behavior is rarely Establish the effects of Facebook likes on likelihood of recommendation
studied
Empirical evidence of value of social cues in SNS-driven e- Provide empirical evidence of the value of social cues such as Facebook likes in SNS-driven e-commerce
commerce is not provided transactions
Offer deeper understanding about the value and strength of Facebook likes
Lack of empirical investigation of additional value of s-commerce Compare SNS-driven e-commerce purchases to direct e-commerce purchases
over conventional e-commerce
Table 9 summarizes the key contributions of this study along with the on SNSs. Advertising on SNSs has a significant cost. Thus, marketers
research gaps that it addresses. should focus only on the products that are highly popular and have the
potential to garner a higher number of likes.
8.3. Implications for businesses
8.4. Limitations and future research directions
Our study helps e-tailers with practical insights on how to tailor
The study has certain limitations that can be addressed through
their social media strategies for enticing more users to their sites and
future research. First, we theorize and test our hypotheses for a single
creating positive attitude towards their offerings. First, the study shows
type of social cue, i.e., Facebook likes. Our findings can be general
that Facebook likes, a common social cue, positively influences users' e-
izable for other forms of one-click information on other social media
commerce decisions including their intention to purchase and re
sites such as love reaction on Instagram, +1 on Google Plus, etc. Future
commend a product. E-commerce sites should leverage this type of
research can validate our findings in other social media facilitated e-
social cues to their advantage by either integrating Facebook likes into
commerce transactions, especially Instagram driven e-commerce as
their websites, or by posting advertisements from their business pages
Instagram is becoming increasingly popular among users, particularly
on Facebook to garner additional social proof. In this regard, we ac
the millennials, and companies as well. Moreover, as we know that
knowledge the recent initiative of some of the SNSs (e.g., Instagram) to
information from multiple sources exert greater social influence it
hide the actual number of likes on posts and show only an approximate
would be interesting to examine how Facebook likes and Instagram love
number in order to reduce unhealthy social comparison among users
reactions simultaneously influence SNS-driven e-commerce, and whe
and improve users' mental well-being.7 While we appreciate the in
ther they have differential impact, i.e., whether the influence of each
itiative, it testifies the undeniable social power of likes which should
type of social cue is contingent upon different purchase situations (e.g.,
not be missed out by the marketers and s-commerce retailers. There
purchase timing, product involvement, etc.). Second, as with any ex
fore, we recommend the SNSs to hide the exact number of likes in case
perimental research, the external validity of our study is potentially
of personal posts only and continue displaying the information on
limited. Using four different products in the experiments improve
sponsored posts and advertisements. Thus, marketers would be able to
generalizability to some extent, and also counter the carry-over effects.
enjoy the power of likes for commercial purposes only, without com
However, all products that we chose for the experiments were utili
promising people's mental health. Second, since a higher number of
tarian and low involvement in nature. Carrying out the experiment with
Facebook likes is observed to supplement the effect of aggregated
hedonic or high involvement products may generate additional in
product rating on users' product evaluation, it can benefit products that
sights. Also, field experiments on real SNSs and e-commerce sites can be
have low ratings on e-commerce sites. We observe that Facebook likes
carried out to get insights that are even closer to the reality. Third,
can somewhat mitigate the unfavourable product attitude formed due
additional analysis reveals that a lower number of Facebook likes fails
to low product ratings. Therefore, for products suffering from the vi
to uplift individuals' likelihood of purchase and recommendation as
cious cycle of low aggregated rating and hence low sales, may break the
compared to the baseline (no like) condition, whereas a higher number
cycle by the leverage provided by a higher number of Facebook likes.
of Facebook likes significantly boost individuals' likelihood of purchase
However, the number of Facebook likes should be sufficiently high to
and recommendation. Therefore, a threshold value of likes should exist,
drive users' attitude and purchase decision significantly. Third, e-tailers
above which Facebook likes exhibit considerable power in influencing
expecting more footfall on their websites through SNSs should strive to
users' decisions. Future research may identify the threshold value of
increase the social validation of their products and proactively seek
Facebook likes and provide a more nuanced understanding of its
avenues to garner more likes on their offerings. One of the ways could
strength. Fourth, in this study we do not hypothesize effects of intention
be by increasing visibility on the SNS, frequently posting advertise
to visit the linked e-commerce site on purchase and recommendation
ments of their offerings, and soliciting likes from users through ap
decisions as the conversion of visit into purchase (and hence post-
pealing content or messages. Finally, since we find that a lower number
purchase) behavior is not straightforward and depends on many factors
of Facebook likes fails to provide extra edge over the “no likes” con
including customer type, visit type, individuals' purchasing threshold,
dition, products receiving a smaller number of likes on SNSs may not
etc. [64]. Future research may explore this relationship after taking into
drive enough traffic and, in turn, enough sales on the linked e-com
account these factors. Finally, this study underlines the value of s-
merce site. Marketers are therefore recommended to be judicious about
commerce by establishing the effects of Facebook likes on e-commerce
the selection of products that they intend to display as sponsored posts
purchases at an individual level. Researchers may take it one step ahead
and ascertain the value of s-commerce at an organization level. Future
7
https://www.digitalinformationworld.com/2020/01/the-truth-behind-the- studies may compare organizational outcomes, such as sales, for e-
removal-of-likes-on-instagram-and-facebook.html; accessed on 21 May 2020. commerce companies before and after they adopt SNS-driven e-
9
S. Bhattacharyya and I. Bose Decision Support Systems 138 (2020) 113383
commerce strategy. This will help us understand whether users' pur Authors contribution
chase intention, induced by social media cues, actually translates into
sales. The authors do not wish to include any author contribution state
In conclusion, this study shows that social cues on SNSs, such as ment for the paper.
likes on Facebook, if sufficient in number, can create business value by
affecting users' initial product attitude, their intention to visit a linked Acknowledgments
ecommerce site, and more importantly, their product purchase and
recommendation decisions. Therefore, we can say that Facebook likes The second author gratefully acknowledges the support received
do matter. The study makes a novel attempt to establish the inter-site from the Indian Institute of Management Calcutta in the form of a
influence of social cues, thus underlining the significance of SNSs in e- Category I grant with work order number RP:ITRRLROCC/3809/2019-
commerce and substantiating the recent success of s-commerce. 20 for conducting this research.
Appendix
Scenario
Volume of likes
Fig. A1. First part of the experiment layout for Treatment 1 of Sequence 1.
10
S. Bhattacharyya and I. Bose Decision Support Systems 138 (2020) 113383
Fig. A2. Second part of the experiment layout for Treatment 1 of Sequence 1.
Table A1
Effect of likes on product attitude on Facebook and intention to visit the linked e-commerce site.
Factors DV: Product attitude on Facebook DV: Intention to visit the linked e-commerce site
Table A2
Effect of likes on likelihood of purchase and likelihood of recommendation on the linked e-commerce site.
11
S. Bhattacharyya and I. Bose Decision Support Systems 138 (2020) 113383
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[63] A. Castillo, J. Benitez, J. Llorens-Montes, F.J. Braojos, Introducing analytics talent Indranil Bose is Professor of Management Information
in the equation on business value of social media capability: an empirical in Systems at the Indian Institute of Management, Calcutta
vestigation, Twenty-Third Americas Conference on Information Systems, Boston, (IIMC). He acts as the Chairperson of Doctoral Programs at
2017, pp. 1–10. IIMC He was the Founder and Co-ordinator of IIMC Case
[64] W.W. Moe, P.S. Fader, Which visits lead to purchases? Dynamic conversion beha Research Centre from 2012-2020. He holds a BTech from
vior at e-commerce sites, Manag. Sci. 50 (2004) 326–335. the Indian Institute of Technology Kharagpur, MS from the
University of Iowa, and MS and PhD from Purdue
University. His research interests are in business analytics,
Samadrita Bhattacharyya holds a PhD in Management digital transformation, information security, and manage
Information Systems from the Indian Institute of Management ment of innovation. His publications have appeared in MIS
Calcutta. She holds B.Tech in Electronics and Communication Quarterly, Journal of MIS, Communications of the ACM,
Engineering from West Bengal University of Technology and Communications of AIS, Computers and Operations
M.Tech in VLSI Design from Indian Institute of Engineering Research, Decision Support Systems, Electronic Markets,
Science and Technology Shibpur. Her research interests in Ergonomics, European Journal of Operational Research, Information & Management,
clude social commerce, online reviews, online communities, International Journal of Production Economics, Journal of Organizational Computing and
and data analytics. Her research articles have appeared in Electronic Commerce, Journal of the American Society for Information Science and
Journal of Management Information Systems, Decision Technology, Operations Research Letters, Technological Forecasting and Social Change,
Support Systems, and Information & Management. She pre etc. He serves as Senior Editor of Decision Support Systems and Pacific Asia Journal of
sented her work in reputed conferences such as Hawaii AIS, and as Associate Editor of Communications of AIS, Information & Management, and
International Conference on System Sciences, Australasian Journal of AIS.
Conference on Information Systems, and Workshop of e-
Business. At present she is Assistant Professor of IS & Analytics
in Jindal Global Business School of O.P. Jindal Global University.
13