Featured Research

from universities, journals, and other organizations

Facebook fan pages are effective marketing tool

Date:
February 18, 2010
Source:
Rice University
Summary:
Companies that use the popular social media site Facebook and its fan page module to market themselves to customers can increase sales, word-of-mouth marketing and customer loyalty significantly among a subset of their customers, according to new research.

Utpal Dholakia.
Credit: Image courtesy of Rice University

Companies that use the popular social-media site Facebook and its fan page module to market themselves to customers can increase sales, word-of-mouth marketing and customer loyalty significantly among a subset of their customers, according to new research from Rice University's Jones Graduate School of Business. The study is featured in the March issue of the Harvard Business Review.

Research for the article, "How Effective is Facebook Marketing?," was conducted by Utpal Dholakia, associate professor of management at Rice University's Jones Graduate School of Business, and Emily Durham, a Jones School alumna and founder of Restaurant Connections, a Houston‐based restaurant consultancy.

Dholakia and Durham surveyed customers of Dessert Gallery (DG), a popular Houston-based café chain. Prior to the study, DG did not have a Facebook presence.

The study, based on surveys of more than 1,700 respondents over a three-month period, found that compared with typical Dessert Gallery customers, the company's Facebook fans:

    • Made 36 percent more visits to DG's stores each month.
    • Spent 45 percent more of their eating-out dollars at DG.
    • Spent 33 percent more at DG's stores.
    • Had 14 percent higher emotional attachment to the DG brand.
    • Had 41 percent greater psychological loyalty toward DG.

According to Dholakia, the results indicate that Facebook fan pages offer an effective and low-cost way of social-media marketing.

"We must be cautious in interpreting the study's results," Dholakia said. "The fact that only about 5 percent of the firm's 13,000 customers became Facebook fans within three months indicates that Facebook fan pages may work best as niche marketing programs targeted to customers who regularly use Facebook. Social-media marketing must be employed judiciously with other types of marketing programs."

Dholakia said Facebook marketing programs may be especially effective for iconic brands, which appear to attract a higher percentage of their customer base as Facebook fans.


Story Source:

The above story is based on materials provided by Rice University. Note: Materials may be edited for content and length.


Cite This Page:

Rice University. "Facebook fan pages are effective marketing tool." ScienceDaily. ScienceDaily, 18 February 2010. <www.sciencedaily.com/releases/2010/02/100218110938.htm>.
Rice University. (2010, February 18). Facebook fan pages are effective marketing tool. ScienceDaily. Retrieved July 22, 2014 from www.sciencedaily.com/releases/2010/02/100218110938.htm
Rice University. "Facebook fan pages are effective marketing tool." ScienceDaily. www.sciencedaily.com/releases/2010/02/100218110938.htm (accessed July 22, 2014).

Share This




More Mind & Brain News

Tuesday, July 22, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Do Obese Women Have 'Food Learning Impairment'?

Do Obese Women Have 'Food Learning Impairment'?

Newsy (July 18, 2014) — Yale researchers tested 135 men and women, and it was only obese women who were deemed to have "impaired associative learning." Video provided by Newsy
Powered by NewsLook.com
Does Mixing Alcohol and Energy Drinks Boost Urge To Drink?

Does Mixing Alcohol and Energy Drinks Boost Urge To Drink?

Newsy (July 18, 2014) — A new study suggests that mixing alcohol with energy drinks makes you want to keep the party going. Video provided by Newsy
Powered by NewsLook.com
Pot Cooking Class Teaches Responsible Eating

Pot Cooking Class Teaches Responsible Eating

AP (July 18, 2014) — Following the nationwide trend of eased restrictions on marijuana use, pot edibles are growing in popularity. One Boston-area cooking class is teaching people how to eat pot responsibly. (July 18) Video provided by AP
Powered by NewsLook.com
Understanding D.C.'s New Pot Laws

Understanding D.C.'s New Pot Laws

Newsy (July 17, 2014) — Washington D.C.'s new laws decriminalizing small amount of marijuana went into effect Thursday. Here's how they work. Video provided by Newsy
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
 
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:  

Breaking News:
from the past week

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:  

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile iPhone Android Web
Follow Facebook Twitter Google+
Subscribe RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins