Checking in to check it out

An empirical analysis of customers' engagement on location based social media

Lei Wang, Ram Gopal, Ramesh Sankaranarayanan, Joseph Pancras

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

Retailers are increasingly utilizing location-based services via mobile devices to enhance customer engagement. Unlike other 'new media' promotional vehicles such as online coupons or even mobile coupons, customers can utilize these location-based services by "checking in" to retail venues to obtain price discounts and to connect socially with others. Retailers need to understand the factors that drive customer engagement on location-based services. In this paper we analyze a unique dataset of restaurants in New York City. We develop a two stage empirical model to analyze both the spatial and temporal aspects of the location-based customer engagement (checkins) at Foursquare, and seek answers to questions like how could business characteristics, geographic proximity and demographic similarity together affect customer engagement. We find that customer engagement exhibits spatial interdependency that persists over time. We observe a spatial phenomenon that suggests that restaurants near locations that facilitate social interactions (such as universities and subway stations) benefit more, and we label it as 'social congregation' effect. Moreover, our time-series analysis shows that after controlling for demographic similarities, spatial correlation dissipates with distance, indicating a strong agglomeration effect in the restaurant industry.

Original languageEnglish (US)
Title of host publicationWITS 2013 - 23rd Workshop on Information Technology and Systems: Leveraging Big Data Analytics for Societal Benefits
PublisherSocial Science Research Network
StatePublished - 2013
Event23rd Workshop on Information Technology and Systems: Leveraging Big Data Analytics for Societal Benefits, WITS 2013 - Milan, Italy
Duration: Dec 14 2013Dec 15 2013

Other

Other23rd Workshop on Information Technology and Systems: Leveraging Big Data Analytics for Societal Benefits, WITS 2013
CountryItaly
CityMilan
Period12/14/1312/15/13

Fingerprint

Location based services
Subway stations
Economic and social effects
Time series analysis
Mobile devices
Labels
Industry
Agglomeration

All Science Journal Classification (ASJC) codes

  • Information Systems

Cite this

Wang, L., Gopal, R., Sankaranarayanan, R., & Pancras, J. (2013). Checking in to check it out: An empirical analysis of customers' engagement on location based social media. In WITS 2013 - 23rd Workshop on Information Technology and Systems: Leveraging Big Data Analytics for Societal Benefits Social Science Research Network.
Wang, Lei ; Gopal, Ram ; Sankaranarayanan, Ramesh ; Pancras, Joseph. / Checking in to check it out : An empirical analysis of customers' engagement on location based social media. WITS 2013 - 23rd Workshop on Information Technology and Systems: Leveraging Big Data Analytics for Societal Benefits. Social Science Research Network, 2013.
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Wang, L, Gopal, R, Sankaranarayanan, R & Pancras, J 2013, Checking in to check it out: An empirical analysis of customers' engagement on location based social media. in WITS 2013 - 23rd Workshop on Information Technology and Systems: Leveraging Big Data Analytics for Societal Benefits. Social Science Research Network, 23rd Workshop on Information Technology and Systems: Leveraging Big Data Analytics for Societal Benefits, WITS 2013, Milan, Italy, 12/14/13.

Checking in to check it out : An empirical analysis of customers' engagement on location based social media. / Wang, Lei; Gopal, Ram; Sankaranarayanan, Ramesh; Pancras, Joseph.

WITS 2013 - 23rd Workshop on Information Technology and Systems: Leveraging Big Data Analytics for Societal Benefits. Social Science Research Network, 2013.

Research output: Chapter in Book/Report/Conference proceedingConference contribution

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Wang L, Gopal R, Sankaranarayanan R, Pancras J. Checking in to check it out: An empirical analysis of customers' engagement on location based social media. In WITS 2013 - 23rd Workshop on Information Technology and Systems: Leveraging Big Data Analytics for Societal Benefits. Social Science Research Network. 2013