Consumption in the Context of Positive and Negative Social Interactions

Social interactions have both positive and negative aspects. Important questions regarding these interactions include whether and how people with different relationships influence each other. In particular, we are interested in examining how relationships influence individuals’ consumption decisions—for example, whether two people will tend to purchase similar or different products after they have established a positive or negative relationship.Although much network research has examined positive relationships (i.e., relationships in which one individual is a friend, fan, or collaborator of another), very little attention has been given to negative relationships (i.e., those in which individuals are enemies, rivals, or opponents). One general finding in the marketing literature is that, after a positive relationship has been established between two individuals, they will choose more similar products and services. However, it is unclear how negative relationships influence product choices. It is possible that people with negative ties (e.g., opponents) tend to choose different rather than similar products. However, consumption patterns can be complicated. Social influences can be moderated by product type. Moreover, the product choices of individuals with positive ties may not converge. For example, collaborators may choose differing utilitarian products with complementary functions or may select differing hedonic products to maintain their uniqueness. Similarly, people with negative ties may select utilitarian products that are similar to but of higher quality than those purchased by their competitors.Our research attempts to fill the gap in the literature by conceptually and empirically exploring the influence of negative relationships. Negative relationships have recently been studied by network researchers in other fields (e.g., organizational behavior), resulting in different definitions and methods of measurements. Because the many constructs that represent negative relationships (e.g., between enemies or competitors) are qualitatively different, they can have very different outcomes. We plan to develop more accurate conceptualizations of negative relationships and examine the distinct effects of different types of such relationships.Empirically, we propose to examine our questions using a novel dataset from an online virtual world: a massively multiplayer online role-playing game (MMORPG). Practical difficulties impede the acquisition of valid data regarding negative relationships via traditional surveys. One relevant concern is that the reporting of negative relationships is a sensitive topic for survey participants. In MMORPGs, players work and interact in various ways (e.g., making friends, collaborating in tasks, fighting, competing, and trading); thus, these games can generate numerous observations of both positive and negative relationships. All these relationships and their consequences (e.g., consumption) have been objectively measured and reported by a computer system, enabling us to perform rigorous tests to assess the social influences of various relationships. In addition, because MMORPGs contain not only utilitarian items (e.g., equipment and medicine) but also hedonic items (e.g., costumes and decorations), we are able to compare consumption patterns across product types. The findings will help marketers to refine their product diffusion strategies, determine their desired levels of customization, and optimize product variety.