The Value of Virtual Engagement: Evidence from a Running Platform

Management Science, Forthcoming

63 Pages Posted: 1 Dec 2020 Last revised: 15 Jun 2023

See all articles by Che-Wei Liu

Che-Wei Liu

Indiana University Bloomington - Kelley School of Business

Weiguang Wang

University of Rochester - Simon Business School

Guodong (Gordon) Gao

Johns Hopkins University - Carey Business School

Ritu Agarwal

University of Maryland - Robert H. Smith School of Business

Date Written: June 13, 2023

Abstract

Fueled by remarkable developments in mobile and wearable technologies coupled with the power of the Internet, a multi-billion industry constructed on digital platforms, Connected Fitness, has emerged. Sustained engagement is a crucial prerequisite for healthy behavior, and platforms that offer connected fitness services must contend with the challenge of engaging new users. In this study, we examine whether a virtual race, an event in which runners can participate remotely in an organized activity, can serve as an effective strategy to amplify users’ long-term engagement related to healthy behavior. We study the impact of offering virtual races to runners on a digital fitness platform on their engagement with the platform and level of physical activity. Leveraging the match of the theme of the virtual races and users’ zodiac signs as the instrument to support causal inference, we find that a virtual race increases the engagement of new users by 42.8 days and total spending on related e-commerce on the platform by 48.4% during our study period. We also find that the positive impact of virtual races transcends the typical mechanism of social connections: results show virtual races can increase the engagement with the platform even when their social connections are low. Finally, we find that existing users who participate in a virtual race outrun those in the control group by 4.41 km in a three-week period. Our study highlights the potential of new forms of digital interactions, powered by mobile and wearable technologies, on user behavior in fitness platforms.

Keywords: virtual race, digital platform, user engagement, social interaction, healthy behavior

Suggested Citation

Liu, Che-Wei and Wang, Weiguang and Gao, Guodong (Gordon) and Agarwal, Ritu, The Value of Virtual Engagement: Evidence from a Running Platform (June 13, 2023). Management Science, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3739418 or http://dx.doi.org/10.2139/ssrn.3739418

Che-Wei Liu (Contact Author)

Indiana University Bloomington - Kelley School of Business ( email )

1309 E 10th Street, Hodge Hall 4100
Bloomington, IN 47405
United States

Weiguang Wang

University of Rochester - Simon Business School ( email )

Rochester, NY 14627
United States

Guodong (Gordon) Gao

Johns Hopkins University - Carey Business School ( email )

100 International Drive
Baltimore, MD 21202
United States

Ritu Agarwal

University of Maryland - Robert H. Smith School of Business ( email )

College Park, MD 20742-1815
United States

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