Conference Proceeding Article
We conduct computational experiment using Facebook data to evaluate competing firms’ initial market seeding and subsequent targeted marketing strategies that influence consumers’ new product adoption decisions. We find that firms generally overspend their advertising budget in the market seeding phase. In the subsequent market advertising phase, a coupon strategy (equivalent to price discount) generally yields higher market share than the strategy of distributing free product samples. The effect is more significant when both price and product quality are low. We offer managerial insights into firms’ effective competition strategies for new product introduction in the presence of consumers’ word of mouth effects in social networks.
Computational Experiment, Price Competition, Word of Mouth, Targeted Marketing, Social Network
Databases and Information Systems | Marketing | Numerical Analysis and Scientific Computing
Information Systems and Management; Intelligent Systems and Decision Analytics
Proceedings of the 10th China Summer Workshop on Information Management CSWIM 2016: June 25-26, Dalian, China
City or Country
CHEN, Cen; Zhiling GUO; CHENG, Shih-Fen; and LAU, Hoong Chuin.
An Experimental Investigation of Product Competition and Marketing in Social Networks. (2016). Proceedings of the 10th China Summer Workshop on Information Management CSWIM 2016: June 25-26, Dalian, China. 36-41. Research Collection School Of Information Systems.
Available at: http://ink.library.smu.edu.sg/sis_research/3427
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