Publication Type

Conference Proceeding Article

Version

Publisher’s Version

Publication Date

6-2016

Abstract

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.

Keywords

Computational Experiment, Price Competition, Word of Mouth, Targeted Marketing, Social Network

Discipline

Databases and Information Systems | Numerical Analysis and Scientific Computing

Research Areas

Information Systems and Management

Publication

Proceedings of the 10th China Summer Workshop on Information Management (CSWIM 2016): June 25-26, 2016, Dalian, China

First Page

36

Last Page

41

Publisher

CSWIM

City or Country

Dalian, China

Copyright Owner and License

Authors

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Additional URL

http://2016.cswimworkshop.org/wp-content/uploads/2016/09/CSWIM2016-Proceedings-1.pdf

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