Publication Type
Conference Proceeding Article
Version
publishedVersion
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 | Marketing | Numerical Analysis and Scientific Computing
Publication
Proceedings of the 10th China Summer Workshop on Information Management CSWIM 2016: June 25-26, Dalian, China
First Page
36
Last Page
41
Publisher
CSWIM
City or Country
Dalian
Citation
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.
Available at: https://ink.library.smu.edu.sg/sis_research/3427
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
http://2016.cswimworkshop.org/wp-content/uploads/2016/09/CSWIM2016-Proceedings-1.pdf
Included in
Databases and Information Systems Commons, Marketing Commons, Numerical Analysis and Scientific Computing Commons