• Title/Summary/Keyword: Word of Mouth Diffusion

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An Information Diffusion Model Considering Non-explicit Relationships in the Blog World (블로그 월드에서 비명시적 관계를 고려한 정보 파급 모델)

  • Kwon, Yong-Suk;Kim, Sang-Wook;Park, Sun-Ju;Lim, Seung-Hwan;Lee, Jae-Bum
    • Journal of KIISE:Computing Practices and Letters
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    • v.15 no.5
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    • pp.360-364
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    • 2009
  • Analyzing information diffusion in a blog world is a very useful research issue, which can be used for predicting information diffusion, abnormally detection, marketing, and revitalizing the blog world. Existing studies on information diffusion in blog networks establish explicit relationship between blogs, and analyze only the word-of-mouth effect through such explicit relationships. However, we observed that more than 85% of all information diffusion in a blog world occurs through non-explicit relationships. In this paper, we propose a new model that considers both explicit and non-explicit relationships between blogs in order to explain all information diffusion phenomena in a blog world. We verify the superiority of our proposed models through extensive experiments of information diffusions at a real blog net-work.

A Study on a Long-term Demand Forecasting and Characterization of Diffusion Process for Medical Equipments based on Diffusion Model (확산 모형에 의한 고가 의료기기의 수요 확산의 특성분석 및 중장기 수요예측에 관한 연구)

  • Hong, Jung-Sik;Kim, Tae-Gu;Lim, Dar-Oh
    • Health Policy and Management
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    • v.18 no.4
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    • pp.85-110
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    • 2008
  • In this study, we explore the long-term demand forecasting of high-price medical equipments based on logistic and Bass diffusion model. We analyze the specific pattern of each equipment's diffusion curve by interpreting the parameter estimates of Bass diffusion model. Our findings are as follows. First, ultrasonic imaging system, CT are in the stage of maturity and so, the future demands of them are not too large. Second, medical image processing unit is between growth stage and maturity stage and so, the demand is expected to increase considerably for two or three years. Third, MRI is in the stage of take-off and Mammmography X-ray system is in the stage of maturity but, estimates of the potential number of adopters based on logistic model is considerably different to that based on Bass diffusion model. It means that additional data for these two equipments should be collected and analyzed to obtain the reliable estimates of their demands. Fourth, medical image processing unit have the largest q value. It means that the word-of-mouth effect is important in the diffusion of this equipment. Fifth, for MRI and Ultrasonic system, q/p values have the relatively large value. It means that collective power has an important role in adopting these two equipments.

The Effects of Fashion Mobile Word-of Mouth -Focus on Facebook- (패션제품에 대한 모바일 구전효과 -페이스북을 중심으로-)

  • Jung, Jieun;Choo, Ho Jung;Lee, Ha Kyung
    • Journal of the Korean Society of Clothing and Textiles
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    • v.37 no.2
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    • pp.186-201
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    • 2013
  • This study investigates the effects of information type, direction of information, method of suggestion, tie strength, and interactions among these variables on the acceptance and diffusion of fashion product information in the mobile Facebook environment. Two subsequent studies were conducted to test the relationships among mobile SNS WOM factors. Two independent on-line surveys were implemented. Six hundred forty consumers aged between 20 and 39 were recruited for Study 1, and four hundred and eighty for Study 2. We manipulated the WOM delivery situation by information type (factual/evaluative), information directionality (positive/negative), tie-strength (strong/weak), and information presentation method (text/image/rink). Eight scenarios were developed and randomly assigned to the research participants. Frequency analysis, reliability, factor analysis, regression analysis, and ANOVA were implemented using SPSS 18.0. The Analysis of experiment data produced interesting results. Most WOM factors (including the information type, information presentation method, and tie strength) influence WOM acceptance; however, only the tie strength effected WOM activity. It was also proven that people are prone to accept information that is more realistic, objective, and negative, and they tend to accept information with visual factors, such as images and video clips rather than a simple text message. In this study, we offer a practical perspective to fashion industry and marketers who have an interest in SNS marketing. We have defined the distinct characteristics of mobile WOM that have been formed by a combination of former on/off-line WOM characteristics. To examine the moderating roles of two types of consumer innovativeness, fashion innovativeness and technology innovativeness were also measured and found to have significant moderating effects between mobile SNS WOM factors and their consequences. The paper concludes with a discussion on managerial implications and limitations.

The Study of Online Marketing's Impact of Food Service Companies on the Purchasing Behavior Itself and Brand Recognition of New Brand of Menu : Focusing on Viral Marketing (외식기업의 온라인 마케팅을 통한 외식메뉴 구매형태 및 신규브랜드 인식에 관한 연구 : 바이럴마케팅을 중심으로)

  • Kang, Byong-Nam;Moon, Sung-Sik
    • Culinary science and hospitality research
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    • v.23 no.8
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    • pp.173-183
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    • 2017
  • The purpose of this study is to investigate the causal relationship between new brand awareness and new brand awareness according to type of restaurant menu purchase information. This study will provide basic research data on viral marketing strategy through online marketing of restaurant companies. The purpose of this study is to investigate the effect of information obtained through blog information and SNS advertisement on word effect (information acceptance and information transfer) and to investigate the effect of word of mouth effect on consumers' purchase intention. A total of 206 samples were used for this analysis and regression analysis was performed using SPSS 18.0. The results of the study are as follows. First, experience type, timely relevance and consensus among the characteristics of blog information affect information acceptance. Experience, and accuracy are affecting information delivery. Second, information discomfort among the characteristics of SNS advertising information influences the acceptance of information. Information, entertainment and trust are affecting information dissemination. Third, information acceptance and information diffusion affect purchase intention.

The influence of Social Norm and Critical Mass on Online Game User's Word of Mouth (사회규범과 크리티컬 매스가 온라인 게임 이용자의 구전의도에 미치는 영향에 관한 연구)

  • Bae, Jungho;Kim, Moon Seop
    • The Journal of the Korea Contents Association
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    • v.14 no.4
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    • pp.355-367
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    • 2014
  • The purpose of this research is to find the specific structure with factors that affect online game users' positive word of mouth(WOM) for online game companies to maintain existing and new users. In previous studies the influence of characteristics of online games and attributes of users on intention to play online games is mainly focused on. However online games are products with communication on network, so that critical mass through diffusion as well as the use of product by individual consumers is important issues. Therefore, it is necessary to consider network externality effect that the more value can be obtained by more game users. The authors verified that the influence of the variables like social mass and critical mass, affecting consumers' attitude and WOM. According to the research results, social norm and critical mass have significant influence on positive attitude and WOM intention for online games. Another results verified that social norm and users' attitude affect positive WOM intention directly. These results suggest managerial implication regarding social norm and critical mass to online game companies that desire for WOM to get more online game users.

Characteristics of Korean Film Market by Using Social Network Analysis (사회 연결망 분석을 이용한 국내 영화 시장의 특성 연구)

  • Kim, Tae-Gu;Cho, Nam-Wook;Hong, Jung-Sik
    • The Journal of the Korea Contents Association
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    • v.14 no.6
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    • pp.93-107
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    • 2014
  • Recently Korean film industry has continuously experienced a rapid growth and expanded its influence to foreign countries. Accordingly, there have been numerous studies in various research areas to investigate the characteristics of the industry. In this study, we applied social network analysis based on the attributes such as genres, ratings, distributors, nationalities, sizes, and profitability to divide the movies into several clusters with respect to their similarity. Results suggested that the ratings and nationality rather than the genre are the major factors to divide the motion picture market into clusters and the profitability also varies much across the clusters. Furthermore, estimation of the diffusion model showed the positive relationship between the success of a movie and the word-of-mouth effect, while the relatively unsuccessful titles exhibited a monotonic decreasing diffusion pattern with the high initial demand and the early peak time.

Spatial effect on the diffusion of discount stores (대형할인점 확산에 대한 공간적 영향)

  • Joo, Young-Jin;Kim, Mi-Ae
    • Journal of Distribution Research
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    • v.15 no.4
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    • pp.61-85
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    • 2010
  • Introduction: Diffusion is process by which an innovation is communicated through certain channel overtime among the members of a social system(Rogers 1983). Bass(1969) suggested the Bass model describing diffusion process. The Bass model assumes potential adopters of innovation are influenced by mass-media and word-of-mouth from communication with previous adopters. Various expansions of the Bass model have been conducted. Some of them proposed a third factor affecting diffusion. Others proposed multinational diffusion model and it stressed interactive effect on diffusion among several countries. We add a spatial factor in the Bass model as a third communication factor. Because of situation where we can not control the interaction between markets, we need to consider that diffusion within certain market can be influenced by diffusion in contiguous market. The process that certain type of retail extends is a result that particular market can be described by the retail life cycle. Diffusion of retail has pattern following three phases of spatial diffusion: adoption of innovation happens in near the diffusion center first, spreads to the vicinity of the diffusing center and then adoption of innovation is completed in peripheral areas in saturation stage. So we expect spatial effect to be important to describe diffusion of domestic discount store. We define a spatial diffusion model using multinational diffusion model and apply it to the diffusion of discount store. Modeling: In this paper, we define a spatial diffusion model and apply it to the diffusion of discount store. To define a spatial diffusion model, we expand learning model(Kumar and Krishnan 2002) and separate diffusion process in diffusion center(market A) from diffusion process in the vicinity of the diffusing center(market B). The proposed spatial diffusion model is shown in equation (1a) and (1b). Equation (1a) is the diffusion process in diffusion center and equation (1b) is one in the vicinity of the diffusing center. $$\array{{S_{i,t}=(p_i+q_i{\frac{Y_{i,t-1}}{m_i}})(m_i-Y_{i,t-1})\;i{\in}\{1,{\cdots},I\}\;(1a)}\\{S_{j,t}=(p_j+q_j{\frac{Y_{j,t-1}}{m_i}}+{\sum\limits_{i=1}^I}{\gamma}_{ij}{\frac{Y_{i,t-1}}{m_i}})(m_j-Y_{j,t-1})\;i{\in}\{1,{\cdots},I\},\;j{\in}\{I+1,{\cdots},I+J\}\;(1b)}}$$ We rise two research questions. (1) The proposed spatial diffusion model is more effective than the Bass model to describe the diffusion of discount stores. (2) The more similar retail environment of diffusing center with that of the vicinity of the contiguous market is, the larger spatial effect of diffusing center on diffusion of the vicinity of the contiguous market is. To examine above two questions, we adopt the Bass model to estimate diffusion of discount store first. Next spatial diffusion model where spatial factor is added to the Bass model is used to estimate it. Finally by comparing Bass model with spatial diffusion model, we try to find out which model describes diffusion of discount store better. In addition, we investigate the relationship between similarity of retail environment(conceptual distance) and spatial factor impact with correlation analysis. Result and Implication: We suggest spatial diffusion model to describe diffusion of discount stores. To examine the proposed spatial diffusion model, 347 domestic discount stores are used and we divide nation into 5 districts, Seoul-Gyeongin(SG), Busan-Gyeongnam(BG), Daegu-Gyeongbuk(DG), Gwan- gju-Jeonla(GJ), Daejeon-Chungcheong(DC), and the result is shown

    . In a result of the Bass model(I), the estimates of innovation coefficient(p) and imitation coefficient(q) are 0.017 and 0.323 respectively. While the estimate of market potential is 384. A result of the Bass model(II) for each district shows the estimates of innovation coefficient(p) in SG is 0.019 and the lowest among 5 areas. This is because SG is the diffusion center. The estimates of imitation coefficient(q) in BG is 0.353 and the highest. The imitation coefficient in the vicinity of the diffusing center such as BG is higher than that in the diffusing center because much information flows through various paths more as diffusion is progressing. A result of the Bass model(II) shows the estimates of innovation coefficient(p) in SG is 0.019 and the lowest among 5 areas. This is because SG is the diffusion center. The estimates of imitation coefficient(q) in BG is 0.353 and the highest. The imitation coefficient in the vicinity of the diffusing center such as BG is higher than that in the diffusing center because much information flows through various paths more as diffusion is progressing. In a result of spatial diffusion model(IV), we can notice the changes between coefficients of the bass model and those of the spatial diffusion model. Except for GJ, the estimates of innovation and imitation coefficients in Model IV are lower than those in Model II. The changes of innovation and imitation coefficients are reflected to spatial coefficient(${\gamma}$). From spatial coefficient(${\gamma}$) we can infer that when the diffusion in the vicinity of the diffusing center occurs, the diffusion is influenced by one in the diffusing center. The difference between the Bass model(II) and the spatial diffusion model(IV) is statistically significant with the ${\chi}^2$-distributed likelihood ratio statistic is 16.598(p=0.0023). Which implies that the spatial diffusion model is more effective than the Bass model to describe diffusion of discount stores. So the research question (1) is supported. In addition, we found that there are statistically significant relationship between similarity of retail environment and spatial effect by using correlation analysis. So the research question (2) is also supported.

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  • The Viral Effect of Online Social Network on New Products Promotion: Investigating Information Diffusion on Twitter (신제품 프로모션에 대한 온라인 소셜네트워크의 구전효과 분석 : 트위터의 정보전달과정을 중심으로)

    • Kim, Hyung-Jin;Son, In-Soo;Lee, Dong-Won
      • Journal of Intelligence and Information Systems
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      • v.18 no.2
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      • pp.107-130
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      • 2012
    • In Twitter, a user can post a message below 140 characters on his/her account, and can also repost a message of other users who the user follows. The message posted by the user in turn can be seen and reposted by other users who follow the user, which is called Re-tweet (RT). While some messages spread widely, other messages have relatively less or no RT. What factors cause these quantity variances of RT originated from original messages? How can the messages become influential in online social networks? As an effort to answer the above questions, we focused on information vividness, message characteristics, and originator characteristics. In perspective of managerial implication, we expect that the findings of this paper will provide corporations with helpful insight on the Word-of-Mouth (WOM) effect for efficient and effective advertisements and communications when they send a message of new products or services through Social Network Services. In perspective of academic implication, we identify the effect of contents of a message on WOM, which has been dealt with by few social network researches.

    A study on the Success Factors and Strategy of Information Technology Investment Based on Intelligent Economic Simulation Modeling (지능형 시뮬레이션 모형을 기반으로 한 정보기술 투자 성과 요인 및 전략 도출에 관한 연구)

    • Park, Do-Hyung
      • Journal of Intelligence and Information Systems
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      • v.19 no.1
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      • pp.35-55
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      • 2013
    • Information technology is a critical resource necessary for any company hoping to support and realize its strategic goals, which contribute to growth promotion and sustainable development. The selection of information technology and its strategic use are imperative for the enhanced performance of every aspect of company management, leading a wide range of companies to have invested continuously in information technology. Despite researchers, managers, and policy makers' keen interest in how information technology contributes to organizational performance, there is uncertainty and debate about the result of information technology investment. In other words, researchers and managers cannot easily identify the independent factors that can impact the investment performance of information technology. This is mainly owing to the fact that many factors, ranging from the internal components of a company, strategies, and external customers, are interconnected with the investment performance of information technology. Using an agent-based simulation technique, this research extracts factors expected to affect investment performance on information technology, simplifies the analyses of their relationship with economic modeling, and examines the performance dependent on changes in the factors. In terms of economic modeling, I expand the model that highlights the way in which product quality moderates the relationship between information technology investments and economic performance (Thatcher and Pingry, 2004) by considering the cost of information technology investment and the demand creation resulting from product quality enhancement. For quality enhancement and its consequences for demand creation, I apply the concept of information quality and decision-maker quality (Raghunathan, 1999). This concept implies that the investment on information technology improves the quality of information, which, in turn, improves decision quality and performance, thus enhancing the level of product or service quality. Additionally, I consider the effect of word of mouth among consumers, which creates new demand for a product or service through the information diffusion effect. This demand creation is analyzed with an agent-based simulation model that is widely used for network analyses. Results show that the investment on information technology enhances the quality of a company's product or service, which indirectly affects the economic performance of that company, particularly with regard to factors such as consumer surplus, company profit, and company productivity. Specifically, when a company makes its initial investment in information technology, the resultant increase in the quality of a company's product or service immediately has a positive effect on consumer surplus, but the investment cost has a negative effect on company productivity and profit. As time goes by, the enhancement of the quality of that company's product or service creates new consumer demand through the information diffusion effect. Finally, the new demand positively affects the company's profit and productivity. In terms of the investment strategy for information technology, this study's results also reveal that the selection of information technology needs to be based on analysis of service and the network effect of customers, and demonstrate that information technology implementation should fit into the company's business strategy. Specifically, if a company seeks the short-term enhancement of company performance, it needs to have a one-shot strategy (making a large investment at one time). On the other hand, if a company seeks a long-term sustainable profit structure, it needs to have a split strategy (making several small investments at different times). The findings from this study make several contributions to the literature. In terms of methodology, the study integrates both economic modeling and simulation technique in order to overcome the limitations of each methodology. It also indicates the mediating effect of product quality on the relationship between information technology and the performance of a company. Finally, it analyzes the effect of information technology investment strategies and information diffusion among consumers on the investment performance of information technology.

    Consumer's Negative Brand Rumor Acceptance and Rumor Diffusion (소비자의 부정적 브랜드 루머의 수용과 확산)

    • Lee, Won-jun;Lee, Han-Suk
      • Asia Marketing Journal
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      • v.14 no.2
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      • pp.65-96
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      • 2012
    • Brand has received much attention from considerable marketing research. When consumers consume product or services, they are exposed to a lot of brand related stimuli. These contain brand personality, brand experience, brand identity, brand communications and so on. A special kind of new crisis occasionally confronting companies' brand management today is the brand related rumor. An important influence on consumers' purchase decision making is the word-of-mouth spread by other consumers and most decisions are influenced by other's recommendations. In light of this influence, firms have reasonable reason to study and understand consumer-to-consumer communication such as brand rumor. The importance of brand rumor to marketers is increasing as the number of internet user and SNS(social network service) site grows. Due to the development of internet technology, people can spread rumors without the limitation of time, space and place. However relatively few studies have been published in marketing journals and little is known about brand rumors in the marketplace. The study of rumor has a long history in all major social science. But very few studies have dealt with the antecedents and consequences of any kind of brand rumor. Rumor has been generally described as a story or statement in general circulation without proper confirmation or certainty as to fact. And it also can be defined as an unconfirmed proposition, passed along from people to people. Rosnow(1991) claimed that rumors were transmitted because people needed to explain ambiguous and uncertain events and talking about them reduced associated anxiety. Especially negative rumors are believed to have the potential to devastate a company's reputation and relations with customers. From the perspective of marketer, negative rumors are considered harmful and extremely difficult to control in general. It is becoming a threat to a company's sustainability and sometimes leads to negative brand image and loss of customers. Thus there is a growing concern that these negative rumors can damage brands' reputations and lead them to financial disaster too. In this study we aimed to distinguish antecedents of brand rumor transmission and investigate the effects of brand rumor characteristics on rumor spread intention. We also found key components in personal acceptance of brand rumor. In contextualist perspective, we tried to unify the traditional psychological and sociological views. In this unified research approach we defined brand rumor's characteristics based on five major variables that had been found to influence the process of rumor spread intention. The five factors of usefulness, source credibility, message credibility, worry, and vividness, encompass multi level elements of brand rumor. We also selected product involvement as a control variable. To perform the empirical research, imaginary Korean 'Kimch' brand and related contamination rumor was created and proposed. Questionnaires were collected from 178 Korean samples. Data were collected from college students who have been experienced the focal product. College students were regarded as good subjects because they have a tendency to express their opinions in detail. PLS(partial least square) method was adopted to analyze the relations between variables in the equation model. The most widely adopted causal modeling method is LISREL. However it is poorly suited to deal with relatively small data samples and can yield not proper solutions in some cases. PLS has been developed to avoid some of these limitations and provide more reliable results. To test the reliability using SPSS 16 s/w, Cronbach alpha was examined and all the values were appropriate showing alpha values between .802 and .953. Subsequently, confirmatory factor analysis was conducted successfully. And structural equation modeling has been used to analyze the research model using smartPLS(ver. 2.0) s/w. Overall, R2 of adoption of rumor is .476 and R2 of intention of rumor transmission is .218. The overall model showed a satisfactory fit. The empirical results can be summarized as follows. According to the results, the variables of brand rumor characteristic such as source credibility, message credibility, worry, and vividness affect argument strength of rumor. And argument strength of rumor also affects rumor intention. On the other hand, the relationship between perceived usefulness and argument strength of rumor is not significant. The moderating effect of product involvement on the relations between argument strength of rumor and rumor W.O.M intention is not supported neither. Consequently this study suggests some managerial and academic implications. We consider some implications for corporate crisis management planning, PR and brand management. This results show marketers that rumor is a critical factor for managing strong brand assets. Also for researchers, brand rumor should become an important thesis of their interests to understand the relationship between consumer and brand. Recently many brand managers and marketers have focused on the short-term view. They just focused on strengthen the positive brand image. According to this study we suggested that effective brand management requires managing negative brand rumors with a long-term view of marketing decisions.

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