• Title/Summary/Keyword: Word of Mouth Diffusion

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Comparative Analysis of Box-office Related Statistics and Diffusion in Korea and US Film Markets (한국과 미국에 있어 영화 수익관련 통계량과 확산 현상의 비교분석)

  • Kim, Taegu;Hong, Jungsik
    • Korean Management Science Review
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    • v.32 no.1
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    • pp.133-145
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    • 2015
  • Motion picture industry in Korea has been growing constantly and aroused various kinds of research attention. Particularly, the introduction of official box-office database service brought quantitative studies. However, approaches based on diffusion models have been rarely found with domestic film markets. In addition to the fundamental statistical review on Korea and US film markets, we applied a diffusion model to daily box-office revenue. Unlike conventional preference of Gamma distribution on the film markets, estimation results proved that BMIC can also explain the trend of daily revenue successfully. The comparison with BMIC showed that there is a distinctive difference in diffusion patterns of Korea and US film markets. Generally, word-of-mouth effect appeared more significant in Korea.

A Study on Diffusion of Innovation based on Mahajan′s Model

  • Lee, Sang-Gun;Jae H. Min
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2003.11a
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    • pp.144-147
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    • 2003
  • It is important to understand the process of technology diffusion among end users for effectively implementing adoption and coping with frequent changes in the environment. Previous studies indicate that information and communication technology (ICT) adoption is affected by innovation influence such as usefulness, ease of use and self-efficacy. Most of these studies, however, bypassed imitation influence such as subjective norms, word-of-mouth, and advertising, specifically, interactive innovation having critical mass in technology acceptance research. Thus, this study investigates imitation influence in individual adoption of mobile communication technology, more specifically, mobile phones, using Mahaian's diffusion model in individual ICT adoption.

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The Third Communication Channel in the Diffusion Process (확산과정에서의 세 번째 의사전달경로)

  • Park, Sang-June;Shin, Changhoon
    • Asia Marketing Journal
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    • v.8 no.3
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    • pp.1-11
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    • 2006
  • The Bass model assumes two communication channels: mass-media and word-of-mouth. In this paper, we call the mass-media Type I channel of communications. The word-of-mouth channel means interaction between non-adopters and adopters. Let us call it Type II channel of communications. In the real world, however, the non-adopters who are not aware of the innovation can be affected by communications with other non-adopters who are aware of it. Let us call it Type III channel of communications to differentiate with Type II channel. This paper analyzes the impact of Type III channel on diffusion process. The result shows that exponential growth patterns (for example, the adoption patterns of the blockbuster movies) can be observed when non-adopters are influenced by other non-adopters who aware of the innovation.

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An Empirical Study of Technology Diffusion on the Internet using Bass Model (Bass 모형을 이용한 인터넷에서의 기술 확산에 대한 실증분석)

  • Nam, Ho-Hun;Yang, Kwang-Min
    • Journal of Digital Convergence
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    • v.6 no.2
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    • pp.55-64
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    • 2008
  • The Internet possesses not only features of mass media but also features of word of mouth communication. Communication channel is considered as one of most important variables in diffusion process. In this paper, we examined functionality of technology diffusion on the Internet through the use of meta tags. We have measured the coefficients of the Bass diffusion model which has been well-established in new product diffusion. This research shows that the Bass model is appropriate for describing technology diffusion on the Internet. The external influence as represented by the coefficient of innovation was found to be much smaller while the internal influence dominates in all meta tag diffusion. In meta tag diffusion, the internal influence as represented by the coefficient of imitation was increased at least twice bigger than that of consumer durables and information technology. Collecting necessary data in social sciences research can be a burden. This research shows that it can be alleviated through the use of software agents over the Internet. The research made use of software agents for collecting longitudinal data from publicly accessible archive such as Archive.org.

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The Periodic Relationship between eWOM Volume/Valence and Box Office Revenue (온라인 구전량 및 평점과 시기별 영화 흥행과의 관계)

  • Li, Zhang;Choi, Kang Jun;Lee, Jae-Young
    • Knowledge Management Research
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    • v.18 no.2
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    • pp.65-83
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    • 2017
  • Word-of-mouth (WOM), the communication between consumers offline, has transformed to include electronic word-of-mouth(eWOM), which has grown in its influence due to the advancements in communication technology. Despite the fact that many researchers have studied the impact of WOM and eWOM on the performance of movies in the movie industry, there still exists much controversy. Therefore, this study investigates the relationship of eWOM's volume and valence with the box office revenue for 2 years in Korean movies industry. The results show that the volume of eWOM, which is expected to related to awareness diffusion, is more important than the valence in the early stage of movie release. And in the later stage, the valence of eWOM which is expected to related to persuasion effect influences the box office revenue. In addition, the relationship of the volume and valence on box office revenue in both early and later stage can be increased through the interaction with the star power which raises the familiarity or the movie genre which causes the high arousal.

The Effects of Characteristics of Social Commerce on Purchase Intention - Focusing on the Moderating Effect of Social Network Service (국내 소셜커머스의 특성이 구매의도에 미치는 영향 - SNS 활용정도의 조절효과를 중심으로)

  • Han, Seoh-Young;Kim, Yong-Won;Lee, Bong-Gyou
    • Journal of Internet Computing and Services
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    • v.12 no.6
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    • pp.171-187
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    • 2011
  • Due to the vitalization of the smart phones, mobile revolution has been started. The mobile revolution has elevated SNS service, which was once considered as just one of many communication tools, to the single most important communication method as well as diffusion of social commerce. Yet, there has not been an adequate study of the roles of SNS in the domestic social commerce market, which has gotten a lot of spotlights. Therefore, the purpose of this study is to investigate the influence of various characteristics of social commerce that it has an impact on the purchase intension as well as the moderating effects of SNS. For these purposes, this study has drawn up the characteristics of social commerce in cost cutting, impulse buy, social influence, decision support, word of mouth effect and etc. to prove the interaction effect of SNS. The regression analysis showed that the characteristics of all the social commerce are related to the dependent variable. As a result of drawing up the interaction effect of SNS, it has shown that the cost cutting and word of mouth have significant influence in the social commerce diffusion as the usage of SNS increased. In conclusion, the main implication of this study is to provide the basic grounds for social commerce business strategy as it investigated the characteristics of SNS and its relation.

AN INNOVATION DIFFUSION MODEL IN PARTIAL COMPETITIVE AND COOPERATIVE MARKET: ANALYSIS WITH TWO INNOVATIONS

  • CHUGH, S.;GUHA, R.K.;DHAR, JOYDIP
    • Journal of Applied and Pure Mathematics
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    • v.4 no.1_2
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    • pp.27-36
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    • 2022
  • An innovation diffusion model is proposed model consists of three classes, namely, a non-adopter class, adopter class innovation-I, and adopter class innovation-II in a partially competitive and cooperative market. The proposed model is analyzed with the help of the qualitative theory of a system of ordinary differential equations. Basic influence numbers associated with first and second innovation $R_{0_1}$ and $R_{0_2}$ respectively in the absence of each other are quantified. Then the overall basic influence number (R0) of the system is assessed for analyzing stability in the market in different situations. Sensitivity analysis of basic influence numbers associated with first and second innovation in the absence of each other is carried out. Numerical simulation supports our analytical findings.

A Study on the Differences of Information Diffusion Based on the Type of Media and Information (매체와 정보유형에 따른 정보확산 차이에 대한 연구)

  • Lee, Sang-Gun;Kim, Jin-Hwa;Baek, Heon;Lee, Eui-Bang
    • Journal of Intelligence and Information Systems
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    • v.19 no.4
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    • pp.133-146
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    • 2013
  • While the use of internet is routine nowadays, users receive and share information through a variety of media. Through the use of internet, information delivery media is diversifying from traditional media of one-way communication, such as newspaper, TV, and radio, into media of two-way communication. In contrast of traditional media, blogs enable individuals to directly upload and share news, which can be considered to have a differential speed of information diffusion than news media that convey information unilaterally. Therefore this Study focused on the difference between online news and social media blogs. Moreover, there are variations in the speed of information diffusion because that information closely related to one person boosts communications between individuals. We believe that users' standard of evaluation would change based on the types of information. As well, the speed of information diffusion would change based on the level of proximity. Therefore, the purpose of this study is to examine the differences in information diffusion based on the types of media. And then information is segmentalized and an examination is done to see how information diffusion differentiates based on the types of information. This study used the Bass diffusion model, which has been frequently used because this model has higher explanatory power than other models by explaining diffusion of market through innovation effect and imitation effect. Also this model has been applied a lot in other information diffusion related studies. The Bass diffusion model includes an innovation effect and an imitation effect. Innovation effect measures the early-stage impact, while the imitation effect measures the impact of word of mouth at the later stage. According to Mahajan et al. (2000), Innovation effect is emphasized by usefulness and ease-of-use, as well Imitation effect is emphasized by subjective norm and word-of-mouth. Also, according to Lee et al. (2011), Innovation effect is emphasized by mass communication. According to Moore and Benbasat (1996), Innovation effect is emphasized by relative advantage. Because Imitation effect is adopted by within-group influences and Innovation effects is adopted by product's or service's innovation. Therefore, ours study compared online news and social media blogs to examine the differences between media. We also choose different types of information including entertainment related information "Psy Gentelman", Current affair news "Earthquake in Sichuan, China", and product related information "Galaxy S4" in order to examine the variations on information diffusion. We considered that users' information proximity alters based on the types of information. Hence, we chose the three types of information mentioned above, which have different level of proximity from users' standpoint, in order to examine the flow of information diffusion. The first conclusion of this study is that different media has similar effect on information diffusion, even the types of media of information provider are different. Information diffusion has only been distinguished by a disparity between proximity of information. Second, information diffusions differ based on types of information. From the standpoint of users, product and entertainment related information has high imitation effect because of word of mouth. On the other hand, imitation effect dominates innovation effect on Current affair news. From the results of this study, the flow changes of information diffusion is examined and be applied to practical use. This study has some limitations, and those limitations would be able to provide opportunities and suggestions for future research. Presenting the difference of Information diffusion according to media and proximity has difficulties for generalization of theory due to small sample size. Therefore, if further studies adopt to a request for an increase of sample size and media diversity, difference of the information diffusion according to media type and information proximity could be understood more detailed.

Electronic Word-of-Mouth in B2C Virtual Communities: An Empirical Study from CTrip.com (B2C허의사구중적전자구비(B2C虚拟社区中的电子口碑): 관우휴정려유망적실증연구(关于携程旅游网的实证研究))

  • Li, Guoxin;Elliot, Statia;Choi, Chris
    • Journal of Global Scholars of Marketing Science
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    • v.20 no.3
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    • pp.262-268
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    • 2010
  • Virtual communities (VCs) have developed rapidly, with more and more people participating in them to exchange information and opinions. A virtual community is a group of people who may or may not meet one another face to face, and who exchange words and ideas through the mediation of computer bulletin boards and networks. A business-to-consumer virtual community (B2CVC) is a commercial group that creates a trustworthy environment intended to motivate consumers to be more willing to buy from an online store. B2CVCs create a social atmosphere through information contribution such as recommendations, reviews, and ratings of buyers and sellers. Although the importance of B2CVCs has been recognized, few studies have been conducted to examine members' word-of-mouth behavior within these communities. This study proposes a model of involvement, statistics, trust, "stickiness," and word-of-mouth in a B2CVC and explores the relationships among these elements based on empirical data. The objectives are threefold: (i) to empirically test a B2CVC model that integrates measures of beliefs, attitudes, and behaviors; (ii) to better understand the nature of these relationships, specifically through word-of-mouth as a measure of revenue generation; and (iii) to better understand the role of stickiness of B2CVC in CRM marketing. The model incorporates three key elements concerning community members: (i) their beliefs, measured in terms of their involvement assessment; (ii) their attitudes, measured in terms of their satisfaction and trust; and, (iii) their behavior, measured in terms of site stickiness and their word-of-mouth. Involvement is considered the motivation for consumers to participate in a virtual community. For B2CVC members, information searching and posting have been proposed as the main purpose for their involvement. Satisfaction has been reviewed as an important indicator of a member's overall community evaluation, and conceptualized by different levels of member interactions with their VC. The formation and expansion of a VC depends on the willingness of members to share information and services. Researchers have found that trust is a core component facilitating the anonymous interaction in VCs and e-commerce, and therefore trust-building in VCs has been a common research topic. It is clear that the success of a B2CVC depends on the stickiness of its members to enhance purchasing potential. Opinions communicated and information exchanged between members may represent a type of written word-of-mouth. Therefore, word-of-mouth is one of the primary factors driving the diffusion of B2CVCs across the Internet. Figure 1 presents the research model and hypotheses. The model was tested through the implementation of an online survey of CTrip Travel VC members. A total of 243 collected questionnaires was reduced to 204 usable questionnaires through an empirical process of data cleaning. The study's hypotheses examined the extent to which involvement, satisfaction, and trust influence B2CVC stickiness and members' word-of-mouth. Structural Equation Modeling tested the hypotheses in the analysis, and the structural model fit indices were within accepted thresholds: ${\chi}^2^$/df was 2.76, NFI was .904, IFI was .931, CFI was .930, and RMSEA was .017. Results indicated that involvement has a significant influence on satisfaction (p<0.001, ${\beta}$=0.809). The proportion of variance in satisfaction explained by members' involvement was over half (adjusted $R^2$=0.654), reflecting a strong association. The effect of involvement on trust was also statistically significant (p<0.001, ${\beta}$=0.751), with 57 percent of the variance in trust explained by involvement (adjusted $R^2$=0.563). When the construct "stickiness" was treated as a dependent variable, the proportion of variance explained by the variables of trust and satisfaction was relatively low (adjusted $R^2$=0.331). Satisfaction did have a significant influence on stickiness, with ${\beta}$=0.514. However, unexpectedly, the influence of trust was not even significant (p=0.231, t=1.197), rejecting that proposed hypothesis. The importance of stickiness in the model was more significant because of its effect on e-WOM with ${\beta}$=0.920 (p<0.001). Here, the measures of Stickiness explain over eighty of the variance in e-WOM (Adjusted $R^2$=0.846). Overall, the results of the study supported the hypothesized relationships between members' involvement in a B2CVC and their satisfaction with and trust of it. However, trust, as a traditional measure in behavioral models, has no significant influence on stickiness in the B2CVC environment. This study contributes to the growing body of literature on B2CVCs, specifically addressing gaps in the academic research by integrating measures of beliefs, attitudes, and behaviors in one model. The results provide additional insights to behavioral factors in a B2CVC environment, helping to sort out relationships between traditional measures and relatively new measures. For practitioners, the identification of factors, such as member involvement, that strongly influence B2CVC member satisfaction can help focus technological resources in key areas. Global e-marketers can develop marketing strategies directly targeting B2CVC members. In the global tourism business, they can target Chinese members of a B2CVC by providing special discounts for active community members or developing early adopter programs to encourage stickiness in the community. Future studies are called for, and more sophisticated modeling, to expand the measurement of B2CVC member behavior and to conduct experiments across industries, communities, and cultures.

Development of a Stock Flow Model on Diffusion Process of Innovative Goods: the Green Car Diffusion Case (혁신제품 확산과정에 대한 저유량 모형 개발: 친환경 자동차를 대상으로)

  • Park, Kyungbae
    • Korean System Dynamics Review
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    • v.14 no.3
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    • pp.25-49
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    • 2013
  • As global competition for green car, that is environmentally friendly car, is getting tougher, the governments and the related industries are putting their core efforts in its diffusion. However, the green car sales are disappointing so far. To overcome the gridlock, it is necessary to develop concrete analytical framework to understand the diffusion process. Based on causal loop analysis from the previous work, we have identified main variables and relationships of them in the diffusion process and developed a stock-flow diagram and mathematical formula for the main components. The model would be applied for further quantitative simulation on the diffusion process of green car and other innovative goods as well. Also, we have suggested constructive insights for the policy makers and for the related industries. First, it is important to increase consumers' willingness to consider through marketing and word of mouth to accelerate the diffusion process. Second, in the perspective of the industry, the market share of green car should be increased at the earliest possible stage and this could be done by enhancing each components of green car attractiveness(e.g. price, driving range, social infra). Third, companies should develop a balanced investment between consumer and technology sector through a flexible financial policy. Fourth, the government continuously has the role of investing in the related R&D and social infra building. We expect the green car diffusion model and related formula from the research can provide meaningful tools to analyze the diffusion process of other new and innovative goods based on its deep researched literature review.

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