Abstract

http://ssrn.com/abstract=1281323
 
 

References (47)



 
 

Citations (25)



 


 



Viral Marketing: Identifying Likely Adopters Via Consumer Networks


Shawndra Hill


University of Pennsylvania - Operations & Information Management Department

Foster Provost


New York University

Chris Volinsky


affiliation not provided to SSRN

2005

NYU Working Paper No. 2451/14128

Abstract:     
We investigate the hypothesis: those consumers who have communicated with a customer of aparticular service have increased likelihood of adopting the service. We survey the diverseliterature on such "viral marketing," providing a categorization of the specific research questionsasked, the data analyzed, and the statistical methods used. We highlight a striking gap in theliterature: no prior study has had both of the two key types of data necessary to provide directsupport for the hypothesis: data on communications between consumers, and data on productadoption. We suggest a type of service for which both types of data are available telecommunicationsservices. Then, for a particular telecommunication service, we show supportfor the hypothesis. Specifically, we show three main results. 1) there is such a "viral" effect and itis statistically significant, resulting in take rates 3-5 times greater than a baseline group; 2)attributes constructed from the consumer network can improve models for ranking of targetedcustomers by likelihood of adoption, and 3) observing the network allows the firm to target newcustomers that would have fallen through the cracks, because they would not have been identifiedbased solely on the traditional set of attributes used for marketing by the firm. We close with adiscussion of challenges and opportunities for research in this area. For example, can onedetermine whether the reason for the viral effect is customer advocacy (e.g., via "word of mouth")versus network-identified homophily?

Number of Pages in PDF File: 38

Keywords: Viral marketing, word-of-mouth marketing, target marketing

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Date posted: October 9, 2008  

Suggested Citation

Hill, Shawndra and Provost, Foster and Volinsky, Chris, Viral Marketing: Identifying Likely Adopters Via Consumer Networks (2005). Information Systems Working Papers Series, Vol. , pp. -, 2005. Available at SSRN: http://ssrn.com/abstract=1281323

Contact Information

Shawndra Hill (Contact Author)
University of Pennsylvania - Operations & Information Management Department ( email )
Philadelphia, PA 19104
United States
Foster Provost
New York University ( email )
44 West Fourth Street
New York, NY 10012
United States
Chris Volinsky
affiliation not provided to SSRN
No Address Available
Feedback to SSRN


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