'Ten Million Readers Can't Be Wrong!', or Can They? On the Role of Information About Adoption Stock in New Product Trial

Posted: 29 Jun 2014

See all articles by Coby Morvinski

Coby Morvinski

Ben-Gurion University of the Negev - Guilford Glazer Faculty of Business & Managment

On Amir

University of California, San Diego (UCSD) - Rady School of Management

Eitan Muller

New York University (NYU) - Department of Marketing; Interdisciplinary Center (IDC) Herzliyah

Date Written: June 25, 2014

Abstract

Most if not all new product frameworks in marketing and economics as well as lay beliefs and practices hold that the larger the stock of adoption of a new product, the greater the likelihood of additional adoption. Less is known about the underlying mechanisms as well as the conditions under which this central assumption holds. Using both controlled consequential choice experiments and a field experiment involving new product purchase decisions, we demonstrate that the influence of information about a large stock of adoption on product diffusion is complex. We find that in order to increase the new product’s purchase likelihood the large stock of adoption needs be of similar others and be coupled with low product uncertainty (e.g., an informative product description). Otherwise, information about a large stock of adoption may be insignificant to or even reduce the purchase likelihood. This is the first direct test and demonstration of the intricate role of information about a large stock of adoption in the new product diffusion process, and bares direct implications for marketers.

Keywords: new product adoption, product diffusion, adoption stock, social proof

Suggested Citation

Morvinski, Coby and Amir, On and Muller, Eitan, 'Ten Million Readers Can't Be Wrong!', or Can They? On the Role of Information About Adoption Stock in New Product Trial (June 25, 2014). Available at SSRN: https://ssrn.com/abstract=2459289 or http://dx.doi.org/10.2139/ssrn.2459289

Coby Morvinski (Contact Author)

Ben-Gurion University of the Negev - Guilford Glazer Faculty of Business & Managment ( email )

P.O.B. 653
Beer-Sheva, 8410501
Israel

On Amir

University of California, San Diego (UCSD) - Rady School of Management ( email )

9500 Gilman Drive
Rady School of Management
La Jolla, CA 92093
United States
858-534-2023 (Phone)
858-534-0745 (Fax)

HOME PAGE: http://management.ucsd.edu/faculty/directory/amir/

Eitan Muller

New York University (NYU) - Department of Marketing ( email )

Henry Kaufman Ctr
44 W 4 St.
New York, NY
United States

Interdisciplinary Center (IDC) Herzliyah ( email )

P.O. Box 167
Herzliya, 46150
Israel

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