Word-of-Mouth, Observed Adoptions, and Anime Watching Decisions: The Role of the Personal versus the Community Network

40 Pages Posted: 22 Jun 2016 Last revised: 24 Nov 2018

See all articles by Mina Ameri

Mina Ameri

University of Pittsburgh - University of Pittsburgh, Katz Graduate School of Business, Students; University of Texas at Dallas

Elisabeth Honka

University of California, Los Angeles (UCLA) - Anderson School of Management

Ying Xie

University of Texas at Dallas

Date Written: November 21, 2018

Abstract

We quantify the effects of others' adoptions and word-of-mouth (volume and valence) on consumers' product adoption decisions. We differentiate between the effects of word-of-mouth and observed adoptions from friends ("personal network") and the effects of word-of-mouth and observed adoptions from the whole community ("community network"). Understanding the relative importance of word-of-mouth and observed adoptions at each network level provides crucial guidance for companies regarding their information provision and platform design strategies. Our unique data come from an online anime (Japanese cartoon) platform containing individual-level data on users' networks, anime adoptions, forum posts, and ratings of animes. Our results reveal that both word-of-mouth (volume and valence) and observed adoptions from the community network have significant positive effects on individual users' anime watching decisions. Furthermore, this finding also holds true for word-of-mouth and observed adoptions coming from the personal network. Comparing the magnitudes of the effects of word-of-mouth and observed adoptions across both network levels, we find that word-of-mouth valence from the community network is the largest driver among the social learning forces we study. Thus our results show that word-of-mouth and observed adoptions provide unique and different information that individuals use in their anime watching decisions and that the community network is the primary source of information driving anime adoptions.

Keywords: Word-of-Mouth, Observed Adoptions, Social Learning, Product Adoption, Social Networks

JEL Classification: D83, L82, M31

Suggested Citation

Ameri, Mina and Honka, Elisabeth and Xie, Ying, Word-of-Mouth, Observed Adoptions, and Anime Watching Decisions: The Role of the Personal versus the Community Network (November 21, 2018). Available at SSRN: https://ssrn.com/abstract=2798962 or http://dx.doi.org/10.2139/ssrn.2798962

Mina Ameri (Contact Author)

University of Pittsburgh - University of Pittsburgh, Katz Graduate School of Business, Students ( email )

Pittsburgh, PA
United States

University of Texas at Dallas ( email )

2601 North Floyd Road
Richardson, TX 75083
United States

Elisabeth Honka

University of California, Los Angeles (UCLA) - Anderson School of Management ( email )

110 Westwood Plaza
Los Angeles, CA 90095-1481
United States

Ying Xie

University of Texas at Dallas ( email )

2601 North Floyd Road
Richardson, TX 75083
United States

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