Advanced Search
MyIDEAS: Login to save this article or follow this journal

How Peer Influence Affects Attribute Preferences: A Bayesian Updating Mechanism

Contents:

Author Info

  • Vishal Narayan

    ()
    (Johnson Graduate School of Management, Cornell University, Ithaca, New York 14853)

  • Vithala R. Rao

    ()
    (Johnson Graduate School of Management, Cornell University, Ithaca, New York 14853)

  • Carolyne Saunders

    ()
    (Johnson Graduate School of Management, Cornell University, Ithaca, New York 14853)

Registered author(s):

    Abstract

    We study how multiattribute product choices are affected by peer influence. We propose a two-stage conjoint-based approach to examine three behavioral mechanisms of peer influence. We find that when faced with information on peer choices, consumers update their attribute preferences in a Bayesian manner. This suggests that greater uncertainty in the attribute preferences of a focal consumer and lesser uncertainty in preferences of peers both lead to greater preference revision. Greater number of peers is associated with greater preference revision, although the extent of preference revision diminishes with increasing number of peers. Furthermore, to address the significant time and costs associated with collecting sociometric data, we estimate the accuracy of predicted consumer choices when peer influence data are unavailable. Online social network membership and frequency of peer interactions provide better proxies than more common demographic similarity measures. These findings have key implications, especially for word-of-mouth marketing.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://dx.doi.org/10.1287/mksc.1100.0618
    Download Restriction: no

    Bibliographic Info

    Article provided by INFORMS in its journal Marketing Science.

    Volume (Year): 30 (2011)
    Issue (Month): 2 (03-04)
    Pages: 368-384

    as in new window
    Handle: RePEc:inm:ormksc:v:30:y:2011:i:2:p:368-384

    Contact details of provider:
    Postal: 7240 Parkway Drive, Suite 300, Hanover, MD 21076 USA
    Phone: +1-443-757-3500
    Fax: 443-757-3515
    Email:
    Web page: http://www.informs.org/
    More information through EDIRC

    Related research

    Keywords: preference revision; Bayesian updating; attribute preference uncertainty; social networks; social influence; conjoint analysis; Bayesian estimation;

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Tiwari, Ashutosh & Richards, Timothy J., 2013. "Anonymous Social Networks versus Peer Networks in Restaurant Choice," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150467, Agricultural and Applied Economics Association.
    2. Florian Probst & Laura Grosswiele & Regina Pfleger, 2013. "Who will lead and who will follow: Identifying Influential Users in Online Social Networks," Business & Information Systems Engineering, Springer, vol. 5(3), pages 179-193, June.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:inm:ormksc:v:30:y:2011:i:2:p:368-384. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.