The Firm's Management of Social Interactions
AbstractConsumer choice is influenced in a direct and meaningful way by the actions taken by others. These “actions” range from face-to-face recommendations from a friend to the passive observation of what a stranger is wearing. We refer to the set of such contexts as “social interactions” (SI). We believe that at least some of the SI effects are partially within the firm's control and that this represents an exciting research opportunity. We present an agenda that identifies a list of unanswered questions of potential interest to both researchers and managers. In order to appreciate the firm's choices with respect to its management of SI, it is important to first evaluate where we are in terms of understanding the phenomena themselves. We highlight five questions in this regard: (1) What are the antecedents of word of mouth (WOM)? (2) How does the transmission of positive WOM differ from that of negative WOM? (3) How does online WOM differ from offline WOM? (4) What is the impact of WOM? (5) How can we measure WOM? Finally, we identify and discuss four principal, non-mutually exclusive, roles that the firm might play: (1) observer, (2) moderator, (3) mediator, and (4) participant. Copyright Springer Science + Business Media, Inc. 2005
Download InfoIf 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Springer in its journal Marketing Letters.
Volume (Year): 16 (2005)
Issue (Month): 3 (December)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=100312
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Brock, William A & Durlauf, Steven N, 2001.
"Discrete Choice with Social Interactions,"
Review of Economic Studies,
Wiley Blackwell, vol. 68(2), pages 235-60, April.
- Bikhchandani, Sushil & Hirshleifer, David & Welch, Ivo, 1992.
"A Theory of Fads, Fashion, Custom, and Cultural Change in Informational Cascades,"
Journal of Political Economy,
University of Chicago Press, vol. 100(5), pages 992-1026, October.
- Sushil Bikhchandani & David Hirshleifer & Ivo Welch, 2010. "A theory of Fads, Fashion, Custom and cultural change as informational Cascades," Levine's Working Paper Archive 1193, David K. Levine.
- Judith A. Chevalier & Dina Mayzlin, 2003.
"The Effect of Word of Mouth on Sales: Online Book Reviews,"
NBER Working Papers
10148, National Bureau of Economic Research, Inc.
- Dina Mayzlin & Judith A. Chevalier, 2003. "The Effect of Word of Mouth on Sales: Online Book Reviews," Yale School of Management Working Papers ysm413, Yale School of Management.
- Eyal Biyalogorsky & Eitan Gerstner & Barak Libai, 2001. "Customer Referral Management: Optimal Reward Programs," Marketing Science, INFORMS, vol. 20(1), pages 82-95, August.
- Uri Gneezy & Muriel Niederle & Aldo Rustichini, 2003. "Performance In Competitive Environments: Gender Differences," The Quarterly Journal of Economics, MIT Press, vol. 118(3), pages 1049-1074, August.
- Sanjiv Das & Asís Martínez-Jerez & Peter Tufano, 2005. "eInformation: A Clinical Study of Investor Discussion and Sentiment," Financial Management, Financial Management Association, vol. 34(3), Fall.
- C. E. Bannier, 2004. "Book Reviews," Journal of Economics, Springer, vol. 83(1), pages 98-102, 09.
- R. Boadway, 2004. "Book Reviews," Journal of Economics, Springer, vol. 83(1), pages 95-98, 09.
- Phelps, Joseph E. & Lewis, Regina & Mobilio, Lynne & Perry, David & Raman, Niranjan, 2004. "Viral Marketing or Electronic Word-of-Mouth Advertising: Examining Consumer Responses and Motivations to Pass Along Email," Journal of Advertising Research, Cambridge University Press, vol. 44(04), pages 333-348, December.
- Foster, Andrew D & Rosenzweig, Mark R, 1995.
"Learning by Doing and Learning from Others: Human Capital and Technical Change in Agriculture,"
Journal of Political Economy,
University of Chicago Press, vol. 103(6), pages 1176-1209, December.
- Mark Rosenzweig & Andrew D. Foster, . "Learning by Doing and Learning from Others: Human Capital and Technical Change in Agriculture," Home Pages _068, University of Pennsylvania.
- Birger Wernerfelt, 1994. "On the Function of Sales Assistance," Marketing Science, INFORMS, vol. 13(1), pages 68-82.
- Yin, Chien-Chung, 1998. " Equilibria of Collective Action in Different Distributions of Protest Thresholds," Public Choice, Springer, vol. 97(4), pages 535-67, December.
- Yubo Chen & Jinhong Xie, 2005. "Third-Party Product Review and Firm Marketing Strategy," Marketing Science, INFORMS, vol. 24(2), pages 218-240, February.
- Banerjee, Abhijit V, 1992. "A Simple Model of Herd Behavior," The Quarterly Journal of Economics, MIT Press, vol. 107(3), pages 797-817, August.
- Ho, Jason Y.C. & Dempsey, Melanie, 2010. "Viral marketing: Motivations to forward online content," Journal of Business Research, Elsevier, vol. 63(9-10), pages 1000-1006, September.
- Krishnamurthy, Sandeep & Kucuk, S. Umit, 2009. "Anti-branding on the internet," Journal of Business Research, Elsevier, vol. 62(11), pages 1119-1126, November.
- Wang, Kai-Yu & Ting, I-Hsien & Wu, Hui-Ju, 2013. "Discovering interest groups for marketing in virtual communities: An integrated approach," Journal of Business Research, Elsevier, vol. 66(9), pages 1360-1366.
- Mangold, W. Glynn & Smith, Katherine Taken, 2012. "Selling to Millennials with online reviews," Business Horizons, Elsevier, vol. 55(2), pages 141-153.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
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.