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The Firm's Management of Social Interactions

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Author Info

  • David Godes
  • Dina Mayzlin
  • Yubo Chen
  • Sanjiv Das
  • Chrysanthos Dellarocas
  • Bruce Pfeiffer
  • Barak Libai
  • Subrata Sen
  • Mengze Shi
  • Peeter Verlegh

Abstract

Consumer 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

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Bibliographic Info

Article provided by Springer in its journal Marketing Letters.

Volume (Year): 16 (2005)
Issue (Month): 3 (December)
Pages: 415-428

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Handle: RePEc:kap:mktlet:v:16:y:2005:i:3:p:415-428

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Web page: http://www.springerlink.com/link.asp?id=100312

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  9. 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.
  10. Yubo Chen & Jinhong Xie, 2005. "Third-Party Product Review and Firm Marketing Strategy," Marketing Science, INFORMS, vol. 24(2), pages 218-240, February.
  11. 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.
  12. Yin, Chien-Chung, 1998. " Equilibria of Collective Action in Different Distributions of Protest Thresholds," Public Choice, Springer, vol. 97(4), pages 535-67, December.
  13. 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.
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Cited by:
  1. Julianne Treme & Zoe VanDerPloeg, 2014. "The Twitter Effect: Social Media Usage as a Contributor to Movie Success," Economics Bulletin, AccessEcon, vol. 34(2), pages 793-809.
  2. 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.
  3. 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.
  4. 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.
  5. Krishnamurthy, Sandeep & Kucuk, S. Umit, 2009. "Anti-branding on the internet," Journal of Business Research, Elsevier, vol. 62(11), pages 1119-1126, November.
  6. Mangold, W. Glynn & Smith, Katherine Taken, 2012. "Selling to Millennials with online reviews," Business Horizons, Elsevier, vol. 55(2), pages 141-153.

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