Studying Paths of Participation in Viral Diffusion Process

Authors propose a conceptual model of participation in viral diffusion process composed of four stages: awareness, infection, engagement and action. To verify the model it has been applied and studied in the virtual social chat environment settings. The study investigates the behavioral paths of actions that reflect the stages of participation in the diffusion and presents shortcuts, that lead to the final action, i.e. the attendance in a virtual event. The results show that the participation in each stage of the process increases the probability of reaching the final action. Nevertheless, the majority of users involved in the virtual event did not go through each stage of the process but followed the shortcuts. That suggests that the viral diffusion process is not necessarily a linear sequence of human actions but rather a dynamic system.Comment: In proceedings of the 4th International Conference on Social Informatics, SocInfo 201

Friends with Benefits: Social Coupons as a Strategy to Enhance Customers’ Social Empowerment

Businesses often seek to leverage customers’ social networks to acquire new customers and stimulate word-of-mouth recommendations. While customers make brand recommendations for various reasons (e.g., incentives, reputation enhancement), they are also motivated by a desire for social empowerment—to feel an impact on others. In several multi-method studies, we show that facilitating sharing of social coupons (i.e., coupon sets that include one for self-use and one to be shared) is a unique marketing strategy that facilitates social empowerment. Firms benefit from social coupons because customers who share spend more and report greater purchase intentions than those who do not. Furthermore, we demonstrate that social coupons are most effective when the sharer’s brand relationship is new versus established. For customers with an established relationship, sharing with a receiver who also has an established relationship maximizes potential impact. Together, these studies connect social empowerment to relationship marketing and provide guidance to managers targeting social coupons

Consumer Complaints and Company Market Value

Consumer complaints affect company market value and common sense suggests that a negative impact is expected. However, do complaints always negatively impact company market value? We hypothesize in this study that complaints may have a non-linear effect on market value. Positive (e.g. avoiding high costs to solve complaints) and negative (e.g. speedy and intense diffusion) tradeoffs may occur given the level of complaints. To test our non-linear hypothesis, a panel data was collected from cell phone service providers from 2005 to 2013. The results supported our tradeoff rationale. Low levels of complaints allow for companies to increase market value, while high levels of complaints cause increasing harm to market value. The sample, model and period considered in this study, indicates a level of 0.49 complaints per thousand consumers as the threshold for a shift in tradeoffs. The effects on market value become increasingly negative when trying to make reductions to move below this level, due to negative tradeoffs