Correlation between Word-of-Mouth Effects and New Media: Simulations of Japanese Media Environment Using Artificial Neural Network

Correlation between Word-of-Mouth Effects and New Media This study tries to discover new correlation patterns between word-of-mouth generation and other media effects through a computer simulation model by artificial neural network. First, authors conducted an empirical consumer survey in Japan regarding purchase behaviors of compact automotives, an example of typical consumption behaviors. Authors focused on each consumer’s media contact including conventional mass media, internet media, and communication through dealer activities. Second, based on this survey result, a computer simulation model was built to examine a variety of virtual settings of media environment surrounding current Japanese consumers. In building the model, authors used an artificial neural network system and manipulated each medium’s parameter. By observing the simulation results, authors tried to establish a new general pattern of media usages from the viewpoint of marketing practitioners to accelerate word-of-mouth effects. Today, although marketers notice that the word-of-mouth effects can have a great power in building an effective marketing strategy, they do not sufficiently understand collaborations between conventional marketing communication media and consumer-generated-media such as blogs and word-of-mouth activity. This experimental simulation study provides some basic hints to understand this collaboration