Modeling correlated effect and random effect of advertising and word-of-mouth on product diffusion

Research output: Chapters, Conference Papers, Creative and Literary Works (RGC: 12, 32, 41, 45)32_Refereed conference paper (with ISBN/ISSN)peer-review

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Author(s)

Detail(s)

Original languageEnglish
Title of host publicationProceedings of the 48th Annual Hawaii International Conference on System Sciences, HICSS 2015
PublisherIEEE Computer Society
Pages3374-3383
Volume2015-March
ISBN (Print)9781479973675
Publication statusPublished - 26 Mar 2015
Externally publishedYes

Publication series

NameProceedings of the Annual Hawaii International Conference on System Sciences
Volume2015-March
ISSN (Print)1530-1605

Conference

Title48th Annual Hawaii International Conference on System Sciences, HICSS 2015
PlaceUnited States
CityKauai
Period5 - 8 January 2015

Abstract

We develop a non-homogeneous Poisson model to study how the relationship between advertising and WOM and the occurrence of unexpected events affect product diffusion. For correlated effect, we generate parameters of advertising and WOM with given correlation by Copula method. For random effect, we use a Markov chain to modulate correlation between two parameters as well as distributions of two parameters. Numerical studies show that correlation between advertising and WOM speeds up diffusion process, but when considering a reasonable level within substitution or complement, managers should balance between scale of diffusion and speed of diffusion. Also, when random effect is neutral, complementary relationship creates more adoptions as unexpected events occur more frequently. Consequently, managers might be able to use correlation wisely to hedge from uncertainties.

Bibliographic Note

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Citation Format(s)

Modeling correlated effect and random effect of advertising and word-of-mouth on product diffusion. / Cenying, Yang; Cheng, Zhang.

Proceedings of the 48th Annual Hawaii International Conference on System Sciences, HICSS 2015. Vol. 2015-March IEEE Computer Society, 2015. p. 3374-3383 7070222 (Proceedings of the Annual Hawaii International Conference on System Sciences; Vol. 2015-March).

Research output: Chapters, Conference Papers, Creative and Literary Works (RGC: 12, 32, 41, 45)32_Refereed conference paper (with ISBN/ISSN)peer-review