Social Networks and New Product Choice

Timothy J. Richards, William J. Allender and Stephen Hamilton

No 124762, 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington from Agricultural and Applied Economics Association

Abstract: Influential individuals in a social network environment are important in shaping preferences for new products. In this study, we adopt an incentive compatible choice-based conjoint analysis approach to generate data on the introduction of a new ice cream product. We use spatial econometric methods to determine how individuals are likely to change their preferences when exposed to the choices of other members in their social network. We find evidence that agents look to others for guidance in their preference for subjective or taste-specific parameters, but rely on own preferences for objectively measured attributes such as price. We also use spatial methods to determine which network-member is the most influential. We find that the most connected member is not necessarily the most influential, and that influence can be determined econometrically.

Keywords: Marketing; Production Economics; Public Economics; Research Methods/Statistical Methods (search for similar items in EconPapers)
Pages: 39
Date: 2012-06-03
New Economics Papers: this item is included in nep-dcm, nep-net and nep-ure
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Journal Article: Social Networks and New Product Choice (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea12:124762

DOI: 10.22004/ag.econ.124762

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