Customer social network affects marketing strategy: A simulation analysis based on competitive diffusion model

Rui Hou, Jiawen Wu and Helen S. Du

Physica A: Statistical Mechanics and its Applications, 2017, vol. 469, issue C, 644-653

Abstract: To explain the competition phenomenon and results between QQ and MSN (China) in the Chinese instant messaging software market, this paper developed a new population competition model based on customer social network. The simulation results show that the firm whose product with greater network externality effect will gain more market share than its rival when the same marketing strategy is used. The firm with the advantage of time, derived from the initial scale effect will become more competitive than its rival when facing a group of common penguin customers within a social network, verifying the winner-take-all phenomenon in this case.

Keywords: Customer social network; Marketing strategy; Competitive diffusion; Population competitive model (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:469:y:2017:i:c:p:644-653

DOI: 10.1016/j.physa.2016.11.110

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