Opinion leaders, influence activities and leadership rents

Konsumentenbeeinflussung und die Konsumentenrenten von Meinungsführern bei Produktinnovationen

Kai Konrad

Discussion Papers, Research Unit: Market Processes and Governance from WZB Berlin Social Science Center

Abstract: Consumers may observe previous consumers’ choices. They may follow their choices if they think these consumers are better informed. In turn, firms may concentrate on influencing the early consumers. This, in turn, changes the nature of early consumers’ choice behavior as a signal for other consumers. In this paper, I show that firms’ influence activities need not distort earlier consumers’ decisions, but may reduce the informative value of these decisions for other consumers if influence activities are noisy or if some firms have deep pockets and others are liquidity constrained.

Keywords: Opinion leaders; influence activities; promotional competition; leadership; deep pockets; liquidity constraints (search for similar items in EconPapers)
JEL-codes: D43 D72 L15 (search for similar items in EconPapers)
Date: 2003
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:wzbmpg:spii200329

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