Introduction
The availability of new communication tools has contributed to change in how people interconnect and shape social groups. Specifically , the internet is increasingly becoming a channel in which individuals exchange opinions about products and services. For marketers, such consumer exchanges through active communication present a new opportunity to strengthen their relationships with consumers . Moreover, growing number of researchers argue that a social setting plays an increasingly important role in forming consumer decision-making . Because of the social meaning attached to product consumption in many instances, consumers tend to purchase a product to attain or reaffirm an identity in a particular social group. Over the years, firms have developed a number of ways to engage consumers in their marketing communication process not only as information receivers, but as information creators. According to forrester research, over 25% of firms offer their customers an opportunity to rate products or services and write reviews on their websites.
Prior literature suggests that online recommendations influence individuals’ purchase decisions. Individual opinions on online group , were found to create stronger interest from potential buyers then typical marketing messages on corporate web pages. Individuals typically evaluate other individual’ opinions as more trustworthy than the same information from human firm-related experts. Online groups allow participants to continually express and access others’ opinions. As a result, online groups provide a highly accessible and efficient source for evaluating and changing one’s own thoughts and actions in light of input from socially relevant peers within a community. Srinivasan et al. 2002 report that once firms successfully entice consumers to participate in the content of their websites by allowing individuals to post their opinions or by providing discussion groups and other varieties of communication tools, the increased consumer activities on website results in an increased website loyalty and an increased revenue. Along with increased utilization of the internet for product information and support, there has also been increased concern regarding the accuracy of product-related online information sources. Many online forums are opened to strategic manipulation by those who have interests in promoting or defaming . firms post positive messages about their own products or services, use the services of advertising agencies to engage in promotional chat on their behalf ,
and even offer prizes to consumers who post favorable comments.
Prior research on social learning also indicates that interpersonal exchanges and communication are profoundly influenced by cultural values of individuals . though researchers have identified several factors, little is known about how interpersonal exchanges and communications contribute to consumer preferences in different countries. This is a gap in the international marketing literature since it has long been accepted that personal exchanges play a key role in product adoption and dissemination. The lack of research may be due to the fact that gathering data is not easy, as information is usually exchanged in private conversation , making direct observation difficult. In addition, personal exchange processes are complex in nature. Although the large scale of the system allows the emergence of patterns, which in turn allows one to determine the underlying factors that affect consumer preferences inspired by personal exchanges, it is hard to predict empirically. Therefore, determining how different interpersonal exchanges among representatives of various national groups are is one of the most important prerequisites for successful emergence of product demand in online groups. Such research will help make sure that firms’ marketing strategies and decisions are consistent with the consumers’ values, perceptions, preferred styles of communication, and learning styles , which are shaped by particular cultural contexts.
This study presents theoretical arguments and offers a computer simulation model to explore how social exchange processes and firms’ product promotion strategies affect the evolution of demand within groups in different cultural contexts. We consider the implications of firms participating in online groups(i.e. acting as peers in online exchanges of information and opinions) in attempts to shift other participants’ preferences toward a favorable view of their products. We identity key variables affecting the diffusion of product preferences and assess the effectiveness, under distinct conditions, of various influence strategies employed by firms. To the extent that online groups present accelerated versions of the dynamics of other social groups , our arguments and model can inform firm’ strategies in other social setting.
The following section of the study provides a theoretical background for understanding online groups in light of interpersonal exchange that shape preferences. We then offer an agent-based simulation model that highlights some key parameters and future directions relevant to choosing certain strategies for engaging online groups, where the strategies of interest involve allocating advocates across multiple groups to promote a firm’s product. Finally , the chapter concludes with a discussion, limitations and directions for future research.
Introduction
The availability of new communication tools has contributed to change in how people interconnect and shape social groups. Specifically , the internet is increasingly becoming a channel in which individuals exchange opinions about products and services. For marketers, such consumer exchanges through active communication present a new opportunity to strengthen their relationships with consumers . Moreover, growing number of researchers argue that a social setting plays an increasingly important role in forming consumer decision-making . Because of the social meaning attached to product consumption in many instances, consumers tend to purchase a product to attain or reaffirm an identity in a particular social group. Over the years, firms have developed a number of ways to engage consumers in their marketing communication process not only as information receivers, but as information creators. According to forrester research, over 25% of firms offer their customers an opportunity to rate products or services and write reviews on their websites.
Prior literature suggests that online recommendations influence individuals’ purchase decisions. Individual opinions on online group , were found to create stronger interest from potential buyers then typical marketing messages on corporate web pages. Individuals typically evaluate other individual’ opinions as more trustworthy than the same information from human firm-related experts. Online groups allow participants to continually express and access others’ opinions. As a result, online groups provide a highly accessible and efficient source for evaluating and changing one’s own thoughts and actions in light of input from socially relevant peers within a community. Srinivasan et al. 2002 report that once firms successfully entice consumers to participate in the content of their websites by allowing individuals to post their opinions or by providing discussion groups and other varieties of communication tools, the increased consumer activities on website results in an increased website loyalty and an increased revenue. Along with increased utilization of the internet for product information and support, there has also been increased concern regarding the accuracy of product-related online information sources. Many online forums are opened to strategic manipulation by those who have interests in promoting or defaming . firms post positive messages about their own products or services, use the services of advertising agencies to engage in promotional chat on their behalf ,
and even offer prizes to consumers who post favorable comments.
Prior research on social learning also indicates that interpersonal exchanges and communication are profoundly influenced by cultural values of individuals . though researchers have identified several factors, little is known about how interpersonal exchanges and communications contribute to consumer preferences in different countries. This is a gap in the international marketing literature since it has long been accepted that personal exchanges play a key role in product adoption and dissemination. The lack of research may be due to the fact that gathering data is not easy, as information is usually exchanged in private conversation , making direct observation difficult. In addition, personal exchange processes are complex in nature. Although the large scale of the system allows the emergence of patterns, which in turn allows one to determine the underlying factors that affect consumer preferences inspired by personal exchanges, it is hard to predict empirically. Therefore, determining how different interpersonal exchanges among representatives of various national groups are is one of the most important prerequisites for successful emergence of product demand in online groups. Such research will help make sure that firms’ marketing strategies and decisions are consistent with the consumers’ values, perceptions, preferred styles of communication, and learning styles , which are shaped by particular cultural contexts.
This study presents theoretical arguments and offers a computer simulation model to explore how social exchange processes and firms’ product promotion strategies affect the evolution of demand within groups in different cultural contexts. We consider the implications of firms participating in online groups(i.e. acting as peers in online exchanges of information and opinions) in attempts to shift other participants’ preferences toward a favorable view of their products. We identity key variables affecting the diffusion of product preferences and assess the effectiveness, under distinct conditions, of various influence strategies employed by firms. To the extent that online groups present accelerated versions of the dynamics of other social groups , our arguments and model can inform firm’ strategies in other social setting.
The following section of the study provides a theoretical background for understanding online groups in light of interpersonal exchange that shape preferences. We then offer an agent-based simulation model that highlights some key parameters and future directions relevant to choosing certain strategies for engaging online groups, where the strategies of interest involve allocating advocates across multiple groups to promote a firm’s product. Finally , the chapter concludes with a discussion, limitations and directions for future research.
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