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Proximity in consumer network and company new products decisions

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  • Ma, Yonghong
  • Zhao, Zhihua

Abstract

This paper examines the effects of proximity in the consumer network structure on the diffusion of firms' new products. We find that the average path length of network on new products diffusion is unrelated to consumer preferences. The average path length of consumer network decreases the efficiency of new product diffusion. But under the similar preferences of consumers, the trend of changes of consumers network average degrees and network rewiring probability are the same as the new products diffusion efficiency, and the results will be opposite under the differentiation preferences of consumers.

Suggested Citation

  • Ma, Yonghong & Zhao, Zhihua, 2024. "Proximity in consumer network and company new products decisions," Finance Research Letters, Elsevier, vol. 59(C).
    • Handle: RePEc:eee:finlet:v:59:y:2024:i:c:s1544612323011509
    DOI: 10.1016/j.frl.2023.104778
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    References listed on IDEAS

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    1. Christopher J. Easingwood & Vijay Mahajan & Eitan Muller, 1983. "A Nonuniform Influence Innovation Diffusion Model of New Product Acceptance," Marketing Science, INFORMS, vol. 2(3), pages 273-295.
    2. Gavious, Ilanit & Hirsh, Nimrod & Kaufman, Dan, 2015. "Innovation in pyramidal ownership structures," Finance Research Letters, Elsevier, vol. 13(C), pages 188-195.
    3. Elmar Kiesling & Markus Günther & Christian Stummer & Lea Wakolbinger, 2012. "Agent-based simulation of innovation diffusion: a review," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 20(2), pages 183-230, June.
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