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How does information competition affect new product diffusion? Insights from computational experiments

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  • Xiao, Yu
  • Liu, Liangliang

Abstract

This study conducts extensive computational experiments to analyze the effects of two factors governing information competition on diffusion outcomes and compares the performance of a decision rule (DR)-inspired seeding strategy with several traditional seeding strategies. The results show that as the probability of posting original information increases, the net present value (NPV) of diffusion shows an inverted U-shaped trend, as does the ratio of the NPV of the seeding strategy to that of no seeding strategy (NPVR). Second, as the average number of reposts per consumer increases, the NPV and NPVR for seeding strategies increase, but the growth rate decreases. Finally, DR strategies outperform traditional strategies. Based on these insights, we offer suggestions for social marketing campaigns that focus on selecting an appropriate information environment.

Suggested Citation

  • Xiao, Yu & Liu, Liangliang, 2024. "How does information competition affect new product diffusion? Insights from computational experiments," Journal of Business Research, Elsevier, vol. 183(C).
    • Handle: RePEc:eee:jbrese:v:183:y:2024:i:c:s0148296324003734
    DOI: 10.1016/j.jbusres.2024.114869
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