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Handling Hysteresis in a Referral Marketing Campaign with Self-Information. Hints from Epidemics

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  • Deborah Lacitignola

    (Department of Electrical and Information Engineering, University of Cassino and Southern Lazio, Di Biasio Str., I-03043 Cassino, Italy)

Abstract

In this study we show that concept of backward bifurcation, borrowed from epidemics, can be fruitfully exploited to shed light on the mechanism underlying the occurrence of hysteresis in marketing and for the strategic planning of adequate tools for its control. We enrich the model introduced in (Gaurav et al., 2019) with the mechanism of self-information that accounts for information about the product performance basing on consumers’ experience on the recent past. We obtain conditions for which the model exhibits a forward or a backward phenomenology and evaluate the impact of self-information on both these scenarios. Our analysis suggests that, even if hysteretic dynamics in referral campaigns is intimately linked to the mechanism of referrals, an adequate level of self-information and a fairly high level of customer-satisfaction can act as strategic tools to manage hysteresis and allow the campaign to spread in more controllable conditions.

Suggested Citation

  • Deborah Lacitignola, 2021. "Handling Hysteresis in a Referral Marketing Campaign with Self-Information. Hints from Epidemics," Mathematics, MDPI, vol. 9(6), pages 1-17, March.
    • Handle: RePEc:gam:jmathe:v:9:y:2021:i:6:p:680-:d:521985
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    References listed on IDEAS

    as
    1. Krawiec, Adam & Szydłowski, Marek, 2017. "Economic growth cycles driven by investment delay," Economic Modelling, Elsevier, vol. 67(C), pages 175-183.
    2. Lacitignola, Deborah & Diele, Fasma, 2021. "Using awareness to Z-control a SEIR model with overexposure: Insights on Covid-19 pandemic," Chaos, Solitons & Fractals, Elsevier, vol. 150(C).
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    4. Matsumoto, Akio & Chiarella, Carl & Szidarovszky, Ferenc, 2013. "Dynamic monopoly with bounded continuously distributed delay," Chaos, Solitons & Fractals, Elsevier, vol. 47(C), pages 66-72.
    5. Bhattacharya, Saumik & Gaurav, Kumar & Ghosh, Sayantari, 2019. "Viral marketing on social networks: An epidemiological perspective," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 525(C), pages 478-490.
    6. Evgeny KRYUKOV & Vladislav MALGIN & Irina MALGINA, 2014. "The Influence Of Hysteresis In Consumer’S Behaviour For Premium Price Evaluation," Management and Marketing Journal, University of Craiova, Faculty of Economics and Business Administration, vol. 0(2), pages 205-218, November.
    7. Lacitignola, Deborah & Saccomandi, Giuseppe, 2021. "Managing awareness can avoid hysteresis in disease spread: an application to coronavirus Covid-19," Chaos, Solitons & Fractals, Elsevier, vol. 144(C).
    Full references (including those not matched with items on IDEAS)

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