Name
Abstract | ||
|---|---|---|
Accounting for social network effects in marketing strategies has become an important issue. Taking a step back, we seek to incorporate and analyze social network effects on new product development and then propose a model to engineer product diffusion over a social network. We build upon the share-of-choice (SOC) problem, which is a strategic combinatorial optimization problem used commonly as one of the methods to analyze conjoint analysis data by marketers in order to identify a product with largest market share, and show how to incorporate social network effects in the SOC problem. We construct a genetic algorithm to solve this computationally challenging (NP-Hard) problem and show that ignoring social network effects in the design phase results in a significantly lower market share for a product. In this setting, we introduce the secondary operational problem of determining the least expensive way of influencing individuals and strengthening product diffusion over a social network. This secondary problem is of independent interest, as it addresses contagion models and the issue of intervening in diffusion over a social network, which are of significant interest in marketing and epidemiological settings. |
Year | DOI | Venue |
|---|---|---|
2017 | 10.1111/deci.12246 | DECISION SCIENCES |
Keywords | Field | DocType |
Genetic Algorithm, Marketing, Optimization, Peer Influence, Product Design, Social Networks | Organizational network analysis,Conjoint analysis,Social network,Computer science,Operational Problem,Product design,Market share,Genetic algorithm,Operations management,Management science,New product development | Journal |
Volume | Issue | ISSN |
48 | 6 | 0011-7315 |
Citations | PageRank | References |
4 | 0.38 | 12 |
Authors | ||
2 | ||
Name | Order | Citations | PageRank |
|---|---|---|---|
| Dilek Gunnec | 1 | 29 | 3.83 |
| S. Raghavan | 2 | 216 | 16.30 |